7.1. Overview of implementation of TGC-1 investment program

In 2009, TGC-1 continued implementation of its large-scale investment program aimed at constructing new facilities, along with refurbishment and retrofitting of existing generating and auxiliary facilities.

Financing of the investment program in 2009 amounted to RUR 20,445 mn (including VAT):

The cost of work provided and equipment supplied amounted to RUR 24,077 mn (excluding VAT) or 110% of the plan, fixed assets commissioning totalled RUR 9,807 mn (excluding VAT) or 127% of the plan approved by the Board of Directors of TGC-1.




The TGC-1 investment program is based on a critical decision to build new facilities with priority use of combined cycle technology (i.e. construction of CCGT-units). Although the repair and maintenance cost of steam-powered units is lower than that for the CCGT-units for electricity and heat generation are considered to be the most economically efficient and environmentally safe.

CCGT-units use heat of discharged gases of the gas turbine unit for electricity generation, using the steam turbine cycle. Among major advantages are higher efficiency rate of electricity generation, reduced cooling water consumption compared to the steam power cycle plants, better environmental parameters, and good flexibility. These advantages are explained by additional electricity generation by gas turbines and utilization of low potential heat by steam turbines with combined heat and power generation.

CCGT-units also boast simple design of the steam turbine and waste-heat boiler, which results in a significant reduction of the new facility construction and commissioning terms.




7.2. Results of key projects implementation in 2009

In 2009, construction was started or continued at the following plants: PS-2 of Central CHPP, Pravoberezhnaya CHPP, Vasileostrovskaya CHPP, Pervomayskaya CHPP, Yuzhnaya CHPP, and Vuoksinskie HPPs Cascade (Lesogorskaya HPP and Svetogorskaya HPP).


As a part of the Vasileostrovskaya CHPP-7 renovation project, a BKZ-160-100 GM power-generating boiler was put into operation in 2007, and a T-50/60-8.8 turbine was put into service in 2009. After the investment project implementation the installed electricity generation capacity of the power plant increased from 85 to 135MW and the installed heat generation capacity increased from 1,084 to 1,213 GCal/h.

Commissioning of the new equipment helped to improve significantly the efficiency of the CHPP and overall reliability of St. Petersburg consumers power supply system. Vasileostrovskaya CHPP is a key source of electric and heat power for the Vasilyevsky Island district, separate from other districts of St. Petersburg and comprising of over 200,000 residents. Efficient operation of the CHPP is critical for stable power supply of many large industrial facilities in St. Petersburg, i.e. Baltiysky Plant, Sea Power and the Sevcable plant.

The project was implemented with the use of mostly Russian-produced components: boiler unit with steam production of 160 tonnes per hour by Barnaul boiler plant, turbine by Ural turbine plant, generator by Electrosila plant (a division of JSC Power Machines).

The commissioned boiler generating unit, turbine and generator of Vasileostrovskaya CHPP are equipped with an up-to-date automated process control system, with the possibility of setting optimum equipment operation modes, and comparing operational data with emergency data forecasting the repair terms. All operational parameters are shown on a single display. Furthermore, the automated process control system of the new turbine generating unit is equipped with the chemical control block, automatically supporting stable water and steam quality being essential for the equipment lifetime.

Besides, large-scale refurbishment of the capacity output system was provided within the project framework: an outdoor switchgear and lines of 100kW were installed and put into service. Before that, the power plant provided capacity output only via 35kW grids. Having two independent electricity transmission routes helps to improve significantly the reliability of Vasileostrovskaya CHPP electricity supply.

The following positive aspects of the project implementation should be noted:


Within the framework of retrofitting of Vyborgskaya CHPP-17 refurbishment of the 100MW turbine no. 4, commissioned in 1964, was undertaken. After the refurbishment, the generating unit capacity increased to 123MW. It improved significantly reliability and the technical and economic indexes of the CHPP, and increased its electric capacity to 278MW.


In January 2009 a new hydro generating unit with electric capacity of 12MW was put into operation at Volkhovskaya HPPof Nevsky Branch, which is one of the high-priority investment projects of TGC-1 launched in February 2008. An up-to-date hydraulic turbine and a generator were installed at the plant replacing the obsolete 9MW equipment.

The necessity of the investment project implementation is explained by difficulties of Volkhovskaya HPP equipment maintenance in operating conditions due to a short supply of spare parts and equipment wear-out. Unit no. 1 has been in operation for over 80 years and needs overall refurbishment.

Refurbishment of the turbine generating unit comprised replacement of all operating mechanisms, speed regulators, oil pressure plants, pipelines and control system feedback units and automation facilities.


The project for replacement of the generating units at Pervomayskaya CHPPis listed among top-priority investment projects of TGC-1. It includes the construction of two CCGT-units with the electricity generation capacity of 180MW and the heat generation capacity of 138 GCal/h each.

The goal of the project is to strengthen the position of TGC-1 in the dynamically and rapidly growing heat and electricity market of the southwestern area of Saint-Petersburg.

Major objective of the project is to replace obsolete and worn-out steam power and auxiliary units of the CHPP which reached their critical productive life with two CCGT units (180MW and 138 GCal/h each) until 2011. Implementing the project will result in an increase of the plant’s electricity generation capacity from 330 to 460MW and the replacement of 276 GCal/h (a capacity of 486 GCal/h is going to be decommissioned) heat capacity, with the plant’s installed heat generation capacity reduced by 210 GCal/h to a total of 1,428 GCal/h.

The following work was carried out within the project during the year 2009:


The investment project of Vuoksinskie HPPs Cascade overhaul is a top-priority refurbishment and renovation project of TGC-1 involving the step-by-step replacement of the hydroelectric units that have reached the end of their service lives at cascade’s Lesogorskaya HPP and Svetogorskaya HPP. After the project is implemented the total installed capacity of those plants will increase from 164 to 240MW. Refurbishment of the plants of Vuoksinskie HPPs Cascade started in May 2007 after TGC-1 and Power Machines entered in a contract for overall equipment renovation with replacement of all eight hydro generating units of Svetogorskaya HPP and Lesogorskaya HPP.

The goals of the investment project are:

As a result of the project’s implementation in 2009 the new hydro generating unit no. 3 of Svetogorskaya HPP was put into operation in May 2009, and the new hydro generating unit no. 1 at Lesogorskaya HPP was put into service in December 2009.

Several technical solutions, which have no analogues in the power industry, were developed and introduced during project designing of the new turbine for Svetogorskaya HPP. For example, new principles for turbine installation in the concrete block were developed. Changing the liquid part of the hydro generating unit (which required a range of drilling and blasting work), increasing the impeller blades and unique individual design of their turning resulted in significant improvement of the turbine efficiency rate and increase of its maximum capacity by over 30% compared to the old hydro generating unit.

Besides, technical decisions used in project designing make this new turbine one of the most environmentally friendly, almost completely eliminating the possibility of process oil coming in the liquid flow part of the unit, which was quite typical for the hydro generating units of the previous generations.

Refurbishment of the 110 kV indoor switchgear at the Svetogorskaya HPP was provided. After commissioning of the hydro generating unit no. 3, activities for replacement of the second hydro generating unit of Svetogorskaya HPP (hydro generating unit no. 1) were carried out, in particular:


The project of Yuzhnaya CHPP-22 expansion through installation of a 450MW CCGT-unit is listed among the top-priority construction projects of TGC-1.

Implementing the investment project will result in an increase of the plant’s installed electric capacity from 800 to 1,250MW and of the installed heat capacity from 2,250 to 2,591 GCal/h.

The goal of the project is to strengthen the position of TGC-1 in the dynamically growing heat and electricity market of Moskovsky, Frunzensky, and Nevsky districts of St. Petersburg.

The goals of the investment project are as follows:

The following work was undertaken within the project during the year 2009:


The project of expanding Pravoberezhnaya CHPP is aimed at construction of a CCGT-unit with the electricity generation capacity of 450MW and heat generation capacity of 316 GCal/h.

Implementing the project will result in an increase of the installed electricity generation capacity of the plant from 244MW to 630MW and of the installed heat generation capacity from 1,421 to 1,436 GCal/h.

The goal of the project is to strengthen the position of TGC-1 in the dynamically and rapidly growing heat and electricity market of the area east of St. Petersburg.

Objectives of the investment project include the following:

In 2009, the following work was completed within the project:


Central CHPP’s PS-2 refurbishment project includes construction of a 110 kV indoor switchgear and installation of two steam turbines T-50. Implementing the investment program will result in an increase of the plant’s installed electric capacity from 73 to 100MW and of heat capacity from 811 to 823 GCal/h.

The purpose of Central CHPP’s PS-2 refurbishment project is to improve the reliability and quality of heat and electricity supply, as well as to meet the growing demand for heat in Central and Admiralteysky districts of St. Petersburg.

The main objectives of the project include:

In accordance with the development concept construction of an up-to-date indoor 110 kV switchgear is planned, which will connect the power plant with Sinopskaya and Central substations.

Today’s electric equipment state and its connection scheme do not meet modern reliability requirements.

The projected technical decisions will improve reliability of electricity supply both to the 6 kV consumers connected to the distribution unit of PS-2 of Central CHPP, and to the centre of the city by expanding the 100 kV grids.

The refurbishment project provides step-by-step replacement of the existing worn-out switchgear with a possibility of construction and connection of new generating facilities.

In 2009, within the framework of the refurbishment project of PS-2 of Central CHPP, project designing documentation was partially developed by the general contractor Siltumelectroprojects at the feasibility study stage of the project.

Reliability improvement and automated information and measuring energy metering system (AIMEMS) projects

Within the activities aimed at reliability improvement which were carried out in all company branches in 2009, over 30 emergency systems, over 10 boiler units, four turbine generating units as to the auxiliary systems were refurbished; two cooling towers at Yuzhnaya and Petrozavodskaya CHPPs were also refurbished, 13 buildings and facilities were renovated, summer thermal medium circulation in heating grids was provided at Avtovskaya, Severnaya, Yuzhnaya CHPPs of Nevsky Branch; over 20 protection units were installed and refurbished.

AIMEMS activities resulted in:


7.3. New systems and technologies
7.3.1. Information infrastructure and technologies

7.3.2. Corporate management systems

In 2009, development of components of corporate governance systems continued; three new information systems were put into service and 10 corporate information systems were refurbished.

Major results of 2009:


Major objectives for 2010 with regard to the corporate management systems:


7.4. Revisions to the 2009 investment program and key objectives of investment activity in 2010

In 2009, adjustments to the investment program resulted from changes in the projects’ costs. On March 16, 2009 the scope of work of the project of refurbishment of Pervomayskaya CHPP was amended by adding construction of the packaged switchgear with SF6 110 kV insulation. Upon negotiations with EPC-contractor for the project – EMC Engineering Company, the cost of the main agreement for the power plant refurbishment was decreased by RUR 684 mn. The revision was approved by the Board of Directors on May 22, 2009. On August 4, 2009 an adjustment related to the refurbishment of the Vasileostrovskaya CHPP was approved. Necessity of additional work for the project completion resulted in project cost increase of RUR 149 mn. Total cost of projects aimed at reliability improvement was decreased by the same amount, thus this adjustment did not result in any changes of the total investment program cost.

The major objectives of the Company for 2010 in course of implementation of the investment program are as follows:

The following facilities are to be put in operation in 2010:

Besides, in 2010 civil and installation works at the power generating unit no. 2 of a 180MW CCGT-unit at Pervomayskaya CHPP will be completed.

In 2010, at Vuoksinskie HPPs Cascade installation work of the hydro generating unit no. 2 at Lesogorskaya HPP will continue with its commissioning in the first quarter of 2011.

At Pravoberezhnaya CHPP, it is planned to execute initial construction and installation work in the main building, required for providing place for equipment storage. Furthermore, civil and installation work and commissioning of the storage tank of 10,000 cubic meters of the station pumphouse required for full removal from operation of the old part of Pravoberezhnaya CHPP, are planned.

At PS-2 of the Central CHPP it is planned to complete development of the project, supply the SF6 switchgear devices for the indoor switchgear 110 kV and start the construction and installation of the 110 kV indoor switchgear. Commissioning of the 110 kV indoor switchgear is scheduled for 2011 upon agreement of Lenenergo and FGC, with commissioning of Sinopskaya and the Central substations.