July 13, 2006
Wärtsilä to deliver the first privately-financed municipality IPP
In the middle of June, Wärtsilä Corporation was awarded a contract to deliver a 17 MW combined heat and power plant to the city of Eisk in southern Russia. The plant, which consists of two Wärtsilä 20V34SG gas engine driven generating sets with heat recovery systems, is to be delivered in spring 2007. Wärtsiläs share of the contract is valued at more than EUR 10 million. The plant is also the first customized commercially operating pilot power plant optimized by Wärtsilä for Russian municipalities.
After more than three years of development with Russian investors and financial institutions, OOO Eisk TES was able to secure the necessary financing from Russia. This is a remarkable step for Russian municipalities, proving that it is possible to obtain private investment for their power production.
For more than twelve years, Russian government investments into the power sector have mainly focused on grid maintenance and capacity replacement for large centralized power plants. These investments have not included smaller municipalities and consequently, they have been unable to upgrade their power and heating systems.
In order to speed up the refurbishment of the power sector, the Russian government is currently promoting private investment into the power industry. The Eisk plant serves as a sign of this new policy in that it is the first Russian privately financed and privately owned combined heating and power plant to be built. The town will buy all its electricity and district heating from the plant.
Wärtsilä in brief:
Wärtsilä enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wärtsilä focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wärtsilä sets out to be the most valued business partner of all its customers. This is achieved by the dedication of more than 12.000 professionals manning 130 Wärtsilä offices in over 60 countries around the world.
For further information
Area Sales Director, Power Plants
Direct tel: +358 (0)40 501 9257
Direct fax: +358 (0)10 709 5710
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