OJSC MMC Norilsk Nickelsigned an agreement with the contractor for execution of works package on reconstruction of Ust-Khantaika HPP.
Construction of Ust-Khantaika HPP was carried out between 1963 and 1975. First hydraulic unit (stationary unit No.2) was commissioned in 1970. Ust-Khantaika is the northernmost hydroelectric plant in the world. The scope of reconstruction project includes replacement of all hydraulic units in the plant's turbine hall.
Project will be implemented in seven stages. First start up complex will be commissioned after reconstruction in 2015, seventh in 2021. Service life of each start-up complex is 40 years.
Implementation of the project will increase capacity and efficiency of hydraulic units, increase operational reliability, and ensure safe and accident free operations of primary hydroelectric equipment of Ust-Khantaika HPP.
This way maximum system efficiency index of hydraulic turbine will be increased from 88% to 95.1% after the reconstruction, capacity will be increased from 63 to 73 megawatt, installed capacity from 441 to 511 megawatt. Long term average annual electricity production value will be increased from 2032 mil. to 2147 mil. kilowatt per hour.
Tender aiming to select a contractor for implementation of the works was announced on September 29, 2011. Six international consortiums have participated in the tender.
Tender results were announced on September 27, 2012. According to the meeting minutes of the technical and commercial negotiations working group, OJSC Tyazhmash in consortium with Russian companies LLC Electrotyazh-Privod, OJSC Ulyanovsk Instrument Design Bureau, DP CJSC Volga-SGEM, Kamspetsenergo, OSJC NIIES and Ukrainian company LLC Hydrotechproject were declared tender winners.
MMC Norilsk Nickel approaches modernization of both primary production assets and infrastructural objects in a responsible manner. Special attention is paid to development of energy assets. Company's production and technical development strategy till 2025 (approved by the Board of Directors on October 27, 2011) includes improvements in the effectiveness and reliability of energy systems of MMC Norilsk Nickel as a result of reconstruction of power generation objects (HES-2, HES-2, HES-3, Ust-Khantaika HPP) and modernization of primary and auxiliary energy equipment.
The investments in power generation assets during this period will total approximately USD 2.1 billion.