He made the announcement during the 2015 Eastern Economic Forum which opened in the Russian Far Eastern city of Vladivostok on Thursday.
Tolstoguzov said that the project's feasibility study has already been completed and that the most appropriate variations of the project are currently being selected.
He promised that his company is due to begin its electricity supplies to Rason later this year.
He also said that the cost of the project will depend on solutions concerning electricity networks and electric line voltages, which he said will stand at 110 kilovolts or 220 kilovolts.
"We need to understand how we should interact with North Koreans when it comes to technical regulations pertaining to the payment [for electricity supplies]," he said.
According to Tolstoguzov, the project is divided into several stages. During the first stage, RAO Energy Systems of the East plans to deliver between 15 megawatts and 40 megawatts to Rason before the end of this year.
As for RAO Energy Systems of the East, it is a subsidiary of state-owned Russian hydroelectric giant RusHydro, the world's second-largest electric power producer.
