Enel is currently in talks with Russian energy ministry over the possibility of using foreign-made equipment under the country’s new modernization program.

Enel Russia is exploring with the government the potential to use the equipment, currently in storage since 2011, on a new gas-fired power generation unit in Sredneuralskaya GRES, according to General Director of Enel Russia Carlo Palasciano Villamagna.

Sredneuralskaya power plant
Villamagna told the company’s AGM, “The equipment is currently stored at a warehouse in Russia. We are seeking opportunities to use this equipment in certain investment projects, for instance, within the scope of new modernization program.”

A project to construct the new unit with installed capacity of 440 MW was approved by the board of directors of Enel Russia in April 2011. The commissioning was due in 2014, however, the declining trend for in power prices and policy of restraining tariff rises contributed to the suspension of the project.

Mr. Palasciano pointed out that the company does not know yet whether it will be able to use this equipment as project selection criteria under the new modernization programme is not yet clarified. It is not yet known if the new program requires a high level of equipment localization.

Meanwhile the Russian government has been working on securing closer ties with China in the field of gas-fired power development.

A working meeting between Alexey Miller, Chairman of the semi-state sponsored Gazprom’s management committee, and Wang Yilin, Chairman of the Board of Directors of China’s CNPC, took place in Beijing.

The meeting covered a wide range of issues regarding cooperation in the gas sector. Emphasis was placed on joint efforts in such areas as underground gas storage, promotion of the use of natural gas as a vehicle fuel, and gas-fired power generation.