Power Machines prepared to undertake renovation of Djerdap-1 HPP (Serbia)

Power Machines OJSC, Serbian Electric Services and Djerdap Business Company signed a supplementary agreement to the contract pursuant thereto one shall resume implementation of the project for delivery of power equipment and renovation of Djerdap-1 HPP. The amount of contract is equal to $140 million.

Pursuant to the agreement to have been signed in 2009 Power Machines shall supply a turbine and a 201 MW generator for the HPP first hydraulic unit and proceed with the package of works for partial renovation of the existing hydraulic equipment to provide for increase of the hydraulic units capacity from 174 to 201 MW with the remaining five HPP power units. Each year beginning with the current one one of the six hydraulic units is to undergo renovation with an ultimate view of attaining a capacity increase exceeding 15%. The works are to be accomplished in 2015. The renovation is expected to result in extension of the HPP equipment service life by another 30 years which is to ensure increase of the annual energy output to be 500 million kWh.

Initially the contract for delivery of equipment and renovation of Djerdap-1 HPP was awarded to Power Machines following the results of a tender held in 2003. The project was to have been financed towards the former USSR indebtedness to the former Socialist Federal Republic of Yugoslavia. However, the on-going process of Yugoslavia further disintegration into sovereign states, division of the country’s debt receivable between the latter remaining an issue unsettled, caused the project funds tie-up. It is noteworthy that Power Machines had commenced the equipment manufacture prior to solution if the funding issue by the Serbian party having so far completed manufacture of the turbine and the 201 MW generator for the HPP first hydraulic unit as well as construction and outfit of the on-site assembly facility and the turbine building overhead cranes modernization. The parties have finally succeeded in solution of the project funding issue that is to be provided for both towards indebtedness of the Russian Federation to Serbia and out of the Serbian party’s proprietary funds.

The turbines and generators currently in use at the Djerdap-1 HPP were manufactured by Power Machines enterprises during 1970-1972. Experience of the units faultless service through decades was the major factor that conditioned the Serbian party’s commitment to having the renovation works entrusted to the equipment manufacturer.

Apart from the Djerdap-1 HPP renovation project Power Machines are actively involved in modernization of ten control systems for Djerdap-2 HPP turbines.