Renewable and small energy application. Competition for wind: what attracted investors in the Russian energy sector. Events in Russia

Growing interest in renewable energy projects may indicate an investment thaw in Russian economy

In 2017, 78 applications for the construction of wind farms were submitted for the competitive selection of projects for the construction of energy facilities using renewable energy sources (RES). 43 projects with a total installed capacity of more than 1,651 MW were selected. This is almost three times more than last year: then only 610 MW passed the competitive selection. This revival suggests a change in the attitude of investors towards this industry, which has so far been poorly developed in Russia. Important role played by the consolidation of investors, equipment manufacturers and developers, as well as the easing of requirements for the use of domestic equipment and the introduction of a mechanism for protecting investments from currency risks.

Incentives and barriers

In 2013, a mechanism for supporting renewable energy energy appeared on the Russian wholesale electricity market, providing for a guaranteed return on investment in the construction of solar, wind stations and small hydroelectric power plants through capacity supply agreements (CSA). Under such agreements, all wholesale consumers pay for the power of renewable energy facilities at higher rates compared to traditional generation. To limit these payments, the government has established caps on capital costs for the construction of renewable energy stations. An additional reduction in the financial burden on consumers is achieved through the selection of projects on a competitive basis. Projects with the lowest cost win.

Immediately after the adoption of this mechanism for supporting renewable energy sources, it was obvious to specialists that the key requirements for investors would be the requirements for the place of origin of equipment. And if the situation with solar energy projects was generally clear - at that time several companies were already producing panels in Russia - then with wind power plants (WPPs) everything was much more complicated. It was unrealistic to launch the production of high-tech equipment in such a short time.

Another significant barrier was the low level of maximum capital costs (almost half the level established for solar power plants - 65.8 thousand rubles per 1 kW for wind power plants and 116.5 thousand rubles per 1 kW for solar power plants).

However, the main problem for wind generation all these years was that equipment manufacturers did not see enough serious investors in wind farms who were ready to place orders for the supply of equipment with guaranteed payment. The projects were mainly presented by developers who did not have their own financial resources.

By 2017, the Ministry of Energy and market participants, through joint efforts, managed to remove the main set of problems hindering the development of renewable energy sources in Russia. Since 2015 in regulatory framework Important amendments were made. They provided for a reduction in the mandatory share of domestic equipment (from 55% for facilities announced for commissioning in 2015 and to 25% in 2016), as well as an increase in the maximum levels of capital investment. And, most importantly, a currency coefficient has been launched, allowing investors to index cost levels taking into account exchange rate fluctuations.

Consortia

In 2016-2017, a certain consensus was reached between equipment manufacturers and developers/investors. Consortia began to form, within which large energy companies and equipment manufacturers assumed certain obligations.

Rosatom was the first to enter the market in this configuration with the project company VetroOGK, which entered into a licensing agreement with the wind turbine manufacturer Lagerwey. Thus, both the manufacturer and the consumer of equipment have united within one holding company. Later, a similar scheme was implemented within the framework of the Fortum - Rusnano - Power Machines consortium and other companies. Thus, in 2017, the market reached a critical mass of projects with which it became possible to participate in the competitive selection of renewable energy projects.

These facts and relatively stable economic and political conditions have caused competition among investors for the right to build wind power generation facilities and receive a stable return on invested capital. According to our calculations, the return on equity in such projects can be in the range of 16-24% or more. This is a very attractive level for infrastructure projects. Given the delay in the decision to modernize thermal generation, there are no other effective investment ideas other than renewable energy sources in the Russian electric power industry.

Competition

It should be noted that for projects with commissioning dates in 2021 and 2022, applications exceeded the awarded volumes by almost twice. Fortum, Enel Russia and VetroOGK fought to obtain the right to build wind farms. Investors were forced to reduce declared capital expenditures; the reduction was up to 30% of the maximum permissible levels. Such dynamics of price requests will ultimately lead to a cumulative reduction in payments under CSA by more than 15% and, accordingly, a reduction in the burden on consumers. In 2014, similar competition was observed in the solar generation segment.

For now, of course, there are certain risks regarding how the selected objects will be built. Let me remind you that the requirements for equipment localization will be increased again: from 2019, the share of equipment produced in Russia must be at least 65%. But so far there is no production of equipment for wind energy in the country: all projects are at the stage of development or discussion. However, the appearance on the market large corporations gives reason to believe that the promised wind farms will be built. Perhaps with a slight delay, since current market rules allow this.

We can say that the rush to invest in renewable energy projects signals the onset of a thaw in the Russian investment climate. Investors, including foreign ones, are returning to our energy sector. And what is especially important is that these are strategic, and therefore long-term investments, because the return period for the invested capital is calculated for 15 years.

Alexey Zhikharev Director of Electrical Energy at VYGON Consulting

Due to a large number applications for participation in the competition, as well as taking into account the importance of the issues of introducing a “green” economy and development ecological culture, a decision was made to extend the deadline for accepting applications and their examination.
Let us remind you that the Russian Ministry of Natural Resources supports the project, the goal of which is to assist the initiatives of Russian enterprises in the field of increasing energy efficiency, developing small-scale renewable and alternative energy, as well as modernizing heating systems with improving their environmental characteristics.

The competition jury is headed by the Special Representative of the President of the Russian Federation on issues environmental activities, ecology and transport Sergey Ivanov.

The competition is aimed at reducing the environmental and financial burden from small-scale generation sources (powered by fossil fuels) for the Far North and other sparsely populated areas of Russia. In addition, the objectives of the competition include supporting projects in the field of improving energy efficiency, developing small-scale renewable and alternative energy, as well as supporting projects for modernizing buildings, electricity and heat supply systems, water supply and sanitation with improving the environmental characteristics of the relevant territory.
Contest participants can be Russian enterprises and organizations of all forms of ownership. The implementation period (from the start of investment to the commissioning of the facility or implementation of the development in the real sector) should be up to 3 years.
When evaluating projects, the validity and feasibility of the proposed technical solutions, and the advantages of the project compared to analogues will be taken into account. Particular attention will be paid to the possibility of replication of the results.

The winners will receive grants from the Russian Capital Bank for the preparation of project documentation: for first place - 3 million rubles, for second place - 2 million rubles, for third place - 1 million rubles. Based on the results of the competition, the possibility of further financing of the best projects will be considered.
The organizers of the competition are the NGO “Russian geographical society" and JSCB "ROSSIYSKY CAPITAL", the operator of the competition is the technological platform "Environmental Development Technologies".

Applications will be accepted until July 30, 2017. For questions regarding participation, please contact: [email protected] or on the website. The application is sent to the NGO "Russian Geographical Society" at the address 109012, Russia, Moscow Novaya Ploshchad, building 10, building 2, marked ECO COMPETITION.
The results of the competition are scheduled for October 2017.

Press service of the Russian Ministry of Natural Resources

Applications for the “Clean Energy for Territorial Development” competition are now open. The organizers are the Russian Geographical Society and JSCB Russian Capital. The event operator is the Technological Platform “Environmental Development Technologies”.

The competition considers projects in the field of increasing energy efficiency, developing small-scale renewable and alternative energy.

The winners of the competition receive bank grants for the preparation of project documentation:

1st place - ₽3 million
2nd place - ₽2 million
3rd place - ₽1 million.

Based on the results of the competition, the Bank is considering the possibility of further financing.

For whom

Russian organizations and enterprises (legal entities without restrictions on forms of ownership), including startups, are allowed to participate in the competition.

Organizations and enterprises, with the exception of start-ups, must have been operating for at least 2 years before the start of accepting applications.

What to do

The application and applications (files attached) are sent electronically to: mail eco. A printed copy with a stamp should be sent to the address: Russian Geographical Society, 109012, Moscow, Novaya Square, 10, building 2, marked “Eco-competition”.

The project implementation period (from the start of investment to the commissioning of the facility on time or the implementation of the development in the real sector) should be up to three years. The total cost should not exceed ₽100 million. The advantage is the use of products and technologies produced/developed in Russia within the project.

The criteria for evaluating projects are the validity and feasibility of the proposed technical solutions, advantages compared to analogues. Particular attention will be paid to the possibility of replication of the results.

Deadlines

Applications in electronic version accepted until June 30, 2017, in printed form - until July 5, 2017.

Summing up is planned for October 2017.

Renewable energy forum logo. Photo: Bellona Murmansk

Last week the XIV annual international conference"Renewable and small energy– 2017”, which has been held since 2004. Its founders and organizers are the Committee on Problems of Use of Renewable Energy Sources of the Russian Union of Scientific and Engineering Communities (RES Committee of RosSNIO), the Russian Academy of Engineering (RIA), the Central Research Institute of Aerohydrodynamics named after. prof. NOT. Zhukovsky and others.

This year it was held in an expanded format. In addition to the annual topics on general issues, legislation in the field of renewable energy sources, solar energy, wind energy, hydro and bioenergy, those gathered discussed problems of energy saving and autonomous power supply systems for stationary and mobile objects.

Photo: G. Popov

Autonomous power supply to remote villages

Much attention was paid to the issues of autonomous energy supply. “More than 65% of the territory of the Russian Federation is not covered by a centralized energy supply, and about 10 million people live in this territory,” said academician of the Russian Academy of Engineering Sergei Gribkov.

The project of a wind-solar-diesel complex installed on the Kola Peninsula was called a successful example of the use of renewable energy sources as an autonomous source of energy in remote settlements.

According to the regional Energy Efficiency Agency, for six months of operation of the guaranteed power supply complex in the village of Pyalitsa, an economic effect of approximately 3.5 million rubles was obtained. As a result, another special program was launched, receiving funding of 109 million rubles. 80% of the funds for its implementation were allocated by the regional budget, 15% by the federal budget, and 5% by the municipal budget. As a result, similar complexes appeared in three more villages: Chavanga, Chapoma and Tetrino.

Photo: www.c-o-k.ru

Development of microgeneration

In February 2017, Deputy Prime Minister Arkady Dvorkovich instructed ministries and departments to develop measures to stimulate the development of microgeneration based on renewable energy sources. We are talking about the use of mini-power plants with a capacity of up to 15 kW.

Such generators can be installed in a private household, and if they generate more energy than needed, the owner can send the excess electricity to the general network. At the same time, the official energy supplier (local sales company) is obliged to buy this surplus from such a manufacturer. The price per kWh should be equal to the weighted average unregulated cost of electricity on the wholesale market. Income individual from the sale of excess produced “clean” energy will not be subject to taxes.

The implementation of this instruction will open up wide opportunities for the use of renewable energy sources in private microgeneration. According to the representative of the Ministry of Economic Development Sergei Mayorov, priority territories for such projects are the Kaliningrad region, Crimea, Sakhalin region, as well as the entire Arctic zone.

As factors hindering the development of such projects, he noted the poor awareness of the population about the best and successful Russian practices, as well as the lack ready-made solutions in the use of renewable energy sources outside the grid power generation.

Business uses renewable energy sources

It is worth noting that Russian business companies, like foreign ones, are trying to use renewable energy sources to power their projects. The largest oil and gas giants such as Statoil, Total, BP, Chevron own assets in the field of renewable energy sources.

In 2011, the Russian Gazprom acquired a stake in a 102 MW wind farm project in Serbia. By 2014, Lukoil had already acquired four projects for the use of renewable energy sources and built one wind power plant - the total installed capacity of these facilities was 208 MW in 2014.

The company has also built two photovoltaic plants in Romania and Bulgaria with a total capacity of just over 10 MW. Lukoil is currently implementing Russian project for the construction of a 10 MW solar station at the Volgograd Oil Refinery. Commissioning of this facility is scheduled for March 2018, and production should be 12.5 million kWh per year.

“Oil and gas companies do not remain aloof from the development of renewable energy projects. The implementation of such projects allows them to diversify their risks by balancing the portfolio with projects with a reduced risk, but also with a reduced level of profitability,” said Pavel Bezrukikh, a representative of Lukoil PJSC.

As a result of the conference, the participants adopted a resolution, one of the most important points of which was the decision of the RES Committee to contact the owners of the facilities to analyze the work of commissioned renewable energy facilities and publish the results. It is planned to find out data on the actual production of electrical and thermal energy, the state of service, understand the difficulties with the supply of spare parts, work in winter and other issues.

January 16, 2017 St. Petersburg public organization The Environmental Human Rights Center Bellona was included by the Ministry of Justice of the Russian Federation in the register of “non-profit organizations performing the function of a foreign agent.”