Russian coal producer Elga is planning to construct a 350-megawatt hydropower plant in the eastern region of Yakutia to supply electricity to its Pacific Railway project, co-owner and Chief Executive Alexander Isaev told news outlet RBC.
Design work is in its final stage, and the company expects to make a final investment decision next year with a 90% probability, Isaev said.
The proposed facility will be built on the Gonam River near the Elga coal deposit. The remote location requires an independent power hub to support the electrification of the private railway, which connects the open-pit coal mine to the Sea of Okhotsk coast.
The overall budget for electrifying the railway line is estimated at approximately 30 billion roubles. About 20 billion roubles will be directed to the construction of the Gonam hydroelectric plant, while the remaining 10 billion roubles will cover rail infrastructure.
Isaev identified regulatory procedures as the main hurdle for the project, noting that securing permits to clear and prepare the future reservoir basin will require substantial administrative time.
Physical construction is estimated to take around two and a half years once work begins. However, equipment procurement remains a bottleneck because domestic machinery manufacturers face heavy order backlogs. As a result, Elga is considering sourcing generating equipment, including hydro turbines, from manufacturers in China.
