Strategy drivers
Russia has the world’s fourth highest demand for electricity, and the country is a growth market for electricity production. The scale of the power sector reform implemented in the country in the 2000s was unprecedented and liberalised the wholesale electricity markets. The reform and the restructuring in the sector are continuing. Fortum is well positioned in this market.
Short-term measures
Fortum is pursuing solid earnings growth and a significant improvement in profitability. OAO Fortum’s sizable investment programme, which increases the company’s electricity production capacity by 85%, plays a key role in terms of profit development. Profit is expected to grow as new capacity is commissioned and the efficiency of existing businesses is improved. Along with its own businesses, it is important for Fortum to develop its ownership in TGC-1 in north-western Russia.
Long-term measures
In the long-term, Russia will have a bigger relative role in Fortum’s business than it does currently. The integrating Russian and EU power markets and the restructuring taking place in power and heat production are expected to offer growth opportunities for Fortum.