OGK-3 made the decision in accordance with its development strategy until 2010, which has already been endorsed by the company's board of directors.
The company's operations over that period will aim to raise its market capitalization, make the company more sustainable and ensure increased electricity generation through expansion into energy-hungry regions and promising energy businesses.
Under its investment program, the company will build two modern coal-firing power units, each with a capacity of 225 megawatts, at the Cherepets state district power plant in central Russia, a third coal-firing unit with a capacity of 225 megawatts at the Kharanor state district power plant in Russia's Far East, and two steam and gas units at the South Urals state district plant.
In addition, the company will build a gas pipeline section to the Kostroma state district plant in central Russia to increase cheap electricity generation by 1,000 megawatts and supply electric power to energy-hungry regions like Moscow and the Moscow Region, which experienced a shortage of electricity during the recent cold spell.
The company's investment program will also enable OGK-3 to raise its total output to 9,000 megawatts by 2010 and to 9,500 megawatts in the longer term, despite an obsolete plant being shut down.
OGK-3 was established on the basis of six federal electric power plants supplying electricity to the federal wholesale market. Currently, the company generates 8,497 megawatts or 5% of all electricity generated by the Russian electricity utility Unified Energy System.
OGK-3 also said in a statement it planned to post a net profit of 951 million rubles (about $34 million) for 2005.
