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RusHydro launches Zaragizhskaya small hydropower plant in the South of Russia

December 29, 2016. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) today launched 30.6 MW Zaragizhskaya Small HPP in Kabardino-Balkaria. Commissioning of the new plant will decrease shortage of generating capacity in the Republic with only 35% of the regional power needs met by local electricity producer prior to the launch of the plant. The planned long-run output of Zaragizhskaya SHPP amounting to 114 mn kWh, will cover increase in electricity consumption in the region for 2-3 years.

Zaragizhskaya SHPP is a derivation plant designed without a dam. The turbine pressure is created by the natural height difference in the derivation channel. During construction of the Plant no land was flooded and no residents have been relocated. The Plant is part of Nizhne-Cherkei Cascade including also Aushigerskaya HPP and Kashkhatau HPP. Since it is the third step of the cascade there was no need in expensive facilities for removing debris carried by the water flow, since the water coming after two previous steps is already clean. The total cost of construction amounted to 4 billion RUB.

RusHydro is intended to continue developing hydropotential of Kabardino-Balkaria, in particular, the Company reviews possibility of completion of 10 MW Verkhnebalkarskaya SHPP.
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.
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