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October 13, 2022

Pavel Snikkars: “When you’re setting up a particular type of generation, you need to factor in the multiplier effects”

“The primary objective is adhering to a sustainable energy mix in the power generation structure. At the same time, investment mechanisms are required to support this balance of types of generation,” stated Pavel Snikkars at a Russian Energy Week (REW 2022) session.

“The primary objective is achieving the golden balance, while the core principle is the reliability of energy supply to consumers,” said the Deputy Minister.

With regard to identifying the country’s sustainable energy mix, Pavel Snikkars noted that it wasn’t just the price that had to be taken into account but a number of other factors, including a reduction in CO2 emissions and net zero objectives, the environment, the availability of technology and technological sovereignty.

“Going back to a sustainable generation structure, we’re prioritizing reliability, the right number of thermal power plants, base generation from the standpoint of nuclear power plants, the continued development of hydropower plants, and without doubt the continued development of renewable energy sources, taking into account technological opportunities for operational control and management of the energy system,” explained the Deputy Head of the Ministry of Energy.

At the same time, Pavel Snikkars stressed that the electric power industry was an integral part of Russia’s basic economy and that multiplier effects needed to be factored into the creation of a particular type of generation.

“As regards the generation mix: first, there can’t be any tilts towards a particular type of generation; second, you need a combination of types; third, you can’t say that we’re going to completely abandon traditional types of generation, that’s never going to happen; and fourth is technological acceptability for us, for our country,” he added.

The Deputy Minister also noted that insofar as the electric power industry has a long life cycle, bank instruments whose main criterion is the payback period aren’t suited to the sector.

“One of the significant instruments and areas in which we can look for opportunities for additional investments is a synergy between consumers and generators that don’t “distribute” the costs to all consumers but compensate them individually for the tasks in question. And then we can choose both the type of generation and the conditions,” concluded the Deputy Minister.

Read more about the REW 2022 business programme on the official website: rusenergyweek.com.