RDIF and MRIF to partner with Russian Grids in electricity “smart grid” program

Press release, 22.05.2014

St Petersburg, May 22, 2014 - The Russian Direct Investment Fund (RDIF) and Macquarie Russia & CIS Infrastructure Fund (MRIF) signed a memorandum of understanding to develop a “smart grid” program alongside the Russian power transmission and distribution company, JSC Russian Grids. One of the main focuses of the project will be to reduce electricity losses through measures such as updating billing systems. The program to develop “smart grids” will gain strong governmental support and will be the first RDIF project partially funded by the National Welfare Fund (NWF).

The parties will look at ways to introduce smart metering technology across Russia. Similar technology has been widely adopted around the world, significantly improving the efficiency of electricity distribution companies.

The introduction of smart meters in Russia aims to increase the energy efficiency of the electricity distribution grid run by the subsidiary and affiliate companies of JSC Russian Grids and will help to significantly reduce electricity losses.

The initial roll out will likely be piloted across the Kaliningrad, Yaroslavl and Tula regions where figures from the 2011-2012 energy audit showed energy losses could be reduced. If successful, the trial may be replicated in other regions.

Kirill Dmitriev, CEO of RDIF, said:
“One of RDIF’s objectives is to invest in projects which help to improve the efficiency of Russian companies. New investment will help Russian Grids to substantially reduce electricity losses. The deal was structured in a way to invest NWF’s assets in the most protected manner.”

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Russian Direct Investment Fund (RDIF) was established in 2011 to make equity co-investments primarily in Russia alongside reputable international financial and strategic investors. Based in Moscow, RDIF’s management company is a 100% subsidiary of Vnesheconombank. Further information at www.rdif.ru.

Macquarie Russia & CIS Infrastructure Fund is the leading private infrastructure investment fund in Russia/CIS with US$630 million of commitments. MRIF is managed by Macquarie Infrastructure and Real Assets, the world’s largest manager of infrastructure. Additional information is available at www.mirafunds.com

JSC Russian Grids is the largest electricity transmission and distribution grid company in Russia and, the Company believes, one of the largest electricity transmission and distribution grid companies in the world by length of transmission and distribution lines and installed transformer capacity.
The JSC Russian Grids property portfolio comprises interests in 43 joint-stock subsidiaries and affiliates, including interests in 16 interregional and regional distribution grid companies (IDGCs/RDGCs) and Federal Grid Company in Russia. The controlling shareholder is the Government 85.3%.
The total spread of networks of JSC Russian Grids operating subsidiaries exceeds 2.3 million kilometers, 463 thousand substations with transformer capacity about 726 gigavolt-amperes. The staff on the payroll of the Company is 213 thousand top-ranked specialists. Additional information is available at www.rugrids.ru

Smart Grids - technological integration of power grids, consumers and electricity generators into the unified automated system. This will ensure independent real-time monitoring of operation modes at every stage of the electricity generation, transmission and consumption process. On-line feedbacks via the multiple meter system will be used by the smart grids for automatic responding to all changes within the grid by making best decisions to prevent incidents and supply electricity at the most reliable and efficient level.

Media contacts: 
Maria Medvedeva 
Russian Direct Investment Fund 
Director, Media Relations Department 
Tel: +7 495 644 34 14, ext. 2141 
Mobile: +7 964 726 17 73 
E-mail: mm@rdif.ru

Hudson Sandler
Andrew Hayes / Maria Ignatova / Elena Kuza / Charlie Barker
Tel: +44 (0) 20 7796 4133