The Russian energy holding company Inter RAO is reportedly planning to invest 580 million dollars in a gas turbine joint venture with General Electric, which the company announced on October 1, 2020.

Reuters reported that the investment comes at a time when Western gas turbine manufacturers are investing in the country as it plans to modernize a quarter of its thermal power plant capacity.

No Russian company is currently engaged in the production of medium or large capacity gas turbines. The Russian government, however, wants such turbines to be produced locally.

The move opens up new opportunities for Western turbine manufacturers, as demand for such turbines has recently declined on world markets.

According to Inter RAO’s head of strategy Alexey Maslov, the investment in the joint venture will pave the way for the commissioning of production lines in the country. Inter RAO will hold 51 percent of the shares in the joint venture. The joint venture aims to produce 79-MW to 87-MW and 181-MW to 210 MW gas turbines by 2025-2026. In addition, at least 90 percent of the turbines will be produced locally.

Maslov added that demand for such turbines is expected to grow after 2030. Inter RAO is hoping to sell 20-25 of these turbines right away. In addition to GE, Siemens and Italy’s Ansaldo are reportedly developing joint projects with other Russian companies to produce high-capacity gas turbines in the country.