DEVELOPMENT OF RENEWABLE ENERGY IN RUSSIA: …

DEVELOPMENT OF RENEWABLE ENERGY IN RUSSIA:

ACHIEVEMENTS, BOTTLENECKS AND PROSPECTS

Geneva, 2 – 3 November 2017

Dr. Georgy Ermolenko

Head of the center

for the development of renewable energy,

Energy Institute,

National Research University – Higher School of Economics

the 4-th Session of the UNECE Group of Experts on Renewable Energy

RES Legislation in Force

2

Decree of July 28, 2015 №1472-p "On stimulation of production of power generation from

renewable sources“, Governmental Decree of November 10, 2015 № 2279-p "Changes the

main directions of the state policy in the field of improving energy the efficiency of power

sector using renewable energy sources for the period till 2024”, the Resolution of the

Russian Government dated 10 November 2015 № 1210 “On amendments to certain acts of

the Russian Federation on the use of renewable energy sources in the wholesale

power(capacity) market” and Resolution from May 5, 2016 N 850-r "The changes that are

made to the main directions of the state policy in the field of improving energy efficiency of

power sector using renewable energy sources” for the period until 2024 formed a support

mechanism for renewable energy in the wholesale power market, including:

- Targets for the types of renewable energy development to 2024,

Types of RES 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Всего

Wind- 51 50 200 400 500 500 500 500 500 399 3600

Solar35,2 140 199 150 270 270 270 21,5 21,5 21,5 21,5 1520

Hydro- - - 124 141 159 159 42 42 42 42 751

Total35,2 191 249 574 811 929 929 563,5 563,5 563,5 462,5 5871

Targets for Local Production

- Targets for local production of the main and (or) auxiliary generating equipment,

- Accounting in marginal cost of capital return on invested capital and the change in

exchange rates in Russia

3

Types of generating facilities

Year of commissioning Target degree of

localization

Generating facilities operating on the basis of

wind power

2016

2017

2018

2019 - 2024

25%

40%

55%

65%

Generating facilities operating on the basis of the

photoelectric conversion of solar energy

2014 - 2015

2016 - 2024

50%

70%

Generating facilities operating on the basis of

other renewable

energy sources

2014 - 2015

2016 - 2017

2018 - 2024

20%

45%

65%

Selected and realized RES projects at

Whole Sale Market

4

Projects of solar energy are leading, of them already is commissioned about 5 %. This year,

120 MW should be introduced - 90 MW will be provided by solar power plants. In second

place are wind power projects with a total declared capacity of 2809.3 MW with no

completed projects, the third - the declared 70. 44 MW of hydropower, also not completed.

The planned volume of installed capacity, MW

2013 2014 2015 2016 2017 ∑

Wind power

399.2 505 280 - 1625.1 2809.3

Solar power

105 51 35 610 520 1321

Hydropower

facilities- 20,64 49,8 - 49.8 120.24

Solid waste based

power generation

335.5 335.5

5

Commissioned Solar PV plants

PV plant/

region

Time period Installed

capacity,

MW

Power

production in

the period,

MWh

Annual power

production,

MWh

ICUF,

Actual,

%

Kosch-Achag PVP/

Altai Republick

04.2015-

11.2016

(1.6 year)

5.0 1200 7500 17.1

Bugulchan PVP/

Bashkiria

01.2016-

07.2016

(0.6 year)

5.0 4500 7500 17.1

Abakan PVP/

Hakasia

12.2015-

06.2016

0.6 year)

5.2 6000 7500 15.8

Orsk PVP/ Orenburg region 12.2015-

06.2017

(1.5 year)

25.0 55000 36667 16.7

4 PVP Sachaenergo/Yakutia,

North East

2014 0.1 (total) 100 100 11.4

6

Local Production of Main and Auxiliary

Equipment

SOLAR ENERGY

1. ROSATOM – LAGERWAY

2. FORTUM – VESTAS

3. ENEL – GAMESA&SIEMENS

1. HEVEL – heterostructure PV

modules. PC - 160 MW/year

2. SATURN – multi-junction

GaInP/GaAs/Ge solar cells

2. RZMP – polycrystalline modules

3. QUANTUM – single -crystals of

gallium arsenide

4. SOLAR WIND - polycrystallinemodules

WIND ENERGY

7

In the retail market operate 33 qualified renewable

energy units with total installed capacity 294.3 MW

(including 202.8 MW in Crimea)

Retail market

Pricing and non-pricing

zones of the wholesale

market

Territories and regions not

connected to UES

Sale of electricity to grid

organizations in order to

compensate for losses

Sale of electricity to the

guarantee supplier at

regulated prices (tariffs)

8

RES projects in remote regions

The participants of RES industry in Russia

in the wholesale market of power (capacity)

9

Strategic investor

Developer

Engineering company

Parent company

Equipment producer SPV with commissioned plant

Operating company

Planning companySPV of plant under

construction Constructed plant

The plant of future construction

R&D companies

Negotiations are underway

Production ties

Ownership relationsCompany combining 3 types of activities

Company combining 2 types of activities

10

Bright Capital Management Ltd.

«KompeksInsustria»

SC «Solar Energy»

«Solar Management»

«Abakan SPP», 5.198 MW

Republick Hakasia

«EvrosibenergoEngineering»

En+ Group Ltd.Industrial group«Basic

Element»

«IEC Energoholding»

«Evrosibenergo»

«Krasnoyarsk HPP»

Bright Capital LLC.

13 SPP; 195 MWAstrachan, Lipetsk, Belgorod,

Chelyabinsk, Volgograd regions; Zabaykalsk krai;

Republic Buryatia

Astrachan, Irkutsk, Volgograd, Chelyabinsk regions;

Stavropol provine; Republic Kalmykia

«Hevel»

«Renova» «Rosnano»

«Buribaevsk SPP», 20 MW

Republic Bashkortostan

«Baymaksk SPP», 10 MW


«Yldybayevsk SPP», 10 MW


«Bugulchansk SPP», 15 MW


«Matraevsk SPP», 5 MW


«Ak’yarsk SPP», 5 MWRepublic

Bashkortostan

АСТ-BashkirskSPP -6, 5 MW


«Kosch-Agach SPP», 5 MW

Republic Altay

«Kosch-AchagskSPP» -2», 5 MWRepublic Altay

«Perevolotsk SPP», 5 MW

Orenburg Region

ООО «IsyangulovskSPP», 9 MW


«Grachevsk SPP», 10 MW

Orenburg Region

«Sol-Ilitsk SPP», 25 MW

Orenburg Region

22 SPP; 245 MWOrenburg, Saratov, Omsk regions

Republics Altay, Buryatya, Bashkortostan

; Zabaykalsky, Altay provinces

«T Plus»

Orenburg brunch «T Pus»

Orsk SPP, 25 MWOrenburg Region

IC«EKRA»

Production plant«Hevel»

Amur Sirius Power Equipment Co., Ltd.

«Solar Systems»

«Samarskaya SPP», 75 MW

Samara region

6 SPP; 150 MWVolgograd region;

Stavropol provine; Republic Kalmykia

«Heliotechnik Sirius»

3 SPP; 135 MWOrenburg region

«STC SFT»

« Derjavinsk SPP» 5 MW

Orenburg Region

« Orenburg SPP-5»; 10 MW

Orenburg Region

Local Market

Export

SPP«Hunzach-1»5 MW

Republic Dagestan

«MEK-Engineering»

SPP«Kaspiyskaya»5 MW

Republic Dagestan

SPP «Kaspiyskaya»first stage 1 MW

Republic Dagestan

SPP «Kaspiyskaya»second stage 4 MWRepublic Dagestan

Sales PVP«Avelar Solar Technology»

Yingli Energy (China) Co., Ltd.

Solar power sector of Russia

11

Falcon Capital a.s.

«Priyutninsk WPP» 1 stage, 51 MW

Republic Kalmykia

LahmeyerInternational

«Project Institute of Kalmykia»

FWT Production GmbH

Bright Capital Management Ltd.

«ComplexIndustria»

SC «Solar Energy»

«Solar Management»

«WindUGC»

SC«ROSATOM»

«Atomenergoprom»

«Atomenrgomasch»

«WPP Simbirsky», 35 МW

Ulyanovsk region«Activity»«TEP Engineering»

Dongfang Electric

Fortum Corporation

«WindEnergySystems»«Wind generating

company»

«Wind №5»

«Went Rus»

ООО «SOWITEC Russia»

«Enel Russia»

«Windlife Cola»

Windlife Renewables B.V.

Sowitec International GmbH

Sowitec group GmbH Enel Investment Holding B.V.

Enel SpA

En+ Group Ltd. IG«Basic Element»

«ALTEN»

JC«OTEC»

«Fortum»

«EvroSibEnergo»

Bright Capital LLC.

3 WPP; 150 MWRepublic Adygeya

23 WPP; 460 MWKrasnodarsky kray

7 WPP; 105 MWAstrachan, Orenburg,

Ulyanovsk regions

«Russian Wind»

Wind power sector of Russia

12

Taking into consideration the use of statistical data on the consumption of oil equivalents by power

stations by type of fossil fuel (Russian Federal State Statistics Service, 2016) proved that the cumulative

technical potential of all renewables amounts to 133935 m of oil equivalent. If renewables would be used

to replace oil fuel it would allow saving approx. 97760 m tons of oil fuel per year, with the replacement of

coal – 174390 m tone per year. Replacement of natural gas will save 115980 b of cubic meters per year.

Tables 2, 3 feature the outcomes of the assessment of oil fuel, coal and natural gas savings with the

replacement of fossil fuels with various types of renewables, prevention of air pollution calculated as СО

- and СО2 –equivalents.

Technical potential

Type of

renewables

Fuel and power potential Oil fuel potential

Power Heat Fuel Resource-

savingEnvironmental

mln

kWh/year

mln

gcal/yearmln toe/year mln t/year

СО-

equiv.,

mln t/g

СО2 -

equiv.,

mln t/g

Solar energy 87747704,0 202293,0 30060,7 21942,1 27425,7 65826,4

Wind energy 17100856,7 39645,0 5891,2 4300,2 5374,8 12900,5

Biomass energy 2896910,9 5783,6 859,4 627,3 784,1 1882,0

Geothermal

energy246592891,6 571677,3 84951,3 62008,2 77504,7

186024,

6

Low-grade heat 34753230,8 80568,6 11972,5 8739,0 10923,0 26217,1

Small hydro 584534,9 1355,1 198,7 145,1 181,3 435,2

Organic fuels substitution potential of RES

13

Technical potential

Type of

renewables

Coal potential Gas potential

Resource-

savingEnvironmental

Resource-

savingEnvironmental

m t/yearСО-equiv.,

m t/g

СО2 -equiv., m

t/gb m3/year

СО-

equiv.,

m t/g

СО2 -

equiv., m

t/g

Solar energy 39141,6 861099,3 117424,8 25969,0 5401,8 51938,0

Wind energy 7670,9 168756,6 23012,7 5105,1 1061,9 10210,1

Biomass energy 1119,1 24619,1 3357,2 744,8 154,9 1489,5

Geothermal energy 110613,6 2433455,1 331840,8 73614,6 15312,5 147229,2

Low-grade heat 15589,2 342955,7 46767,5 10374,8 2158,0 20749,5

Small hydro 258,8 5693,0 776,3 172,2 35,8 344,4


14

In accordance with national of development of indicators of renewable energy in

the wholesale market up to 2024 should be introduced in 1520 MW of solar

generation, 2024 to 3600 MW of wind generation in the retail market is provided

cover of 5% of losses in electric grids UES by RES.

In accordance with the forecast of the Ministry of Energy, renewable energy

development in the areas of isolated power supply to 2024 it is predicted

commissioning of 300 MW of wind and 300 MW of solar generation.

Accordingly, with the full implementation of these plans and projections for the

wholesale market after 2024, solar energy will be presented in the amount of 2.7

bln. KWh / year, wind - in the amount of 11.07 billion kWh / year at optimistic

capacity factor of the equipment. To cover the losses in the grids these types of

sources will supply about 5 billion kWh / year, and in the isolated systems of 1.05

billion kWh / year.

Total realized plans and forecasts can lead to an annual substitution of 3.2%

organic fuels coming for energy needs.


15

According to the Energy Strategy, by the year 2035, 8.5 GW of RES generation

facilities should appear in the Russian Federation, of which 5.5 GW will already

be introduced by 2024. Thus, the rate of commissioning of new facilities (3 GW

for the period 2024-2035) after the end of the program will decrease. This means

that capacities created under the DPM program with a potential to produce up to

800 MW / year of RES facilities (500 MW / year of wind, 300 MW / year of solar

power plants) and capable of providing at least 10 GW of renewable energy in

Russia in the period 2024-2035 years will not be fully loaded or will be idle. By

developing renewable energy sources, we are creating in Russia two new high-

tech industries in parallel: the production of equipment and machinery for

renewable energy, and the construction and operation of such facilities. The

only correct solution in this case will be to discard all doubts and create a large-

scale and promising branch of renewable energy, develop and develop

competencies in this area, be integrated into global production chains and be

one of the main players in the world market of RES.

Perspectives and bottle necks

Thank [email protected]

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