"Starting from 2006, the power deficit in the Moscow energy system is 4,200 MW," Anatoly Kopsov told a conference on Russian power industry.
Kopsov said that during the winter of 2005-2006, power industry workers faced a serious power deficit in Moscow and its region.
"To make up for it, the Moscow power grid received 3,000 MW from outside [from other power plants], power supplies to consumers was cut by 600 MW," he said. "And the Moscow power grid obtained another 600 MW due to an overload of Mosenergo power plants' power units."
Kopsov said that after a May 2005 accident in Moscow and the harsh winter of 2005-2006, "we realized that the situation must be cardinally changed."
The reliability of Moscow's electric grid has been an object of concern since May 2005, when a fire at an outdated substation triggered massive blackouts in the city and the surrounding region.
He said all funds received after an additional issue of shares, due in March 2007, will be sent to implement the first stage of the Moscow power system's development. "For implementation of the next stages, Mosenergo will again need serious investment, and we are ready to work with any investors."
Mosenergo is Russia's largest territorial power generating company, supplying 80% of Moscow's heating requirements and 85% of power demand in the capital and the Moscow Region.
Electricity monopoly Unified Energy System [RTS: EESR], which currently holds a 50.87% stake in Mosenergo, while Gazprom owns 25% of its shares, will retain a controlling stake of 25% plus one share after the additional share issue, according to a board decision, which must be approved at a shareholders' meeting in December.
Kopsov said in October that funds raised from the issue will be used to develop Moscow's energy network, adding that the energy supply system in the area was in need of major improvement.
UES said earlier that Mosenergo's investment projects include the construction of four new gas-vapor power units. The majority of Mosenergo's plants are gas-fueled.
The company has 17 power plants in the region, with electric power capacity of 10,600 MW and heat capacity of 34,200 Gcal/hour.
