GE to create Russian venture to build power plants
U.S. conglomerate General Electric Co (GE.N) will create a joint venture with Russia's state-funded private equity vehicle to build mini power plants across Russia, the parties said on Tuesday.
GE has been active in Russia for more than 20 years, supplying medical equipment to hospitals, signaling systems to the rail network and credit through its GE Money Bank.
The mini power plants are low-power co-generation systems producing up to 25 megawatts that are build independently of the federal power grid and therefore without the need for transmission lines.
Industrial growth is driving greater demand for individual power generation systems in Russia. The project will focus on providing electricity to manufacturing plants and infrastructure projects in the Russian regions.
GE and the Russian Direct Investment Fund said they would sign a memorandum of understanding to create the venture on Friday at an economic forum in St Petersburg.
(Reporting by Megan Davies; editing by Douglas Busvine and Tom Pfeiffer)