Field for international investors and producers
Russian Renewable energy industry created from scratch within 7 years remains the field for international investors and producers despite low growth of energy demand and easy access to conventional energy sources
In a bid to achieve the goals of Russia’s first renewables program for the advancement of ‘green’ energy, planned for 2014-2024, more than 550MW of wind capacity and 1700MW of solar capacity was commissioned: a small step for global market, big leap for the local industry.
By developing renewable power generation, Russia is also addressing general economic challenges such as advancing technological development and developing high-power engineering, forming new market and fueling demand for highly skilled workforce. In the field of solar power generation the country managed to develop a substantial capacity of its own and relies mostly on local manufacturers such as Hevel. Progress has also been achieved in wind power generation.
Investors followed with Austrian Core Value capital that commissioned 4 solar power plants together with Green Source consulting, Vershina Development and Gildemeister LSG Beteiligungs GmbH.
Presence of foreign players allows technology transfer, creates a more mature market and supports healthy competition. Local content rules forced the expansion of global wind-generation players giving a kick to local production.
Major foreign business operating in Russia:
Fortum – Finnish company deeply rooted in the Russian market operating both in conventional and renewable generation including solar and wind. A wind investment fund established by Fortum drives the national demand for blades, wind towers, composites, glass fiber. In auctions held in 2017 and 2018 the Fund awarded 1,823 MW of wind capacity. Wind farms are expected to be commissioned before 2024. Fortum also owns 3 solar plants acquired from Hevel and is to commission additional 115,6 MW of solar power generation by the year 2022.
Russian subsidiary of Enel awarded 3 wind power projects of total 306MW.
State plan to support renewable generation attracted top wind turbine manufacturers. Wind generation welcomed Lagerwey, Vestas and Siemens Gamesa.
Vestas Manufacturing set up joint venture with Ulyanovsk Oblast aiming to build blades manufacturing site in Ulyanovsk in 2019.
Windar Renovables launched production of steel towers for wind-driven power plants together with Severstal and Rusnano. Further on, Lagerwey in 2017 launched the Red Wind JV to produce, market and sell turbines in Russia. The JV followed up on a license agreement for Lagerwey’s 2.5MW and 4.5MW machines.