Russia plans to construct a 16.5-megawatt hydroelectric plant in the Murmansk region, representing the first new hydropower project in the Arctic territory since 1987. The developer, GES Arktika, signed an agreement with the state-backed Corporation for the Development of the Far East and the Arctic to build the facility on the Paz River.
The new station, named the Arktika plant, will capture excess water from the existing Yaniskoski hydroelectric facility, which has been in operation since 1950. By utilizing water that is currently discharged during spring floods or during routine maintenance of older turbines, the new plant is expected to generate approximately 115.6 million kilowatt-hours of electricity annually.
Due to Western sanctions, the project developers had to redesign the plant and reorganize their supply chains to use Russian-made equipment. The main generation components, including the hydro turbine, generator, and power transformer, have already been manufactured at domestic factories.
The project is supported by a federal renewable energy program initiated in 2020 and has been included in Russia’s power sector development scheme for 2025 to 2030. The developer’s status in the Russian Arctic economic zone provides tax incentives, allowing the company to redirect capital directly into power generation in the northwestern region.
