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Plan of Crimea’s power, gas supplies should be ready by May 1

April 09, 2014, 21:58 UTC+3 MOSCOW
The construction of new power generation capacities for Crimea will cost about 90-100 billion roubles ($27.9 million), Russia’s Energy Minister Alexander Novak says
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MOSCOW, April 09. /ITAR-TASS/. The master plan of Crimea electricity and gas supplies should be ready by May 1, 2014, Russia’s Energy Minister Alexander Novak told reporters on Wednesday.

Late in March, Novak said that Energosetproekt jointly with Gazprom were working out plans for Crimea electricity supplies. “It is vitally important to ensure reliable and independent electricity supplies to the whole of Crimea and supply fuel to the power industry. One option is for Crimea to join the Russian integrated energy system across the Kerch Strait or to build its own generation capacities,” the minister said, adding that both options would be considered.

The construction of new power generation capacities for Crimea will cost about 90-100 billion roubles ($27.9 million), Novak said back then. “On the average, we think that it will cost $1.500-2.000 to build one kW of generation capacities. So 1,320 MW may cost 90-100 billion roubles ($27.9 million) at the current exchange rate,” the minister said. “It is clear that the project needs drawing of investments, most probably it should be non-budget funds. When we make decision on the construction plan, then we will start analysing variants for drawing private investments,” he said.

He said natural gas for power generation in Crimea might come from the South Stream gas pipeline to pass by along the Black Sea bottom. “These will most likely be power plants working on the gas which is extracted here in Crimea and the gas which can be taken from South Stream,” he said.

Crimea’s gas producing company Chernomorneftegaz produces about one billion cubic metres of gas a year. The company plans to extract over 2 billion cubic metres of gas in 2014, which is 15% more than the peninsula needs. In the future it is going to raise gas output to three billion cubic metres. In 2013, Crimea consumed 1.65 billion cubic metres of gas, which matched Chernomorneftegaz’ production volumes.

Alternative energy resources

Crimea will continue developing electricity generation with the use of alternative energy resources in the future, Russian Energy Minister Alexander Novak said.

“This kind of power engineering is well developed in Crimea. Total capacity of the operating electricity generation facilities which use power of wind and solar is at 289 megawatts. We will continue developing such kinds of energy resources in the future. We also consider prospects for manufacturing equipment for alternative energy resources in the territory of the republic,” Novak said.

According to earlier reports, it will be necessary 516 billion roubles ($14.4 billion) in order to raise the share of such alternative resources from 0.9% to 2.5% from the current capacity to six gigawatts by 2020.

Novak believes that development of renewable energy resources resolves two important tasks - stepping up of high-tech equipment production and refusing to use expensive and old-fashioned diesel-based power generation in isolated areas, such as those located in Far North, Far East, and Yakutia.


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