Analysis of renewable energy projects’ implementation in Russia

Abstract

With the enactment in 2013 of a renewable energy scheme by contracting qualified power generation facilities working on renewable energy sources (RES), the process of construction and connection of such facilities to the Federal Grid Company has intensified in Russia. In 2013–2015, 93 projects of solar, wind, and small hydropower energy were selected on the basis of competitive bidding in the country with the purpose of subsequent support. Despite some technical and organizational problems and a time delay of some RES projects, in 2014–2015 five solar generating facilities with total capacity of 50 MW were commissioned, including 30 MW in Orenburg oblast. However, the proportion of successful projects is low and amounts to approximately 30% of the total number of announced projects. The purpose of this paper is to analyze the experience of implementation of renewable energy projects that passed through a competitive selection and gained the right to get a partial compensation for the construction and commissioning costs of RES generating facilities in the electric power wholesale market zone. The informational background for the study is corporate reports of project promoters, analytical and information materials of the Association NP Market Council, and legal documents for the development of renewable energy. The methodological base of the study is a theory of learning curves that assumes that cost savings in the production of high-tech products depends on the production growth rate (economy of scale) and gaining manufacturing experience (learning by doing). The study has identified factors that have a positive and a negative impact on the implementation of RES projects. Improvement of promotion measures in the renewable energy development in Russia corresponding to the current socio-economic situation is proposed.