Inter RAO considering 8 GW coal plant to supply China

• 9 years ago (2014-05-29)
• Junior Isles

Asia 849 Europe 1061

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Russia's Inter RAO UES is looking into constructing the world's largest coal-fired power plant to supply China, in further signs of increased economic and political ties between the two BRIC nations.

Boris Kovalchuk, CEO of Inter RAO, revealed to reporters this week that his firm was looking into the logistics of building an 8 GW plant fuelled by the eastern Amur region’s Erkovetskaya coal deposits.

The prospective plant would be 2.5 GW larger than Taiwan's 5.5 GW Taichung plant, currently the largest coal-fired plant in the world.

Inter RAO's announcement follows the completion of decades of negotiations over a $400 billion deal to provide China with Russian natural gas for the next 30 years.

Inter RAO already has energy deals with China through its subsidiary, East Energy Company, which last year increased Chinese electricity exports to 3.5 TWh, a year-on-year increase of around 33 per cent.

Estimates put the cost of the plant at around $12 billion, but Kovalchuk has revealed that Inter RAO is looking for a loan from China to fund construction.

"If our Chinese partners could make enough of the cheap money they have available, this would of course improve the economics of the project," Kovalchuk said.

He has hinted that Chinese company Huaneng may participate in the project, following its signing of a cooperation deal with Inter RAO only last week.

Several other Russian energy companies, including Rushydro and EuroSibenergo, owned by tycoon Oleg Deripaska, are also looking into further power deals with China.