The tasks we solve together!   

 

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OUR HISTORY

AEA – is a flexible instrument for solving actual tasks on power markets

 

At our times, when challenges in the energy sector are always burdened with complicated and very variable issues  because of versatility and inborn complexity of the industry itself as well as its interaction with the market economy, the efficacy of solutions are  based on the  teamwork of specialists in many different areas of knowledge. And they have to be the best ones at their field of expertise.    

In order to produce adequate results while working in a team or on their own these specialists of various profiles need to be well coordianted and to have a thorougly elaborated task assignment.  That is true also for the correct interpretation of resulting solutions  within certain task and time frames.  All that is exactly our function as a company – to pinpoint a problem, to set up a team for finding necessary effective solutions and to make their results  valuable in general and applicable for concreate cases.  That is what we do, the partners and staff of the AEA. 

 

The company was created in the end of 2011 by the founder and president of the energy hoding KRES Alliance Group from the the Far North of  Russia  Alexey Presnov and by the well known expert of the power industry the ex-vice president of the famous  "Renova" company, the ex-first vice governor of the Novosibirsk region and until recently the director of Association "Power Consumers Community"  Vasily Kiselev. 
Both  parnters have a long  professional experience in the power industry. Alexey Presnov started his carrier as a field engineer back in 80ties after graduation from the famous Moscow Power Engineering Institute (University). In 90ties he had worked and studied in the USA. In the mid of 2000s he had taken an active part in the power industry reform at the regional level and worked on top positions in a private energy holding.  Vasily Kiselev serviced at top positions in the political and economic management in the one of the largest region of Russian Siberia in 90ties and since the beginning of Russian power sector reforms in early 2000s was deeply plunged in a streamline of the industry transformation as a top manager of big private corporations – large power consumers in the nonferrous industry. They both had actively participated in the very complex and exhaustive but exciting process of the national power market creation and its practical implementaion in Russia. 

 

 

The Agency setup in 2011-2012 was a logical continuation of their previous activities and mutual cooperation. As its first noticeable project the Agency has developed the "Conception of boosting  efficacy of heat supply in Murmansk region". The demanding and very acute  problems with heat supply in that northern region were directly related to the electricity  and heat markets interaction flaws which allowed to set regulated tariffs in some cases and promote free prices in the others, creating disbalances and distortions, nonpayments and financial calamities. It was a work of the team made of specialists from the several famous institutions such as High School of Economics, Moscow Power Engineering Institute, KRES Alliance Group, but the general ideology and coordination was led by our Agency and Alexey Presnov in the first place. 

 

Back in 2012 the Agency had issued a serial of articles on the problems of the expected electricity market design overhaul as its the initial model, created in early 2000s, had demonstrated obvious inconsistencies. We had also taken active part in the industry-wide discussion over strategies for grid development in Russia, and our position was among a very few those which critisized  creation of the global grid monoploly "Rosseti" in a large and a very versatile country all along with the corresponding governmental general course on elimination of independent   businesses in the distribution network sector.  

 

Further on the activity of the company was concentrated on the cooperation with a number of independent consultancies in Scandinavia, in particular at the studies on compatibility of power markets in Russia and the Nord Pool zone. For the last years, as the current model of the Russian market has been formed in its ultimate shape and the numerous drawbacks and pitfalls have become obvious to any unbiased observers, the Agency had deep dived into a search of the ways to reform the Russian market model taking into account the best practices from the international experience. We had been deeply submerged into researches of various power markets models abroad and consequenty had prepared appropriate proposals.

 

Unfortunately, the situation in Russia  has been developing to a completely opposite direction in recent years, sober and independed voices in the expert community remained unheard. The competition of any kind in general as well as independent actors' ideas are not welcomed in the current Russia's economic life as a whole and in the power sector in particular.  The Russian power market now stagnates and in fact it wanes and withers as a real market every year, although it still keeps the external market forms intact. This Russian model is inherently not capable for steady robust development attracting new technologies and market investments, doomed for permanent  stagnation and out of market prop-ups. The problem of this model is clear – it is not truly competitive, mostly imitative, rigged and rigid for alterations.  We have spoken up many times on all those issues and you may get familiar with our position and thoughts in our 

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(Russian).

At this time Alexey Presnov is the managing partner of the Agency (at the photo).

However, despite of all negative tendencies world wide the electricity markets demostrate their abilities for resilence and developing in new forms and incarnations. And in the first place this is about decentralized or distributed energy resources (DERs) which steadily, inch by inch, conquer the market space and environment over traditional centralized power systems making the latter adapting and altering themselves in order to"stay in business". All that is happening on our eyes and there are multiple factors underpinning this process with technological transformation here as a locomotive of the process. It allows consumers to actively participate in the power supply and consumption equilibrium, to interact with power systems and to become their integral part. The ESG agenda is another major driver making the markets rapidly change their nature and forms. The key question to all  who have something to do with markets designing and developing is how to stay in touch with all these changes, how to match them and to forecast them. This is constantly in the focus of our attention, we do our best to keep up with all these processes and thoroughly watch our expert's network fit these criterias.  In other words we must always be ready to get together a strong team for any task to solve on the electricity markets in a best possible manner. 

And that is what we are going to bring along to the our new area of business activity – Kazakhstan and other Central Asian countries.