Enel: Russian tariffs too low to incentivize investment
Enel Russia & CIS has said regulated power tariffs are too low and suggested that the Kremlin raises them to incentivize the necessary investment as dictated by Prime Minister Vladimir Putin.
Putin, who expects 20 GW of new capacity to be installed by 2012, signed a bill in February outlining a capacity market, but analysts say price caps could mean the capacity market amounts to little more than “a tax and a lottery” and offer no long-term guarantees to investors.
Dominque Fache, general director for Enel Russia & CIS, said the only way for investors to be sure of a return on investment in new plant would be by raising regulated end-user tariffs that are often heavily subsidized. “It is impossible to get a return on investment given existing electricity prices,” said Fache, speaking at the Russia Power conference in Moscow. Tariffs are very low in Russia – consumers pay four times less than the lowest level in Europe and sometimes less than the wholesale price.
“I am not saying that they should be raised by four times overnight, but stage-by-stage in a socially civilized way,” he said.
Hyundai Engineering, Samsung C&T win $5.59bn UAE nuclear contract
Hyundai Engineering and Samsung C&T have announced the signing of a $5.59bn contract from Korea Electric Power Corporation (Kepco) to build a nuclear power plant in the UAE.
Hyundai will receive $3.07bn from the contract, while Samsung C&T will get $2.52bn from the deal. Samsung C&T said in a separate filing that the construction will last from this month to May 2020.
Last December, UAE officials tapped a consortium led by Kepco for a $20.4bn deal to design, build and run four nuclear power plants from 2017 to 2020.
South Korea eyes Turkey for next overseas nuclear project
Korea Electric Power Corporation (Kepco) and Turkey’s Elektrik Üretim (EUAS), the two countries’ state power companies, have signed a co-operation agreement to develop nuclear power in the Eurasian nation.
According to the Financial Times, the deal gives Kepco five months to conduct feasibility studies and bid to build a 5600 MW plant with four reactors in the Black Sea province of Sinop.
Kepco will bid together with a Turkish construction group, Enka Insaat ve Sanayi, forming a 50-50 joint venture to construct the plant.
Abu Dhabi’s Adwea seeks up to $1.6bn funding for Shuweihat S3 plant
Abu Dhabi Water and Electricity Authority (Adwea) is seeking up to $1.6bn in funds to build the Shuweihat S3 power plant in order to cope with growing domestic demand.
Adwea is seeking $1.4bn to $1.6bn to fund the Shuweihat S3 power plant, an official from the company’s financial adviser HSBC Holdings Plc said. Adwea is in talks with banks to borrow 80 per cent of the cost of the 1600 MW plant for 23 years and may complete the financing deal by the first quarter of 2011, Duncan Allison, director of project and export finance at HSBC, said.
Power demand in Abu Dhabi is growing at 11 per cent a year, Abdulla Saif Al Nuaimi, director of privatization at Adwea, said.
The state-owned power producer plans to award contracts to build Shuweihat S3 in the third quarter, which will be operational in 2013 and expand the emirate’s power capacity to 13 000 MW, Al Nuaimi said.
Cleantech to build $450m Jordan CSP solar project
German developer Mena Cleantech is to build a 100 MW concentrating solar power (CSP)plant at Maan in southern Jordan.
The Joan1 project, which will use CSP technology provided by Germany’s Fresnel, is expected to cost around $450m to build, which Mena Cleantech expects to finance $90m of through direct equity.
Contracts for the construction of the project will be signed in the fourth quarter of 2010, loan agreements will be signed and financial close reached in the first quarter of 2011, and the project will come online in the third quarter of 2013.
Kenya targets 5 GW geothermal power by 2030
Kenya has targeted an installed geothermal capacity of 5 GW by 2030 after a drought curbed hydropower output and the cost of diesel fueled generation jumped.
The east African nation is rolling out a $298m spending plan to mitigate the impact of a prolonged drought and the global recession.
Kenya has potential to produce 7000 MW of geothermal power, according to the energy ministry. A 20 MW hydropower plant at Sangoro will open in 2011.
Ghana: Africa Finance Corporation (AFC) has entered into a partnership with Cenpower and Infraco to develop the Kpone independent power project – a 340 MW combined-cycle gas turbine power plant in Tema. The plant is set to cost $450m.
Ivory Coast: Aggreko has signed a €35m ($47m) contract with the national utility companies SOGEPE and SOPIE to provide 70 MW of temporary power fuelled by gas.
Iraq: Toyota Tsusho Corporation has signed an 8bn yen ($86m) contract to build power transmission facilities. Under the deal with Iraq’s Ministry of Electricity, Toyota Tsusho will supply 24 mobile substations by the summer of 2011.
Jordan: The Energy & Mineral Resources Ministry is to issue a request for proposals in May to build its next wind farm at Fujeij near Shobak, 200 km south of the capital Amman. The proposed site is suitable for an initial 80-100 MW.
UAE: Areva T&D Dubai has bagged an order worth Dh1.03bn ($272m) for the supply, installation, test and commissioning of three 132/11 KV substations in various areas in Dubai including Dubai Investment Park, Jebel Ali Industries Area, Mutina and Kifaf.
UAE: Siemens Energy has received a €30m ($40m) order from Dubai-based Federal Electricity and Water Authority (FEWA) to supply a turnkey substation in Fujairah, one of the northern emirates. Four substations will also be modernized.
Yemen: The Yemen government has received a $100m loan from Saudi Arabia to fund the expansion of its electricity grid. Construction will begin in the second half of the year.
Zambia: The $1.5bn Kafue Gorge Lower hydropower project has been downsized to 600 MW from the planned 750 MW, The Lusaka government took the decision after studying the report by its lead project advisor, International Finance Corporation, part of the World Bank.
Zimbabwe: Zimbabwe Electricity Supply Authority (ZESA) has denied it is to decommission the 750 MW Hwange coal fired plant despite frequent breakdowns. A Zimbabwean government minister had earlier said ZESA was considering decommissioning all six generation units due to ageing plant equipment.