Sergey Kondratiev, Principal Director on Economic Studies at the Institute for Energy and Finance, commented to Nezavisimaya Gazeta on the modernization program for Russian thermal power plants.
Energy producers advocated the possibility of a non-penalized exit from the projects for the modernization of TPP equipment that passed the competitive selection of modernized capacities, with a significant increase in costs. Due to the deteriorating economic situation, equipment prices soared, in some cases, the cost of implementing projects became many times more expensive, going beyond the payback limits, with a comparable level of fines.
The offer of generators at first glance is fair, the expert believes, adding that at the same time, consumers do not have the same option to refuse to pay for capacities that they consider unclaimed or redundant.
“Yes, Western sanctions and the withdrawal of foreign equipment suppliers from Russia have indeed led to a fundamental change in the situation on the market. In my opinion, what happened can be considered force majeure, the companies could not predict such a development of the situation,” Sergey Kondratiev believes.
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