Construction of Russian-Chinese Yerkovetskaya power plant may begin in late 2015-early 2016
SELIGER, Tver region. Feb 9 (Interfax) - Inter RAO UES and State Grid Corporation of China (SGCC) may begin building the 8,000-megawatt Yerkovetskaya State District Power Plant (Yerkovetskaya GRES) in late 2015 or early 2016, Energy Minister Alexander Novak told journalists.
"If the feasibility study's parameters are acceptable, construction could begin at the end of this year or the beginning of next," Novak said.
The Energy Ministry is "taking a closer look" at the issue of tax breaks that have been approved in the Far East for new power plant construction projects. Agreement has also been reached on streamlined certification of Chinese equipment.
Russia expects to receive tax breaks on electricity exports from the new plant to China.
"We are discussing with the Chinese side the issue of zeroing the VAT rate on electricity deliveries to China," Novak said.
The pre-feasibility study for the Yerkovetskaya GRES project has been completed and the full feasibility study is scheduled for completion by the fall of 2015, by September, he said.
The project will involve construction of the power plant, development of the coal deposit and construction of an ultra-high voltage transmission line.
The project will cost an estimated $17 billion.
"This is a very large number of new jobs, tax revenue. It will be possible to substantially alter the economic situation in the Far East and Amur region once the first stage is completed by the end of 2019," he said.
Earlier, on February 6, SGCC chief Shu Yinbiao estimated the overall cost of the project at $15 billion.
"We are discussing a project in the Far East: the Yerkovetskoye coal deposit. The mine has capacity for 35 million tonnes a year. On board we will build 8 gigawatts of generating capacity," Shu said. In addition 2,000 kilometers of 800-kV grid infrastructure will be built.
Those figures are only preliminary, he said. The feasibility study for the project will be completed by the end of 2015. Formation of a joint venture that will design, build and operate the project is planned, he said. Other investors might join the venture, Shu said, adding that he could not rule out the possibility of Chinese Shenhua joining the coal project.
Early in 2014, Inter RAO announced plans to build a power plant at the Yerkovetskoye coal field with capacity to generate 5-8 GW, for export to China. Inter RAO planned to bring Chinese partners into the project and held talks with Huaneng, the CEO of the Russian company, Boris Kovalchuk, told Interfax.