Moscow, July 1st, 2020 – Today PJSC “Enel Russia” and JSC “Kuzbassenergo” completed the 9-month Transition Period in relation to the coal-fired power plant Reftinskaya GRES of JSC “Kuzbassenergo”, a subsidiary of LLC Siberian Generating Company (SGC). Reftinskaya GRES, that was sold by Enel Russia to Kuzbassenergo within the framework of the agreement for the sale and purchase of the power plant dated June 20th, 2019, had been operated in the past 9 months (Transition Period) by Enel Russia as the tenant under a lease agreement with Kuzbassenergo that entered in force on October 1st, 2019, and was terminated today.
“For Enel Russia, the sale of Reftinskaya GRES is a fundamental pillar of its strategy to transform its asset portfolio and build a more sustainable business model.”
– Enel Russia’s General Director Stephane Zweguintzow
From today onwards, Kuzbassenergo as the owner of Reftinskaya GRES and legitimate holder of the right of trade in the Wholesale Electricity & Capacity Market in relation to Reftinskaya GRES delivery point clusters (as per the resolution of the Market Council’s Supervisory Board’s dd. May 25th, 2020) will be the sole operator of the power plant.
The termination of the leaseback arrangement is in line with the Reftinskaya GRES lease agreement and marks the end of the third and final phase in the Reftinskaya GRES sale. In the past 9 months, both Enel Russia and Kuzbassenergo acquired invaluable experience of co-management of a power-generating asset of such scale and complexity.
All RGRES personnel is employed by the new owner of Reftinskaya GRES as of today.
At the same time, following the transfer of the leased RGRES assets back to Kuzbassenergo, In the coming days Enel Russia is expecting to receive from Kuzbassenergo the third installment of the sale price in the amount of 4 billion roubles. The total sale price amounts to 20.7 billion roubles, net of Russian Federation VAT. Additionally, Kuzbassenergo will buy fuel stocks, chemicals and selected spare parts in line with the conditions of the sale and purchase agreement. The companies are currently working on completing settlements under the lease agreement and count on doing so within the end of July.
The sale and purchase transaction also envisages a contingent component of up to 3 billion roubles that shall be payable within five years from October 1st, 2019, subject to specific conditions.
The 3,800 MW Reftinskaya GRES facility is the largest coal-fired power plant in Russia; it is located in Reftinsky settlement, Sverdlovsk region. The power plant is composed of six 300 MW units and four 500 MW units, while the installed thermal capacity amounts to 350 Gcal/h. Reftinskaya GRES is able to meet around 40% of the total electricity consumed in the Sverdlovsk region.
Kuzbassenergo, a Kemerovo-based Russian energy company, is a subsidiary of SGC, one of the leading operators in the Russian electricity and heat markets. SGC has a total installed capacity of 16 GW and a thermal capacity of 25,900 Gcal/h, as well as a heat distribution network totaling around 10 000 km in length. SGC power plants produce about 25% of power generation in the Siberian energy system.
