OREANDA-NEWS. Projects of three small hydropower plants (SHPPs) in the North Caucasus region, developed by RusHydro, have been successfully selected for implementation through a tender for construction of renewable energy sources (RES) capacity. The tender was conducted by Administrator of trading system.

The selected projects will be covered by 15-year capacity supply agreements with basic annual return of up to 14% (the current level of yield is linked to the yield of the federal loan bonds).

RusHydro will commission in 2017 10 MW Sengileevskaya, 5.04 MW Barsuchkovskaya and 5.6 MW Ust-Dzhegutinskaya small hydroelectric power plants. The new plants are located in Stavropol region and Karachay-Cherkessia Republic.

Sengileevskaya SHPP will be built near existing 15 MW Sengileevskaya HPP. Implementation of the project will not only add generation capacity but also will have positive environmental effect by reducing silting of Sengileevskaya water reservoir - main source of water supply for the city of Stavropol.

Barsuchkovskaya SHPP will be built on the tailrace of regulating water reservoir of HPP-4 of Kuban' Cascade, and will be using excess water after switching of Nevinnomysskaya CHP to closed-cycle water supply. Leveraging hydro facilities already in place will reduce capex required for the project.

Ust-Dzhegutinskaya SHPP will be built on Ust-Dzhegutinskiy Hydrotechnical Complex. The Complex serves as intake to the Large Stavropol canal and the SHPP will be using sterile spills into the tailrace.

In line with the tender requirements capital expenditures per 1 kW of installed capacity will be RUB 146,000, ensuring projects' profitability. RusHydro is ready to comply with localization requirement for equipment of SHPPs.

North Caucasus region is of high priority for construction of SHPPs due to combination of shortage of generation capacity and natural conditions favorable for such projects.