Japan’s Mitsubishi Heavy Industries (MHI) has gained a foothold in Russia’s growing power plant construction market, winning its first order for a gas turbine in the country.

Russian engineering company E4 has placed an order with MHI for an M701F gas turbine to be used at a new combined cycle power plant in the Krasnodar region on the Black Sea coast. The new plant will help to alleviate the tight electricity supply situation in Krasnodar, which is to host the 2014 Winter Olympics.

The 400 MW plant is owned by regional power producer TGK-8, an affiliate of Russian oil firm Lukoil. It will consist of a 701F gas turbine, a steam turbine, a heat recovery boiler and a generator.

Russia’s growing economy is stimulating electricity demand but few new electricity generation facilities have been built in the last 15 years. Many existing plants also require refurbishment and the country is facing electricity shortages in many regions.