Construction of 750-800 MW combined cycle gas turbine power plant in Crimea

The Parliament of Ukraine approved the Law on 16/10/2012 which foresees provision of UAH 10 billion (approx. USD 1.25 billion) state guarantee to the transmission system operator NEC Ukrenergo for implementation of the project on construction of combined cycle gas turbine power plant (CCGT) in Scholkino, Crimea. Respective debt financing will come from the Export-Import Bank of China.

Total volume of investments into Scholkino CCGT construction is estimated at USD 1.5 billion. Implementation of the project also envisages development of power and gas distribution networks in the eastern part of the Crimean peninsula, including construction of new substation and gas pipeline Dzhankoy-Scholkino.

In June 2011, the Ukrainian state enterprise Crimean Generating Systems and China National Machinery Industry Corporation (SINOMACH) signed the framework agreement to start discussion of the contract terms for construction of Scholkino CCGT with an approximate installed capacity of 750-800 MW.

The Ministry of Energy and Coal of Ukraine by its order dated 04/09/2012 approved NEC Ukrenergo as project owner for construction of CCGT in Scholkino. Ukrainian design institute Energoprom-2 developed feasibility study of the project that passed successfully official state examination by relevant authorities and was approved by the Ministry of Regional Development, Construction and Housing-Communal Sector on 04/10/2012.

IMEPOWER view: implementation of this project is a positive step as Crimea lacks own electricity generation sources and there is significant volume of wind and solar capacities that will be commissioned at the peninsula in the nearest years requiring comparable maneuverable generating capacities to be available for balancing purposes. At the same time, we believe that the Government should improve planning process in the power sector via preparation and publication of the grid development master plan and generation least cost study to show which power projects are currently planned and/or developed in the country and which of them are considered by the state as priority.

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