The government of the Russian Republic of Karelia and China State Energy Engineering (Sinomec), a Chinese company, agreed to build an electric wind generating plant in the region, the press office of the head of the Republic announced
“Construction of an offshore wind farm with a capacity of 60 MW is planned to be implemented in the Kemsky region. An approximate total amount of financing will be up to 9 billion rubles. The term of the project’s realization is between the years of 2017 and 2020,” the statement reads.
Russia Plans to Build 13 Hydropower Stations, 15 Wind Farms by 2030
The plan provides that first three wind power plants as strong as 100 MW or more will be put in operation in the Russian Republic of Adygea in 2017.
Russia Renewable Energy Program
The Program aims to mobilize investments and through advisory services increase the scale of private sector involvement in renewable energy. The Project also promotes a sustainable market for renewable energy in the Russian Federation by supporting the development of enabling policies, institutional capacity, introduction of financial mechanisms, and expanding access to finance.
Russia’s current electricity generation portfolio is estimated at more than 220 GW installed capacity, of which 68 percent is thermal (oil, gas, coal). Some forecasts predict that Russian gas supply could, without significant additional upstream investment, fall short of projected domestic and export demand within the next few years. Despite the quadrupling in the domestic tariff for natural gas between 1999 and 2006, domestic gas consumption has continued to grow.
Average domestic gas consumption during the same time span increased by 1.7 percent annually. The current annual growth rate is 2.5 percent. To meet increasing electricity demand, over the next two to four years Russia will need to add a minimum of 20,000 MW of new generating capacity. There is a growing realization by Russia’s policy makers and the private sector that increased use of energy efficient and renewable energy technologies can help meet the growing demand for energy resources. The Energy Strategy of Russia until 2020 sets the target for installed renewable electricity generation to 4.5 percent by 2020.
Given Russia’s abundant resource base of renewable energy sources, with enabling legislation and proper industry support mechanisms in place, achieving the 4.5 percent target is viable. At the same time, reaching this target would require approximately 22 GW of new installed capacity and displace more than 36 million tons of CO2 per year, representing approximately $44 billion in capital investment. In addition, it is estimated that in order to meet Russia’s growing energy demands, retrofit aging assets, and replace retiring power generation assets $250-300 billion in investment will be required through 2020.