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. Read more:

Energy News – China to Build Wind Farm in Russian Karelia

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

The agreement on cooperation in the field of power system development involving the construction of the station was signed by the head of the republic Alexander Khudilainen and the Senior Vice-President of Russian Sinomec affiliated company Hydropower and Engineering Corporation Sinomec Li Yang.
The project is estimated at 9 billion rubles ($138.5 million). Herein more than 60% of the equipment involved in the project will be Russian.

“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.

Chinese Sinomec intends to take part in the project financing jointly with the Russian Direct Investments Fund.

Russia Plans to Build 13 Hydropower Stations, 15 Wind Farms by 2030

The Russian authorities plan to built 13 hydroelectric power stations and 15 wind power plants with power capacity of over 100 MW across the country, a power development plan released by the Russian government on Tuesday said.

MOSCOW (Sputnik) — In Russia’s Kabardino-Balkaria, the first hydroelectric power plant Goluboye Ozero will be put in operation in 2016 to produce 110 MW of power. Two more dams with total power capacity of 284 MW are set to follow until 2020, according to the document.

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.

The Challenge

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.

The IFC Approach

IFC aims to help improve the regulatory environment by addressing key legal and regulatory issues, in particular an incentive framework to support investment in renewable energy. Main activities would include improving the information basis for policy development; providing support to a multi-agency working group on renewable energy legislation; and development of supporting policies, procedures and bylaws.

We help build market capacity by analyzing and removing barriers to market infrastructure development, and also by introducing various renewable energy technologies. Main activities will focus on two to three selected regions and will include renewable energy resource assessments; contract and legal support to investors; development of market infrastructure; and standardization of templates for project proposals.

IFC helps expand access to renewable energy financing by making available financial products needed by renewable energy developers and investors, such as long term project financing, and by addressing the requirements to enable these products to be offered on the market. This would include building capacity in the banking sector and developing tailored financial products.

A key step is to raise awareness about renewable energy issues among key stakeholders and decision makers by developing and implementing a communication strategy that provides accurate information about existing technical and market opportunities. We also document success stories globally and within the Russian Federation, and share lessons learned from other IFC renewable energy projects and programs.


Key expected Impact


  • Direct GHG emission reductions (CO2 eq), estimated at a cumulative 5 million tons over a 20-year investment lifetime, and estimated indirect GHG emissions reductions between 20 and 200 million tons;
  • Introduction of an enabling regulatory and incentive framework for renewable-based power;
  • 205 MW installed capacity of new renewable power generation.



Categories: Business, China, Russia

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