Project description
and objectives:
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Construction and installation of a 40MWe (2 x 20MWe) geothermal power plant located in Mutnovsky, southern Kamchatka, Russian Federation.
The objectives of the Mutnovsky geothermal project are: to assist the Kamchatka region in its strategy of diversifying its energy base; to reduce the imported fuel bill and the cost of power generation; to decommission environmentally damaging old fuel-fired plants; and to develop the first independent power producer in the region.
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Transition
impact:
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By structuring the project as an independent power project (IPP), certainly one of the first in eastern Europe, the project company will operate in accordance with a power purchase agreement (PPA) selling electricity to a single client, the power distribution company Kamchatkaenergo.
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The client:
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The project company, Geoterm, is a joint-stock company established under the Russian law whose only fixed assets are represented by: (i) the concession to exploit the Mutnovsky geothermal field; and (ii) the 12MW power plant built in Mutnovsky, which is set to be commissioned by November 1997.
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EBRD
finance:
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US$ 99.9 million (ECU 85.6 million) sovereign loan to the Russian Federation, which subsequently will on lend to Geoterm (the project company) with a 15-year maturity (including a five-year grace period).
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Total project cost:
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US$ 150.176 million (ECU 128.356 million)
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Environmental impact:
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The project involves the construction of a geothermal power plant of 44 MW total capacity at the Mutnovsky geothermal field. The project was screened B/0, requiring an environmental analysis of the proposed investment programme. This analysis was carried out by international consultants.
The new geothermal facility is expected to enable Kamchatkaenergo, the regional energy company, to discontinue electricity generation at its oldest combined heat and power plant in the City of Petropavlovsk. This replacement of oil-fired capacity with geothermal energy will have substantial environmental benefits, notably a reduction in air emissions (particularly SO2, NOx and CO2) resulting from the existing combustion of high-sulphur heavy fuel oil in an old and inefficient power plant and a reduction of risks associated with the transport and storage of large volumes of oil.
Other environmental issues associated with this project relate to the construction work and the subsequent operation of the proposed plant. A major part of the new facility, including the access road, the transmission line and part of the site infrastructure, is already in place, and any construction work is likely to be restricted to the site itself. An Environmental Action Plan will ensure the protection of the local environment during construction and operation of the facility.
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Technical
cooperation:
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None
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Bozena Cosser, Operation Leader: cosserb@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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