This paper aims at analysis of drivers, features and achievements of the large-scale reform of the Russian electric power sector accomplished during the period 1998–2008. The analysis includes main tasks completed at each phase of the reform – starting from preliminary phase devoted to improving operational efficiency of subsidiaries of the Holding company RAOUES of Russia (the first phase) to competitive restructuring of the Holding company and starting the mechanism of wholesale electricity and capacity markets (the second phase). The major unresolved issues of the reform were analyzed, as well as problems of maintaining dynamism and consistency in the further steps of the reform implementation and partial deterioration of the reform environment following the abolishment of the RAO UES of Russia – the Electricity reform Headquarters in the country were pointed out.

We noted the importance of further steps to complete the electricity reform in Russia based on clear long-term vision of the technological development of the electricity sector, taking into account modern tendencies in transition towards intelligent energy systems. These tendencies may lead to the profound changes in the electricity market structure and rules, as well as to the new paradigm for development of the electricity sector.

Important recommendations on mechanisms of transition from the current state of the electric power sector towards its future vision were formulated, as part of a holistic project approach.