RusHydro signs first non-regulated agreement for supply of green electricity
February 12, 2021, Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) and PJSC Polyus have signed a bilateral power purchase agreement for clean electricity produced by Sayano-Shushenskaya HPP.
Average annual electricity production at Sayano-Shushenskaya HPP, Russia’s largest hydropower plant, amounts to 23.5 GWh. In 2020, the hydropower plant produces 26.6 GWh – the highest on record.
According to the agreement, which will be in effect until the end of 2021, the electricity supplied will cover the needs of PJSC Polyus’ facilities in the Krasnoyarsk region. During the contract’s term, the electricity supply will reach close to one TWh.
Victor Khmarin, Chariman of the Management Board – General Director of RusHydro commented: “The agreement we have just signed further proves the increasing demand for clean electricity produced by our hydropower facilities as more and more companies are placing increased importance on decarbonization of supply chain. We are committed to moving forward in that direction for the benefit of both parties.”
For socially responsible manufacturing companies purchase of RusHydro’s green energy reduces the carbonization level in the course of production allowing complying with the latest up to date environmental standards.
According to PJSC Polyus, its manufacturing facilities at Olympiada and Blagodatnoye deposits will be fully covered by renewable electricity, which in turn will result in twofold reduction of greenhouse gas emissions of its Krasnoyarsk business unit in 2021. The terms of contract allow for prolongation at the agreement of both parties.
Pavel Grachev, CEO of PJSC Polyus added: “Signing of the contract marks the transition of Polyus’ key business-unit to renewable energy sources. For us, this is a monumental step forward. Climate change is a global challenge and reduction of greenhouse gas emissions is highly important for us as Polyus is determined to reduce its environmental footprint.”
Over 90% of Polyus’ electricity demand will be covered by renewable energy sources. In 2020, RusHydro and Polyus have signed a five-year bilateral power purchase agreement in the technically isolated power system in the Magadan region. Electricity supply will reach over 310 GWh during the contract’s term.
Shares / ADR