RusHydro faces funding and environmental hurdles for new Amur hydropower plant

Russian energy producer RusHydro expects to finish the design of its Nizhne-Zeyskaya hydroelectric plant by 2026, with a target to complete the 428 megawatt facility in 2032. The project in the Amur region faces delays in securing a dedicated financing model and must address concerns raised by environmental organizations.

Konstantin Yanko, the head of strategy at RusHydro, told a Federation Council meeting that the site for the dam and main structures has been finalized. While basic infrastructure work has started at the location, Yanko confirmed that mechanisms for the return on investment are still not in place. A further legal complication involves the status of the reservoirs, which must be classified as federal property under existing law. The company is collaborating with the energy ministry to draft legislative amendments to resolve this issue.

Development of the Nizhne-Zeyskaya plant and the adjacent Selemdzhinskaya station began in 2023 despite a lack of financial guarantees. Authorities had hoped that the integration of the Far East power system into the Siberian price zone in early 2025 would create a viable economic basis for such large-scale projects. However, the specific funding framework for the construction has yet to be approved by regulators.

Project developers are also managing opposition from environmental groups following public hearings in the Amur region. Independent experts, including representatives from the Save Siberia and Far East foundation, submitted formal objections to the environmental impact assessments. Designers are now required to revise the project to account for these findings.

Although the cascade of new plants on the Amur tributaries is intended to protect the region from seasonal flooding, the creation of large reservoirs will lead to the loss of timber and the interruption of fish migration. These factors are expected to necessitate additional environmental compensation measures as the project moves toward the final approval stage.