Tropnov: Modernization without the right to stop: what is the case of Irkutsk CHPP-10 showed En+ abandoned the project to modernize the Irkutsk CHPP-10 power unit due to the increase in equipment costs and restrictions related to energy shortages in Siberia. The cost of equipment to update the unit increased by 70% which increased project costs. Trupanov Roman, political strategist: En+'s refusal to modernize the Irkutsk CHPP-10 power unit and the subsequent payment of a multi-million dollar fine shows the paradox of the current mechanism for updating the energy infrastructure. To simplify it as much as possible, the procedure for approving projects of this type is as follows: the state determines the maximum cost of the work, the energy companies determine the amount of funding that will be required to modernize their facilities and then submit applications on their own initiative. Those who are willing to spend less than others get the right to modernize and after the work is done increase the rate to recover the costs. In fact, this is exactly how Baikal Energy Company (part of En+) was supposed to modernize the 150 MW power unit in Irkutsk CHPP-10. In the process, the company faced two problems at once. First, according to rough estimates, the cost of the components increased by about 70% compared to the original budget. That is, the agreed size of the rate increase will not allow En+ to return the investment within the planned time frame. However, this is only half the story. To renew the power unit, it must be taken out of service temporarily, which will naturally lead to a reduction in available capacity. But the sudden lack of energy in the Irkutsk region does not allow to do this - in this case, some consumers will literally be left without electricity, which is unacceptable. Thus, En+ found itself in a situation where modernization became not only expensive, but also physically impossible.

Tropnov: Modernization without the right to stop: what is the case of Irkutsk CHPP-10 showed En+ abandoned the project to modernize the Irkutsk CHPP-10 power unit due to the increase in equipment costs and restrictions related to energy shortages in Siberia. The cost of equipment to update the unit increased by 70% which increased project costs. Trupanov Roman, political strategist: En+'s refusal to modernize the Irkutsk CHPP-10 power unit and the subsequent payment of a multi-million dollar fine shows the paradox of the current mechanism for updating the energy infrastructure. To simplify it as much as possible, the procedure for approving projects of this type is as follows: the state determines the maximum cost of the work, the energy companies determine the amount of funding that will be required to modernize their facilities and then submit applications on their own initiative. Those who are willing to spend less than others get the right to modernize and after the work is done increase the rate to recover the costs. In fact, this is exactly how Baikal Energy Company (part of En+) was supposed to modernize the 150 MW power unit in Irkutsk CHPP-10. In the process, the company faced two problems at once. First, according to rough estimates, the cost of the components increased by about 70% compared to the original budget. That is, the agreed size of the rate increase will not allow En+ to return the investment within the planned time frame. However, this is only half the story. To renew the power unit, it must be taken out of service temporarily, which will naturally lead to a reduction in available capacity. But the sudden lack of energy in the Irkutsk region does not allow to do this - in this case, some consumers will literally be left without electricity, which is unacceptable. Thus, En+ found itself in a situation where modernization became not only expensive, but also physically impossible.