Thermal power plant (TPP) modernization projects are once again showing weak competition in the market. In the concentrated selection of gas turbines for 2029-2031, with a quota of 5 GW, investors selected only 1 GW, and under the standard program for modernizing steam power plants - 1.72 GW out of 2 GW.
Analysts cite high capital expenditures, financial difficulties of generating companies, and the low price of competitive capacity selection (CCS), which is insufficient to attract investment, as the main reasons.
In total, generating companies will modernize 2.72 GW of capacity by 2029-2031. The projects include the modernization of power units at TPP-23 (Mosenergo), Reftinskaya GRES (Kuzbassenergo), Nizhnekamsk CHPP (Tatneft), as well as at Belgorod TPP and Luch TPP (RIR Energo).
The efficiency coefficients by which the projects competed range from 4,340 to 41,042, reflecting differences in the level of the single-rate price of electricity. The selected projects will pay off through a surcharge in the wholesale market, which is paid by industrial consumers.
Despite a quota of 5 GW for new combined cycle gas turbine units, only ten projects with a total capacity of 1 GW have been selected. Generating companies note that the current pricing parameters of the selection do not allow for economically justifying modernization, and the shortage of investment resources and gas turbines limits the development of the industry.
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