OREANDA-NEWS. April 1, 2010. IES is planning to increase investments into peat extraction industry development three times – from 63,1mln Rubles in 2009 to 186,4 Rubles in 2010. As a result peat production will increase by 100 thousand tons.

This was reported by Vyatcheslav Torsunov the Vice-President of IES CJSC in the State Duma. The participants of the discussion considered the issues regarding heat and power production with usage of local types of fuel, such as wood, peat and waste products.

According to Vyatcheslav Torsunov, if in 1991 the Russian Regions extracted 17,5mln tons of peat, by 2009 this factor dropped down to 1,3mln tons. At the same time this resource has a great potential realization of which will provide the diversification of the fuel balance of the country, federal and regional budgets incomes growth, employment rate increase in the regions of peat deposit. 

The example of Kirov region where they annually extract 50% of total volume of Russian peat shows that it can be efficiently used in the power industry. The modern technologies make it possible to increase significantly the efficiency of boilers and reduce the specific emissions of hazardous substances. The Regional government in cooperation with IES Company has worked out a special program on peat extraction development in the region.  As a result peat share in the fuel balance of Kirov CHPP’s of IES-Holding may achieve 29% by 2013, and the total volume of its extraction will increase up to 3mln tons.  

However according to year 2009 results the expenses of heat and power production on the local peat are in average 30% higher, than on coal and gas. “The matter is that the share of the peat itself in the fuel peat expenses structure within the energy production makes only 23%, the rest are transport and handling costs”, V.Torsunov said. “Use of special tariff terms on its transportation to the power plants sites will enable to reduce the heat and power production costs, increase compatibility of this type of fuel and stimulate the development of peat industry in the Russian Federation”, the Vice-President of IES underlined.

IES-Holding (Integrated Energy Systems) is the largest Russian private Company operating in energy and gas distribution sector, established in 2002. The key activities include: generation, energy trading and retail. The Holding’s strategic assets include TGC-5, TGC-6, TGC-7, TGC-9 companies, several regional energy sales companies, GAZEKS company operating in gas distribution and gas supply sector in Russia and the Ukraine. The total installed electric capacity of TGC’s where IES-Holding is a strategic shareholder makes 15767 MW, the heat capacity makes 67799 Gcal/hour. The Holding also incorporates “Vyatkatorf” Closed Joint-Stock company the largest Russian peat production enterprise.