The Sangtuda-1 hydroelectric power plant (HPP), which is operated by the Open Joint-Stock Company (OJSC) Sangtudinskaya GES-1, has received the operating license after a five-month delay. The operating license expired on May 15. It means that from May 15 to October 6, the power plant operated without license.
In his written reply to Asia-Plus’s request, OJSC Sangtudinskaya GES-1 CEO Alexander Shevnin noted that the issue of obtaining the operating license was resolved only after a meeting Russia’s Vice Premier Marat Husnullin and Tajikistan’s Prime Minister Qohir Rasoulzoda, who are co-chairmen of the intergovernmental commission for trade and economic cooperation, in Dushanbe on September 30 on the margins of the Dushanbe International Investment Forum.
“During the meeting, the Russian side stated that in case of further delay in issuing the operating license without justified reasons, the hydropower plant will be forced to suspend its operations so as not to violate the country’s legislation,” Shevnin said, noting that Tajikistan granted the operating license to them on October 6.
OJSC Sangtudinskaya GES-1 top manager said the lack of the license had not affected the operation of the plant and generation of electricity thanks to management and shareholders' decision.
“This situation could lead to suspension of the plant’s operations, but the company management took a decision to continue operations at its own risk since it understood that the suspension of the plant’s operation would entail an increase in electricity shortages in Tajikistan’s power grid, as result of which residential customers will suffer,” Shevnin said.
He further noted that the issue of licensing of activities for installation, commissioning and maintenance of energy facilities and equipment has not yet been resolved.
According to him, the application for this license renewal has been under consideration by the Ministry of Energy and Water resources of Tajikistan since October last year.
“We see no legal basis for such a long consideration of the application,” Shevnin said.
Besides, in accordance with agreements concluded with the Government of Tajikistan, OJSC Sangtudinskaya GES-1 has the right to sell the generated electricity, including abroad, but actually, Tajikistan’s energy authorities do not allow the company to do this, OJSC Sangtudinskaya GES-1 CEO added.
Russian state-run news agency Interfax says Sangtuda HPP-1, which is Tajikistan's second largest hydropower plant by capacity, now provides about 11% of the country's total electricity generation.
Russian-Tajik OJSC Sangtudinskaya GES-1 was established to complete the construction of the Santuda-1 power plant. Russia’s Inter RAO YeES and the Ministry of Energy and Industries of Tajikistan signed an agreement on the establishment of the company in Dushanbe on February 16, 2005.
Russia owns 75% percent of the shares minus one share and Tajikistan assumes the 25% ownership interest plus one share in Sangtudinskaya GES-1.
The construction of the Sangtuda-1 hydropower plant located some 110 kilometers southeast of Dushanbe began in the late 1980s. By the early 1990s, only 20% of the construction work had been completed, and further construction was suspended due to a civil war that broke out in Tajikistan in the early 1990s. The talks between Russia and Tajikistan on completing the construction of the Sangtuda-1 HPP began in 2003 and in 2004 the parties signed an inter-governmental agreement.
Tajik and Russian presidents officially unveiled the fourth and last unit of Sangtuda-1 HPP on July 31, 2009.
Barqi Tojik (Tajikistan’s power utility company) is the only buyer of electricity generated by the Sangtuda-1 HPP.
Meanwhile, OJSC Sangtudinskaya GES-1 seeks an opportunity to sell electricity generated by Sangtuda-1 HPP itself.
The company has repeatedly raised the issue of increasing the supply of electricity generated by the Sangtuda-1 HPP and independently exporting it at different levels.
Representative of OJSC Sangtudinskaya GES-1 say that according to the agreements concluded, the company has the right “to sell electricity generated by the Sangtuda-1 HPP in accordance with direct contracts and export it by itself.”
These rights are reportedly enshrined in a government-to-government agreement between Tajikistan and Russia on a procedure and conditions for joint participation in construction of the Sangtuda-1 HPP and in a government-to-government agreement on operation of this hydropower plant.
The Government of Tajikistan wants to review the agreement signed with the Government of Russia on payment of electricity generated by the Sanfgtuda-1 hydroelectric power plant (HPP) as it wants to pay for electricity generated by the Sangtuda-1 HPP in Russian rubles.
This is one of the points of the Plan of Actions to Prevent the Impact of Possible Risks on the National Economy, which was adopted by the Tajik Government on March 18, 2022.
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