Zeiskaya HPP in Russia. Author: RusHydro. License: All Rights Reserved.
Russian hydropower giant RusHydro (MCX:HYDR) has entered into a five-year bilateral power purchase agreement (PPA) with a unit of gold producer Polyus (MCX:PLZL) in the technically isolated power system.
Under the terms of the new contract, RusHydro’s Kolymaenergo subsidiary will initiate power supply to Polyus Magadan this year and sell a total of 310 GWh during the term of the PPA. RusHydro noted that the price is set within the minimum and maximum ranges determined by the regulatory authorities for the term of the contract.
The signing of the PPA follows certain changes to local legislation, including the introduction of mechanisms for long-term mutually beneficial offtake agreements in regions with 100% tariff regulation, the company noted.