Peretok Light: highlights of the Russian and global power sectors for November 18-24
Источник: Ehab Aref / Shutterstock.com
Two important and unexpected news came out in the Russian power industry last week, and the government meeting that discussed TPP upgrade program, on the contrary, did not bring any new information. The agenda of the Cabinet of Ministers' meeting was traditionally published on the night before, but the topic was discussed without mass media, no official statements were made following the consideration of the issue. Five days earlier, the Head of the Supervisory Board of the “Council of Energy Producers”, Board Member of Inter RAO, Alexandra Panina, said that the generators were awaiting a government decision in the framework of a “manual” additional selection for 2025 until mid-December. Otherwise, the timing of competitive power take-offs may be disrupted.
In the coming months, probably, there will be more interesting news about the sale of coal generation and marketing business of Irkutskenergo. The company - through En+ - is affiliated with the largest consumer of the second price zone - Rusal. Earlier, Irkutskenergo leased three power stations of Angarsk cascade (9 GW) to the subsidiary of its main shareholder, Eurosibenergo. In case of Energosbyt sale and coal generation (“Inter RAO”, GEC and SGK are among the potential interested parties) only the legal shell will remain from the previous largest regional generator, which retained independence from RAO “UES of Russia”.
The second, almost sensational, news came from the fronts of the struggle for development of high-power gas turbines (HPGT) in Russia. According to Kommersant, Power Machines of Alexey Mordashov, who turned out to be the only bidder to receive targeted state subsidies for the development of this equipment, could not pass the selection. According to the documentation provided by Silmash, the efficiency design of 170 MW turbine project will be only 34.1% with a potential increase of up to 36% as the model is improved. The minimum efficiency for such projects was previously set at 35%. The Ministry of Industry and Trade, which is responsible for distribution of budgetary funds, has already announced a new selection of members of the expert group for evaluation of HPGT projects, it should be completed this week, and applications will be re-accepted from November 28 to December 3.
Three days before the news about the failure of Silmash, an interview was received from the Head of Siemens in Russia, Alexander Liberov. This year, the representative office of German concern became the main target of information attacks by Power Machines and, first of all, the Company's General Director, Timur Lipatov. For the first time, Mr. Liberov directly answered the criticism of one of the main competitors in the struggle for Russian gas turbine market.
In the same interview, Alexander Liberov spoke about the prospects to resolve a stock conflict within Siemens JV and Power Machines - the former partners are likely to face a joint-stock duel. Kommersant found out its conditions: German company will only be able to initiate the repurchase of 35% stake in Silmash at the end of 2021, before that, Power Machines every three years, starting in December 2016, has a three-month option to sell its share to the partner. However, not one of STGT participants has the right to produce and sell gas turbines in Russia outside the joint venture, thus a “separation” may take place already this year.
At the same time, Siemens is in a state of deep restructuring, and in the near future, the structure of an extremely overgrown conglomerate should undergo global changes.
A little more than a month remains before the start of the licensing procedure for energy retail companies. The launch of the control mechanism has previously been postponed several times, now there are differences between the regulator and market participants, with which the corresponding draft government decree is actually submitted to the Cabinet of Ministers. However, controversial issues are not as global as rumors circulating in the sector suggested.