Iren S.p.A., through its subsidiary Iren Energia S.p.A., has signed an EPC contract with Ansaldo Energia for the extension of the gas fired combined cycle power plant at the Turbigo site from the current 850 MW to around 1280 MW. The 430 MW expansion in capacity obtained a capacity market payment amounting to approximately 105 million euros, distributed over the 15 years starting from 2022 for the new gas turbine section, as ‘new authorised capacity’ and a total of approximately 12 million euros, about 6 million euros per year for the years 2022 and 2023, relating to the existing steam turbine as an ‘existing capacity’, but not used today, which will be reactivated thanks to repowering.
The capacity market remuneration is in addition to the margins associated with the sale of electricity (MGP) and ancillary services (MSD).
Ansaldo Energia will manage the executive design phase, the supply of the gas turbine, generators and set-up transformers, heat recovery vapour generator, the implementation of the civil works, the assembly and supply of ancillary electrical and mechanical installations.
Iren will integrate the project with the existing plant to obtain maximum overall production flexibility, the upgrading of certain components on the current production plant, operational since 2008, so as to further improve performance and the renewal of the concessions with the national electricity network.
“The repowering of the Turbigo station” commented Massimiliano Bianco, Iren’s CEO “represents a significant upside in relation to the assumptions in the most recent business plan, which we decided to implement after the pricing signals from the first capacity market auctions. Prices were positioned at highs both in terms of existing capacity and the new capacity, highlighting the important role of gas power stations with high levels of flexibility, which operating on a supplementary basis to renewable sources, are essential to supporting system adequacy. With this project, Iren and Ansaldo Energia are consolidating their collaboration in the energy sector, and more specifically, in managing the turbogas fleet.”