Mechanisms for supporting renewable energy sources may be modified
The Market Council has proposed altering the approach to the development of renewable energy in Russia. The regulator believes that the mechanisms offered by the state industrial policy would be more effective than the existing support system via the energy market in which the burden is placed on the consumer. The Russian Ministry of Energy concedes this approach could be possible. Deputy Minister of Energy Vyacheslav Kravchenko said the development of green energy could be stimulated through tax incentives or subsidizing interest rates. “The reason for the high price of renewable energy sources is the cost of capital: we allow for yield of around 12–14%. As I understand it, that is quite high. If capital is cheaper, the cost of renewable energy sources will also fall”, Kravchenko said.
Kravchenko believes developing renewable energy source projects in the Far East has the greatest potential. Specifically, setting up “green” power generation is economically viable in isolated power districts, he said. “The cost of electricity production using combined sources of wind-diesel and sun-diesel is cheaper than simply using diesel fuel. Thus, even now it is possible to use the difference in price for electricity alone instead of mechanisms for supporting renewable energy sources”, Kravchenko explained.
A separate pillar of discussions will be devoted to renewable energy sources during Russian Energy Week. The themes include: ‘Developing renewable energy sources in Russia: scaling up and exporting technology’, ‘Inevitable growth: new renewable energy projects in Russia’s regions’, ‘• Energy storage – a revolution in the renewables sector?’, ‘Traditional vs alternative energy: which has the investor’s vote?’ The discussions will be attended by representatives of leading energy companies, investors, legislators, and industry experts.
The Berlin Energy Transition Dialogue (BETD) has presented its Green Sofa at REW 2017. BETD's trademark Green Sofa has made a name for itself by touring international events and hosting interviews on the subject of world energy among more than 500 leading politicians.
The world has passed the point of no return. Clean energy technologies have matured and a producers’ market has been established. According to International Energy Agency estimates, the cost of components for sea-based wind-power plants will drop 15% and of those for solar generators 25% by 2021. Replication of standard solutions for renewable energy helped green energy projects surpass all of the world’s coal-fired power plants in combined installed capacity two years ago. Russia has only just embarked on generating renewable energy on a mass scale but growth is inevitable – just look at the new renewable energy projects in its regions.