In addition, the company will need to buy 43 generators, and also 18 transformers with a total capacity of 3.5GW for its hydro schemes.

The Russian market will also see investment needed for 25 turbines and 25 generators for the smaller hydro projects being developed by the territorial generation companies also controlled by RAO UES.

The investment plan for Hydro OGK updates the previous figures, which said 4.93GW would be installed over 2006-10. The installed capacity in 2006 was 56MW and the level of investment is escalating with 696MW this year, 477MW next year and then 1548MW and 2152MW in 2009 and 2010, respectively.

Hydro OGK is developing a number of schemes, most significantly the 3GW Boguchanskaya on the Angara river in Siberia. The scheme is being developed as part of major industrial partnership with aluminium producer Rusal.

The company has also signed up to a comparable industrial partnership which will also see a cascade development on the Timpton river in eastern Siberia.

In terms of the relatively smaller hydro schemes being developed by the territorial generation companies, the proposed capacity to be installed this year is 110MW and 161MW next year. In 2009 and 2010 the proposed investment plan was to install 96MW and 124MW capacity, respectively.

The entire Russian market requires a total investment of 34.2GW, said RAO UES.