12 Jul 2017 13:39

Replacement of Siemens equipment with Russian equivalents approved by expert review

MOSCOW. July 12 (Interfax) - The Russian state expert review office Glavgosexpertiza has approved adjustments to the Sakhalin GRES-2 power plant project being carried out by RusHydro .

The company said that a positive result had been received regarding the technical details. A positive result on adjustments to the estimated cost of the project is expected by September 2017. Investment in the power plant is currently set at 34.8 billion including VAT and launch is scheduled for late 2018.

The follow-up examination was necessary due to import substitution of key equipment for Sakhalin GRES-2. The project initially intended to use two steam turbines with foreign-made generators from Siemens which were subsequently replaced with Russian equivalents. The turbines for Sakhalin GRES-2 have been manufactured by Ural Turbine Works and the generators produced by Novosibirsk-based firm Elsib. The substitution of key technological equipment meant that the earlier approved project had to be adjusted.

The construction of the new power plant started in Spring 2015 after the approval of design documentation and the closing of the general contractor agreement with Mosenergo in January 2015. This coincided with the U.S., EU and other countries imposing economic sanctions on Russia.

The construction of Sakhalin GRES-2 is one of four projects in RusHydro's investment program that involves the construction of new generating facilities in the Far East, implemented in accordance with an order of the Russian President and with 50 billion rubles raised from the budget. Installed electricity generating capacity of Sakhalin GRES-2 phase one will be 120 MW and heat generating capacity - 18.2 Gcal/h. Annual electricity output will be 840 million kWh.