Russian Companies Won’t Modernize Power Plants Due to Funding Issues
The Russian government has decided that several companies won’t have to modernize power plants across the country. This is because of a lack of funding and equipment, according to Russian news agency Interfax.
Several power plants were taken off the list for modernization. These include the Tatneft Thermal Power Plant in Nizhnekamensk, and the Avtozavodskaya and Quadra combined heat and power plants in Nizhny Novgorod and Voronezh oblasts respectively.
The decision was made because it would be too expensive to modernize the power plants. The cost of equipment had gone up significantly, and the projects were not profitable due to the high price of turbines.
Other companies that were allowed to skip modernizing their power plants include Russia’s Territorial Generation Company No. 2. This company supplies power to several regions in Russia. They were unable to get loans from Alfa Bank to fund the modernization project.
The Nevinnomysskaya Condensing Power Plant in Stavropol Krai was also excluded from the modernization project. The cost of this project had gone up by 454%.
Russia’s Siberian Generating Company will have to pay about $22 million to get out of its obligations to modernize four power plants in Siberia.
The Second Generation Company of the Wholesale Electricity Market, owned by Gazprom, was also allowed not to modernize their power plant in Surgut. This is because equipment deliveries were delayed for 16 months.
These developments come at a time when Russia’s economy is facing challenges due to Western sanctions and inflation. The combined effect of these factors is starting to affect various sectors, including automotive, aviation, and retail.
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