The Project of construction completion of Kanivska HPSS, which was developed by Ukrgidroproyekt Institute (Kharkiv, Ukraine) according to the Plan of Location of HPSs and HPSSs on the territory of European Part of the USSR in 1998, contained grounding of expedience and feasibility of construction of semi-peak HPSS in the Central Part of the Interconnected Power System of the South of the USSR. According to the Project it was supposed to construct HPSS with daily and weakly regulation of the load schedule of the power system, with capacity of 3600 MW, equipped with 16 combined pump-turbine units with unit capacity of 225 and 250 MW in turbine and pump modes correspondingly.

Construction of HPSS, which began in 1984, stopped in 1992 during introduction of emergency procedures aimed at stabilization of the economy of Ukraine. Moratorium on construction of Kanivska HPSS was abolished under the aegis of Dniprogidroenergo supported by the Ministry of Power of Ukraine by the Decree of the Cabinet of Ministers of Ukraine # 307 - p as of April 19, 1999. Hence, all necessary preconditions to proceed with the construction completion of Kanivska HPSS are created.

Putting into service of Kanivska HPSS will enable:

• to meet demand on peak and semi-peak electricity and, therefore, to provide considerable increase in electricity's quality that, in turn, will facilitate normal operation of the entire power system of Ukraine;
• to implement stable and mutually beneficial interconnection of the power systems of Ukraine and Russia, to create conditions to arrange operation in parallel of the power system of Ukraine and power systems of the countries of Eastern and Western Europe;
• to expand considerably Ukraine's electricity export capacities and, in particular, capacities relate to supply of the most deficit peak power.

Technical and economical evaluation of feasibility of resumption of construction of Kanivska HPSS, which was performed in 1999-2000 by Dniprogidroenergo jointly with Ukrgidroproyekt JSC, Institute of Hydrobiology of the National Academy of Sciences of Ukraine, Ukrainian Research Institute of Ecological Problems of the Ministry of Environmental Safety of Ukraine, confirmed fundamental necessity and economical expedience of implementation of the project of construction of HPSS with installed capacity of 1800 MW in turbine mode consisting of the 8 combined pump-turbine units of POHT 115/859-B-630 type, developed by Leningrad Metal Plant (LMP) in 1984.

In the future there can be considered possibilities of production of the units of similar type to be installed at Kanivska HPSS by Turboatom JSC or arrangement of the tender on supply of import combined pump-turbine units of similar types.

In consultation with Elektrovazhmash (Kharkiv, Ukraine) within the Project's implementation it is supposed to use generator - motor similar to those installed at several HPSSs located in the CIS Countries with increase of its capacity from 236 MWA to 250 MWA.

All electric equipment can be produced at enterprises of Ukraine, except sulphur hexafluoride switches which it is planned to be purchased from foreign manufacturers. Orientation at supply of Ukrainian and Russian equipment does not exclude possibility of arrangement of international tenders on supply of equipment in order to optimize technical and economical performance within the Project.

Buildings of Kanivska HPSS comprise:

• upper accumulating water reservoir with total volume of 46.5 mln m³ and useful volume of 42.5 mln m³;
• water intake facilities with water intakes with dimensions of 7.5 x 7.5 m;
• monolithic concrete pressure waterways with metal lining and internal diameter of 7.5 m. Number of waterways corresponds to the number of the units and amounts to 8;
• building of HPSS which is combined with shafts, has dimensions planform of 94.4 x 65.2 m and height of 37 m. There are joint building and adjoining to the building assembly site with dimensions of 42.0 x 59.5 m above the walls of the shafts;
• outdoor diversion channel with length of 170 m, width (alterable) of 192 - 230 m, with the wharf located on the right - bank abutment for purpose of discharging heavy loads.

According to the estimations performed within technical and economic evaluation of expedience of resumption of construction of Kanivska HPSS, cost of construction (expressed in 1997 base prices) amounts to UAH 3491 mln and includes:

• basic estimated value - UAH 1472 mln;
• compensation of cost relating to market conditions of construction - UAH 1422 mln;
• value added tax - UAH 579 mln;
• civil construction - UAH 18.28 mln.

#	Indicator	Indicator's value
1.	Installed Capacity, MW
	- in turbine mode	1 800
	- in pump mode	2 000
2.	Annual electricity production, mln kWh	2 600
3.	Electricity consumed on "charge", mln kWh	3 450
4.	Duration of operation in winter day, hours
	- in turbine mode	10
	- in pump mode	7
5.	Number of units, pcs	8
6.	Capacity per unit, MW
	- in turbine mode	225
	- in pump mode	250
7.	Investment Cost (VAT included, inflation excluded), UAH mln	3 491.28
8.	Construction Period, years	11
9.	Service Life of Basic Equipment, years	30
10.	Average Annual Operation Cost, UAH mln	339.4
11.	Average Annual Sales Revenues, UAH mln	780
12.	Average Annual Balance Income, UAH mln	440.6
13.	Average Annual Net Income, UAH mln	308.4
14.	Specific capital expenditures, UAH per kW	1 952
15.	Electricity cost, kop per kWh	13
16.	Electricity Output Tariff on buses of HPSS, kop per kWh	30
17.	Net Present Value, UAH mln	1 659
18.	Internal Rate of Return, %	14.1
19.	Profitability Ratio	1.25
20.	Investment Payback Period, years	16