Russia plans to introduce a new two-stage bidding system for developers of major hydroelectric power plants in an effort to revive several long-delayed projects, Deputy Energy Minister Evgeny Grabchak said at an industry event. The proposed mechanism aims to eliminate the investment uncertainty that has slowed development in the hydropower sector for years.
Under the new system, a government commission will first identify priority plant locations and assign a generating company to lead the project. In the second stage, developers will compete in a reverse auction where the contract is awarded to the bidder that proposes the lowest capital expenditure. The Russian government will assume responsibility for securing the necessary financing sources.
The government has already shortlisted several large-scale sites for potential development. These include the 1,200-megawatt Mokskaya plant in Buryatia, the 840-megawatt Zagorskaya pumped-storage facility near Moscow, the 345-megawatt Krapivinskaya plant in the Kuzbass region, and the Ivanovskaya plant.
While power generating companies expressed support for the initiative, they warned against holding separate tenders for the design and construction phases. Industry representatives argued that dividing these stages would increase project risks, as contractors are often reluctant to build facilities based on third-party engineering plans.
Roman Berdnikov, a board member at the state-owned hydropower producer Rushydro, said that separating design and construction contracts would result in wasted funds. He argued that the government should assign a single company to manage the entire project cycle to ensure accountability.
Vladimir Kolmogorov, the head of energy and metals group En+, confirmed that his company already utilizes a combined engineering and construction model. The company currently partners with the Hydroproject institute (a subsidiary of Rushydro) for design work, though Kolmogorov noted that En+ is prepared to hire foreign specialists if domestic engineering capacity is insufficient.
