Enel has won the right to build 71.25MW of new wind capacity under Russia's existing support scheme, which guarantees a return of investments with a 12% yield.
Enel Russia will build the Rodnikovsky project in Stavropol, southwest Russia between 2022 and 2024.
Investment in the site is expected to be around €90 million and produce roughly 220GWh a year, Enel said.
Under the Russian scheme, participants bid projects based on the level of Capex required to build the project, with the lowest bids selected. The developers are then remunerated through capacity payments, with a guaranteed return on investment.
Enel has an agreement with Siemens Gamesa Renewable Energy (SGRE) to provide turbines to its Russian projects, however projects must have be built using 65% local content.
Analysts believe Enel’s Russian portfolio – prior to the latest auction – was too small to make SGRE’s localisation plans profitable. The latest tender win will help address this.
Enel has previously won 291MW in Russian tenders. Its investment in this capacity is expected to total around €405 million, the firm said.
This was the last selection of projects under the current programme in Russia.
The government is discussing the extension of the program until 2035, and considering various options for the provision of state support.