The Ministry of Energy of the Russian Federation has prepared a draft resolution on tenders for the construction of hydroelectric power stations and pumped storage power plants with a cost-delivery contract (DCS).

The Ministry of Energy of the Russian Federation has prepared a draft resolution for holding tenders for the construction of hydroelectric power stations and pumped storage power plants and concluding power supply agreements (PDMs) that ensure return on investment, as follows from the draft document and the explanatory note to it.

“The draft resolution involves determining the procedure for attracting and returning investments in the construction of new hydroelectric power plants and pumped storage power plants within the framework of the mechanism of power purchase and sale (supply) contracts concluded in relation to generating facilities included in the list of hydroelectric power plants to be built in the price zones of the wholesale market, approved by the government of the Russian Federation,” the explanatory note says.

“Such agreements are subject to conclusion with the investor based on the results of a competitive selection of projects for the construction of hydroelectric power stations and pumped storage power plants, carried out in relation to each specific site for the location of hydroelectric power stations from among those taken into account in the current general scheme for the location of electric power facilities according to the criterion of the minimum single-rate price for electric energy and power, with the technical and economic parameters of the project declared by investors stated in the decision of the Government of the Russian Federation,” the materials say.

The hydroelectric and pumped storage power plants built as part of the competition are expected to be put into operation after January 1, 2030.