RF Government Approves JI Project of En+ Group And Irkutskenergo

Сентября 23, 2010

The RF Government approved a Joint Implementation project to replace rotor wheels at OAO Irkutskenergo's Bratsk HPP, which had been earlier selected in the first tender for JI projects held by Sberbank of Russia.

Launched in 2006, the project involves the replacement of six wheels at Bratsk HPP with more efficient ones. Five of the six wheels have been installed so far, the sixth to be put in place within the project completion stage scheduled for the end of 2010. This will enable the plant to generate more electricity at the same water amount and to partially replace the capacity of the region's coal-fired plants that emit large amounts of carbon dioxide.
Bratsk HPP is to produce additional 3.5 bn kWh thanks to the new equipment in the Kyoto period (2008-2012). The project is to reduce green house gas emissions by about 4 mln tons equal to 4 mln Emission Reduction Units (ERU is a market certificate provided for by the Kyoto protocol) in the region. The actual reductions at the region's coal-fired plants totaled 920 thd tons of CO2 emissions in the period 2008-2009, as shown in the monitoring results produced by the dedicated audit team of Bureau VERITAS.
The proceeds from the ERUs sale are to be used to finance new JI projects in the Irkutsk region.
Deputy CEO of En+ Group Jivko Savov commented: "We are happy to see the Kyoto mechanisms work in Russia and the JI project of En+ Group and Irkutskenergo be among the first ones endorsed by the RF Government. In fact, this has been the Russia's first JI project to modernise a large hydropower plant, and we are ready to cooperate with other HPP owners in Russia and to use the experience we've gained".
CEO of OAO EuroSibEnergo/OAO Irkutskenergo Evgeny Fedorov said: "The project has clearly shown how the Kyoto mechanisms can reduce GHG emissions thus fighting the climate change and raising the efficiency of power generating facilities. The intention of OAO Irkutskenergo and, on a wider basis, of OAO EuroSibEnergo is to go on with GHG emission reduction projects to be financed through the Kyoto mechanisms".
In June 2009, En+ Group became the first in Russia to receive cash through the JI mechanisms after it implemented its first carbon emission reduction project at Bratsk Aluminium Smelter and made a forward deal to sell (on prepayment conditions) 1 mln ERUs generated by the project.