Research and Production Enterprise ENERGO-PLUS LLC, which earlier announced its intentions to relocate a new TPP 60 MW from Turkey and Ukraine, is in search of a private investor ready to cover the cost of €50 million and 50-70% of the costs associated with the plant relocation in order to implement the project, according to Energoreforma.
The above was reported by Yevhen Korf, the Head of NERGO-PLUS.
‘Currently, we are at the preliminary stage of the project actively negotiating it with the seller and the partner company that will carry out relocation of the plant to Ukraine. The major issue is that the owner insists on 100% payment of the cost of the plant; meanwhile, our Turkish partners ready to dismantle the TPP, transport the equipment, and assemble the facility in Ukraine, would like to receive 50-70% prepayment of the work cost’, commented Yevhen Korf in his interview to Energoreforma.
According to him, this means 85-90% prepayment of the total cost of the plant and relocation work is required, which is virtually impossible for any state-owned enterprise.
‘That is why ENERGO-PLUS is now actively seeking a private investor ready to consider full or partial funding of the purchase and installation of the plant’, accentuated Korf.
The Head also emphasized that generally it is extremely difficult to find a client for energy projects among state or municipal enterprises or companies with state capital involvement, as all of them are also restricted by the requirements of the Ukranian legislature, which means sometimes they have no right to agree to the terms of foreign suppliers.
In Korf’s opinion, that was the reason why the tenders of one of the domestic enterprises with significant state capital were disrupted: the terms of the tender were simply not attractive for Western companies.
At the same time, the Head of ENERGO-PLUS hopes for government support in launching the TPP when we find an investor.
‘As soon as the issue of finding an investor is solved, we expect the authorities to promptly issue the relevant permits, which will enable us to launch a new TPP immediately. However, I am perfectly sure no difficulties will arise, as everyone is well aware of the challenging situation in the energy sector’, thinks Korf.
As regards the business model of the TPP, he stressed that it is no way different from the models of other energy facilities which earn money by selling electricity. However, he did not specify the possible payback period, as this will basically depend on the price of natural gas on which it will operate.
At the same time, Korf noted that it is not appropriate to draw parallels with TPPs already existing in Ukraine, as they were built and launched in the mid/late 20th century under drastically different economic conditions, and the payback periods for those investments expired decades ago.
According to Energoreorma, the Head of Research and Production Enterprise ENERGO-PLUS LLC, Yevhen Korf, who works in the spheres of power engineering, electrical engineering, and electromechanics, stated in August this year that the enterprise is planning to implement the first project in Ukraine on the transportation and installation of a new 60 MW TPP from Turkey.
According to him, the readiness of the facility makes up 90%, whereas 100% of components are already available at the warehouse of the plant. It is mentioned that the plant was built in 2016-2018, and deactivated due to the loss of its relevance after the increase in gas prices.
According to ENERGO-PLUS, the process of transportation and installation is possible to be completed within 8-12 months, with the estimated cost of the project EUR 50 million approximately.
Established in 2013, Ukrainian Research and Production Enterprise ENERGO-PLUS LLC is part of an international group of companies, together with Research and Production Enterprise Preobrazovatelnaya Tekhnika LLC, Hrupa Kompanii Vysokovoltni Tekhnologii LLC, the Ukrainian ENERGO-PLUS consortium, and TWERD ENERGO-PLUS Sp. z o.o, the Polish manufacturer.
The company focuses on the design, development, and implementation of industrial automation systems, power supply, and various electrical systems for Ukrainian enterprises and private companies.
Source:
portal reform.energy
