Located on the Kureyka river downstream from the Kureyskaya hydro project, the new hydro plant will generate 890GWh of average annual electricity, with an installed capacity of 150MW.

The memorandum sets out key parameters and detailed cooperation conditions between RusHydro and the regional government for developing the project.

According to RusHydro, the project is estimated to cost RUR29.8bn ($9.94B), and the first hydropower units will come online in 2018.

RusHydro’s participation in the project will entail raising sufficient funds outside project financing and support from the local administration, while the government will provide all the necessary assistance for the project.

In August 2011, RusHydro signed a power purchase agreement for Nizhne-Kureyskaya with a single off-taker, Turukhanskenergo.

The preliminary purchase agreement provides for a one-part selling price of RUR16 per kWh valid until 31 December 2042 and ensures a 15-year payback period for the project.

A feasibility study and public hearings on the plant’s expected environmental impact have already been carried out.