Sadovaya considers construction of thermal power plant

Sadovaya Group (SGR PW) considers acquisition or construction of coal-fired thermal power plant (TPP) as a long-term development option, the company’s CEO said yesterday (via Interfax). As one of the options, the company considers taking an old EU-based 370MW TPP and reconstructing it for Sadovaya’s needs.

Roman Topolyuk: Though the general idea of vertically integrating with a TPP sounds reasonable, Sadovaya already has a set capex pipeline, the value of which might exceed USD 200 mln. Key projects include the construction of four enrichment factories and two new underground mines. Thus, the company’s capacity to raise debt might be focused at delivering existing projects, while capital-intensive power generation could be the next stage in the business’ development.