The updated thermal power plant in Vladivostok can be transferred to a regular tariff

As Kommersant found out, RusHydro (MOEX: HYDR) can launch the modernized power unit of the Vladivostok CHPP-2 in April, that is, three months later than scheduled. There are no fines for missing deadlines, but the company risks receiving a low power tariff, since the government commission has not yet approved the cost of modernizing the entire station. RusHydro expects to resolve the issue in the near future. Analysts are confident that the block will be launched, and the state holding will be able to receive compensation for losses from the budget or at the expense of the market.

The first gas power unit of Vladivostok CHPP-2 (owned by RusHydro) after modernization has passed certification and testing, which means it is ready for launch. Kommersant was informed about this by RusHydro and the System Operator (power system dispatcher). The power unit will be able to begin operation “no earlier than April 1,” that is, three months later than the deadline (January 1). The delay occurred due to the protracted certification process. RusHydro added that “the machine was in forced downtime on the last day of the reporting month.”

The second reason for the protracted start-up is the “lack of a decision from the government commission to set the tariff” for the power unit. Currently, there is no energy market in the Far East, so modernization of generation occurs manually: projects, scope of work and CAPEX are approved by the government commission on the development of the electric power industry. Based on CAPEX, the cost of supplying the facility’s capacity is calculated, taking into account the return on investment. Consumers in the Far East and the rest of the country will pay for the capacity of such facilities. The basic level of return on investment in modernization is 12.5% ​​(at an OFZ rate of 8.5%).

Before the government commission at the end of last year, RusHydro presented the total CAPEX of the Vladivostok CHPP-2 to regulators and market participants. According to the state holding’s estimates, CAPEX of the three power units is 66.3 billion rubles. (excluding VAT), which is almost three times more than the figure at the investment justification stage in 2019–2020 (see Kommersant on January 11). The meeting participants criticized the holding’s data. As a result, the issue of CAPEX was not brought before the government commission.

Kommersant’s sources believe that holding a government commission again before the end of March will be difficult, but possible. However, if the meeting does not take place or the publication of the government resolution is delayed, then the first power unit of the Vladivostok CHPP-2 will supply electricity and power at the tariff established by the FAS for the old units of the station. In the first half of 2024, the electricity tariff for Vladivostok CHPP-2 is 2.4 thousand rubles. for 1 MWh, and for power – 321.96 thousand rubles. for 1 MW per month (excluding VAT). The Market Council (the energy market regulator) explained to Kommersant that there are no fines for late commissioning of the facility. If there is a delay of more than 12 months, liability is provided in the form of a reduction in the power tariff, they noted.

RusHydro told Kommersant that the company is ready to begin supplying electricity and power from the first power unit of the Vladivostok CHPP-2 from April 1, even at a tariff that will cover only operating costs, and not reimbursement of the company’s investments in modernization. However, the company considers this option unfair, since the unit was modernized using borrowed capital. The state holding hopes that the CAPEX of the station will be approved in the near future.

“The period of deviation from the planned date must be excluded from the guaranteed payment period, and costs for downtime should not be transferred to consumer payments,” say the “Community of Energy Consumers” (unites industrial consumers of electricity.— “Kommersant”) — This is fair and should motivate suppliers to take their obligations responsibly.”

The modernization of Vladivostok CHPP-2 is being implemented within the framework of the state program for the modernization of the thermal energy sector in the region, which emphasizes the relevance of increasing energy capacity for the Far East, notes Sergei Sasim, director of the Center for Electric Power Research at the National Research University Higher School of Economics. He is confident that the thermal power plant will be introduced, and the issue of compensation for losses caused by the low tariff can be resolved later, justifying the increase in the cost of CAPEX. The mechanisms for this compensation, in his opinion, can be different: from additional tariff increases to budget subsidies.

Polina Smertina