JSC RusHydro has entered into a memorandum of cooperation with the Government of Krasnoyarsk for development of the 150MW Nizhne-Kureyskaya hydropower plant (HPP) in Russia.

Located on the Kureyka river downstream from the Kureyskaya HPP, the hydropower plant will generate 890GWh of average annual electricity, with an installed capacity of 150MW.

The memorandum brings out cooperation conditions between RusHydro and the regional government for developing the power station.

According to RusHydro, the project is estimated to cost RUR29.8bn ($9.94bn), and the first hydropower units will come online in 2018.

RusHydro’s participation in the project will entail raising sufficient funds outside project financing and support from the local administration, while the government will provide all the necessary assistance for the project.

In August 2011, RusHydro signed a power purchase agreement for Nizhne-Kureyskaya with a single off-taker, Turukhanskenergo.

The preliminary purchase agreement provides for a one-part selling price of RUR16 per kWh valid until 31 December 2042 and ensures a 15-year payback period for the project.

The company will seek project financing for the hydropower plant, which the company says is of extreme importance for the Krasnoyarsk Region and its northern territories, which suffer from a lack of efficient generation.

A feasibility study and public hearing have already been carried on the expected environmental impact of the hydropower project.