Voith Hydro and RusHydro have signed a contract to establish a 50/50 joint venture company, VolgaHydro LLC, which will operate in the Russian hydropower market and headquartered in the city of Balakovo in the Russian Federation.
Under the terms of the contract, RusHydro will exercise the industrial leadership and Voith Hydro will be responsible for the operational management. Voith Hydro will appoint the chief executive officer and RusHydro will decide on the appointment of the chief financial officer. All decisions over VolgaHydro will be made jointly by RusHydro and Voith Hydro.
With a technical potential of 424 GW of power and only 46 GW installed, the hydropower market in Russia is significant. Besides building new hydropower plants, the JV will focus on extensive modernisations of old hydropower stations. For example, Voith and RusHydro have already begun work on the renewal of the Miatlinskaya and Saratovskaya plants. Voith also carried out for RusHydro modernisation of the technical equipment for the Uglich project.