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Company NewsMosenergo gets EBRD loan for technical refit and the implementation of environmental protection measures 01.11.2005 OAO Mosenergo is actively seeking to attract financial loan credit from the European Bank of Reconstruction and Development (EBRD), which will be used for the technical refitting necessary for the implementation of its programme of development and technical re-equipment to 2006-2010. The given programme is aimed not only at increasing production efficiency, but also at the implementation of environmental protection measures, including the modernisation and reconstruction of technical equipment, the reduction of atmospheric emissions and the refinement of the measures for protecting the environment. The investment programme also envisages the increasing of power station production capacity using financial resources obtained from other sources. The programme is of special importance to Mosenergo — one of the largest generating companies in Russia. The Company is currently the major supplier of heat and electrical energy to the Moscow Region, providing more than 80% of the electrical and some 70% of the thermal energy requirements for economic and domestic activity. Electrical and thermal energy is mainly being generated at Mosenergo’s 17 power stations using natural gas, though oil and coal are also used. Mosenergo’s electrical and thermal power stations produce some 10,611 MW and 34,177 Gcal/h of output power respectively. Systemisation and justification of applying environmental protection measures The planned project meets the Â/1 EBRD requirements relating to the auditing and analysis of environmental protection measures, in accordance with the ecological and information policy of the EBRD. The modernization of equipment in order to increase its energy production capacity is to be carried out taking into account the need to reduce negative impacts on the environment using parameters identified and evaluated during the analysis of the environmental protection measures. The audit and analysis of the environmental protection measures will be carried out by an independent consultancy appointed by EBRD under tender. Methods of reducing negative environmental impacts The most important aspect of environmental pollution is the release on the oxides of nitrogen (NOõ) into the atmosphere, primarily from the power stations in the Moscow Region operating on natural gas (92% of the fuel being used). As a result of the implementation of Mosenergo’s previous investment programmes, a reduction in the volume of NOõ emissions from 151,000 tonnes in 1993 to 67,000 tonnes in 2004 was achieved. It is expected that the planned investment programme will have reduced atmospheric emissions still further by the year 2010. Currently, discharges from power stations accounts for some 5% of the total atmospheric pollution affecting the Moscow Region. The total volume of emissions from Mosenergo plant is not considered to represent an important negative impact on the ecological balance of the region. This is due to the content of the fuel, to the environmental protection measures already in place and to the location of the power stations. The measures planned are aimed at improving the operation of boilers, including the installation of burners to reduce the amount of NOõ released and devices to monitor the quantity of NOõ emitted. All Mosenergo power stations are systematically checked by the relevant monitoring authorities and possess the necessary authorisation to carry out production activity. Russian standards regulating SO2 è NOx content in the atmosphere are stricter than the corresponding requirements of the European Union. The investment programme has been structured in accordance with the environmental protection standards of the European Union and drafted to comply with Russian standards relating to the atmospheric content of harmful pollutants. In the future, the company is planning to carry out an assessment of the size of the investment that would be required to employ the most advanced technology in the field of environmental protection (the Best Available Techniques assessment (BAT)). The reduction in emissions of hotbed gases is also seen as an important task. At the present time, Mosenergo power stations release around 50 million tonnes of these gases per annum. Taking into account the future growth in demand for energy in the Moscow Region, Mosenergo is intending to devise a plan of action to reduce these emissions within its environmental protection programme. The most important constituent of electrical energy production is water. The investment programme proposed envisages the reduction of the amount of water discharged from power stations, together with improvements in its quality. The monitoring of land pollution is regularly carried out by analysing ground waters taken from a network of pressure observation wells located at TPP power station sites. The investment programme also includes the replacement of all asbestos materials not used in production, but remaining in various installations. On account of the composition of the fuel used, the discharge of wastes does not present the company with a serious problem. Harmful and neutral wastes have to be stored or utilized in specially-allocated areas. Measures for waste utilization will also be included in the structured environmental protection programme and will further help to reduce environmental pollution and improve the health of the population. The introduction into all Mosenergo’s structural entities of a programme to protect the environment and provide health and safety at work, together with the creation by 2012 of a system of continuous monitoring of the operation of all 17 Mosenergo power stations, is also included as part of the investment programme. Implementation of the given programme will allow Mosenergo to fully conform to current international standards in this field of activity. Ecological prospects Implementation of the proposed project will have a positive effect on the region’s ecology. The modernization of power stations will make the production of electrical energy more efficient and safer, with continuous monitoring organised with respect to power station operation and the state of the environment. In the future, using resources obtained from additional financial investment, it will be possible to implement the JI and CDM Kyoto Protocol programmes for the reduction of hotbed gases. Snapshot of the planned environmental protection measures The production activities of the company will have to comply with Russian environmental protection and health and safety at work requirements in addition to those of the European Union. All the necessary certification will have to be applied for during the modernization process. The planned environmental protection measures, adopted as a result of special analysis, include:
the continuous maintenance of good order in production installations and the carrying out of environmental protection and health and safety at work measures at power stations and on the premises at which auxiliary subdivisions are operating. A system of environmental protection incorporating all structural entities of the company shall be created presumably by 2012. The following refinements are planned:
Openness of information and consultation Mosenergo shall, throughout the duration of the participation of EBRD in the project, provide EBRD with consolidated information relating to the effects of the project on the protection of the environment, together with reports on all measures taken with respect to environmental issues, plans of action and other agreed procedures. Monitoring and reporting The company will carry out uninterrupted control over its impact on the environment, in accordance with state normative legislation. The bank will evaluate the correspondence of the project to the relevant ecological and social requirements throughout the duration of the project and will review annual reports on the state of the environment. The given annual reports shall contain:
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