Wave of renewal

RusHydro will direct a third of its investments to modernization

Yesterday, a memorandum of cooperation on reconstruction, modernization and technical re-equipment was signed between RusHydro and the Austrian Voith Hydro. However, as the domestic hydro generator explained to Vremya Novostey, not only Austrian colleagues can be involved in the renovation of controlled hydroelectric power plants. Previously, a similar agreement was signed with the French company Alstom Hydro. Experts believe that turning to foreign experience is inevitable, since the country does not have its own technologies. Advanced developments will not be cheap: with a total average annual investment of approximately 100 billion rubles. It is planned to allocate up to 30 billion rubles for these purposes.

Tomorrow, RusHydro will begin consideration of a ten-year program for the technical re-equipment of hydroelectric power stations. According to the head of the company, Evgeny Dod (pictured) , there are plans to increase the average annual investment in technical re-equipment from the current 12 billion rubles. up to 25 billion rubles. “In the future, with reaching the level above 30 billion, our task is to bring the equipment back to normal,” explained Mr. Dod. He stated that currently the wear and tear of equipment at the hydroelectric power stations under his control is about 50%. According to the head of RusHydro, out of the $10 billion included in the company’s three-year investment program, approximately $4 billion will be spent on modernization. As a result, the wear rate of equipment should be reduced to 15-20%.

According to the director of the Energy Development Fund, Sergei Pikin, RusHydro’s decision to invest more in the modernization of existing capacities is long overdue, given the level of deterioration of Russian hydroelectric power plants. At the same time, he noted that much will depend on what exactly the investments will be used for. “It’s a matter of return on investment. It is not necessary to whitewash and tint, but to replace outdated equipment without rebuilding the station. This requires modern technologies, which we, unfortunately, do not have. The most progressive in this regard are Austria, Germany, Switzerland and France,” the expert noted. He explained that significant experience had been accumulated by European countries due to the small number of free sites, which required constant modernization of existing hydroelectric power stations. In Russia, according to Sergei Pikin, this problem is not so acute. Nevertheless, within the framework of technical re-equipment, two large-scale problems can be solved at once. “Modernization will not only reduce the risk of accidents and increase the safety of hydraulic engineering facilities, but will also ensure an increase in electricity generation, for which there is potential demand,” the expert concluded.

Zarubezhstroy will build the largest hydroelectric power station in Africa. A subsidiary of the Borodino group, Zarubezhstroy, will build a hydroelectric power station in Tanzania with a capacity of 222 MW and 140 km of electrical networks, the cost of the project is tentatively estimated at $700 million. Memorandum of Understanding for the implementation of the Rumkali project between the Ministry of Electricity and Mineral Resources of Tanzania and Zarubezhstroy was concluded on Tuesday. The signing of the contract is scheduled approximately for December 2010 - March 2011. It is expected that Borodino will also act as the organizer of financing the project. This is not Borodino’s first contract in the electricity sector. The company's subsidiaries are working on projects in Mongolia, Angola and Egypt, as well as in a number of other African countries. The company estimates that construction of the hydroelectric power station could take three to five years. To date, about 75% of the work on preliminary financial and technical approvals has been completed.

Petr GELTISHCHEV