“Inter RAO” can build on the Taimyr Peninsula new plant for oil and gas. Generation needed for the Arctic petroleum mega-project “Rosneft” “Vostok oil”. In General, for providing power fields of the project on Taimyr is required up to 2.5 GW of capacity and several thousand kilometres of power lines. According to analysts, the construction of new generation would cost 175-200 billion. But investors not yet decided either with a source of construction financing and return on investment, no equipment.The Board Chairman of “inter RAO” Boris Kovalchuk, the head of “Rosneft” Igor Sechin (took the chair of the Board of Directors of “inter RAO”) and the President of “Neftegazkholding”, the former head of Rosneft Eduard khudainatov signed the agreement on cooperation, said in a joint statement by the companies. Within it “inter RAO UES” will develop several TES on associated petroleum gas with capacity of 2.5 GW and dozens of kilometres of power lines for the Arctic project “Rosneft” and “Neftegazkholding” “Vostok oil”. Generating capacity is needed to support oil production at new fields of Taimyr: West Arkinson, Piasca and Eastern Taimyr.The parties did not disclose the source of investment, their volume, deadlines and who will be the future owner of the station. Mechanisms to build new generation in remote areas due allowance for the wholesale energy market (as in the construction of four new thermal power plant “inter RAO” in Kaliningrad) does not exist. But at the end of 2019 the government has approved for “Vostok oil” benefits: the project will receive a ten-year deduction of mineral extraction tax in the Vankor cluster of “Rosneft” in Krasnoyarsk region “in the amount of costs incurred for the creation of an external infrastructure (transport, energy) necessary for the implementation of the extraction of raw materials on the subsoil plots located at 50% or more within the boundaries of the Taimyr Peninsula”.Thus, the “Vostok oil” can receive about 600 billion rubles. for ten years at an oil price of $60 per barrel. But as the deduction will only occur if the price of oil will exceed laid down in the budget rule (now $42.4 per barrel of Urals), at current oil prices implementation of the project looks dubious.Due to the sale of a share in “Irkutskenergo” and revenues from completed contracts binding the company established a cash reserve in the amount of 196,5 billion rubles so far in “inter RAO” refused to reinvest these funds, for example, in the construction of high-yield green generation. The participants of the energy market suggested that the company is preparing for a major purchase, but appropriate for it assets have not yet been found. The “inter RAO” has become a key investor in the program of modernization of old thermal power plants, planning to send her to RUB 42.3 billion in 2022-2025.Vladimir Sklyar from “VTB Tocapital” estimates CAPEX of a new generation on the Taimyr Peninsula in the 175-200 billion rubles taking into account the statements of management that their investment in the company always seeks to obtain returns of at least 10%, the cost of electricity for the consumer will be comparable to the cost of the PDM without a network component, and will annually cost about 35-45 billion rubles at market rates.Tatiana Woodpecker
