18 Oct 2018
EUR 35 million
Financial institutions and SMEs
|Date of loan:||4 Dec 2012|
|Customer:||Territorial Generating Company No 1|
|Amount in EUR:||EUR 30 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
|Business area:||Energy and environment|
This loan contributes to climate change mitigation: 100%
The loan has been provided for the financing of the investment programme, including the extension of the renovation of the Svetogorskaya and Lesogorskaya hydropower plants (HPPs), located along the river Vuoksi in Leningrad Oblast, in Northwest Russia, close to the border with Finland.
The project started in 2008 and is expected to be completed by 2014. The renovation project will increase the HPPs’ generation efficiency by replacing outdated turbines and rebuilding the entrance and exit channels. The combined total generation capacity will increase from 160 MW to 240 MW. The project benefits also include the elimination of idle flow, improvement of remote controlling and operational systems, as well as reduction of hydraulic oil consumption and needs for cooling water.
NIB member-area manufacturers participate in the project as suppliers of switchgear equipment and the production control system. The Vuoksi HPPs Cascade exports about 50% of annual production to Finland via an adjacent interconnection line.
Territorial Generation Company No 1 is one of the largest electricity and heat generating companies in Northwest Russia. The company’s generation assets include 55 hydroelectric and co-generation power plants.
The project increases the production capacity of hydropower plants that are linked to the Finnish network. The electricity imported from these power plants comprises 0.5% of the annual power consumption in Finland. The increase in capacity creates downward pressure on prices in NordPool and increases balancing capacity in Finland. The project also involves equipment deliveries from NIB’s member area manufacturers.
The project will increase the electricity generation from a renewable source (hydropower) with no significant negative environmental impact. The project is expected to solve the problem of losing energy potential due to overflow caused by insufficient turbine capacity.
There are no significant risks of a negative environmental impact from the reconstruction of the hydropower plants as the river and the water flow will not be affected by the project. All major negative environmental impact caused by the construction of the hydropower plants occurred in 1937 and 1947 when the dams were originally constructed.