Russia Thermal Power Market Size (2024 - 2029)

Russia Thermal Power Market Size Summary

The Russia thermal power market is poised for moderate growth, driven by the country's substantial natural gas reserves and the development of new coal power plants. Despite the initial setbacks caused by the COVID-19 pandemic, the market is on a path to recover to pre-pandemic levels. However, the ongoing Russia-Ukraine conflict has led to international sanctions, prompting several companies to exit the market, which poses challenges to the sector's expansion. The reliance on natural gas remains significant due to its cost-effectiveness and availability, although the conflict has disrupted some supply chains and affected the quality of domestic coal, necessitating adjustments in power plant operations.

The market landscape is moderately consolidated, with key players such as Unipro PJSC, Inter RAO YEES PAO, SUEK JSC, PJSC Gazprom, and Rosatom State Atomic Energy Corporation playing pivotal roles. The geopolitical tensions have also spurred a shift towards renewable energy sources, as evidenced by the increase in Russia's installed renewable capacity. Despite these challenges, opportunities exist in clean coal technology and the construction of natural gas-fired power plants, which could bolster the market's growth trajectory. Nonetheless, the impact of sanctions on access to Western technology and financing continues to pose hurdles for modernization and expansion efforts within the thermal power sector.