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):
- RUR 19,468 mn – payment to contractors and suppliers under the contracts concluded for implementation of the investment program;
- RUR 705 mn – amount of paid interests on credits raised for implementation of the investment projects;
- RUR 82 mn – financing the projects for power consumers connection to the grids;
- RUR 157 mn – payment wages (including taxes) to the staff engaged in capital construction;
- RUR 18 mn – financing of other project management costs;
- RUR 15 mn – replacement of the funding source for the costs initially paid on account of the main production and, pursuant to the accounting regulations, accounted for and referred to the capital construction (ground leasing, parts provided, railway transportation services, etc).
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:
- higher efficiency rate of the new equipment results in lower fuel consumption per unit produced;
- the boiler is gas-proof, i.e. it is assembled with use of materials and technologies reducing cool air inflow in the gas-air flow duct, which results in significant heat losses reduction, and thus reduction of so-called “heat pollution”;
- new burners design and configuration in the boiler generating unit results in reduction of hazardous and toxic combustion products emissions.
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:
- cradles of boilers nos. 1-4 were installed, internal thermal insulation of nos. 1–3 was provided, and heating surfaces, low and high pressure drums, LP and HP evaporating circuit pipelines were installed;
- smoke stacks nos. 1 and 2 were installed, and the painting of the smoke stack no. 2 was completed;
- installation of the bottom foundation of gas turbines nos. 1–4, upper foundation of gas turbines nos. 1–3 was completed, and installation of the steam turbine no. 1 and its connection to the generator is in process;
- at the air condensation unit (dry cooling tower), the pile field, foundation concreting were completed, installation of the metal construction was finished, installation of the thermal, mechanical and electric equipment was carried out;
- at the wastewater pumping station, all underground and surface works are completed, bricklaying work, roof, equipment installation and decoration work are finished, electrical work is completed, and commissioning works are in a process of preparing for the pilot operation;
- as to the gas processing unit, thermal system establishment is completed, gas compressors, gas treatment filters,
gas receivers and internal metal construction are being installed, with utility facilities also being installed; - as to the circulation pumping station, installation of the walls, circulation pumps and pipelines is being provided; windows,
doors are being installed, heating system is under construction, pipelines for connections to the cooling tower are being installed; - installation of the transformers, fire safety shields, current wires racks and detachable equipment was completed,
current-conducting wires are being installed, and transformers adjusting is in process, wire racks connection to the cable gallery is carried out; - as to construction of the packaged SF6 switchgear, 110 kV, foundation work was completed, metal construction and cells 0.4 kV and 6 kV installation were finished, installation of cells 110 kV and commissioning of the cells 6 kV and 0.4 kV were started.
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:
- replacement of outdated and worn-out equipment;
- reduction of operational costs by using up-to-date equipment and control systems;
- revenue increase through additional electricity sales, including export supplies.
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:
- generator and distribution system equipment was manufactured;
- manufacturing of all hydro turbine parts was completed, the control system was produced and successfully passed testing;
- generator and control system disassembling work was completed;
- distributor kinematics, turbine cover, shaft, wheel and distributor blades were dismounted;
- concrete cutting close to the suction pipe elbow and expansion, and concrete cutting of the stator and lower generator bracket foundation was completed.
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:
- CHPP expansion by installation of a 450MW CCGT-unit (450MW and 341 GCal/h);
- improvement of reliability of heat and electricity supply to consumers;
- reduction of equipment maintenance costs, unit fuel consumption by using up-to-date equipment and innovative technologies;
- increasing power sales and ensuring deficit-free heat supplies to consumers.
The following work was undertaken within the project during the year 2009:
- main and auxiliary equipment foundation work was completed;
- gas turbines nos. 1 and 2 were installed, installation of waste-heat boilers nos. 1 and 2 is being carried out;
- erecting the roof and sandwich panels installation works are coming to an end;
- lifting equipment is installed;
- cooling tower basin filling was completed;
- civil works for construction of the transformer oil emergency discharge tank were fulfilled;
- packaged transformers and overall air-cleaning units nos. 1 and 2 were installed;
- underground work regarding the circulating pumping station was completed, reinforced concrete constructions were built, circulating water ducts installation is being completed;
- civil work for construction of the gas processing facility was completed;
- metal constructions frame of the gas boosting compressor station is installed, preparatory work for erecting foundation of the gas cooler site is carried out, three gas boosting compressors were installed;
- construction work for storages and sheds construction were carried out.
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:
- improving overall system reliability by reducing load of system power lines of the 330/110 kV Vostochnaya substation of FGC UES;
- improving reliability and quality of heat supplies to consumers of the Eastern heat district;
- reduction of unit fuel consumption for heat and electricity generation by reaching the optimum extraction ratio;
- meeting the growing demand for capacity;
- compliance with the Investment program of first-priority measures for construction and refurbishment of the generating facilities for 2006–2010 (appendix 1 of the agreement on cooperation between St. Petersburg and RAO UES of Russia of July 27, 2006);
- increasing revenue (market share) by means of additional power sales;
- improving flexibility of generating facilities operation in various operation modes (especially with consideration of centralized heat supply load fluctuations);
- introducing the environmentally friendly technology.
In 2009, the following work was completed within the project:
- foundation concreting was completed, and metal frame of the main building was installed;
- installation of the smoke stack is in process;
- as to expansion of the Octyabrskaya substation, installation of the autotransformer no. 2 and equipment of the indoor switchgear, 110 kV and the 110 kV outdoor switchgear was completed;
- as to refurbishment of the water boiler house, boiler no. 12 was transferred to the peak loading mode, construction of the piling field for the hot supply tank was completed.
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:
- ensuring existing heat and electricity loads during the refurbishment period;
- overall replacement of the equipment and process systems which are outdated, worn-out and reached their critical state;
- preserving the heat supply source in the central part of the city;
- increasing revenue (market share) by means of additional power sales;
- improving flexibility of the generating facilities operation in various operation modes;
- reduction of unit fixed costs by using up-to-date equipment and control systems.
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:
- commissioning of the dispatch panel of TGC-1 and TGC-1 operator and dispatch control system (on-line monitoring of power plants parameters);
- automation of Teriberskie HPPs group of Serebryanskie HPPs Cascade of Kolsky Branch was carried out. As a result, Teriberskie HPPs group is ready for operation on a rotational basis;
- electricity metering system was put into service for the supply points cluster of Kolsky Branch and Karelsky Branch, and generated power supply points cluster of TGC-1 as a whole;
- automated information collecting system was put into service for getting information on gas, water consumption and heat power output by CHPPs to consumers;
- installation of CTs and PTs for automated measuring and information system for electricity fiscal accounting was fully implemented for Karelsky and Kolsky branches, and was 80% fulfilled for Nevsky Branch.
7.3. New systems and technologies
7.3.1. Information infrastructure and technologies
- All facilities of Nevsky, Karelsky and Kolsky branches of TGC-1 switched to using new dispatch and technological automatic telephone systems, and transfer to using the corporate telephone network was completed. Retrofitting of the telephone communication network is carried out based on Nortel switching equipment in Nevsky Branch, and based on Siemens HiPath 4000 equipment in Kolsky and Karelsky branches.
- Simultaneous recording of digital and analogue phone lines by installing at TGC-1 facilities of digital telephone systems and multichannel recording, registration and sound archiving system Nezabudka-II was carried out.
- Operational selective communication between TGC-1 and Nevsky Branch was put into service.
- Communication centres backup power supply was refurbished at all facilities of Nevsky Branch of TGC-1
- Overall testing and putting in pilot operation the process data exchange system with the automated system operator system at Volkhovskaya HPP, Lesogorskaya HPPof Nevsky Branch, Verkhnetulomskaya HPP, Nizhnetulomskaya HPPof Kolsky Branch were carried out.
- 293 kilometres of fibre optics along the electricity transmission lines were routed, including 194 kilometres in Kolsky Branch, 74 kilometres in Karelsky Branch and 25 kilometres in Nevsky Branch.
- Protected data exchange network integration of Kolsky and Karelsky branches in the corporate data exchange network of TGC-1 via the dedicated channel along with backup connection to VPN channel via Internet, was carried out.
- Protected MPLS VPN communication channel for operational data exchange between process servers of TGC-1 and MES North-West, and servers of TGC-1 and Lenenergo was arranged.
- LAN of Lesogorskaya and Svetogorskaya HPPs of Nevsky Branch was put into service with connection of the power plants consumers to network resources of TGC-1.
- WLAN at Verkhnesvirskaya HPP-12 of Nevsky Branch was arranged.
- Network connection and interaction of the access control system unifying the system servers in the head office, with servers at power facilities of TGC-1, was arranged.
- AIMEMS system including devices and instruments installed at power facilities of TGC-1 was connected to the corporate data exchange network of TGC-1.
- Protected (via VPN-channel) Internet connection of Moscow office of TGC-1 General Director to the corporate data exchange network of TGC-1, was provided.
- A backup data processing centre of TGC-1 was established.
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:
- automating the management of investment project portfolios by developing and putting into test operation an automated investment management system;
- developing and putting into commercial operation the Energotrading information system;
- establishing a seamless inventories management environment in Nevsky Branch by completing the installation of instances of the supplies and inventories management system at all plants of Nevsky Branch of TGC-1;
- developing and putting in pilot operation of the remote reporting tools on heat power consumption by TGC-1 subscribers in the public section of the corporate Energosbyt portal;
- developing new design of the corporate TGC-1 portal.
Major objectives for 2010 with regard to the corporate management systems:
- putting in commercial operation the SAP ERP-based corporate management system for financial and economic activities in Karelsky Branch;
- implementing the corporate management system for financial and economic activities in Kolsky Branch; Automatic 1C-based accounting in Nevsky Branch;
- start of creating a unified automated accounting and taxation system of TGC-1;
- start of overall automation of TGC-1 HR management business processes;
- development of the corporate regulations on project management involving information systems implementation;
- pilot project for development of the automated workstation for the General Director based on Microsoft Office Business Applications (OBA);
- development of automated workstations for the senior management;
- establishing the company’s united control system over the commissions related to first-priority projects based on the Meeting Control System;
- pilot project for automation of the decrees and instructions business process using the digital signature;
- putting in commercial operation the remote reporting tools on heat power consumption by TGC-1 subscribers with use of the digital signature in the public section of the corporate Energosbyt portal;
- introducing the Corporate portal in Karelsky and Kolsky branches;
- creating an external corporate website.
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:
- completion of the construction stage of the first priority investment projects at Pervomayskaya CHPP and Yuzhnaya CHPP;
- continuing refurbishment of Vuoksinskie HPPs Cascade;
- start of construction of an 110/6 kV electric switchgear within the framework of the first priority investment project at PS-2 of Central CHPP;
- improvement of reliability of HPPs and CHPPs’ equipment;
- improvement of reliability and quality of heat supply;
- commissioning of AIMEMS, telemechanics and communication systems.
The following facilities are to be put in operation in 2010:
- generating unit no. 1 of a 180MW CCGT unit at the Pervomayskaya CHPP;
- generating unit no. 4 of a 450MW CCGT unit at the Yuzhnaya CHPP;
- hydro generating unit no. 1 at Svetogorskaya HPP of Vuoksinskie HPPs Cascade.
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.
