Alternative power in Russia

The main articles are:

• Alternative power
• Wind power in Russia

2023

The volume of generation at renewable electricity facilities has doubled since 2020

In December 2024, it became known that electricity generation at renewable enterprises power engineering specialists Russia in 2023 reached 7.8 billion kVt·ch, which is more than double the level of 2020. This is evidenced by the data. Rosselkhozbank

According to TASS, the leading role in the production of renewable energy belongs to wind farms, which have generated 3.4 billion kVt·ch, and solar power plants with an indicator of 2.4 billion kVt·ch. Geothermal plants, biogas, biomass and wastewater energy plants produced 0.39 billion kVt·ch.

The volume of generation at renewable electricity facilities in Russia has doubled since 2020

Natalya Khudyakova, head of the Rosselkhozbank Sustainable Development Center, predicts that by the end of 2024, the total output may exceed 11 billion kVt·ch, which will be a historic maximum for the country.

Three federal districts took the leading positions in the production of "green" electricity: Yuzhny with a share of 66%, Volga - 13% and Far Eastern - 9%. This distribution is due to the climatic characteristics of the regions and the development of the corresponding infrastructure.

Mining and oil and gas companies are actively involved in the development of renewable power, which are building autonomous wind farms and solar power plants to provide remote deposits. This makes it possible to reduce dependence on centralized power grids and increase the energy safety of production facilities.

The incentive for the development of the industry, according to the Energy Strategy of Russia until 2035, is contracts between electricity producers and large buyers of capacity in the wholesale market. This mechanism ensures a stable demand for renewable energy.^[1]

Reduction of renewable power in Russia by 8.3% to 7.8 billion kilowatt-hours

Electricity generation from renewable energy sources (RES) in Russia in 2023 decreased by 8.3% compared to 2022, amounting to 7.8 billion kilowatt-hours. In December 2023, production reached 668 million kilowatt-hours. This became known from a statistical report published in November 2024.

According to the data, Rosstat despite the overall decline for the year, in December 2023 there was an increase in generation by 4.1% compared to November of the same year, although the figure was 16% lower than December 2022.

Renewable power in Russia decreased by 8.3%

The head of the Association for the Development of Renewable Energy Alexei Zhikharev stressed that from 2024 an almost twofold increase in the volume of new construction of renewable energy generation is expected, and in 2025 a new record will be set - this figure will reach 1,500 MW.

According to TASS, in the first half of 2023, 264 MW of new renewable generation capacities were commissioned, which is 72% higher than in the same period in 2022. Of these, 216.9 MW falls on the projects of the wholesale electricity market.

Among the largest projects implemented are the second stage Kola Wind Farm with a capacity of 32 MW, the Kuzminskaya wind farm at 160 MW and the Krasnogorsk small hydroelectric station with a capacity of 24.9 MW. 47.4 MW were introduced in the retail market, including "Hevel" the group's 44.1 MW solar power plants.

According to the agency, by July 1, 2023, the total installed capacity of renewable energy generation in Russia reached 6044 MW, an increase of 540 MW per year. The Ministry of Energy of Russia predicts the commissioning of about 12 GW of new renewable energy facilities until 2035.

The state program for supporting renewable power has been extended until 2035 with funding of about ₽350 billion. The new program will replace the current support system, ending in 2024.

^[2][3]

A PAC has been developed in Russia to integrate renewable energy sources into traditional energy systems

At the end of October 2023, the Moscow Energy Institute (MPEI) announced the creation of a software and apparatus complex for integrating renewable energy sources (RES) into traditional energy systems. The novelty is a microcontroller for controlling converters at generating facilities based on renewable energy sources. The microcontroller implements an algorithm that simulates the operation of a synchronous generator with a given moment of inertia. Read more here.

The government allocates 9.3 billion rubles for hydrogen power

The Russian government allocates 9.3 billion rubles for the development of hydrogen power in the country until 2024. Deputy Prime Minister of Russia Alexander Novak spoke about this in February 2023.

As part of the development of low-carbon power, Russia is developing the hydrogen industry. At the end of last year [2022], the country approved a roadmap for the development of the high-tech direction "Development of Hydrogen power," which has become a single document for the development of the industry, he told Energy Policy magazine (excerpts from the material are quoted by Interfax).

Novak recalled that in January 2023, an agreement was concluded between the Russian government, Rosatom and Gazprom on the implementation of the roadmap. The above funds for the development of hydrogen power are provided for in the part of the federal project "Clean power."

In January 2022, the Russian government adopted a new roadmap for hydrogen. Now the horizon of its planning has been extended from 2025 to 2030.

The implementation of the activities of the roadmap "Development of Hydrogen power" will create the necessary technologies and equipment for the production of hydrogen based on natural gas and nuclear energy and its application in the sectors of the economy, the government expects.

Earlier, Alexander Novak, speaking at a strategic session, said that Russian companies "are actively working on various possibilities for the production of hydrogen, including from water using electricity from nuclear power plants and renewable energy sources." According to him, hydrogen fuel will allow Russia to diversify exports while reducing the share of hydrocarbons in the global energy market. Russia, according to him, may occupy at least 20% of the hydrogen market in the future.^[4]

2022: Alternative power in Russia accounts for no more than 0.5% of the entire market

In 2021, German and Russian researchers argued that Russia could completely switch to renewable energy sources (RES) by 2050. According to statistics, in June 2022, alternative power in Russia accounts for no more than 0.5% of the entire market. With a successful scenario, by 2030 the share will be 2%. This was reported on June 9, 2022 by Tok Arsenal.

There are a lot of minerals in Russia: coal, gas, oil. The Russian economy is associated with huge energy companies specializing in extractive industries.

The state is trying to support the initiative with alternative energy sources with various tools. For example, in 2020, the law on microgeneration came into force. Thanks to this law, the state can buy surplus electricity generated at alternative power plants. The adoption of the law on microgeneration had to wait 7 years. Such long approvals significantly slow down development. Despite this, the state plans to actively develop this industry.

Alternative power in Russia is developing every year, the process is underway. Private homeowners are trending, with many wanting to install solar panels to be less reliant on urban electric grids - a factor that comes first. On the second - the status to be the first, using the latest environmentally friendly technologies, - said Igor Viktorovich Denisov, General Director of Tok Arsenal.

It is worth noting that two-thirds of solar panels in Russia have been installed over the past 5 years. The market began to develop rapidly. One of the reasons was a successful experience. He inspired others to install eco-friendly power plants.

Due to sanctions for June 2022, Western countries are closed to investment. This makes it possible to invest in the development of your country.

The main users of alternative energy sources are private landlords and private businessmen: people who want to be trending and use the latest developments. It is more profitable to install solar panels in the southern regions of Russia, where there is a lot of sun. Windmills are better suited on the plains of the central regions of Russia.

Due to sanctions, many European equipment suppliers left the Russian market, but all critical elements of wind power plants began to be produced in Russia. As before, the components come from China.

In the spring of 2022, the European Union adopted the sixth package of sanctions. It included a ban on the import of crude oil and some petroleum products. We are talking only about oil delivered by sea. Hungary did not allow to impose a complete embargo and stop the oil pipeline.

The European Union hopes to abandon 90% of oil imports from Russia by the end of the year. The European Council intends to revise the exception with the pipeline "as soon as possible." As of June 2022, Russia supplies 27% of oil imported into the EU. So far, Russia has one of the cheapest fuel tariffs in the world.

According to experts, an explosive increase in renewable energy sources should not be expected. The only reliable way to develop alternative power in Russia is a conscious choice of residents in favor of a more environmentally friendly lifestyle. There are a lot of people who care about ecology.

Power does not leave toxic waste or harm nature. In global production, wind energy has already overtaken oil. This approach can solve many environmental problems in Russia. If network electricity is more expensive than 5.5-6 rubles, then the installation of its own solar power plant can pay off in 7-10 years.

The sunniest region of Russia is the Altai Republic. 300 cloudless days a year. There are three solar power plants in the mountains. This is quite enough for 15 thousand of the population of the Ust-Kansky district. Prior to that, the area received electricity from neighbors.

In the Belgorod region decided to conduct an experiment. It turned out to be unprofitable to install solar panels there - they occupy valuable agricultural land. But on the other hand, a biogas station approached. It has enough electricity for an area with a population of 30 thousand people and large agricultural holdings.

The station in Anapa is equipped with solar panels. When the external sources are turned off, the batteries for three hours ensure the operation of the station.

In the Southern Federal District, 642 MW solar power plants have been introduced over the past 10 years.

According to forecasts of the Energy Strategy, electricity generation at hydroelectric power plants by 2035 will grow another 1.2-1.3 times.

{{quote 'Classic energy sources prevail in Russia, and the cost of generating electricity is not high, unlike European countries. In Europe, the alternative for 2022 is developing at a frantic pace, due to the fact that gas and oil have grown significantly in price. We should not expect explosive growth. But still, many people, including business, become conscious choices of ecological development, - added Igor Denisov. }}

2021

Novatek was the first in Russia to export hydrogen

Novatek was the first in Russia to export hydrogen on an industrial scale. Fuel supplies will be carried out from the Obsky GCC project in Yamal. This became known on December 23, 2021. Read more here.

The renewable power sector in Russia has move off the ground. Prices are falling

Renewable power in Russia is still not enough compared to achievements in China and Europe in this area, Russia is still at the beginning of the journey, but it is moving very quickly, said Alexei Zhikharev, director of the Association of Development of Renewable Power (ADRP), at an online conference on October 27, 2021. And recently, significant shifts have occurred in this market in our country.

We are growing at a high pace: over the past 5 years, the sector has grown 13 times, - said the director of ARVE. - It is clear that we started from scratch. But for the next 15 years, we will grow fast enough.

At the moment, we have over 3 GW of renewable energy capacity per year. For comparison, more than 100 GW is introduced in China per year, Alexey Zhikharev gave an example. Geographically, projects in this area are concentrated mainly in the south of Russia.

Russia is scheduled to reach capacity of about 15 GW in 2035, including thanks to existing programs to support the industry. But, the ARVE director believes, the "voluntary demand" of business for low-carbon power will still be added to this indicator - from companies that are interested in decarbonizing their products.

Alexey Zhikharev calls the decline in energy prices, especially for energy from solar power plants (SES) and wind farms (WES), a real revolution in the field of renewable sources in Russia. Over 10 years, the cumulative decrease will be about 85%.

This is a serious achievement, and we understand that the sector is moving in the right direction, got on the right rails. Already, the projects that are being implemented in Russia fully comply with world standards, says the director of ARVE.

Without renewable power, it is impossible to develop, including electronics, Zhikharev noted, and it is renewable power, he believes, that will become the driver of the development of this industry. This is due to the fact that there are data centers that want to become low-carbon, and electric cars, etc.

Alexey Zhikharev noted that until this year there were no incentives for the development of renewable power in Russia without any support programs, because electric energy was more expensive than traditional.

There are several major sectors of renewable power. One of them is the wholesale market, where large power plants with a capacity of more than 5 MW participate. There is a support program, thanks to which it is possible to conclude long-term contracts for the supply of capacity from renewable energy facilities.

This program made it possible to move the new sector for Russia off the ground. From 2013 to today, we see that this has become the most serious driver in Russia for the development of a new industry, which has made it possible to form an industrial cluster, an education cluster, and, of course, to form building competencies, - said the director of ARVE.

There is also a support program in the retail market. Here you can carry out projects in the field of renewable energy also on the basis of competitive selection: regional contests are held in which a particular investor can get the right to implement the project and conclude a 15-year contract for the sale of electricity to a local grid company to compensate for losses in the networks.

Crucially, a government decree that allows the public to install solar panels or other energy generators at home and sell surplus electricity to the grid has earned this year. We are talking about government decree No. 299 on microgeneration, according to which an individual and a legal entity, if desired, can use a generator on any type of fuel, including a wind generator or a diesel or gas installation.

And what is even more important, notes Alexey Zhikharev, if such a panel stands at home, you can completely replace the electricity received from it from the grid. And if we are talking about a business for which electricity is more expensive than for "physicists," such microgeneration especially makes sense here.

And now there is a second program for supporting contracts for the provision of capacity (DPM) of renewable energy facilities (DPM RES 2.0 program), designed for a period until 2035. It assumes that in 2025-2035. about 9-10 GW of energy from solar, wind and hydroelectric power plants will be sold.

At the same time, renewable energy support programs are built based on the localization of the production of the necessary equipment, while the second program involves a 2-fold increase in the level of localization. This is an additional driver for technology companies to offer their components to local manufacturers for embedding in the supply chain.

Thanks to the focus on localization in Russia, appropriate industries were created. Notable among the companies that did this is Siemens Gamesa. They successfully managed to localize production, implement several projects, says Zhikharev, but in the 2nd program the company decided to move according to a different scenario: it will continue to implement projects in Russia, but completely on imported equipment with a focus on corporate power plants, and not on projects within the framework of support mechanisms.

The second program also involves export requirements, which should become a litmus test for manufacturers.

If your goods are exported, then you are competitive, - explains Alexey Zhikharev. - Export requirements have been established, and now in order for the project to receive support, it must be confirmed that a certain amount of goods was also exported by your manufacturer, who supplied the equipment. It was a discussion topic that we argued about: whether it was necessary or not.

The Government of the Russian Federation approved the concept of the development of hydrogen power

On August 13, 2021, information appeared that the Government of the Russian Federation approved the Concept for the Development of Hydrogen power. The document was signed by Prime Minister Mikhail Mishustin.

The main goals are to unlock national potential in the production, export of hydrogen and become one of the leading countries in this industry.

Among the initiatives proposed in the document: the launch of projects for the production of low-carbon hydrogen, the creation of consortia for the production of equipment and components, the formation of infrastructure for the storage and transportation of this energy carrier. It also provides for the creation of at least three territorial production clusters.

The document indicates the priority technologies that are necessary for the development of the industry. We are talking about the production of hydrogen using steam methane conversion and coal gasification. Technologies for capturing carbon dioxide, the creation of hydrogen installations for transport, special gas stations are also indicated.

State support is an additional incentive. Industry representatives will receive government subsidies and conclude investment contracts.^[5]

We can expect an even greater reduction in the cost of generation on alternative sources

Thanks to state the import substitution policy, we can expect an even greater reduction in the cost of generation on alternative sources, since the development of domestic technologies for the production of components for renewable energy facilities will significantly save. According to forecasts, taking into account the reduction in construction and production costs by 2035 Russia , an average of 25 billion kWh of green energy will be produced annually. However, even this factor will not allow Russia to catch up with world leaders in the field:,, and there are Netherlands Germany Denmark Norway^[6]

At the moment, with the help of state programs to support renewable energy sources, it was possible to form new energy generation capacities in the Russian Federation without harm to the environment. The next step is to make the segment independent of government support. This is necessary not only to increase the volume of green generation, but also as an additional incentive to increase profits in related industries: microgeneration, the creation of autonomous power systems, IT technologies and the production of components.

For example, due to the implementation of microgeneration projects, it is possible to increase the demand for the development of a resource based on renewable energy sources by another 10 GW. Therefore, within the framework of the second stage of the state program, the main emphasis is placed on increasing the level of localization and import substitution of equipment for renewable energy stations. The approach will ensure the formation of new areas of industry in the Russian Federation, for example, the creation of photovoltaic modules and electrical products for solar power plants and components for the equipment of wind plants.

To increase the volume of green generation in Russia, it is also important to correctly select the regions for the construction of renewable energy facilities. The most efficient creation of wind farms in the territory near the Volga, since the river provides the ability to transport dimensional parts for wind farms, and solar stations - in Altai, Primorye and in the southern regions of the Russian Federation. The most ambitious plans to expand the share of alternative power are announced by the Ulyanovsk region. The region is going to receive 30% of energy using wind farms by 2030.

However, the resource obtained using wind energy in the wholesale market of the Russian Federation is estimated at 6.4 rubles per kW/h - this is 2 times more expensive than in other countries, and surpasses gas generation in Russia in price. The price is explained by the fact that domestic equipment for alternative energy appeared on the market recently: most of the price of environmentally friendly energy is compensation for the costs of imported components. The cost of a resource also includes logistics costs.

The creation of solar power plants in terms of logistics is much more profitable than wind power plants. Solar panels, especially prefabricated panels, are delivered anywhere without any problems. Thus, even without taking into account state support, the cost of kW/h of solar generation in 34 regions can cost less than 5 rubles, and in 8 constituent entities of the Russian Federation - less than 4 rubles.

Over the past 10 years, the cost of wind generation has decreased three times, and solar generation - 10 times. For comparison: the price of gas generation decreased by about 30%. Stimulating the increase in gas production and electricity production based on it is more beneficial for a country like ours, due to the dependence of the economy on hydrocarbons.

Despite this, the start of building up green capacities in the Russian Federation is already due, and the development of this segment of the energy industry will continue. It is profitable for small and medium-sized businesses to switch to renewable energy: now the payment of legal entities for electricity reaches 11 rubles per kW/h, and when installing solar panels, you can save more than half of this cost and pay 4-5 rubles. for kW/h. Also, entrepreneurs have the opportunity to unite in cooperatives and share low-power renewable energy stations.

In addition to solar, wind energy, another promising direction in the "green "power is the production of environmentally friendly hydrogen. According to our forecasts, this type of fuel will be in high demand in the near future both in the export direction and in the domestic market. To implement this strategy, it is planned to build wind farms in Yamal, Gydan, the Murmansk region and Kamchatka.

The transition to renewable energy is a slow process, and part of the cost of supporting this industry is taken from the revenues of traditional power. Now in the energy balance of Russia, alternative generation occupies about 1.5%. To increase the indicator, funding is needed, primarily from the state. In addition, not only the volume of investments, but also their targeted spending are fundamental.

Soon, the whole world will gradually abandon traditional energy sources. Already, on the example of Nord Stream, we can understand the further actions of Europe in this direction. Exports of gas and oil in various years brought to the budget from 40% to 50% of income, and when the decline in demand for coal, oil, gas exported by Russia, renewable energy technologies and related industries could compensate for losses.

In addition, it is necessary to increase the volume of domestic gas consumption, of course, with the condition that prices for it for Russian consumers will not be overestimated due to lost export profits amid lower demand. And this is already obvious - "Power of Siberia" and "Turkish Stream" do not reach the expected volumes of supplies.

The geography of our country is such that in most regions the introduction of integrated energy supply systems based on renewable energy will become effective and expedient due to natural climatic conditions. At the same time, it is important that the energy of the sun, water and wind will become the main source of generation, and traditional sources will be backup in case of failure or lack of capacity.

2019

1.3 GW of renewable energy generating capacity

In 2019, the main investors in the renewable energy development program were companies such as Hevel (production and installation of solar power plants), Solar Systems (solar power), Rosatom, the Finnish company Fortum and ItalianEnel ( all - wind power development ). Thanks to their activities, including investment, in 2020 17 solar parks with a total capacity of 335 MW will be built in the Astrakhan and Volgograd regions, the Stavropol Territory, and the republics of Kalmykia and Bashkortostan (44 billion rubles of investments), four wind farms in the Stavropol Territory with a total capacity of 260 MW (26 billion rubles of investments).

In our country, 1.3 GW of generating capacities based on renewable energy sources operate, by 2024 another 4.7 GW will be put into operation, which will increase the total annual production to at least 11 billion kWh. In order to ensure the achievement of the target for the share of alternative energy in the energy balance at the level of 2.5% by 2035, on a par with the leading countries in the use of renewable energy resources, starting from 2024, Russia must annually commission 1 GW of renewable energy facilities. But the development of electricity generation based on renewable energy sources in our country is hindered by large volumes of traditional generation - 50% of generation comes from gas plants, 20% from hydroelectric plants, 14% from nuclear plants and 14-15% from the least environmentally friendly coal plants. Also, development slows down the lack of economic conditions to increase the efficiency of renewable energy facilities and voluntary demand for "green" electricity among the population

Ministry of Energy will support the extension of the renewable energy support program

The Ministry of Energy believes that the program to support the construction of generation based on renewable energy sources (RES) should be extended, the department will support its extension until 2035, subject to a number of conditions. This was announced in June 2019 by TASS Information Agency of Russia, Deputy Minister of power of the Russian Federation Yuri Manevich.

"The Ministry of Energy of the Russian Federation proceeds from the fact that the renewable energy support program should be preserved after 2024, we will support its extension until 2035. At the same time, competitive conditions for potential investors should be tightened in terms of reducing CAPEX (capital expenditures - approx. TASS) and introducing additional goals in the field of export of products, "he said.

Manevich noted that the development of renewable energy poses additional specific tasks for the Ministry of Energy and the electric power industry.

"Increasing the volume of renewable generation inputs requires us to have an integrated view on the joint functioning of renewable generation, traditional generation and the power grid complex," the deputy minister added.

Measures of state support for the construction of generating facilities based on renewable energy sources (PDM RES), which imply a return on investment with a guaranteed yield, work until 2024, but this year the last selection of projects was carried out, which should be implemented by 2024.

2018

Fortum received the right to build solar and wind generation in Russia on the basis of a return on investment mechanism

Fortum received the right to build 110 MW of solar generation based on the results of a competitive selection of investment projects operating on the basis of renewable energy sources. Solar power plants should be put into operation in 2021-2022, over 15 years the guaranteed electricity fee will be approximately 150 euros per MW * h.

In addition, according to the results of the same competitive selection, the Fortum Joint Fund and RUSNANO received the right to build 823 MW of wind power generation. Fortum's share in the fund is 50%. Wind farms are due to be operational in 2019-2023, and will receive a guaranteed electricity fee within 15 years, roughly corresponding to 60-90 euros per MW * h.

A separate investment decision will be made for each specific object. The total amount of capital invested by Fortum, as previously reported, will not exceed 15 billion rubles. (215 million euros). It includes projects within the framework of the completed competition, as well as Fortum's share in the generation being built jointly with RUSNANO by the Wind Energy Development Fund following the results of the competition held in 2017. Fortum intends to maintain a flexible asset structure in the long term by concluding partnership agreements and other forms of cooperation.

According to the strategy, Fortum plans to create a 1 GW renewable energy generation portfolio. The Company makes selective investments in renewable energy resources, effectively using professional competencies and technological know-how.

Currently, Fortum has 362 MW of generation based on renewable energy sources, of which Russia accounts for 70 MW: 35 MW - a wind farm in Ulyanovsk and 35 MW - solar power plants in the Orenburg region and Bashkortostan. In June 2017, the Fortum Joint Fund and RUSNANO received the right to build 1 GW of wind power generation, which should be commissioned by 2022.

At the end of the competition for 2019-2023. the quota for solar generation amounted to 150 MW, for wind generation - 830 MW.

Rusnano has proposed green concessions for solar and wind power

For the development of green power in isolated zones, Hevel and Rusnano propose to use a mechanism of concessions with the regional authorities. The key idea of ​ ​ investors is to oblige the regions to prescribe long-term investment tariffs in concession agreements for the payback period of green energy projects, a guarantee of local authorities in terms of payment level, and also allow the transfer of green generation on bank loans. Lawyers note that in general, the basis of legislation for concessions already exists and it should be easy for Rusnano to make the necessary changes when lobbying^[7] for^[8].

Investors in green power propose to develop this sector in isolated energy systems through concessions, follows from the presentation of Rusnano (intends to develop wind generation), presented at a round table in the State Duma on April 4, 2018.

By decision of the government commission on electricity, departments and market participants are now discussing ways to support renewable energy sources (RES) in the Far East. The office of Deputy Prime Minister Arkady Dvorkovich said that work is still underway, draft regulations should be submitted in mid-May. Recall that subsidies for renewable energy sources operate in the unified energy system of the Russian Federation: their payback is ensured by the purchase of generation by networks either through a special tariff, or through contracts for the supply of capacity in the wholesale energy market also with increased payments.

The essence of the scheme is that the investor replaces the inefficient diesel generation of renewable energy sources or combines diesel with renewable energy sources, this reduces the cost of imported fuel, but before the return on investment, the tariff is subsidized from the regional budget. Electric networks can also be transferred to such a concession (Rosseti does not comment on interest in this). The grantor in the scheme is a region that receives savings by reducing subsidies after the modernization of generation. Investors need a guarantee of return on investments: as follows from the presentation of Rusnano, it is necessary to oblige regional energy commissions (REC; tariff regulators) set the necessary tariff level with indexation for the payback period of the project. The grantor must also guarantee that the investor receives payments (for example, cover possible non-payments of consumers. - 'Kommersant'), and the concessionaire needs the right to pledge the modernized object to the bank on a loan.

The general director of Hevel (Renova joint venture Viktor Vekselberg and Rusnano, invests in solar generation) Igor Shakhrai explained to Kommersant that the law now allows modernizing inefficient capacities in isolated areas through an energy service agreement, which may be concluded within the framework of PPP. "But there is a high risk that the operator or concessionaire will not be able to protect the tariff when regulating, which will entail cuts in subsidies and the impossibility of full payments under the contract," he says. Hevel proposes to fix long-term tariffs for the investor for the entire payback period - 8-12 years, laying down a minimum yield in them. This is also due to the peculiarities of regulation - today the REC provides documents confirming only the costs of projects, they do not include profitability. For those facilities whose modernization pays off for more than 12 years, additional benefits for property and profit taxes are offered. Up to 90% of the cost of production in isolated zones is formed by expensive fuel, and Hevel proposes to fix quotas for the use of renewable energy during modernization: a solar-diesel installation with batteries saves about 50% of diesel fuel. Novavinda (part of Rosatom, developing wind generation) supports the adaptation of legislation to the development of renewable energy in isolated zones and is ready to participate in the work. RusHydro declined to comment. The Ministry of Energy is "considering proposals."

The partner of the Stream law firm Farid Babayev generally positively assesses Rusnano's proposals, noting that "the legislation contains a basis for carrying out such projects, but additions may be required, since the principles of the concession agreement are already provided." According to the lawyer, there are norms that allow the creation of special economic zones, and he sees no difficulty in making additions to the laws if necessary. "Rusnano," representing the interests of the state, can precisely initiate such changes, mister Babayev said. "If there are potential investors and an investment program for the coming years, I think the project is quite viable," he concludes.

2017

Renewable Energy Support Program Renewal Option

The calculations of the Ministry of Energy of the Russian Federation on the availability of funds in the power for modernization and other projects provide for the possibility of extending the renewable energy support program until 2035 in the amount of 400 billion rubles, Energy Minister Alexander Novak told reporters in April 2018.

"There are

about 405 billion rubles for renewable energy sources." - said the minister, referring to the availability of funds in the power for a new program to support projects in green power after the completion of current commissioning in 2024. "The question is debatable and the question of having a resource, who will pay for it," he stressed. "So far there are opportunities that we can already say. About the same as it will be built until 2024, the same 5-6 thousand megawatts from 2024 to 2035, "explained Mr. Novak. "At the expense of these funds there can be support," the minister said. Whether the current mechanism for supporting the construction of renewable energy facilities will remain is not clear. "I'm not sure on the same terms [there will be support]," he answered the relevant question

.

Power again asks for benefits

According to Kommersant, amid acute disputes about which segments of the power should attract investments, key investors in the green power suggested that Dmitry Medvedev extend support for renewable generation until 2035 and raise her commissioning plan to 20 GW. This, according to analysts, at current prices will take about 600 billion rubles from the energy market. per year, and the share of green power will be 20% in the price of electricity. But the idea has not yet received support either in the industry or from regulators.

Key investors in renewable energy sources (RES) in the Russian Federation asked Dmitry Medvedev to extend the green power support program until 2035 (Kommersant has a copy of the letter). The letter was signed by the head "" Rusnano(with the Finnish Fortum building a wind farm - wind farm, with "" Rostec- incinerating thermal power plants), Anatoly Chubais the owner of "" Renova(develops solar generation - SES), Victor Vekselberg the general directors of Fortum Alexander Chuvaev and "" (Enel Russia invests in wind farms) Carlo Palashano Villamanya, as well as the head of the board of directors "" (Solar Systems investor in SES) Mikhail Lisyansky. The sending of the letter was confirmed by a number of companies and Kommersant sources close to them. The prime minister's representative did not answer Kommersant.

The key request of investors is the extension of renewable energy support for 11 years, until 2035. Until 2024, support for this generation comes from increased payments from the wholesale energy market through capacity supply contracts (PDM RES). According to the calculations of the Market Council, in the first half of 2018, in the weighted average price for capacity in the European part of the Russian Federation and in the Urals, PDM payments amount to two-thirds - 431.7 thousand rubles. per MW per month, of which 17.55 thousand rubles will be spent on PDM RES. Consumers complained about the growth of non-market premiums, and the situation escalated at the end of the year, when Vladimir Putin supported the extension of the PDM for TPPs (according to the Ministry of Energy, it will cost consumers 1.5 trillion rubles. in 10 years).

But in the end, the president's order also included a clause on the support of renewable energy sources and other power segments.

Renewable energy investors in a letter report that 4.5 GW (170 MW of SES was built), investments in production (localization of equipment for renewable energy sources is required) - 40 billion rubles, and by 2024 plants will be able to produce products for 1.5 GW of renewable energy sources per year. But there is a risk, investors believe that in 10-15 years, technologies will not yet be able to compete with traditional generation and capacity will remain without a sales market. The extension of the program until 2035 "while maintaining the indicators of the load on consumers" will increase inputs three to four times to 20 GW or more, load production and increase exports. The prime minister is asked to instruct the departments to work out the issue of minimizing the burden on consumers by reducing unit capex, with the introduction of preferential long-term financing of renewable energy projects and export support.

The Association of Solar power Enterprises agrees that in order to enter foreign SES markets, the scale of production is necessary, the production of solar modules in the Russian Federation should grow to at least 1 GW per year (so far 250 MW). The average price for renewable energy production in 2013 was 19 rubles/kWh, now - 15 rubles, and by 2035 it can reach 2.79 rubles, the association says. The general director of Solar Systems, Mikhail Molchanov, says that the SES has a CAPEX limit of 93-116 thousand rubles under the current PDM. Per kW, the new program proposed a decrease in capex by 2% annually, at the level of 76-93 thousand rubles. per kW. "Preferential financing of renewable energy construction is important," he says.

Consumers tired of green energy

Large industrial consumers oppose any power engineering specialists extension of green support mechanisms beyond 2024 and insist on winding them down. The main reason for dissatisfaction is an increase in payments: the total payment for the construction of 6 GW will increase to a record 2.3-2.5 trillion rubles. But market participants believe that the reform of renewable energy support being discussed now will be more competitive and will help consumers save up to 100 billion rubles. Every year^[9]Writes about this in December 2017. Kommersant""

Industrial consumers ask the Ministry of Energy not to extend work for green generation in the mode of capacity supply contracts (PDM; guarantee a return on investment through increased market payments) after 2024 and not give them other subsidy mechanisms. On December 8, the Energy Consumer Community announced this in a letter to the head of the Ministry of Energy, Alexander Novak (Kommersant has a copy). The Ministry of Energy told Kommersant that they had received the letter, a decision on it had not yet been made.

The renewable energy support system was introduced, in particular, to localize the production of equipment: a number of investors have already completed it (joint venture Renova and Rusnano Hevel) or found technological partners (Enel Russia with Siemens Gamesa, VetroOGK Rosatoma with Dutch Lagerwey, Finnish Fortum and Rusnano with Danish Vestas). In this regard, the question arose of extending the mechanisms for supporting renewable energy sources, initially calculated until 2024. The Market Council (regulator of energy markets) proposed (see Kommersant of July 4) not to extend the current scheme of PDM RES: it simultaneously requires an increase in green generation capacity and consumer costs. In exchange, the regulator offered to switch to support through measures of state industrial policy.

The main argument of consumers is that supporting renewable energy is too expensive. According to the initial calculations of the Market Council in 2013, the total payment for renewable energy until 2034 will amount to 1.2 trillion rubles, while the payment for renewable energy will amount to 4.8% in the total payment of consumers. But in 2015, parameters were introduced into the payment that made the program more expensive: adjusting CAPEX for the exchange rate, increasing the rate of return to 14%, returning burned volumes to contests (quotas not selected in previous years), extending PDM RES to expensive incineration TPPs "Rostec," extending the program until 2024. As a result, according to consumer calculations, the payment for the construction of 5.87 GW of renewable energy by 2039 will increase to 2.3-2.5 trillion rubles, which is comparable to the payment of 30 GW of new combined-cycle thermal power plants (about 2.8 trillion rubles). The Consumer Community believes that it is necessary to move to stimulating demand for renewable sources in the retail market. This year, the government allowed the population to sell electricity to the general network of "home microgeneration" - RES installations up to 15 kW.

Hevel believes that by supporting the development of renewable energy, the equilibrium price of electricity is reduced due to price-accepting applications. According to the company, when extending the program through renewable generation by 2035, consumers will save 100 billion rubles. annually. "Therefore, we advocate a balanced set of support measures, including both the extension of the PDM on new, more competitive conditions, and measures to support the consumer demand for renewable energy - creating conditions for the development of microgeneration, concluding direct contracts for green energy and capacity, preferential loans," the company lists. In addition, in the new mechanism of PDM RES, it is proposed to significantly increase the share of revenue from electricity sales at RSV, while the share of payment for capacity in total revenue will decrease to 40-60% from the current 70-90%.

The NP "Association of Solar power Enterprises" says that the price for the SES capacity (2.5 million rubles per 1 MW per month) already below the price of HPP capacity (3 million rubles per 1 MW per month) and nuclear power plants (4 million rubles per 1 MW per month), and taking into account the new parameters when extending the PDM of renewable energy sources - even lower than the capacity of new TPPs. "Thus, a completely new opportunity can be opened for consumers - to buy directly power from renewable energy sources, reducing their total payment. This will require a change in the rules of the wholesale market, and we will prepare the relevant proposals to the government - to give consumers the right to choose as another measure of support for demand, "the association said.

Russia approved a plan to buy electricity from home windmills and solar panels

Russia has approved a plan to stimulate the installation of windmills and solar panels in households, which will allow citizens to sell excess electricity. As Kommersant found out, on July 19, Deputy Prime Minister Arkady Dvorkovich approved the plan. The Ministry of Energy confirmed that the plan is being finalized.

The document is about solar panels and wind generators with a capacity of up to 15 kilowatts. Regional suppliers will be required to buy back the surplus energy generated. The redemption price will be weighted average, the regulated tariff will be set in the Arkhangelsk and Kaliningrad regions, as well as in the Komi Republic and the Far East. Income from the sale of surplus energy will not be taxed.

Government regulations to connect "home" generators to power grids are expected to be prepared in spring 2018.

According to Natalia Porokhova from the Analytical Credit Rating Agency, at current electricity prices, the payback of small generating plants will be about 80 years. At the same time, the head of the Association of Solar power Enterprises Anton Usachev noted that more than 10 megawatts of roof solar panels are installed in Russia every year, and with support from the government, this figure can grow by one and a half times.

Green power in Russia will be deprived of state support after 2024

They want to deprive alternative power in Russia of "greenhouse" conditions. The Association "NP Market Council" took the initiative to cancel the current system of support for the industry through increased consumer payments from 2024. Experts fear that the latter will incur excessive costs^[10].

The Association "NP Market Council" came up in June 2017 with an initiative to curtail the current system of support for the domestic industry of alternative power from 2024. The corresponding letter was sent to the Ministry of Energy, Kommersant found out. The ministry confirmed to the publication the receipt of the letter and noted that the department has not yet developed its position.

The current renewable energy support system (RES) is based on the right of suppliers from such capacities to charge increased fees from consumers. Thus, RES investors return capital expenditures. The selection of such projects has been going through tenders for the allocation of certain energy generating capacities since 2013. The main criterion is the lowest capital expenditure per unit of capacity. The "Market Council" believes that the scheme does not justify itself.

In particular, to attract new players to the industry and increase equipment production, it is necessary to increase the selection of projects to 10-15 GW, the letter says. But this will lead to an "unacceptable" increase in the burden on consumers. In turn, the rate on reducing the cost of renewable energy through economies of scale "turned out to be unjustified," the document says.

The position of the "Market Council" on the abolition of support for alternative power after 2024 is also shared by the Association of Guaranteeing Suppliers and Energy Sales Companies.

"In our opinion, renewable energy sources at the end of the support period should work according to the same rules as other market entities," said Elena Fateeva, First Deputy Chairman of the Board of the Association

. In turn, representatives of companies investing in green power opposed such a development of events. "This is

the only possible way of massive support. Subsidies for renewable energy in the Russian Federation are decreasing every year and are moving into an increasingly competitive direction, "said Emin Askerov, deputy general director of OA OTEK Rostatom

.

Investment in alternative power projects: When should we expect real returns?

Investors thinking about where to invest their temporarily free cash are increasingly looking at alternative power projects. Of the obvious advantages of these projects, an offhand can be called ^[11]

First, alternative power in Russia is practically not developed. According to the results of 2016, its share in the total installed capacity amounted to only 1%, of which 0.6% falls on the production of electricity using waste from agriculture and the food industry, 0.3% - on small hydroelectric power plants, 0.1% - this is wind and solar power industry, as well as geothermal sources. Thus, there is a potentially large free niche in the energy market, for which a fierce struggle may unfold in the future.

Secondly, this is the use of renewable energy sources (such as sunlight or wind energy), for which, unlike oil, gas and uranium, you do not have to pay. And if the state seriously considers alternative power as part of a long-term energy strategy, investment in this area can become very profitable.

There are two approaches to how alternative power should be developed. The first of them is demonstrated by Germany. Huge investments were made in the development of alternative power, and yet after the abandonment of the use of oil for the production of electricity, renewable sources could not replace the retired capacity. As a result, the energy imbalance today has to be compensated for by coal, the most "dirty" fuel in terms of ecology. At the same time, the cost of electricity in Germany is the highest in Europe.

The second approach is popular in Russia. In short, it can be formulated as follows: "For our century, oil and gas will be enough, and therefore we will not yet invest in alternative power." In a similar vein, not only authoritative analysts of the fuel market speak out, but also members of the government - for example, Arkady Dvorkovich, who are responsible, among other things, for the development of renewable power. The lack of interest at the state level suggests that the bet is still placed on hydrocarbons, which continue to be the main driver of the Russian economy.

In this context, the discussion that unfolded at the Gaidar Forum between Chubais and Gref is interesting. Anatoly Borisovich said that "solar power in Russia has already take place, and wind may become a reality as early as 2017." However, German Oskarovich sees no chance for the development of alternative power in Russia within ten years, since the demand for renewable sources will be zero in the near future. The words of the head of Rusnano paint tempting prospects for investors (to whom they, in fact, are addressed), while the chairman of Sberbank focuses on the realities of today's life. And here is one of them: Sberbank cannot find a buyer for the existing solar power plant in Crimea. Its construction was financed by the Ukrainian subsidiary of Sberbank, but it cannot be sold even at a price below the market price.

The weak point of alternative power is that the technologies used today are expensive and do not differ in high efficiency. In addition, the sun in the clouds or the lack of wind make solar panels and wind generators useless. All this leads to the fact that today an alternative kilowatt is more expensive than the same kilowatt produced at a hydroelectric power station, nuclear power plant or thermal power plant.

In such conditions, only private companies show interest in alternative power projects. To increase their interest and, as a result, the influx of investments, the state needs to create attractive conditions for work in this area. This can be done using the capacity agreement mechanism. PDM allowed in 2008-2014 to attract an additional 3.6 trillion rubles of private investment to the electric power industry. Thanks to this, the installed capacity of the country's power system has already increased by more than 20 GW, and another 7 GW is on the way. If the compensation of costs from the state and the guaranteed purchase of volumes of capacity and electricity worked for traditional power, then a similar result can be expected for an alternative one.

Summing up, we can clearly argue that alternative power in Russia will develop, since no one removed the issue of hydrocarbon exhaustion from the agenda in the foreseeable future. It is also obvious that the Russian authorities do not yet see the need to actively work in this direction, and therefore the main burden will fall on private companies. The state, for its part, should create the most favorable working conditions for them, understanding what benefits this will bring in the future. But even if everything turns out as well as possible, investors should understand that they will not receive a real return on their investments very soon.

An alternative power center will appear near Moscow

Russian investors intend to promote unconventional energy sources in the Moscow region. To do this, in Khimki near Moscow, Unisaw Group will open a Alternative power Center, which will offer specific technical solutions for the use of renewable sources. Among potential consumers, both industrial enterprises and private houses^[12].

The work of the center will be aimed at promoting technologies and equipment that will allow you to receive energy from renewable sources: the sun, wind and internal heat of the earth. The structure will offer appropriate technical solutions for industrial enterprises, urban economy and private country houses.

The initiative has already received approval from the city district administration, the materials add.

"With the successful implementation of the project, we will be able to receive solar, wind and gas energy for suburban houses and enterprises. This will allow attracting additional investments not only from our region, but also from other constituent entities of the Russian Federation, which will create a favorable investment climate in the district, "said Dmitry Voloshin, head of Khimki

.

2016: The government approved the rules for the sale of electricity by the population

The development of power requires the participation of local integrators at all levels and at all stages. Of course, large-scale projects covering cities and regions can be implemented by large integrators with resources and relevant competencies (both purely "IT" and specialized ones - from power to DVT), and in some cases such projects will require the involvement of various subcontractors.

However, SMB can act both as subcontractors for large projects and create its own solutions. For example, the above-mentioned company "Ekovolt" creates its own generation solutions for individuals, built on the same principle as the famous project of Elon Musk from solar panels and a house battery. The company's system is in demand among Russian summer residents, only if in the American and European markets such systems are installed to save money, then Russians mainly use such solutions where there is no centralized power supply at all, or it works unstable.

It may seem that its own generation at home is not applicable for Russian realities, however, in July 2016, the Government of the Russian Federation approved the rules according to which the population will be able to sell electricity to the general grid of "home microgeneration" - installations up to 15 kW operating on renewable energy sources. Guaranteeing suppliers (energy sales of the region) will be obliged to buy out the volumes created by households, and the income received by citizens from this will not be taxed. The Ministry of Energy, the Ministry of Economy and the Federal Antimonopoly Service must prepare a draft law by January 2017.

2015

Russia The alternative market power engineering specialists is still not developed. In 2015, according to the FSGS, the volume of installed capacities of renewable energy facilities amounted to 906.3 MW, of which more than half are in the Republic of Crimea (power plants were introduced before joining the Russian Federation). According to the Ministry of Energy, at the beginning of 2016, the installed capacity amounted to approximately 70 MW, of which the vast majority are solar power.

In 2015, Russia adopted a number of amendments to legislation on the development of renewable energy sources, which market participants spoke about for 2 years. The state support adopted in 2013 really influenced the development of the solar power market - the vast majority of large solar power plants were introduced in 2015 and are planned for commissioning in the coming years.

At the time of the report, there were 5 relatively large wind farms operating in Rossi, most of which worked in the floor, of which two were introduced in 2014-2015. within the framework of state support. There are also 6 solar power plants, also introduced as part of the state development program, the total installed capacity is several times higher than wind farms.

Other segments of alternative power in Russia, as well as in the world, are practically not developed. In Russia, there are several power plants operating on the basis of biogas, the capacity of which does not exceed 500 kW, and they are installed at agricultural agricultural complexes. The largest biogas power plant was launched in 2012 in the Belgorod region (Luchki), it is this region that is the most promising region for the construction of biogas power plants. The geothermal power segment is represented by 4 power plants, three of which are part of the RusHydro holding. The largest is Mutnovskaya GeoES, with a capacity of 50 MW. The small hydropower segment in Russia is also almost undeveloped, the largest player in this market, RusHydro, which, as part of the state strategy for the development of renewable energy, received support for the construction of several small hydroelectric power plants, which will be commissioned in 2017. The tidal power segment is represented by only one power plant in the Murmansk region with a capacity of only 1.7 MW. Several tidal power plants have also been planned for several years.

2011

In 2011, global renewable energy consumption amounted to 205.6 million tons of oil. e., in 2012 it reached 237.4 million tons n. e. The volume of investments in the development of new renewable energy sources is gradually increasing - in 2012 this amount amounted to $244 billion. According to specialized state organizations, the total capacity of alternative power plants together with hydropower in 2012 amounted to 1,470 GW. It includes wind energy, the total installed capacity of which in the world in 2012 amounted to 282.6 GW, solar power - 121.4 GW. According to experts, the volume of the wind power market in Russia in 2012 amounted to 16.6 MW. The largest wind farm in Russia is the Kulikovo Tropark. According to a study by market agency DISCOVERY Research.

In the structure of alternative energy sources in Russia, BioTPPs occupy the largest share, in second place are Small Hydroelectric Power Plants. In Russia, the most actively used resources of thermal power plants on biomass. The largest biogas stations in Russia are: Luchki Biogas Station (AltEnergo LLC), Baitsury Biogas Station, BGS SSC Mortadel, Doshino Biogas Station.

The largest increase in the volume of installed capacities is observed in solar power. Europe is the leader in the global solar power market. In recent times, competition between American and Chinese manufacturers of solar power equipment has intensified. Promising projects for the production of solar modules and their components include: Hevel LLC, Solar Wind, Nitol Solar, Silicon-in-Ru, Solar Modules in Mordovia.

In recent decades, small hydropower has taken a steady position in the electric power industry in many countries of the world. Asia is the largest region in the world in terms of installed capacity. There are currently several dozen operating MHPPs in Russia. Among the projects being implemented for the construction of MHES in Russia are: MHES of the Altai Territory, MHES of the Altai Republic, MHES of Karelia, MHES of Kabardino-Balkaria and others.

Notes