6.1. TGC-1 2011 Investment Programme Implementation Review
TGC-1’s 2011 Investment Programme was approved by the Company’s Board of Directors
on 20 December 2010. During 2011, the whole year budget of the Company's Investment Programme was revised, and the last revision was approved by the Company’s Board of Directors on 11 July 2011.
In 2011, the cost of the investment programme amounted to RUR 18,031 million (including VAT),
which comprised:
- RUR 17,119 million as payment to contractors and suppliers under the contracts concluded for the investment programme execution;
- RUR 9 million for financing of the buy-back of the land plots;
- RUR 3 million for financing of the participation in the SA authorized capital (TGC-1-Service);
- RUR 697 million, the amount of interest paid on the credits attracted for implementation of the investment projects;
- RUR 203 million for financing of the project management expenses (including wages).
The cost of the work performed and the equipment delivered amounted to RUR 16,052 million (excludingVAT), the fixed assets commissioning amounted to RUR 24,903 million (excluding VAT).
The conceptual decision on construction of new capacities using the combined cycle technology (i.e. construction of CCGT units) was the primary basis of TGC-1's investment programme implementation. Electricity and heat generated by this type of equipment is currently recognized to be the most cost-efficient and environmentally safe.
6.2. Results of Key Projects Implementation in 2011
In 2011, work continued at the following high-priority facilities: the Central CHPP, Pravoberezhnaya CHPP, Pervomayskaya CHPP, Yuzhnaya CHPP, and the Vuoksinskiye HPPs Cascade (the Lesogorskaya HPP and Svetogorskaya HPP).
The project “The Pervomayskaya CHPP's Renovation with Equipment Replacement” refers to TGC-1 high-priority investment projects for construction of two CCGT units of 180-MW electric capacity and 119-GCal/h heat capacity each.
As a result of the project implementation, the plant’s electric capacity will increase from 324 MW to 524 MW, while the heat capacity will decrease from 1,638 GCal/h down to 1,477 GCal/h.
The power generating 180-MW CCGT-unit at station No. 1 was put into operation on 31 December 2010. Starting from 1 March 2011 this facility is included in electricity and capacity trading in the wholesale market. In October 2011, station No. 2 equipment passed full-scale testing, and was put into operation on 1 December 2011. Starting from 1 January 2012 this facility is included in electricity and capacity trading in the wholesale market.
The renovation project at the Pervomayskaya CHPP involves construction of the backup liquid fuel and fuel oil facilities for emergency fuel supply to gas turbines of CCGT units at stations No. 1 and 2 and boilers of the designed unified auxiliary building. In 2011, the project documentation was submitted for consideration to Saint Petersburg branch of FAU Glavgosexpertise of Russia (Chief State Expertise of Russia).
The investment project “The Renovation of the Vuoksinskiye HPPs Cascade” is a TGC-1 high-priority refurbishment and renovation project and provides for stage-by-stage replacement of deteriorated and worn-out hydroelectric units at the cascade of Lesogorskaya HPP and Svetogorskaya HPP. The increase in the overall installed capacity is planed to reach 240 MW, compared to the existing 164 MW.
Within the framework of renovation of the Vuoksinskiye HPPs Cascade, hydro generating unit No. 2 at the Lesogorskaya HPP was put into operation on 28 February 2011. It is included in the wholesale market trading starting from 1 July 2011. Hydro generating unit No. 4 at the Svetogorskaya HPP was put into operation on 21 November 2011 and started electricity and capacity supplies to the wholesale market on 1 January 2012.
The project of the Yuzhnaya CHPP expansion provided for construction of the CCGT unit with electric capacity of 450 MW and heat capacity of 341 GCal/h. Construction of this unit was completed in the first half 2011. It is authorized to participate in electricity and capacity trading on the wholesale market from 1 April 2011. Implementation of this investment project provided for the increase of electric capacity from 750 to 1,175 MW, and an increase of installed heat capacity from 2,190 to 2,480 GCal/h.
The Pravoberezhnaya CHPP extension will construct CCGT units of 450 MW electric capacity and 316 GCal/h heat capacity. As a result of the project implementation, the installed electric capacity will increase from 180 MW to 630 MW, while the installed heat capacity will increase from 1,120 GCal/h to 1,436 GCal/h.
In 2011, construction of the main building of the power generating unit was completed; installation of the main equipment was finished; installation of packaged transformers and own needs transformers was also finished; installation of circulation water conduits of the process water supply system was made; delivery of gas boosting compressors was made. Positive approval of FAU Glavgosexpertise of Russia (Chief State Expertise of Russia) was received for the project of external gas supply of the power generating unit No. 2 at the Pravoberezhnaya CHPP, and a number of construction and installation works were completed.
The investment project for renovating the Central CHPP provides for construction of 110/6 kV ISG at PP-2 of the Central CHPP and two CHPP GTU power generating units 50 MW each at PP-1 of the Central CHPP. As a result of the project implementation, the installed electric capacity of the PP-1 of the Central CHPP will increase from 0 MW to 100 MW, while the installed heat capacity will increase from 480 GCal/h to 580 GCal/h.
In March 2011, the Board of Directors decided to revise the investment project for renovation of the Central CHPP, as a result of cancellation of construction project for Okhta CHPP and start pre-designing documentation development for construction of the generation facilities at PP-1 of the Central CHPP and PP-2 of the Central CHPP.
In November 2011 the R&D and Engineering Committee of TGC-1 defined the location for construction of the CHPP GTU power generating units at the site of PP-1 of the Central CHPP.
Besides, a new Vvedenskaya pumping station construction project is being implemented at the Central CHPP. The project is aimed at closing down the worn-out and out-of-date equipment of PP-3 of the Central CHPP and transfer of heat loads to the PP-1 of the Central CHPP by building a transfer pumping station at PP-3. Proceeding from results of 2011, development of the working documentation for 110/6 kV ISG construction project for PP-2 of the Central CHPP has been completed.
6.3. Key Objectives of the Investment Activities for 2012
Implementation of TGC-1's large-scale investment programme will continue during 2012. The programme aims to build new facilities and renovate and retrofit existing generating and auxiliary equipment.
Key objectives of the Company’s investment activities for 2012:
- Start of construction of 110/6 kV ISG at PP-2 of the Central CHPP;
- Project designing of construction of the generation facilities comprising two CHPP GTU power generating units with a capacity of 50 MW at PP-1 of the Central CHPP (according to capacity supply contract: within the area of not more than 4 kilometers from the Central CHPP);
- Completion of construction works and commissioning of CCGT unit 450 MW at the Pravobereznaya CHPP;
- Construction of the liquid fuel facilities at the Pervomayskaya CHPP;
- Start of unified auxiliary building construction at the Pervomayskaya CHPP;
- Renovation of the Apatitskaya CHPP;
- Start of Iovskaya HPP renovation (renovation of hydro turbines with replacement of the turbins);
- Completion of replacement of the main transformer Т-2 with renovation of the automation and relay protection system at HPP of the Verkhne-Tulomskaya HPP;
- Continuing renovation of the Vuoksinskiye HPPs Cascade;
- Improvement of HPP and CHPP equipment reliability;
- Improvement of energy supply quality and overall reliability;
- Commissioning of AIMEMS, telemechanics and communications.
