Inter RAO enters the combined cycle

The cost of transferring two power units of the Kashirskaya GRES “Inter RAO” to a more economical combined cycle gas cycle will amount to 63 billion rubles. The company will install four localized Power Machines turbines with a capacity of 150 MW each at the facility. Payback of projects will be ensured by increased payments of the energy market. Inter RAO has high hopes for its project to develop turbines together with GE – up to 15 medium-power machines can be supplied to power plants to supply power to the Vostok Oil project.

The total capital expenditures for the Inter RAO project for the installation of experimental Russian high-capacity gas turbines at the Kashirskaya TPP will amount to RUB 63.1 billion. (in 2021 prices). This was announced on May 28 by the head of the strategy and investments block of the energy holding Alexey Maslov during the presentation of the IFRS results. Inter RAO plans by 2028 to replace the two decommissioned power units of the Kashirskaya GRES by commissioning two backup units with four turbines of 150 MW each produced by Alexey Mordashov’s Power Machines. At the same time, ineffective capacities at the coal-fired Yuzhnouralskaya GRES-1 (747 MW) will be closed. The total project capacity is 896 MW.

Russia does not yet have a fully localized production of medium and high capacity gas turbines. The creation of their own Russian turbine is actually paid for by industrial consumers of electricity as part of the program for the modernization of old thermal power plants using a mechanism similar to capacity supply agreements (CDA; guarantees the investor a return on investment through increased payments for capacity). The size of the quota for the selection of projects for experimental units on Russian turbines was 1.6 GW. Inter RAO received 56% of the quota, another 30% from Gazprom Energoholding (manages Gazprom’s energy assets), from T Plus – 14% of the volume (see Kommersant dated May 19).

The unit cost of the project included in the Inter RAO program is 70.4 thousand rubles. per 1 kW, or $ 960 per 1 kW, which is 4% lower than the marginal cost under the terms of the tender, while about 30% more expensive than the project of Zainsk GRES Tatenergo, says Vladimir Sklyar from VTB Capital.

The company is quite capable of meeting these price parameters, and the main risks of the project will be associated with the construction time and future reliability of the experimental equipment, ”the analyst notes.

Inter RAO also has plans to localize a large and medium-sized turbine. This is done by Russian Gas Turbines (RGT; a joint venture between Inter RAO and GE). The turbines are being assembled at the site in Rybinsk; modernization is planned at the site by 2023. However, projects based on RGT turbines did not participate in the tender, since Inter RAO still had “unresolved issues on obtaining all technical documentation” from GE, Mr. Maslov explained.

The demand for RGT turbines can be met not only within the framework of modernization, according to Inter RAO. In particular, the company has high hopes for the 6F.03 medium power turbine (about 80 MW). The first delivery can take place until 2026. It is assumed that the power plants for supplying Vostok Oil (the oil megaproject of Rosneft and Eduard Khudainatov’s Neftegazholding) will be built on the basis of 6F.03 machines. The company’s plans for the next 7-8 years are to deliver 30 vehicles, and Vostok Oil “covers almost half of this target figure,” Alexey Maslov said. He also noted that negotiations are underway with RusHydro. RusHydro told Kommersant that as part of the design of thermal generation facilities planned for construction in the Far East, the holding is negotiating with a wide range of suppliers of basic equipment, including RGT.

Polina Smertina