The Ministry of Energy proposes to allocate a quota for projects in Russian gas turbines
According to Kommersant, the Ministry of Energy proposes to allocate a 5 GW quota with Russian gas turbines for modernization of TPPs with Russian gas turbines, with entry in 2031. For standard modernization projects in the framework of the October selection for 2029–2031, a quota of 4 GW was proposed. But the largest general companies are asking for adjustments: an increase in quota for Russian gas turbines to 6.6 GW, removing restrictions on the maximum CAPEX, as well as extending the program for modernizing the TPP until 2042. Industry criticizes the initiative of the general companies, calling for an assessment of their price consequences.
The Ministry of Energy proposes to allocate a quota of 5 GW for the construction of power units in Russian gas turbines as part of the October selection of projects for the modernization of old TPPs. This is evidenced by the sources “Kommersant”, familiar with the proposals of the Ministry of Energy, sent to the government. Input of this volume is scheduled for 2031. For projects of general modernization of old TPP, it is proposed to reserve a standard quota of 4 GW with an entry in 2029–2031. The Ministry of Energy refused comments.
The government is booking a separate quota for modernization projects with Russian gas turbine equipment as part of a general program for updating the old capacities. Investors who win in the selection pay for power units due to the allowance on a wholesale energy market that a large business pays. The main beneficiaries of the support program are the Rostec CHDK machines GTD-110M and the “power machines” GTE-65 and GTE-170.
The “Council of Energy Manufacturers” (SPE, unites the largest generating companies of the Russian Federation) asks the Ministry of Energy to adjust the proposed selection parameters, should be from the letter of the chairman of the Association of Alexandra Panina to the Minister of Energy Sergey Tsivilev (“Kommersant” saw a document dated April 11). So, the general companies offer to increase the quota for projects with Russian gas turbines to 6.6 GW with entry in 2029–2030. At the same time, it follows from the letter, El5-Energo, Lukoil and TGK-16 do not consider selection on gas turbines necessary at all.
To select projects for modernizing old TPP, SPE proposes to maintain the previous quota of 4 GW, and to transfer the unused quota of 2028 from 2029 in equal shares of 2030 and 2031. In general, the SPE modernization program asks to extend until 2042.
General companies also propose to remove control over the general CAPEX projects of the modernization program, but to maintain the maximum Price CAP for each of the project events. Now, according to the general companies, the costs of construction and installation work are underestimated, since their assessment was carried out on 2022 data and does not take into account the rise in the cost of recent years.
SPE also asks to allow the general companies to introduce modernized TPPs in the previous delivery time and increase the volume of power: up to 20% for past selection of projects and up to 10% for planned selection. In addition, it is proposed to give the supplier the right to canned turbines, which should be deduced during modernization. According to the association, the measure can be effective due to the energy deficiency, errors in planning and force majeure. If such equipment is included in the network, the supplier compensates the costs incurred during the conservation. SPE also in the future proposes not to distribute the requirements for localization for steam or gas turbines with a generator if they are purchased in the Russian Federation until 2019.
In the “System Operator” (dispatcher of the Unified Energy System) “Kommersant” reported that salvo selection for projects with GTU, transferring unused quota to 2030–2031 years and reducing requirements for the localization of steam turbines are possible only when amendments to the rules of wholesale energy market. The “Market Council” (energy market regulator) noted that the exclusion or reduction of localization requirements could provide the necessary volumes of equipment and a sufficient level of competition. “At the same time, the definition of requirements for the localization of equipment is part of the state policy aimed at developing domestic energy mass building,” they say. The extension of the program after 2031 has already been discussed, and the “market council” is not against such a decision, if the target values agreed with the capabilities of energy mass building are determined, the organization added to the organization.
The power machines reported that it would be optimal to select projects in the amount of at least 5 GW for domestic gas turbines with inputs in 2029, 2030, 2031. “Preservation of localization requirements for the production of steam and gas turbines, despite the problems of disrupting the supply of workpieces by domestic suppliers, will help to ensure technological sovereignty,” they believe there. Rostec said that based on production capabilities, they consider it necessary to ensure a long -term guaranteed demand for turbines not until 2031, but until 2042. CSK « Rostec » is going to participate in the projects of modernization of the TPP, the company said. “Leading companies of the energy market who participate in the selection of government quota, can be delivered equipment for power plants based on GTD-110M engines,” added to Rostec. “Now IDK are ready to supply large power turbines in the amount of two units per year.” They refused to comment in SPE, in the EL-5 Energy, Lukoil and TGK-16 Kommersant did not answer.
The “Energy Consumer Community” (lobby of large consumers) believe that a new portion of suppliers’ requests requires the validity and assessment of price consequences. Thus, industrial consumers are opposed to the abolition of the price ceiling for modernization projects, which will lead to a decrease in project efficiency and unjustified growth of payments. “Consumers also do not support the extension of the modernization program, since the amount of thermal generation capacities that has recently been built and also has to be modernized in current programs is 103% of the capacity of all existing wholesale TPPs in the energy system,” they emphasize there.
Vadim Karle from Kept believes that the proposed adjustments of the general companies are justified taking into account the need to find a balanced solution between the need to modernize the obsolete equipment and the real capabilities of the industry in the current conditions.
