Evgeny Lisin

National Research University “Moscow Power Engineering Institute”,

Russian Federation lisinym@mpei.ru

ECONOMIC PROSPECTS AND DEVELOPMENT OF THE POWER INDUSTRY IN RUSSIA

Galina Kurdiukova

National Research University “Moscow Power Engineering Institute”,

Russian Federation kurdiukovagn@mpei.ru

Wadim Strielkowski

Cambridge Judge Business School,

University of Cambridge,

United Kingdom

w.strielkowski@jbs.cam.ac.uk

 Abstract. Our paper analyzes economic prospects and development of power engineering enterprises in Russian Federation. We show that despite the growth in use of renewable energy sources, the increase of organic fuel consumption is observed, and this is one of the key factors of traditional manufacturing efficiency improvement related to energy conversion in the power-plant industry in Russia. Cost forecast for mastering the manufacture of advanced generation equipment by Russian enterprises can yield the price competitiveness of the given type of products. Our results demonstrate that the increase in the share of expenses for research and development by means of mobilization of resources from generation enterprises might result in the considerable technological potential for Russian power-plant industry. We conclude that Russian power industry can achieve a dominant position at the domestic and global markets of power generation technologies provided new resources are secured for its development.

Received: July, 2015

1st Revision: September, 2016

Accepted: December, 2016

DOI: 10.14254/2071-8330.2016/9-3/14

JEL Classification: O13, P28

Keywords: economic development, power industry, technology, competitiveness