MOSCOW: Two people were killed and another two wounded on Wednesday during a "terror act" at a hydroelectric power plant in Russia`s volatile North Caucasus region, state-run power group RusHydro said, citing preliminary information.

"An explosion took place on the premises of the Baksanskaya hydroelectric power plant" early Wednesday, the company said in a statement. "Two guards died, two people were hospitalized."

As a result, the power plant`s engine room was on fire, it said.

The power plant is located on the Baksan river in Kabardino-Balkaria, part of the North Caucasus region where Russian authorities are battling a Muslim insurgency.

BDST: 1443 HRS, July 21, 2010