Peretok Light: highlights of the Russian and global power sectors for 22–28 October

EDM softens draft law on special accounts, but UPs are still against it

Minekonomrazvitiya [Ministry for Economic Development and Trade] has abandoned the idea of moving all utility providers to a system of special accounts. Now the ministry of Maksim Oreshkin wants to monitor under a special procedure the tariff proceeds of only the companies that default on their investment commitments. But neither has the adjusted position of Minekonomrazvitiya found sympathy in the sector. 

Discos to operate without licence

Disco licensing that the authorities planned to implement by 30 December has been delayed for a year at a minimum. Minenergo and industry representatives have failed to agree on a number of licensing parameters, first of all, quotas for customer service offices. The need for licensing, however, is no longer urgent: since the start of the year, Minenergo has revoked the default provider status of as many as five major defaulters on the wholesale market, all of them members of the Mezhregionsoyuzenergo group.

Inter RAO wins default provider status in Vologda Oblast

One of the regions where a default provider has lost its status this year due to EPCWM debts is Vologda Oblast. The new DP in the region in accordance with the results of tendering procedure is Inter RAO's arm, which promised to settle 1.1 bln roubles worth of debts of the previous DP.  

ROI of first TPS modernization projects to be 14%

Last week saw the effective end of a fierce battle over one of the key parameters of national cogeneration modernization programme. The base ROI controversy pulled in not only the government's subject matter experts, but also Sergey Shmatko, ex-head of Minenergo, as well as, according to unconfirmed sources, president Vladimir Putin in person. At the end of the day, the generators succeeded in defending the original rate of return of 14% (pegged to the OFZ [federal loan bond (FLB)] rate of 8.5%), but in subsequent auctions it can be reduced to 12% (pegged to FLB rate of 7.5%). 

Inter RAO wants to get ODK's stake in joint venture with GE in lieu of debt repayment

Inter RAO, which now has more than 1 bln roubles worth of financial claims against Rostekh's ODK due to the unsatisfactory performance of upgraded turbine GTD-110M, can swap them for ODK's 25% stake in the JV with GE. Thus, the generator will be the main partner of the foreign manufacturer of turbines and intends to acquire from GE a licence to manufacture a gas turbine with a capacity of up to 200 MW.  

Minpromtorg proposes linking RES support to equipment exports

Minpromtorg finds itself poised on the cusp of another major decision. Denis Manturov's agency has suggested linking support for green generators with exports of locally made equipment for VES [wind power station (WPS)] and SES [solar power station (SPS)].  Previously RES generators demanded that support for the sector be extended at the expense of energy market consumers: without it, the sector will not survive and will be unable to realize its potential, including for export, they claimed. Now the restrictions in place on the exports of locally made products under contracts with licensors can become a barrier to government subsidies. 

Due to sanctions, SilMash can be fined for breach of contract in Vietnam

Siloviye Mashiny, the mechanical engineering group of Alexey Mordashov, which plans to develop in-house a high-capacity gas turbine as part of import substitution effort, has started to feel the effect of the western sanctions on their business in foreign markets. In Vietnam, the Russian group is facing problems with payments in dollars, has lost half a dozen customers and is 15-18 months behind schedule. SilMash is now asking the Russian authorities for support in talks with the Vietnamese party. 

Minenergo proposes setting long-term tariffs in FEFD based on RGI

Some of the expenses that RusHydro is incurring in upgrading five stations in the Far East cannot be recovered under the modernization programme and through contributions from energy market consumers. This involves, first of all, the three stations to be built in the Far East virtually from scratch to replace worn-out capacity. The modernization programme can beonly be used to pay for a limited range of measures. Additional funding to bankroll works beyond the programme's scope can be sourced from consumers in the macro-region; to this end, a portion of the costs can be factored into the requisite gross income (RGI), which will be the basis for Far-Eastern tariffs, Peretok's source within the government said last week. A couple of days later, Minenergo published a draft government decree that switches the setting of Far-Eastern tariffs from the inflation+ principle to long-term indexation of RGI. 

29-10-2018 17:41