$347m Russian-Chinese CHP plant nears start date

A 450 MW combined heat and power plant, hailed as a pilot in Russia-China cooperation, is finally set to be brought on online, after six years of delays.

Russia‘s TGK-2 have confirmed a 20th June start for the Huadian-Teninskaya CHP plant in Yaroslavl Oblast. The project is a joint venture between TGK-2 and China Huadian.
Russia China co-operation
A ceremony marking the start of construction work was held in September 2011, with the plant originally scheduled to start operations in 2013. Its launch has been repeatedly postponed since then because of cost overruns and issues with contractors.

The project was implemented under a capacity supply agreement (CSA), which provides plant operators with a guaranteed return on investment, but also penalises them for delays. In January, it was revealed that regulators would charge TGK-2 and China Huadian 78 million rubles ($1.3 million) for every month that the plant’s launch was postponed by this year. It is unclear whether the companies will also incur penalties for delays in previous years.

The CHP plant was listed as a priority project in 2014 by Yaroslavl authorities, which are eager to tackle local power shortages, according to Newsbase.

“In [Yaroslavl], the shortage of electricity is at a level of 40-50%. We have bought energy from the Tver and Kostroma regions,” TGK-2’s managing director for the Upper Volga region, Andrei Satalov, told Russia’s Regnum news agency earlier this week. “Thanks to the commissioning of the new CHP plant, we will reduce the power deficit to 5-15%, and in warmer months, [Yaroslavl] will be fully covered, and even able to sell electricity to other regions,” he said.

The station will feature two GTE-160 gas turbines, two turbine generators, one steam turbine, three transformers and two waste heat boilers. Its primary fuel is natural gas. Around 75% of the project’s cost has been sourced from the Industrial and Commercial Bank of China (ICBC).

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