HRW Briefings


Norway companies register three plants under CDM

Two hydro plants in the Philippines operated by a joint venture of Norway’s SN Power and Philippine company Aboitiz Power have been registered by the United Nations Framework Convention on Climate Change as Clean Development Mechanism projects.

The 75 MW Ambuklao and 100 MW Binga projects are operated by SN Aboitiz Power, a 50/50 joint venture company between SN Power and Aboitiz Power.

In addition, Chile’s 155 MW La Confluencia has been registered under the CDM, SN Power reports. La Confluencia is operated by Tinguiririca Energia, a 50/50 joint venture between SN Power and Australian power company Pacific Hydro. La Confluencia will reduce CO2 emissions by about 423,000 tons per year, SN Power says.

Voith Hydro, RusHydro plan equipment deal

Russian generator RusHydro and Voith Hydro are entering into a €1 billion (US$1.42 billion) deal to jointly produce hydropower equipment, wire services report.

At the time of the announcement, in June 2011, the companies were considering two production sites, including one in the Saratov region in central Russia.

Alstom reorganizes, creates deputy CEO role

France’s Alstom has launched a major reorganization, announcing changes that include a split of its power businesses and nomination of a deputy chief executive officer.

CEO Patrick Kron’s proposal for a “major change” to the company’s organization took effect in July 2011. Philippe Joubert, who has led the recovery and development of the power sector, is appointed deputy CEO.

The operational activities of the group, which were split into power, transport and grid, will be organized in four sectors: Thermal Power, Renewable Power, Grid and Transport. The split of power into two sectors will simplify the functioning of both entities and allows them to better address their markets, Alstom said.

Jerome Pecresse, formerly with Imerys, is president of the Alstom Renewable Power sector and executive vice president of Alstom. The renewables sector includes hydro.

New joint venture to build projects in India

National Hydroelectric Power Corp. of India, Jammu & Kashmir State Power Development Corp. and PTC India have incorporated a joint venture company to develop three hydro projects with a combined capacity of 2,120 MW in Jammu and Kashmir.

Chenab Valley Power Projects Pvt. Ltd. was incorporated in June. In December 2010, Jammu & Kashmir State Power Development, NHPC and PTC India had inked a promoter’s agreement for setting up the new entity.

Under the terms of the joint venture, shares will be 49% NHPC, 49% Jammu & Kashmir State Power Development and 2% PTC.

Ukraine company furthers rehab program

OJSC UkrHydroEnergo plans to install dam monitoring software at its hydro projects in the Ukraine. The contractor supplying and installing the software will provide a monitoring specialist, supplier’s representative, design manager, database architect, implementation manager, and testing and commissioning manager.

In addition, OJSC UkrHydroEnergo has awarded OJSC Turboatom a US$37.2 million contract to rehabilitate three turbines of the 686 MW Kremenchuk project. The World Bank approved a US$60 million loan in 2009 for rehabilitation of Kremenchuk and the 651 MW Dnipro 1 and 661 MW Dnipro 2 (or Dnieprovska 1 and 2) projects.

The Turboatom contract includes design, manufacturing, installation and commissioning of three rehabilitated Kaplan units.

Asep to complete eight hydro projects

Autoridad Nacional de los Servicios Publicos plans to complete eight new hydro projects in 2011-2012 that will add about 500 MW to Panama’s power system.

Panama is developing 16 projects with a total of investment of more than US$1 billion to satisfy domestic demand. Panama has hydroelectric capacity of 1,800 MW, with plans to expand to 3,000 MW by 2014.

Asep performs ongoing monitoring of power generation development to ensure that energy production will meet demand. Six of the eight projects are in Chiriqui Province, one is in Bocas del Toro, and one is in Cocle. The projects are 3.93 MW El Fraile, 56 MW Bajo de Mina, 150 MW Chan (Changuinola) 75, 85 MW Baitun, 26 MW Gualaca, 34.8 MW Lorena, 20 MW Pedregalito and 57.4 MW Prudencia.

Pakistan rehabilitating 1,000 MW Mangla

Pakistan’s Water and Power Development Authority (WAPDA) plans to install excitation equipment, governors and transformers at the 1,000 MW Mangla Dam.

The digital excitation system will replace the existing system for Units 9 and 10. In addition, digital governors will replace electromechanical governors for Units 7 and 8. And different types of 132 kV and 220-kV current transformers will be installed in Mangla’s switchyard.


Alstom to supply equipment in Portugal, India and France

Alstom, in consortium with Portuguese engineering company Ensulmeci, has been awarded a contract by Energias de Portugal to supply and install a turbine at the 42 MW Salamonde pumped-storage project.

Under the terms of the €55 million (US$79 million) contract, Alstom will install the entire unit, consisting of a 207 MW Francis reversible pump-turbine, a 244 MVA motor-generator, butterfly valve and other equipment, and mechanical and electrical balance of plant. Salamonde’s two existing units were installed in the 1950s. Unit 3 is to be commissioned in 2015.

In related news, Alstom India won four contracts to develop hydro projects in India, valued at US$470 million.

The first contract was signed with Shiga Energy Pvt Ltd for 97 MW Tashiding on the Rathang Chu River in West Sikkim district. The contract includes the design, manufacture, supply, installation, testing and commissioning of the entire electromechanical package.

The second contract has been signed with NSL Tidong Power Generation Pvt Ltd for the 100 MW Tidong 1 project in Himachal Pradesh. The third contract was signed with Haridwar Infrastructure Private Ltd for the 96 MW Dikchu project on the Dikchu River, a tributary of Teesta River in East Sikkim. The contracts for these two projects include the design, manufacture, supply, testing and commissioning of the turbines, generators and auxiliaries.

The fourth contract, worth about $412 million, was awarded to Alstom, in consortium with Hindustan Construction Company, by Tehri Hydro Development Corp. The contract covers installation of a 1,000 MW pumped-storage plant on the Bhagirathi River in the state of Uttarakhand. Alstom will supply four 250 MW variable speed turbine-generator units and other equipment.

Finally, Electricite de France has awarded Alstom a contract to rehabilitate four pump-turbines at the 800 MW Revin project. It involves work on four 180 MW pump-turbines, including replacement of runners and refurbishment of servomotors and other components.

Work progresses on Ituango in Colombia

A consortium of Colombian companies Ingetec and Sedic has won a US$66.3 million construction contract for the 2,400 MW Ituango project in Colombia.

Under the nine-year contract, the consortium will install the electromechanical equipment and oversee project processes of the civil engineering works, Business News Americas reports. The contract for the civil engineering works — which will include the dam, spillway and underground plant — has yet to be awarded.

Colombian joint venture Hidroituango, comprised of Colombian utility EPM and Antioquia department’s government, created a special purpose vehicle named EPM Ituango to manage development of the project.

In related news, Ferrovial Agroman and engineering company Sainc have been selected to build a powerhouse access tunnel and two river diversion tunnels at Ituango. The contract is valued at €55 million (US$77.3 million).

Ferrovial Agroman will build two tunnels, both 1 km long and 14 meters in diameter, to divert water from the Cauca River, as well as a 1 km-long powerhouse access tunnel with a 140 meter-long gallery.

Total costs to develop this project are expected to reach US$5.5 billion.

Poyry wins contract for Turkey project

Finland’s Poyry has been awarded a detailed design services contract for the 550 MW Beyhan 1 project in Turkey. The contract, from Kalehan Enerji Uretim A.S., is worth about €2.9 million (US$4.15 million).

The contract will be executed jointly with Temelsu and is to be completed by the end of 2013. It includes execution of the detailed design for civil works of the powerhouse and review of the project’s structures, such as the roller-compacted-concrete dam with power intake and penstocks, spillway, diversion structures with three tunnels, bottom outlet and switchyard.

ABB wins order for Itaipu substation works

ABB has won orders worth about $80 million from Itaipu Binacional, operator of the 14,000 MW Itaipu plant, to build a new substation in Paraguay and expand an existing installation. Civil works will be carried out by construction company CIE.

ABB will build a new air-insulated switchgear (AIS) substation rated at 500/220/66 kV to connect Itaipu to a 500 kV transmission line being built that will help meet increasing demand for electricity in Paraguay. The existing substation will also be expanded to enable the connection.

Products to be supplied include power transformers, high- and medium-voltage AIS, instrument transformers, surge arresters, cables and auxiliary systems. The new substation will be equipped with a telecommunications system for the existing 220kV transmission line, including installation of about 100 km of optical ground wire. ABB will also install the substation automation systems.

The new Villa Hayes substation, about 350 km from Itaipu, is expected to be completed in 2013 and will be operated by ANDE (Administracion Nacional de Electricidad), the national power utility of Paraguay.

Nigeria, China sign Kainji contract

Power Holding Company of Nigeria (PHCN) has signed a contract with Sinohydro Corp. and Harbin Electricity Corp. of China for rehab of the Kainji station in Nigeria.

The $82 million contract is to be completed within 42 months. The first unit, of 120 MW, is to be completed after 27 months, while the second unit, of 220 MW, will be operational within 42 months.

Alhaji Afolabi Ganiyu, general manager of the World Bank Monitoring Unit to PHCN, said the project was being sponsored with a 30-year World Bank loan at 2.5% interest. The modernization project will be supervised by Alstom Hydro.

Hyundai, PP plan 88 MW plant in Indonesia

Indonesia’s PP and South Korea’s Hyundai have secured a US$339.4 million contract for construction of an 88 MW hydro plant in Sumatra’s Aceh province in Indonesia.

The contract comes in line with Indonesia’s plan to increase its power supply over the next few years and South Korea’s strategy to venture into Asian manufacturing investments.


IDB to provide loan for Brazil modernization

The Inter-American Development Bank will provide a loan of US$128 million to Brazilian energy utility Furnas Centrais Eletricas S.A. to partly finance the rehabilitation and modernization of two large hydro complexes.

The company will renovate 1,216 MW Furnas and 1,050 MW Luiz Carlos Barreto de Carvalho to increase production, lower maintenance costs and extend service life. The plants have been operating since the 1960s.

Furnas opted to embark on a program to restore the turbines, generators and mechanical equipment and to refurbish the control, supervision and protection systems at the plants, along with related equipment. The program is valued at $600 million.

China to provide US$2 billion to Ecuador

The China Development Bank has signed a US$2 billion credit with Ecuador’s government to support irrigation and hydro projects. The eight-year loan will have a 6.9% interest rate and two-year grace period.

Of the total, US$680 million will be used for four projects, including 22.3 MW Mazar-Dudas, Minas-San Francisco, 50 MW Quijos and 15 MW Villonaco, state news agency El Ciudadano reports. Additional funds will be used for irrigation projects along rivers Chongon, Bulu Bulu and Canar, and another in San Vicente, Manabi province.

EBRD loan approved for Romania rehab

The European Bank for Reconstruction and Development has approved a €110 million (US$153.7 million) loan to state-owned Hidroelectrica SA for modernization work at the 210 MW Stejaru-Bicaz project in Romania.

The loan will finance the rehabilitation of six units. Stejaru-Bicaz is the largest in a 450 MW cascade on the Bistrita River in north-eastern Romania.

Rehabilitation work includes replacement of electro-mechanical equipment for six turbine-generators and related systems and rehabilitation or replacement of hydro-mechanical equipment and penstocks. Other work includes upgrade of electrical equipment, instrumentation, controls, and supervisory control and data acquisition (SCADA) system.

EIB confirms commitment to Ruzizi III

The European Investment Bank confirmed it will work closely with financial preparation of the 145 MW Ruzizi project in Rwanda.

This scheme has the potential to transform electricity supply to Rwanda, Burundi and the Democratic Republic of Congo and would represent the first public-private sector energy engagement in the Great Lakes region. Development finance institutions that recognize the scheme’s potential contribution to electricity generation in the Great Lakes region will discuss possible financing of the project, after detailed technical feasibility studies are complete.

The cost of Ruzizi is estimated to be €378 million (US$530.4 million), with high-voltage transmission links to supply three neighboring countries. The EU-Africa Infrastructure Trust Fund has provided €2.8 million ($4 million) of grant funding for studies examining the economic soundness, environmental and social impact, water management and electricity links and institutional strengthening for developer Energie des Grands Lacs.

THDC receives World Bank loan

THDC India Ltd. has received loan of US$648 million from the World Bank for the 444 MW Vishnugad Pipalkoti project in Uttarakhand province. With the loan, this project has achieved full financial closure, news agencies report. The project is expected to be completed by 2016.

THDC has a portfolio of hydro projects in Uttarakhand, Maharashtra and Bhutan with aggregate capacity of 8,868 MW.

Ireland plans investment in pumped-storage hydro, wind

County Clare in southwest Ireland is planning a renewable energy investment that includes a US$1.28 billion pumped-storage plant, according to a newly-published development plan. The total renewable energy plan, with wind energy and pumped-storage hydro assets, is estimated at about US$2.86 billion.

The Clare County Council has earmarked locations, mainly along the coast, where wind farms with a combined 550 MW output can be located, The Irish Times reports. County Manager Tom Coughlan said it would make it easier for private investors to get planning permission if they knew where wind turbines could be located.

The pumped-storage plant, for which locations are currently being researched, will help to address any issue related to intermittent power from the wind farms.


Operation of upgraded unit commences at Irganayskaya

Unit 2 at the 800 MW Irganayskaya project, on the Avarskoe Koisu River in Dagestan, Russia, began commercial operation in July 2011.

This upgraded 200 MW unit is the second to be restored after being damaged by a fire in September 2010. Unit 1 began operating in June. The project is owned by RusHydro. Repair and recovery work also was performed on the main and auxiliary equipment and buildings.

In addition, a 115 MW turbine at the utility’s 2,541 MW Volzhskaya plant on the Volga River resumed operation in June 2011 after an upgrade.


Nepal says no to exporting hydro

Nepal has decided not to approve any hydro projects that will export the bulk of the electricity they generate.

The announcement was made by Dharmendra Bastola, head of the Seti-Mahakail Bureau, the region where the 300 MW Upper Karnali project is located. Bastola said the central committee of his party decided that the license given to project developer GMR to conduct a survey should be scrapped and a fresh contract negotiated.

A consortium led by GMR received the license in 2008 to develop the Upper Karnali project, with Nepal Electricity Authority receiving 27% free equity and Nepal 12% free power. The rest of the power was to be sold to India.


Meridian gains consent for Pukaki project

Meridian Energy will proceed with developing its Pukaki project in New Zealand after a decision by authorities to issue resource consents.

Pukaki will use the head between Lake Pukaki and the Pukaki-Ohau canal through construction of a new powerhouse. The facility will have a capacity up to 35 MW.

Meridian has agreed to various mitigation measures through a consultation process. Construction will be contained within the land around the gate and canal, already owned by Meridian.

In other news, Meridian completed the sale of its 25.2 MW Tekapo A and 160 MW Tekapo B stations to government-owned Genesis Energy for about US$667 million. Tekapo A and B are the first of eight stations that make up the Waitaki Power Scheme. Meridian will continue to own and operate the remaining six, from Lake Pukaki to Waitaki.

First projects announced for former SN Power AfriCA

Agua Imara, formerly SN Power AfriCA, has announced the first hydro project it will develop under its new name: 58 MW Bajo Frio.

The run-of-river Bajo Frio project in Panama is part of a strategic alliance formed in 2009 with the Panamanian Credicorp Group. Through the joint venture company Fountain Intertrade Corp, the alliance will develop Bajo Frio on the lower Chiriqui Viejo River, in the Chiriqui province. Agua Imara owns 50.1% of Bajo Frio and will be the industrial developer of the project.

In addition, Agua Imara has signed an acquisition agreement for a 51% share in Zambia’s Lunsemfwa Hydro Power Company Ltd. The remaining 49% will be held by the initial shareholders. LHPC owns two hydro plants, Mulungushi and Lunsemfwa, with a combined capacity of 46.5 MW, which will be increased in 2011 to 52.5 MW.

LHPC owns 50% of Muchinga Power Company. MPC has the right to develop the projects downstream of Lunsemfwa and Mulungushi. These project opportunities have a potential of at least 120 MW. LHPC’s partner in MPC is Infraco, a donor-funded infrastructure company.

First runner delivered to Xiangjiaba in China

Alstom has delivered the first 812 MW turbine runner to the Xiangjiaba project, under construction in China. The runner weighs 406 tonnes, with a diameter of 10.5 meters and a height of 4.7 meters.

The turbine runner is part of a contract won by Alstom in 2008 for the supply, installation training and commissioning of four 812 MW Francis turbine-generator units.

The project is on the Jinshajiang River in Yunnan Province. At a cost of about CNY43.4 billion (US$6.3 billion), the project will have a capacity of at least 6,000 MW.

Future operator China Gezhouba Group Corp. began construction of Xiangjiaba in November 2006. According to the Yibin County government, the first turbine is expected to begin generating power in 2012. The plant will be fully operational by 2015.

Work progresses on three projects in Brazil

Diversion of Brazil’s Madeira River has begun as part of construction of the 3,400 MW Santo Antonio project.

Brazilian state-run power company Eletrobras Furnas said the operation will mean the start of the gradual filling of the hydro plant’s reservoir, Business News Americas reports. Furnas said the hydro project will start commercial operations by December.

Furnas holds a 39% stake in the Madeira Energia group that controls Santo Antonio Energia, owner of the plant. Madeira Energia also includes Andrade Gutierrez Participacoes (12%), Cemig (10%), Odebrecht (1%) and its subsidiary Odebrecht Investimentos em Infra-estrutura (18%).

In addition, Brazil’s environmental regulator, Ibama, has issued the installation license for the 373 MW Santo Antonio do Jari project. Consortium ECE Participacoes is behind the plant, on the Jari River on the border of Amapa and Para states.

Finally, Brazil’s Norte Energia consortium kicked off construction work at the 11,200 MW Belo Monte project in June, a spokesperson for the group told Business News Americas. On June 1, Ibama issued the final installation license for the project, wire reports indicate. In a statement, Ibama said Norte Energia will have to invest BRL100 million (US$63 million) in environmental conservation projects in the area surrounding the hydro facility.

Belo Monte, on the Xingu River in Para State, is expected to cost at least US$11 billion and come online in 2015.

Ecuador advances work on 12 projects

Ecuador’s Instituto Nacional de Preinversion (INP) is working to study and design the 50.1 MW Baeza project on the Quijos River, as well as 11 projects totaling 1,670 MW in the upper Guayllabamba River Basin.

The Baeza project is to have a design flow of 25 m3/sec, a head of 238 meters, a 7,484 meter-long power tunnel, a 58 meter-high surge shaft, a 912 meter-long penstock and a powerhouse containing three 16.7 MW Francis turbines.

In 2008, Ecuador and Pichincha Province signed agreements to develop 11 hydro projects in the Guayllabamba River system: Chespi, Villadora, Chontal, Calderon, Cubi, Palma Real, San Pedro, Chirapi, Mandarayacu Grande, Tortuga and Llurimaguas. Since then, officials of South Korea and Iran have expressed interest in developing projects in the basin.

INP is hiring a consultant to perform pre-feasibility and feasibility studies and final design of the projects. Studies are to establish water use for optimal hydroelectric potential of the upper basin. INP said projects are expected to provide about 300 MW to the national grid.

In related news, Ecuador’s electricity and renewable energy ministry is hiring a consultant to study barriers to renewable energy, energy efficiency and bioenergy in Ecuador. The Ministerio de Electricidad y Energia Renovable (MEER) seeks to develop a plan to promote energy efficiency, renewable energy and institutional strengthening. The agency includes hydropower, wind and solar energy and biofuels among renewable energy it promotes.

US$202 million needed to mitigate effects of Sogamoso in Colombia

Colombian state generator Isagen will invest US$202 million in four mitigation projects relating to its 820 MW Sogamoso project.

Works covered by the environmental management plan include rehousing 160 families, which is planned to take 900 days to complete, Business News Americas reports. The company will also rebuild roads displaced by the project and replace Gomez bridge.

Sogamoso is due to begin commercial operations toward the end of 2014, at a total cost of about $1.74 billion.

Russian, Chinese companies to develop hydro projects in Siberia

Russia utility EuroSibEnergo signed an investment framework agreement with China Yangtze Power Co. for a series of projects, including a pair of hydro projects, in Eastern Siberia. The companies are currently conducting a feasibility study, Bloomberg reports.

China Yangtze Power and EuroSibEnergo have agreed to construct three power generation facilities in eastern Siberia, with a total capacity of 3,000 MW. Two of the facilities will be hydroelectric stations, while a third will be a natural gas-fired plant.

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