Thermal Power Plant Modernization: Russia Plans to Allocate Quotas for 5 GW

The Russian Ministry of Energy has proposed allocating a 5 GW quota for thermal power plant (TPP) modernization projects using Russian gas turbines with capacity commissioning in 2031. A 4 GW quota is provided for standard modernization projects for the period 2029–2031. However, the largest generating companies have asked to increase the quota for domestic gas turbines to 6.6 GW, remove restrictions on marginal capital expenditures (CAPEX) and extend the TPP modernization program until 2042.

The government plans to reserve a separate quota for projects with Russian gas turbine equipment as part of the general program to upgrade old capacities. Investors who win the selection will be able to recoup the cost of the power units through a premium on the wholesale energy market paid by large businesses. The main beneficiaries of the program will be the GTD-110M turbines from UEC Rostec and the GTE-65 and GTE-170 from Power Machines.

The Energy Producers Council (EPC) Association, which unites the largest generating companies, proposes to increase the quota for projects with Russian gas turbines to 6.6 GW with commissioning in 2029-2030, maintain the quota of 4 GW for the modernization of old thermal power plants and redistribute the unused quota for 2028