Media about RUSNANO

Hevel Will Dilute Diesel Fuel With the Sun. The Company Attracted Hyundai to the Energy Sector of the Far East

07 September 2017

By Tatyana Dyatel

Kommersant learned that Renova and RUSNANO JV, the Hevel Company, was launching a program to build 40 MW solar-diesel power stations in the Far East. Hyundai will supply diesel generators for the projects, which can also act as a co-investor. The payback of the projects in isolated areas of the Far East will be achieved by saving expensive imported diesel fuel. According to analysts, the cost of implementing such a project can reach up to 6 billion rubles.

Hevel will build hybrid solar diesel electric power plants in the Far East. According to Kommersant’s source, on September 6, within the framework of the EEF, the Russian company will sign an agreement on this matter with the Korean Hyundai Corporation and the Far East Investment and Export Agency. The total capacity of the projects is 40 MW, Hevel has already implemented similar projects in the villages Menza (Transbaikalia) and Yailyu (Altai). Hevel confirmed the information from Kommersant, Hyundai and the Agency have not respond to the request.

Under the terms of the agreement, Hevel will act as an EPC contractor and a supplier of solar modules, Hyundai will supply diesel generators and accumulators, the financing will be joint. Kommersant’s interviewees give no information about the pilot region and the cost of the power plants, Hevel only clarified the deadline of the project implementation, 2018-2022. Hevel’s CEO Igor Shakhray noted that the company was interested in the experience of cooperation with foreign partners “for further access to foreign markets with isolated energy supply systems”.

In the Far East, there are no mechanisms to support the construction of generation using renewable energy sources (RESs) introduced in the European part of the Russian Federation and Siberia. Payback is usually achieved by special tariffs on the retail electric power market (purchase of RES generation by networks to cover losses) and through contracts for RES supply on the wholesale market (guarantees return on investment due to increased payments from consumers). Investors in green generation in the Far East have to look for other ways of financing.

So, Hevel plans concessions for upgrading inefficient diesel generation, which will include an energy service contract. Investments will be returned at the expense of a monthly payment pegged to the cost of saved fuel. Excess of solar output during the day is discharged into the battery and consumed at night, diesel is used at peak consumption—in the morning and in the evening. This scheme allows reducing the cost of energy in areas where diesel fuel prices are too high, and tariffs are subsidized. According to Hevel, after the 10 MW project implementation and return on investment, the size of subsidies from regional budgets for the period of operation of power plants (20-30 years) may decrease by 17.9 billion rubles, up to 100.5 billion rubles, the fuel consumption will decrease twice.

A similar technology, but with the use of wind diesel power plants in the Far East is implemented by RAO Energy Systems of the East controlled by RusHydro. At the EEF, RusHydro is planning to sign an agreement with Chukotka and the “Japanese investor” on launching a pilot RES project in 2018, Roman Kopin, the Head of the Region, told to RIA Novosti. According to him, it concerns the wind and wind-diesel systems, the cost of the pilot is about 500 million rubles. “The less we import coal, diesel, organics, the more effective the project is for us,” Mr. Kopin explained. RusHydro did not comment on the details of the project.

According to Natalia Porokhovaya from ACRA, the cost of the 40 MW hybrid power plants is about 6 billion rubles, savings will be 8,000 tons of oil fuel or 14,000 tons of coal per year. Development of photovoltaic power plants in remote areas is economically feasible, she says, whereas in the Unified Energy System, their payback is achieved only at tariffs that are ten times higher than the current price of electric power for the end consumer.

Source: Kommersant, 06.09.2017