TGC-1 2012 Investment Programme Implementation Review
TGC-1's 2012 Investment Programme was approved by the Company's Board of Directors on 19 December 2011. During 2012, the annual budget of the Company's Investment Programme was revised and the latest version was approved by the Company's Board of Directors on 16 July 2012.
In 2012, actual financing of the Investment Programme amounted to RUR 12,439 million (including VAT), which comprised:
- RUR 10,904 million as payment to contractors and suppliers under the contracts concluded for execution of the investment programme;
- RUR 39 million for financing of the buyback of land plots;
- RUR 400 million for financing of participation in subsidiaries and affiliates authorized capital (buyback of Hibiny Heat Company JSC shares);
- RUR 892 million as the amount of interest paid on the loans attracted for the implementation of investment projects;
- RUR 204 million for financing of project management expenses.
The cost of implemented works and delivered equipment amounted to RUR 10,801 million (excluding VAT) and the commissioning of fixed assets amounted to RUR 21,153 million (excluding VAT).
Implementation of the TGC-1 investment programme was based on the conceptual decision to construct new capacities primarily using combined cycle technology. Production of electricity and heat with this type of equipment is currently recognised as the most cost-effective and environmentally safe method.
Results of Key Projects Implementation in 2012
In 2012, works continued at the following high-priority facilities: the Central CHPP, Pravoberezhnaya CHPP, Pervomayskaya CHPP, Yuzhnaya CHPP, and the Vuoksa HPPs Cascade (the Lesogorskaya and Svetogorskaya HPPs).
Pervomayskaya CHPP
As part of the continuation of the Pervomayskaya CHPP reconstruction, work is underway on construction of an integrated auxiliary building and a facility for emergency diesel fuel and fuel oil.
These projects aim to further improve and enhance the reliability of heating supply systems in the industrial zone and domestic sector adjacent to the Pervomayskaya CHPP, in order to cover the current heat load.
The project envisages construction of an integrated auxiliary building with associated buildings and structures, and subsequent decommissioning of outdated and obsolete steam power and auxiliary equipment in operation at the Pervomayskaya CHPP that has reached the limit of its present technical condition.
The construction of a new emergency diesel fuel and oil facility will provide the possibility of receiving and shipping liquid fuel and oil from railway and vehicle transport, as well as maintaining an emergency reserve of diesel fuel to serve emergency heat supply needs of gas turbine units CCGT no. 1 and 2. Furthermore, the project provides for the construction of an oil supply reservoir for the boilers of the new integrated auxiliary building.
Vuoksa HPPs Cascade
The investment project "Renovation of Cascade of Hydroelectric Plants No. 1" is a TGC-1 high-priority refurbishment and renovation project and provides for step-by-step replacement of deteriorated and worn-out hydroelectric units at the cascade of the Lesogorskaya HPP and Svetogorskaya HPP. The overall installed capacity is planned to increase to 240 MW from the existing 164 MW.
As part of the reconstruction works at the Vuoksa HPPs Cascade, hydroelectric unit no. 3 was brought into operation at the Lesogorskaya HPP on 31.08.2012, which has participated in the wholesale market since 01.01.2013. Hydroelectric unit no. 2 at the Svetogorskaya HPP was brought into operation on 20.12.2012. Since 01.04.2013, it has started supplying electricity and power on the wholesale market. Thus, this project has introduced seven of the eight hydroelectric units planned for modernization.
Pravoberezhnaya CHPP
The project for expansion of the Pravoberezhnaya CHPP includes construction of a CCGT-450 MW unit. In 2012, CCGT-450 MW no. 2 of the Pravoberezhnaya CHPP was certified in SO UES JSC and, as of 01.01.2013, is included in the registry of generation equipment of wholesale market suppliers. As a result, the installed electric capacity at the CHPP has increased from 180 MW to 643 MW, and heat capacity from 1,120 GCal/h to 1,283 GCal/h.
Central CHPP
The Central CHPP investment project provides for construction of a 110/6 kW closed switchgear unit at PP-2 of the Central CHPP and two gas turbine units of 50 MW each at PP-1 of the Central CHPP, in order to cover increased heat and electricity loads, to replace outdated and obsolete equipment at the apex of its technical condition, and to increase reliability and economic efficiency of the Central CHPP.
The construction project of closed switchgear 110/6 kW at the PP-2 of the Central CHPP is envisaged as a step-by-step replacement of existing open switchgear with exhausted service life, with the opportunity to construct and connect new generating capacity. The planned technical solutions will allow an increase in reliability of the electricity supply, not only to customers who are connected to the switchgear of PP-2 at the Central CHPP on the 6 kW line, but for the whole centre of the city with the expansion of the 110 kW network.
At the PP-1 of the Central CHPP a construction project is being implemented for two gas turbine 50 MW units with a planned commissioning in 2016. The implementation of this project will allow an increase in the reliability and quality of heating and electricity supply in the heating zone of PP-1 of the Central CHPP.
In 2012, construction work on the 110/6 kW closed switchgear continued, and an implementation plan for gas turbine units construction was agreed with Mezhregionenergostroy LLC.
Key Investment Activity Objectives for 2013
In 2013, the implementation of TGC-1's Investment Programme will be aimed at both the construction of new capacity and the reconstruction and modernization of existing generating and auxiliary equipment.
Key objectives of the Company's investment activity in 2013:
- completion of reconstruction at the Vuoksae HPPs Cascade; commissioning of hydroelectric unit no. 4 at the Lesogorskaya HPP;
- completion of start-up operations of the 450 MW CCGT-unit and improvement works at the Pravoberezhnaya CHPP;
- completion of construction of 110/6 kW closed switchgear unit at PP-2 of the Central CHPP; trunk line voltage supply is 110 kW at the closed switchgear unit at PP-2 of the Central CHPP;
- commissioning of hydroelectric unit no. 1 at the Iovskaya HPP and continuation of reconstruction works at the Iovskaya HPP;
- continuation of construction of the facility for emergency diesel fuel and fuel oil at the Pervomayskaya CHPP;
- continuation of construction on the integrated auxiliary building at the Pervomayskaya CHPP: start processing of work documentation, construction of main building;
- completion of work on the reconstruction of the Apatitskaya CHPP for providing heat to the city of Kirovsk;
- improving the reliability of HPPs and CHPPs equipment;
- commissioning of an automatic system for commercial accounting of power consumption, telemechanics and networks.
