MOSCOW, October 24 (Itar-Tass) —— The issues on the updating of the investment program of the RusHydro company and other state-run companies engaged in the electricity-generating sector will be discussed at the level of the government and will be resolved within the next four to six weeks, Chairman of the company’s Management Board Yevgeny Dod told reporters on Monday.
“The government maps out the investment policy of our company,” he reaffirmed. “Currently, a discussion on the updating of the investment programs of all companies engaged in the power generation sector is under way,” Dod said, adding, “We are determining the most efficient model.”
“The work is expected to be over within four to six weeks. And it will be clear what model will be in the groundwork of the company’s activities within the next three years,” he said.
While replying to a question about the sale of a 7.92-percent stake, Dod said that RusHydro is ready for privatisation in the deadline established by the government.
“We have intensive discussions with potential partners and preparations for road-show, while opting first of all big players,” he stressed, adding that he means both foreign and domestic partners.
RusHydro is the world’s second hydropower producer. Its total capacity is 25 gigawatt.
RusHydro is Russia’s leader in the production of electrical power on the basis of renewable energy sources, developing power generation using water flows, tidal, wind and geothermal energy.
RusHydro is previously known as Hydro-OGK.
The company’s installed capacity is 26.1 gigawatts, including the Sayano-Shushenskaya HPP (named after P. S. Neporozhniy) (6.4 megawatt), which is currently under reclamation work.
The most important operating principles for hydro-power facilities that are part of RusHydro are technical safety and system reliability. To upgrade equipment security and hydro-power structure safety, the company implemented a technical upgrading and reconstruction (TU&R) program at all power plants under operation. The program is developed with regard to the actual and estimated status of equipment, buildings and structures, as well as with accounting for branch requirements and corporate standards.
Funding for the program increased significantly in 2010 and exceeded 18.5 billion roubles (USD 1 = RUB 30.82) (versus 8.57 billion roubles in 2009). The majority of these funds were used to purchase hydro-electric, hydro-mechanical and auxiliary equipment, and electric equipment, to create automatic process control system, relay protection and automatic equipment and to develop on-site safety systems. In 2010, the TU&R program allowed the company to increase the capacity of its operating HPPs by 29 megawatts.
Based on a resolution of the company’s Board of Directors, the planned 2011-2013 investments in the aforesaid program will be 57.6 billion roubles. The program implementation will result in a significant equipment upgrade, bringing the technical state of the company’s facilities in line with global best practices. It will also increase the installed capacity of the company’s operating HPPs by 173 megawatts.
As of April 1, 2011, the Russian Federation owns 57.97 percent of RusHydro’s authorized capital and the remaining 42.03 percent belongs to minority shareholders.