The Small Energy Association has sent proposals for the development of the electric power industry in remote areas and isolated energy systems of the Far Eastern Federal District. According to the letter addressed to Alexei Chekunov, Minister for the Development of the Far East and the Arctic, the implementation of the proposed measures to modernize generation in the Republic of Yakutia (Sakha), Kamchatka Territory, and Sakhalin Region will allow to save about 200 billion rubles over 6 years.
According to the letter of the Small Power Association, following the results of the Eastern Economic Forum 2023, the President of Russia instructed the Government of the Russian Federation to approve the program for the development of the electric power industry in the Far Eastern Federal District until 2050, providing for the use of project financing mechanism for infrastructure projects, as well as to ensure its implementation.
The mechanism of subsidizing energy tariffs for consumers in isolated energy districts to the average Russian level of electricity prices (tariffs) through additional payments collected from enterprises and organizations, including those in the public sector, operating in price zones of the wholesale energy market, which has been implemented since 2017, is not aimed at solving the tasks of improving the efficiency of operation and development of energy infrastructure, including generation facilities in these territories. Implementation of other effective and comprehensive ways to improve the efficiency of generating facilities is not currently envisaged.
In order to fulfill the order of the President of Russia and implement measures to improve the efficiency of generation operation in remote areas and territorially isolated energy systems of the Far Eastern Federal District in order to reduce operational costs of generation operation (fuel costs) and curb the growth of energy tariffs in the Far East in the long term, the Association of Small-scale Power Industry proposed to consider the following initiatives:
To consider the replacement of diesel and coal-fired power plants with power complexes operating on the basis of GPU under the model of energy service contracts, involving financing with state support measures to compensate for investment costs.
As measures of state support the Association proposed to use financing through VEB.RF, DOM.RU, as well as partial use of funds for subsidizing energy tariffs in remote and territorially isolated energy districts of the Far Eastern Federal District;
Provide an opportunity to sell electricity produced at such energy complexes to electricity consumers;
Provide tax and customs privileges for manufacturers and suppliers of efficient generating equipment implementing energy service projects in the Far Eastern Federal District. Starting from the third year of implementation of generation modernization measures, the effect may exceed the amount of the annual subsidy.
The economic effect will be achieved through the use of efficient equipment with a specific gas consumption of 0.25 cubic meters per 1 kW, with high equipment utilization, low operating costs and longer operating time before overhaul, as well as the use of energy complexes in cogeneration mode. The total investment for the project implementation will amount to about 80 billion rubles.
According to the letter, for its part, the Small Energy Association is ready to join the work to develop conceptual documents for a comprehensive investment program to modernize generation facilities in remote areas and territorially isolated energy systems of the Far East, as well as to engage engineering and service companies specializing in the implementation of technological and electrical solutions in the field of gas piston power plants.
