Vladimir Putin said Russia's economy needs a powerful boost, which can be provided by increasing the use of nuclear power, hydro-power, and coal-generated electricity.
"In this area, the Siberian region presents huge opportunities. But an obstacle to transmitting power from Siberia to energy-lacking regions of the country is the poorly-developed inter-industry transmission lines, and their low throughput capacity," he said.
Putin urged for regional energy systems to be inter-connected, and said the construction of direct-current lines from Siberia to the Urals, and on to European Russia, should be considered.
The president said these tasks will require major investments. "A corresponding decision has been made, and we will continue with planned changes in the electric power industry, which we call reforms," he said, adding that both private and state investment is envisaged.
Prime Minister Mikhail Fradkov said earlier that the power industry is hampering Russia's economic development.
"We cannot continue to keep silent over this. The government must help [electricity monopoly UES CEO] Anatoly Chubais resolve problems," the premier said.
Chubais said last month that UES will consider reducing the volume of electricity exports during the coming winter to cover the domestic energy shortfall.
A cold spell that hit Russia last winter put a serious strain on the country's power grid, and rising energy consumption this year created a generating capacity shortfall.
"An extremely difficult situation is currently developing in Russia with the shortfall in power capacity," Chubais said. "Given this situation, we are forced to take measures to make maximum use of existing capacity during the autumn-winter [consumption] peak."
Ukraine's energy ministry proposed in late September helping Russia cover its electric power deficit with the spare capacity of its power plants, particularly in the Krasnodar Territory in southern Russia that borders on Ukraine, in exchange for Russian natural gas.
Russia's power sector has undergone radical changes in recent years aimed at increasing the efficiency of power plants and developing the industry by attracting investment.
