The Energy Transition and Its Potential: The Future of Low-Carbon Energy in Russia

October 12, 2023

The Energy Transition and Its Potential: The Future of Low-Carbon Energy in Russia

KEY CONCLUSIONS

Russia will remain on course for a low-carbon energy transition

“We are forming long-term plans... and we will fulfil them. They can be adjusted only in some details. <...> We have fixed at least a doubling of the share of RES [renewable energy sources, – Ed.] by 2030. <…> We do not forget that RES include hydroelectric power plants, so we start with the power system we have now. <...> The share of low-carbon generation in Russia is among the best in the world... because of nuclear generation, hydro generation. <...> Banks are one of the main beneficiaries of the RES programme,” Andrey Maximov, Head of the Department of Electric Power Development, Ministry of Energy of the Russian Federation.

“The whole world is facing an unprecedented challenge, and the decisions we make are very important – the near future depends on it, whether we will be able to cope with a global temperature rise of one and a half degrees by the end of the century. <...> Russia has a tremendous potential to implement this energy transition,” Francesco La Camera, Director General, International Renewable Energy Agency (IRENA).

“The US and Europe were our main markets. Now... this agenda is no longer relevant. Let’s look at the countries we are establishing cooperation with. <...> India is already creating a carbon certificate market, just like China. <...> Regulation is a matter of time. Energy production with minimal CO2 will be an important competitive advantage,” Alexander Vedyakhin, First Deputy Chairman of the Executive Board, Sberbank.

Over the past few years, there have been quite serious changes in the regulatory environment. First, it is the tightening of emission standards... Secondly, it is the Clean Air Project, which has affected almost all cities with coal-fired generation. This is a serious challenge for coal-fired generation,” Pavel Barilo, Executive Director, Siberian Generation Company.

PROBLEMS

An ill-considered transition to green energy has the potential to reduce sustainability

“As far as development is concerned, it is really necessary to look from the point of view of neutral technological selection and to put reliability as a criterion in the first place and economic efficiency as a criterion in the second place. In many countries, the mistakes of radical energy transition are becoming more and more evident,” Pavel Barilo, Executive Director, Siberian Generation Company.

The existing generation fleet requires upgrade

“Historically and territorially, we have a complex energy system, because the load centres are in some places, while the centres where it is more convenient to build RES are in quite different places. This is a problem that the south is already facing,” Andrey Maximov, Head of the Department of Electric Power Development, Ministry of Energy of the Russian Federation.

“The existing generation fleet does not last forever. <...> We can repair things or cover individual deficits, but we will still need to make decisions for systemic consumption growth,” Fedor Opadchy, Chairman of the Board, System Operator of the United Power System.

Industrial growth requires the construction of power facilities in new consumption centres

“The problem is that energy consumption is growing, and consumption centres are shifting to the east, to Siberia and southern regions. <...> The issue of localization of production and consumption sources is very important. We cannot solve all the problems with the help of grids – the distances are greater, and it becomes very expensive. <...> We need controlled generation... nuclear, hydro and thermal generation,” Fedor Opadchy, Chairman of the Board, System Operator of the United Power System.

SOLUTIONS

Development of nuclear energy beyond the Urals

“Our main goal after 2035 is to enter Siberia, the Far East, and the Urals. The grid infrastructure there is different. Not only high-capacity units will be needed, but also medium-capacity units. There are isolated areas where low-capacity power sources are needed,” Alexander Shutikov, General Director, Member, The Board of Directors, Rosenergoatom Concern.

Reducing the cost of HPP construction by monetizing additional effects

“When developing hydropower plants, the state should look at integrated development. There are a lot of additional socio-economic effects that are not assessed in any way... and are not monetized,” Roman Berdnikov, First Deputy General Director, Member of the Management Board, RusHydro.

Renewable energy sources can solve the problem of localized power shortages

“RES facilities are no longer regarded as generation that nobody needs. <...> For the first time this year, it was said that RES facilities can be a tool for closing deficits,” Alexey Zhikharev, Director, Russia Renewable Energy Development Association; Director, ENSOLVE.

“The energy sector is a part of Russia’s own economy. <...> When we talk about RES development, we are talking about the development of competences: mechanical engineering, electronics. <...> In the second RES support programme, which has already started, we have made the supply of RES equipment for export a mandatory condition for receiving payment. <...> The first stage of RES development was about localization of production, while now it is about exports,” Andrey Maximov, Head of the Department of Electric Power Development, Ministry of Energy of the Russian Federation.

For more information, visit the Roscongress Foundation’s Information and Analytical System at roscongress.org/en.

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