Russia could create a new source of economic growth if it gets its policies on power generation and transmission right, the International Energy Agency said.

The International Energy Agency, which has headquarters in Paris, said in a Wednesday report Russia could develop "new economic growth pillars" that extend beyond the oil and gas sectors by drawing investors in to its aging power generation and transmission systems.

The IEA said Russia's energy sectors are in store for a transformation. Though investments in the oil and gas sector have been considerable, the needs in the power generation sector are "very large."

"Investments and unprecedented technology upgrades are required in the oil and gas upstream sectors; and the very comprehensive and ambitious energy efficiency policy framework that has been developed over past years has so far failed to deliver tangible changes," the report said.

Shifting its export focus for oil and gas to developing economies in Asia, meanwhile, could provide another source of economic growth, the IEA said.

An April report from the World Bank says there's a "confidence crisis" developing in the Russian economy.