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The Ministry Of Energy Of Russia Has Developed A Draft Decree On The Modernization And Construction Of Thermal Generation In Non-Price Zones

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The Russian Ministry of Energy has developed a draft resolution of the Government of the Russian Federation on the modernization and (or) construction of thermal generation in non-price zones of the energy market, which includes the regions of the Far East, Kaliningrad and Arkhangelsk regions, and the Komi Republic. The corresponding project has passed the procedures of public discussion and is sent for approval to the relevant departments.

The document defines payback mechanisms for the modernization and construction of thermal power plants. Projects will be financed through a premium to the price of capacity for both price zones (the European part of Russia, the Urals, Siberia) and non-price zones. The base rate of return for such projects is assumed to be 12.5%, adjusted for OFZs. This approach will optimize the price burden on industrial consumers.

“Modernization and construction of thermal generation in non-price zones of the energy market will allow to update old and worn out equipment of thermal power plants to improve reliability, and also solve the issue of energy supply for the second stage of the Eastern landfill,” Nikolai Shulginov explained.

Currently, the Government has decided on the list of facilities to be modernized and (or) constructed – Khabarovskaya CHPP-4, Artyomovskaya CHPP-2, Yakutskaya GRES-2, Vladivostokskaya CHPP-2, Primorskaya GRES and the expansion of Neryungrinskaya GRES and Partizanskaya GRES.

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