With abundant crude oil and natural gas reserves, Russia is a latecomer to wind power. However, it has now held its first auctions, commissioned its first project, and produced its first components.
The joint venture of Finnish developer Fortum and Russian technology giant Rusnano has dominated the country’s first two wind auctions. It won 1GW of 1.65GW available in June 2017, and then 823MW from the 830MW quota a year later.
Meanwhile, to comply with the country’s strict local content laws, manufacturers are preparing to set up production facilities in Russia.
In 2018, 55% of a wind farm must be produced locally, but this requirement will increase to 65% in 2019.
Developers receive state support through power contracts for top-up payments from the wholesale energy market, and these measures will remain in place until 2023.
However, despite petitions to extend the program, the government has not decided on further mechanisms to develop the wind sector.
Russia & Ukraine - Russia prepares to launch wind sector
RUSSIA: Wind power scarcely exists at all in Russia -- just 14MW across the whole of this huge country -- but there are indications that this could change quite dramatically in the next few years.
Pockets of opportunity in emerging markets
EUROPE: Wind energy markets on Europe's eastern outskirts, once fertile terrain for those looking for growth in the face of declining opportunities in more mature markets in western Europe, have lost some of their appeal.
Financing in transition in Europe's emerging markets
EUROPE: As a growing number of wind-energy investors have targeted central and eastern Europe (CEE) for growth, regulatory uncertainty in key markets such as Poland and Romania has complicated the prospects for financing and could slow down expansion in these regions.
Ukraine And Russia - Slow and steady increases in wind capacity
UKRAINE: The Ukrainian wind industry is steadily developing as part of state plans to increase the share of renewables in the energy balance of the country to 11% by 2020 and a strong interest from private investors.
ALTERNATIVE LESSONS OF CHERNOBYL
The Commonwealth of Independent States (CIS) has vast wind energy potential but low electricity prices and high investment risk have prevented its development. On the eve of the Chernobyl ten year anniversary, experts are more optimistic about the outlook for wind and other new electricity technologies. Grid connected wind power is predicted to increase from 30 to 100 MW in the next four years, with most installations in the Ukraine, the northern Caucasus and the lower Volga. The largest wind farm site in the CIS at Donuzlav, Ukraine, has some 70 WindEnergo 110 kW turbines. Raduga production enterprise in Kalmyk republic near the Caspian Sea may be the only operating project in Russia. Water pumping and off-grid markets are also potentials, the latter coming to life as a result of overseas aid.
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