Heat Supply in Russia: Current Situation and Problems of Investment Development

Abstract

ABSTRACT This article gives a qualitative and quantitative characterization of the current state of Russia’s heat supply system and analyzes its heat networks, pricing system, three-tiered management structure, and production capacities (the share of cogeneration and the structure of the industry according to type of heat producer). Two investment mechanisms to modernize the centralized heat supply systems are considered: concession agreements and the introduction of price zones based on the “alternative boiler plant” method. The article considers how the production and consumption of thermal energy can be balanced in the system and includes an estimate of the industry’s fuel consumption and financial balance. Changes in the patterns of heat consumption and production within the district heating system are presented. The article concludes by considering the set of problems that must be solved to avoid serious problems in the future.