Russian-Chinese CHP plant finally ready for launch

15 June 2017, Week 23 Issue 864

The 450-MW Huadian-Teninskaya combined heat and power (CHP) plant in Yaroslavl Oblast will be brought online on June 20, according to one of the station’s owners, Russia’s TGK-2.

The 20 billion ruble (US$347 million) project – a joint venture between TGK-2 and China Huadian – was first approved by authorities in 2011. Moscow hailed it as a “pilot” for Russian-Chinese co-operation in electricity generation. However, its development has been thwarted by delays.

A ceremony marking the start of construction work was held in September 2011, with the plant originally scheduled to start operations in 2013. Its launch has been repeatedly postponed since then because of cost overruns and issues with contractors. In 2016, the Russian government and regulators agreed a new start date of January 1 this year. But this deadline was also missed after a snap inspection in December last year by safety agency Rostekhnadzor identified 500 violations at the plant. The violations related to safety standards and a lack of documentation for some of the station’s equipment. It was later confirmed that all these issues had been resolved.

The project was implemented under a capacity supply agreement (CSA), which provides plant operators with a guaranteed return on investment, but also penalises them for delays. In January, it was revealed that regulators would charge TGK-2 and China Huadian 78million rubles (US$1.3 million) for every month that the plant’s launch was postponed by this year. It is unclear whether the companies will also incur penalties for delays in previous years.

The CHP plant was listed as a priority project in 2014 by Yaroslavl authorities, which are eager to tackle local power shortages.

“In [Yaroslavl], the shortage of electricity is at a level of 40-50%. We have bought energy from the Tver and Kostroma regions,” TGK-2’s managing director for the Upper Volga region, Andrei Satalov, told Russia’s Regnum news agency earlier this week. “Thanks to the commissioning of the new CHP plant, we will reduce the power deficit to 5-15%, and in warmer months, [Yaroslavl] will be fully covered, and even able to sell electricity to other regions,” he said.

The station will feature two GTE-160 gas turbines, two turbine generators, one steam turbine, three transformers and two waste heat boilers. Its primary fuel is natural gas. Around 75% of the project’s cost has been sourced from the Industrial and Commercial Bank of China (ICBC).

Joseph Murphy

Edited by

Joseph Murphy


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