South Korean companies are expected to play an active role in Russia's multi-billion dollar power grid upgrade programs, officials said Sunday.
South Korean Knowledge Economy Minister Choi Kyung-hwan and Russian Energy Minister Sergei Shmatko outlined a new area of cooperation in Russia's program to improve its outdated power grids in a joint statement issued after a meeting in Moscow, they said.
The "joint statement" is expected to open the door for South Korean companies to check Russia's old power lines and make recommendations to improve them, a step that may lead to future deals, said the Knowledge Economy Ministry officials.
According to South Korean officials, Russia wants to close down and replace around 30 percent of its power lines after 2010, with Moscow set to spend about an average US$280 million on the project every year. By 2030, up to $7 billion may be used for the project, they said.
"The latest agreement also calls for the setting up of a sub-working group in mid July to discuss incentives that Russia can give to South Korean companies taking part in the grid upgrade programs," a ministry official said.
He said that Moscow wants South Korean companies to provide power systems and lines to ensure there would be no electricity problems during the 2014 Sochi Winter Olympics.
During the Choi-Shmatko meeting, the two sides also agreed to closely cooperate in the setting up of "smart grids" that can reduce energy use.
Smart grids allows for real-time monitoring of electricity output and demand. The system is designed to help incorporate renewable energy into the main power grid that can fuel development of solar, wind and other types of clean energy resources.
Seoul unveiled a plan earlier this year to establish a nationwide smart grid system over the next two decades at a total cost of over 27 trillion won (US$22.7 billion).
Several South Korean companies, including LS Industrial System Co. Ls Cable, Hyosung and Taihan Electrical Wire Co. sent delegates to Moscow in a show of their interest in Russia's power grid improvement programs, according to the officials.
Other topics discussed at the Choi-Shmatko meeting included joint efforts by the two countries to cooperate in developing crude oil and gas fields in third countries, they said.
The two countries also agreed to expand their "action plan" signed last year for cooperation in the fields of oil, gas, electricity, raw minerals, renewable energy and nuclear sectors, the officials said.
//Yonhap
South Korean Knowledge Economy Minister Choi Kyung-hwan and Russian Energy Minister Sergei Shmatko outlined a new area of cooperation in Russia's program to improve its outdated power grids in a joint statement issued after a meeting in Moscow, they said.
The "joint statement" is expected to open the door for South Korean companies to check Russia's old power lines and make recommendations to improve them, a step that may lead to future deals, said the Knowledge Economy Ministry officials.
According to South Korean officials, Russia wants to close down and replace around 30 percent of its power lines after 2010, with Moscow set to spend about an average US$280 million on the project every year. By 2030, up to $7 billion may be used for the project, they said.
"The latest agreement also calls for the setting up of a sub-working group in mid July to discuss incentives that Russia can give to South Korean companies taking part in the grid upgrade programs," a ministry official said.
He said that Moscow wants South Korean companies to provide power systems and lines to ensure there would be no electricity problems during the 2014 Sochi Winter Olympics.
During the Choi-Shmatko meeting, the two sides also agreed to closely cooperate in the setting up of "smart grids" that can reduce energy use.
Smart grids allows for real-time monitoring of electricity output and demand. The system is designed to help incorporate renewable energy into the main power grid that can fuel development of solar, wind and other types of clean energy resources.
Seoul unveiled a plan earlier this year to establish a nationwide smart grid system over the next two decades at a total cost of over 27 trillion won (US$22.7 billion).
Several South Korean companies, including LS Industrial System Co. Ls Cable, Hyosung and Taihan Electrical Wire Co. sent delegates to Moscow in a show of their interest in Russia's power grid improvement programs, according to the officials.
Other topics discussed at the Choi-Shmatko meeting included joint efforts by the two countries to cooperate in developing crude oil and gas fields in third countries, they said.
The two countries also agreed to expand their "action plan" signed last year for cooperation in the fields of oil, gas, electricity, raw minerals, renewable energy and nuclear sectors, the officials said.
//Yonhap
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