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RusHydro inaugurates Zaramagskaya HPP-1 in North Ossetia

February 4, 2020 North Ossetia, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces an inauguration of 346 MW Zaramagskaya HPP-1 in North Ossetia. Yury Borisov, Deputy Prime Minister of Russian Federation, Alexander Novak, Minister of Energy of Russian Federation, Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro, Pavel Zavalny, Chairman of the Committee on Energy of The State Duma, Alexey Aleshin, head of the Federal Service for Ecological, Technological and Nuclear Supervision of Russian Federation and Vyacheslav Bitarov, Head of Republic of North Ossetia-Alania, took part in inauguration ceremony.

Zaramagskaya HPP-1 is built on the Ardon River, feeder of the Terek River. The plant’s annual average electricity output is 0.84 TWh. It is the largest hydropower plant in the region and the third most powerful in Northern Caucasus after Irganayskaya HPP and Chirkeyskaya HPP, both in Dagestan. Due to its maneuverability the hydropower plant will be able to cover peak electricity consumption in the region’s power system.

Yury Borisov, Deputy Prime Minister of Russian Federation commented: “Bringing online this modern power plant is essential for North Ossetia. Not only does it bring uninterrupted electricity and heat to the homes, kindergartens, schools and hospitals but contributes to further development of the region”. 

Alexander Novak, Minister of Energy of Russian Federation added: “Launch of this facility benefits the entire North Caucasus and reliability of the region’s power system as it allows to supply new consumers”.

Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro commented: “Commissioning of Zaramagskaya HPP-1 brought the power system of North Ossetia to the next level now that the total installed capacity of electric power plants in the region grew four times and region’s own power supply increased from 20% to 70% of demand. Thanks to its capacity and high maneuverability, the HPP will improve reliability of power supply in the North Caucasus.”

Unique state-of-the-art solutions have been implemented during the plant’s engineering and design phase. Instead of building a dam to form a reservoir, a 14 km diversion tunnel (the longest of its kind in Russia) has been dug in the mountains to create a 609 meter-high water pressure that puts into operation two Pelton-type turbines, the largest of this kind in the country.

Construction of Zaramagskaya HPP-1 was carried out in complicated natural conditions. The daily pondage basin, where water accumulates before dispatching to turbines, is located in the mountains 1,600 meters above the sea level and the powerhouse sits at the mountain gorge. The HPP’s facilities are not only designed to withstand magnitude 9 earthquakes, but they are organically blended into surroundings and have minimal effect on the environment.

Zaramagskaya HPP-1 is part of a single hydro-electrical complex, which includes the 15 MW Head HPP responsible for supplying water filtrated from sand to the diversion tunnel. Construction of the complex began in 1978 and since its start, the project faced multiple financial and organizational challenges. For many years, construction has been put on halt, only to resume in 2006 after being handed over to RusHydro for completion. In 2009, the company commissioned Zaramagskaya Head HPP with installed capacity of 15 MW and in 2015 finalized construction of diversion tunnel. Finally, in 2017 construction of Zaramagskaya HPP-1 began.

Commissioning of Zaramagskaya HPP-1 will greatly contribute to the social-economic development of Republic of North-Ossetia Alania. Importantly, the power plant is built under Capacity Supply Agreement (Russian abbr. – DPM).

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 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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