EIB supporting emissions reduction in Russia
The European Investment Bank is lending €100 million to support modernisation of power and heat generation technology in Vladivostok, Russia as part of a programme to reduce reliance on fossil fuels
The European Investment Bank (EIB) is lending €100 million to support the modernisation of power and heat generation technology in Vladivostok (pictured right) as part of a wider programme to convert Russia's primary energy source from coal to natural gas and reduce carbon emissions.
The loan is the first to be extended by the EIB in Russian roubles and it be used to finance the installation of three new combined heat and power gas turbine units, which will increase electricity and heat production and bring environmental and energy efficiency performance into line with best practice.
This loan reflects the European Unions prioritisation and commitment to climate change mitigation and the project will also contribute to the implementation of the EU – Russia Partnership for Modernisation.
The operation is being carried out under the EIB’s Climate Change Mandate for non-EU countries introduced in 2011 and is being co-financed with the European Bank for Reconstruction and Development (EBRD).
Each of the three new units will consist of a 46.5 MW high-efficiency gas turbine and a 40 Gcal/h heat-recovery hot water generator. This will help to cover the heat base-load throughout the year in Vladivostok and supply electricity to the region. The project also includes the installation of three heat-only boilers (100 Gcal/h each) to cover peak loads and replace the old heat-only boilers currently being used.
Konstantin Bessmertniy, Member of the Management Board of JSC RusHydro, the project promoter, said:“RusHydro is now unveiling a large-scale construction project in Russia’s Far East. Construction of the new generating facilities will enhance the region’s energy security and provide consumers with a reliable power supply. Support for our projects from major financial institutions such as the European Investment Bank is obviously an advantage and will help to make the implementation of RusHydro’s investment plans a success.”
General Director of JSC "Energy Systems of East" Sergei Tolstoguzov, stated: "Today the south of Primorye region faces lack of energy. Construction of the new station will allow the city to get two independent power facilities. Vostochnaya CHP input will increase Vladivostok heat power capacity and create the necessary provision for electricity and heat. According to our experts, the station will supply electricity to more than 50,000 apartments and provide heat to more than 600 multi-family homes."