Modernization of TPPs: a Maneuver to Evade Market?

The discussion on thermal power plants modernization is turning into the debate among power generators about the inclusion of specific plants in the "lists" and "quotas". The Ministry of Energy of the Russian Federation and NP Market Council propose target models of competitive selection for concluding new Capacity Supply Agreements (CSAs), while consumers agree that additional financial instruments are not required for renewal of generation capacity.

Furthermore, the response to the challenge posed by progressive ageing of TPPs can become either a driver for the development of competition in the power generation sector or, conversely, lead to a further growth of the regulated share of the market.

In the Study "Modernization of TPPs: a Maneuver to Evade Market?", VYGON Consulting experts analyzed the efficiency of the thermal generation segment on the wholesale market, modeled the scenarios for generation capacity modernization and financing of investments, forecasted an increase in the wholesale market for electricity and power prices and proposed the conditions for competitive selection of projects that meet the balance of generators and buyers interests.

Employees

Partner, Power Sector Practice
Senior Consultant