Long-term Program for Replacement of Retiring Capacities

The Long-term Program for Replacement of Retiring Capacities and Power System Development in the Far East drafted by RusHydro’s management aims to ensure a stable and robust power supply to existing and prospective customers in the Far Eastern Federal District by formulating solutions to develop the region’s energy infrastructure as necessary.

The Program The Long-term Program for Replacement of Retiring Capacities was reviewed at RusHydro’s Board of Directors meeting on October 25, 2018 (Minutes No. 279 of October 26, 2018). provides a foundation for developing the electrical power industry in the Russian Far East.

Its key objectives include:

  • drafting capacity retirement and replacement proposals (including possible alternatives);
  • drafting proposals to satisfy the prospective demand and develop the energy infrastructure;
  • identifying the best courses of action in respect of the proposed initiatives; and
  • assessing the economic effect of the Program.

The Program includes projects to build or upgrade energy facilities in the Russian Far East with a view to replacing 1.6 GW of retiring capacities and satisfy the prospective demand from regional energy systems:

  • Chaunskaya CHPP to be decommissioned (30 MW)
  • CHPP to be commissioned in Pevek (36 MW);
  • Yakutskaya GRES-1 to be decommissioned (368 MW)
  • The second stage of Yakutskaya GRES-2 to be commissioned (226 MW);
  • Ust-Srednekanskaya HPP to be commissioned (260 MW, the fourth hydropower unit, new runners);
  • Khabarovskaya CHPP-1 to be decommissioned (435 MW)
  • Khabarovskaya CHPP-4 to be commissioned (320 MW);
  • Artyomovskaya CHPP to be decommissioned (400 MW)
  • Artyomovskaya CHPP-2 to be commissioned (420 MW);
  • Vladivostokskaya CHPP-2 to be upgraded (bringing the installed capacity of heat power units No. 1, 2, 3 to 360 MW).

The Program seeks to provide a rationale for including RusHydro Group’s projects in a program being developed by the Russian Government to raise funds for upgrading the heat generation infrastructure, and a foundation for proposals related to investment programs within the Group.

Design and survey works are currently underway for the stage 2 of Yakutskaya GRES-2, Artyomovskaya CHPP-2, Khabarovskaya CHPP- 4 construction projects and Vladivostokskaya CHPP‑2 upgrade project; the project parameters will be specified following their completion. Construction (upgrade) of these generation facilities is planned to be carried out by introducing the capacity price surcharge as part of the program to upgrade generation facilities approved by the Government of the Russian Federation.

In order to implement the CHPP construction project in Pevek, it is necessary to determine the budget financing mechanisms for the financial standing of RusHydro to remain unaffected. The corresponding instruction is reflected in the Minutes of the meeting with Dmitry Kozak, Deputy Chairman of the Government of the Russian Federation (Minutes No. DK‑P9‑250pr (section I, para. 8) dated December 12, 2018).

Construction of Ust-Srednekanskaya HPP is planned as part of the consolidated investment program of RusHydro Group and will be financed internally.