9.1. JSC TGC-1 Investment Programme Implementation Review

In 2010, the matter-of-fact financing of the investment programme in 2010 amounted to RUR18,483mn (VAT including), which comprised:

• RUR16,895mn for payment to contractors and suppliers under the contracts concluded for the investment programme execution;
• RUR66mn for financing of the projects aimed at obtaining the technical requirements of JSC Lenenergo for technological connection of units from the PPA set;
• RUR71mn for financing of the buy-out of the land plots and equity ownership of DPP of the Valaam Island;
• RUR58mn for financing of the participation in the SA authorized capital (JSC Khibiny Heating Company, JSC Saint Petersburg Heating Grid);
• RUR1,148mn, the amount of the paid interests on the credits attracted for the implementation of the investment projects;
• RUR245mn for financing of the project management expenses (including wages).

The cost of the work done and the equipment delivered amounted to RUR16,046mn (VAT excluding), or 103% of the plan; the fixed assets commissioning amounted to RUR16,577mn (VAT excluding), or 114% of the plan approved by the JSC TGC-1 Board of Directors on December 29, 2009.

 

 

 

The conceptual decision on construction of new capacities using the combined cycle technology (i.e. construction of CCGT-units) primarily was the basis of the JSC TGC-1 investment programme implementation. Although the cost of maintenance and repair of units on the basis of steam-power units (SRU) is lower than when using the cogeneration technology, electricity and heat generation on the equipment of such type is currently recognised as the most cost-efficient and environmentally safe. Another significant feature of CCGT-unit is a simple design of the steam turbine and recovery boiler, which considerably reduces the terms of new facility construction and commissioning.

 

9.2. Results of Key Projects Implementation in 2010

In 2010, the works were commenced and continued at the following high-priority facilities: Central CHPP PP-2, Pravoberezhnaya CHPP, Pervomayskaya CHPP, Yuzhnaya CHPP, and the Vuoksinskiye HPPs Cascade (Lesogorskaya HPP and Svetogorskaya HPP).


The Project “Pervomayskaya CHPP Renovation with Equipment Replacement” refers to the JSC TGC-1 high-priority investment projects and is intended for construction of two CCGT-units of 180MW electric capacity and 119 Gcal/h heat capacity each.

The purpose of the Project is to strengthen the JSC TGC-1 position in the dynamically developing segment of the heat and electricity market of South-West of Saint Petersburg.

The major objective of the Project is to replace physically and morally worn-out steam-power generating and auxiliary equipment of CHPPs, which has now reached the marginal technical state, with two CCGT-units (180MW and 119 Gcal/h each) within the period till 2012. As a result of the project implementation, the plant’s electric capacity will increase from 324MW to 478MW, while the heat capacity will decrease from 1,638 Gcal/h down to 1,324 Gcal/h.

Power generating unit No. 1 underwent the end-to-end testing in October 2010. The power generating 180MW CCGT-unit of station No. 1 of Pervomayskaya CHPP was put into operation on December 31, 2010 (Order No. 222 of JSC TGC-1 of December 31, 2010).



The Investment Project “Renovation of Cascade of Hydroelectric Plants No. 1” is a high-priority project of refurbishment and renovation of JSC TGC-1, and it provides for stage-by-stage replacement of deteriorated and worn-out hydroelectric units comprising the cascade of Lesogorskaya HPP and Svetogorskaya HPP followed by the increase in the overall installed capacity from 164MW to 240MW. Renovation of the Vuoksinskiye HPPs Cascade plants was commenced in May 2007, after the execution of the contract between JSC TGC-1 and JSC Power Machines for equipment sweeping upgrade with replacement of all eight hydroelectric units of Svetogorskaya and Lesogorskaya HPPs.

The main result of the project implementation in 2010 was the commissioning of hydroelectric unit No. 1 of Svetogorskaya HPP in July 2010.

The Project “Yuzhnaya CHPP Extension by 40MW CCGT-unit Installation” refers to the high-priority projects of new construction of JSC TGC-1.

As a result of the investment project implementation, the installed electric capacity will increase from 750MW to 1,200MW, while the installed heat capacity from 2,190 Gcal/h to 2,531 Gcal/h.

The purpose of the Project is to strengthen the JSC TGC-1 position in the dynamically developing segment of the heat and electricity market of the Moskovsky, Frunzensky, and Nevsky Districts of Saint Petersburg. Power generating unit No. 4 was prepared for full-scale testing as of December 31, 2010.

The project of Pravoberezhnaya CHPP extension is intended for construction of the CCGT-units of 450MW electric capacity and 316 Gcal/h heat capacity.

As a result of the project implementation, the installed electric capacity will increase from 180MW to 630MW, while the installed heat capacity from 1,120 Gcal/h to 1,436 Gcal/h.

The purpose of the Project is to strengthen the JSC TGC-1 position in the dynamically developing segment of the heat and electricity market of the East of Saint Petersburg.

The main construction works in the main building were completed. The heating and lighting systems were mounted. The GIS building was erected. The works for organisation of the construction site connection to energy resources were performed within the year.


Renovation of Central CHPP PP-2 provides for construction of 110 kV ISG and two CHPP GTU power generating units 50MW each for the purpose of satisfaction of growing heat and electricity demands, replacement of outdated equipment, enhancement of reliability and cost effectiveness of the plant operation.

On May 31, 2010, the Company’s Board of Directors took the decision on the adjustment of the High-Priority Investment Project “Central CHPP PP-2” due to the development of the exploratory design documentation for construction of a generation facility (Okhta CHPP) within the area limited with a radius of not more than 4 kilometers from Central CHPP PP-2.

As a result of the project implementation, the installed electric capacity will increase from 73MW to 100MW, while the installed heat capacity from 811 Gcal/h to 823 Gcal/h.

The Project “Complete Renovation of Central CHPP PP-2” is intended for the enhancement of reliable and high-quality supply of electricity and heat to consumers as well as the satisfaction of the advanced growth of thermal load of consumers of the Central and Admiralty Districts of Saint Petersburg.

On the results of 2010, the design documentation for 110 kV/6kV ISG is at the concluding stage. The electric capacity output scheme has been developed and approved; the diagram of external utility systems of the Okhta CHPP project within the area limited with a radius of not more than 4 kilometers from Central CHPP PP-2 has been worked out.