RusHydro to construct three small hydropower plants in North Caucasus region

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Russian energy giant RusHydro will develop three small hydropower plants in the North Caucasus region after the projects were selected for implementation through a recent renewable energy sources auction.

Included are the 10-MW Sengileevskaya, 5.04-MW Barsuchkovskaya and 5.6-MW Ust-Dzhegutinskaya -- each of which will be commissioned in 2017 and covered by a 15-year capacity supply agreement with basic annual returns of up to 14%.

Sengileevskaya will be constructed near the existing 15-MW Sengileevskaya project, where it will also help reduce silting of the Sengileevskaya water reservoir. The reservoir serves as the main source of water for the city of Stavropol.

Barsuchkovskaya will be built on the tailrace of the regulating reservoir for the Kuban Cascade, with the plant to use excess water following the conversion of RusHydro's Nevinnomysskaya cogeneration plant to a closed-cycle water supply.

Last, Ust-Dzhegutinskaya will be on the Ust-Dzhegutinskaya Hydrotechnical Complex, which serves as an intake to the Large Stavropol canal.

RusHydro (LSE: HYDR) said the capital expenditure per 1 kW of installed capacity will be about US$4247, with equipment to be supplied by local manufacturers per localization requirements.

Development of small hydro in the North Caucasus region is a "high priority" given the area's shortage of generation capacity and "natural conditions favorable for such projects", RusHydro said. also reported recently that RusHydro had commissioned two newly rehabilitated turbines at its Sayano-Shushenskaya hydropower plant.

The company also recently announced a deal with Atlantis Operations Ltd. to develop marine energy projects in Australia.

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