RusHydro signs first power purchase agreement in an isolated price zone
February 11, 2020 Moscow, Russia. PJSC Kolymaenergo, a subsidiary of PJSC RusHydro and JSC Polyus Magadan (PJSC Polyus Group) have signed a five-year bilateral power purchase agreement (PPA) in the technically isolated power system. Electricity supply will start in 2020 to reach a total of 310 GWh during the contract’s term.
The agreement will foster gold mining and hydropower production in the Magadan region. The price in the agreement is set within the minimum and maximum ranges determined by the regulatory authorities for the five-year term. This agreement will have no effect on electricity price for other users in the region.
Signing of such an agreement was made possible thanks to changes to the Federal Law “On Electric Power Industry”, as well as to the resolution of the Government of the Russian Federation on basic principles governing the function of retail electricity markets as well as approval of the applicable methodological guidelines of the Federal Antimonopoly Service. The changes refer to economic development of the Far East, primarily at improving the region’s investment climate by introducing mechanisms for long-term mutually beneficial PPAs in regions with 100% tariff regulation.
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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