Peretok Light: highlights of the Russian and global power sectors for 17 to 23 September

Selection of TPS modernization projects pushed to December, 6-year CA to March

The national cogeneration modernization programme is sure to make the list of records based on the number of extensions of its delivery date. Last November president Vladimir Putin ordered a regulatory framework to be prepared for TPS upgrading by 1 May. There have been numerous reschedulings since then. The latest relevant scenario assumed that the regulations for launching the modernization programme would have been enacted by the government in September; this would have made it possible to select capacity upgrading projects in November and to held a capacity auction (CA) for six years in December. The conference of Council of Energy Producers last Friday found out that the time frame for approving the regulatory framework and therefore for launching the programme had been changed again.     

7 bln roubles in budgetary subsidies for gas turbine development in 2019–2021

It became known last week what amount of investment the government is willing to allocate on co-financing terms for the development of manufacturing processes for high-capacity gas turbines. The question of local content of combined-cycle plants (CCPs) will be all-important at the second stage of the modernization programme, after the upgrading of the bulk of equipment at the cogeneration plants. 

Kozak backs idea to differentiate FGC tariff, to increase by a factor of 1.5 over 7 years

The Cabinet backed all three key ideas for the reform of grid tariff policy. What it involves is a review of the easy terms for utility connection (UC), the introduction of reserve capacity charge (a switch to full payment based on maximum connected capacity is scheduled for 2024) and an increase in the tariffs of Federalnaya Setevaya Kompaniya [Federal Grid Company] to recover some of the losses incurred in maintaining the distribution networks. 

FAS expects standard tariffs to be set for Rosseti as of July 2020

At the same time, the authorities intend to make transmission operators follow standards in setting their rates and long-term tariffs. The latter can be implemented as early as next year, and standards for grid tariffs will be put in place starting in mid-2020. 

In 2020−2024, grid tariffs will be indexed by 5% to reduce «cross»

In this context, according to a forecast by Minekonomrazvitiya [Ministry for Economic Development and Trade], energy transmission tariffs will rise by 5% per year in the early 2020s, whereas for the other electricity transmitters the indexation rate will not exceed 3.3%. The arrangement is proposed in an attempt to reduce the level of cross subsidization, the ministry explains. 

Oreshkin: “Total utility tariff indexation in 2019 not to exceed 4%”

Despite resistance from Minenergo and utility providers (UPs), Minekonomrazvitiya continues to insist on tariff indexation by 2.4% rather than 4% as of 1 July 2019. A portion of traditional indexation next year will bypass resource providers, but will swell the public coffers due to a VAT rate hike from 18 up to 20%. UPs report another shortage of funding for the sector and warn of accelerated obsolescence of fixed assets. 

Tekhnopromexport again raises price of Taman TPS construction contract

Tekhnopromexport, which won a contract to build a new TPS in Taman as part of the new generation CA (NGCA) mechanism, is forced to increase the price of the works contract. Initially, Rostekh's arm capped the price of the construction contract for the Udarnaya TPS at just below 28 bln roubles. Then Tekhnopromexport twice increased the total price of works – by 21 September, it reached 32.5 bln roubles. Obviously, the original work costing did not make potential contractors happy. 

Vekselberg reduces direct interest in T Plyus from 57% to 40%

Hard on the heels of Oleg Deripaska and Alexey Mordashov, Viktor Vekselberg decided to change the shareholding structure of his companies under the Western sanctions. The businessman reduced his direct interest in T Plyus, and his Renova lost formal control of the Ural turbine factory. 

Renova reduces interest in Ural turbine factory from 80% to 49%

GEKh's arm and T Plyus commission an asset measurement to set up JV

Renova's anti-sanctions plan includes not only a change in the asset holding arrangements, but also a merger between the group's main genco, T Plyus, and Gazprom Energokholding (GEKh). The parties are reluctant to comment on the progress of merger talks; the idea doesn't sit well with FAS. But now, judging by official disclosures, the companies are getting ready for the start of asset valuation process. 

24-09-2018 17:08