The regional government of Yakutia in the Russian Far East is considering the revival of Soviet-era hydropower projects to address a projected electricity deficit driven by growing industrial demand. Aisen Nikolaev, the head of the Yakutia region, told the Vedomosti newspaper that regional authorities are reviewing plans to build a series of large-scale plants in the southern part of the territory.
The original plans, which were halted decades ago, involve constructing a cascade of dams on the Uchur, Timpton, Aldan, and Olekma rivers. The total installed capacity of the South Yakutian hydropower complex could reach 10 gigawatts, a volume designed to support new energy-intensive industries in the remote region. Nikolaev stated that current generating capacity is insufficient to meet the demands of both large-scale and local industrial projects currently under development.
Among the revived proposals is the Kankunskaya hydropower plant, which Russian coal producer Elga is ready to construct. For mining companies, developing dedicated power generation provides a method to secure long-term electricity tariffs and ensure uninterrupted operations for transport and production infrastructure. Elga operates major metallurgical coal deposits in the region and relies on stable power supplies for its logistics and processing expansion.
However, the high cost of borrowing under current economic conditions presents a major obstacle to these capital-intensive projects. The Russian Central Bank has maintained a tight monetary policy, raising its key interest rate to combat inflation, which regional developers say makes securing affordable long-term financing for major infrastructure builds extremely difficult.
