Iren and Anasaldo Energia sign US$200.83mn deal for Turbigo site

foto gruppoIren SpA., through its subsidiary Iren Energia SpA, has signed a contract with Ansaldo Energia for the combined gas cycle realisation, with an investment of approximately US$200.83mn

This aims to increase installed capacity at the Turbigo site, which is all natural gas fed, from the current 850MW to around 1,280MW. The expansion of the capacity for 430MW obtained remuneration in the Capacity Market auctions

- A total of approximately US$117.15mn, distributed over the 15 years starting from 2022 (around US$7.81mn per year), for the new gas turbine section, as ‘new authorised capacity’

- A total of approximately US$13.39mn, about US$6.69mn 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 remuneration recognised for the participation in the Capacity Market is additional to the margins associated with the sale of electricity (MGP) and ancillary services (MSD).

Massimiliano Bianco, CEO of Iren, said, “The repowering of the Turbigo station 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,” Bianco added.

This investment demonstrates Iren’s support for the energy transition process, guaranteeing the production security and flexibility needed to balance intermittent renewable sources. The combined cycle, with a 57 per cent yield, will achieve the first parallel by 31/03/2022, whereas the test exercises and inspection will be completed by 30/06/2022.

Based on an EPC contract, 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.

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