Russian 1.6GW tender flops with investors

RUSSIA: Russia has failed to attract wind power investors for all but 51MW of applications, or 3%, of the 1.6GW on offer.

The Kremlin... Russia plans a stringent local sourcing policy
The Kremlin... Russia plans a stringent local sourcing policy

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The first stage of a tender to build projects in Russia over 2015-2018 has just ben completed. Although Russia is seen as one of the next emerging markets for wind energy, the government has planned to implement a stringent local sourcing policy.

Under the terms of the contest, investors should ensure a minimum of 50% of local sourcing for equipment in 2015, and at least 70% in 2016-2018. At the same time, the capacity of individuual projects should be no more than 25MW.

The names of the companies that have applied to the tender were not disclosed. They will be able to return their investments during the period of 15 years with an investment yield of 14% per annum.

The second stage of the tender will take place later this month.

This year the conditions for participation in the tenders were significantly eased. Potential investors, which do not operate their own generation, are no longer required to have guarantees from large energy companies. This can be replaced by a bank credit.

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