Russia to hold tenders for 1.3 GW of wind power and 430 MW of solar power by 2021

By Swann Bigot, legal expert and consultant in international affairs, for Eurasia Network – March 12, 2017

Wind farm – Photo credits : Clement Bigot, March 2017.

A competition in order to select investment projects for the construction in Russia of power plants based on renewable energy sources for the period from 2018 to 2021 will be held from May 29th to June 9th, 2017, according to the materials published by the Russian “NP Market Council” (the Russian energy market regulator).

The results of the selection will be announced by June 30^th 2017.

Wind power projects will be selected during the competition: for 2018 – with a total capacity of 250 MW, for 2019 – 300 MW, for 2020 – 240 MW and for 2021 – 500 MW.

Solar power projects with a total capacity of 270 MW and 162.6 MW will be selected for implementation in 2020 and 2021 respectively.

Hydro power projects reaching a capacity of 109.2 MW and 35.6 MW will be implemented in 2020 and 2021 respectively.

The selection will be carried out in two stages: the first stage from May 29^th to June 2^nd 2017, the second stage from June 5^th to June 9^th 2017.

During the second stage of selection it would be allowed to submit updated applications for projects which would have been included in the list of accepted applications on the basis of the results of the first stage. However, the amount of “planned capital expenditures” cannot exceed the previous one presented during the first stage according to the press release of the Russian NP Market Council.

The application for participation in the selection of renewable energy projects must be signed with electronic signature and sent to the ATS in electronic form.

The information necessary to take part in the competitive selection of renewable energy facilities for 2018-2021 was published on the official website of the ATS (Russian Administrator of Electricity Trading System) on March 10^th, 2017 here.

The selection of projects will be held in compliance with the Regulations of the wholesale electricity and capacity market [1].

The legal framework of applications is established by the Regulation on selection of renewable energy sources projects, a text entered into force in its last version on December 1^st, 2016 and which is the Appendix No. 27 to the Agreement on accession to the Russian wholesale market trading system (DOP).

Planned volumes of power required for the years from 2018 until 2021:

Generating facilities functioning on the basis of renewable energy sources	2018	2019	2020	2021
Wind power plants	250	300	240	500
Solar power plants	–	–	270	162.6
Hydro power plants	–	–	109.2	35.6

The Association “NP Market Council” was created in accordance with the Russian federal law “On electric power industry” firstly adopted in 2003. The main purpose of the association is to ensure the functioning of the commercial infrastructure of the Russian wholesale electricity and power capacity market (OREM).

The Association takes part in the preparation of Regulations for wholesale and retail electricity and capacity markets, develops and approves the Agreement on accession to the wholesale market trading system and wholesale market regulations, maintains a register of wholesale market entities, resolves disputes in the market and monitors compliance by wholesale market participants with the legislation and regulations.

According to the Russian legislation, all the actors of the wholesale electricity and power capacity market must become members of the Association “NP Market Council”.

On December 13^th, 2007, the Russian Open Joint-Stock Company “Administrator of the Trading System of the Wholesale Electricity Market” (ATS) was registered.

ATS is a 100% subsidiary of the Association “NP Market Council”. Since April 1st, 2008 ATS has been conducting trade organizing activities and providing calculations between Russian producers and buyers of electricity. ATS is today the Russia’s leading trade organizer in the wholesale electricity and capacity market.

Russia develops renewable energy capacities

In July 2016 the state corporation Rosatom announced that it plans to build by 2020 wind farms totaling 610 MW in the Caucasus and other regions with energy deficit and extensive wind potential. The new wind turbines would produce 17% of the wind energy capacity planned in Russia by 2024.

The Russian state corporation would open in 2018 three wind farms totaling 150 MW, ten wind farms totaling 200 MW in 2019 and thirteen wind farms totaling 260 M in 2020.

Rosatom plans to invest about $ 1.4 billion in wind power generation projects until 2020, reported the daily Kommersant.

In 2016, the Republic of Karelia and the Chinese energy company Sinomec signed an agreement of cooperation, which plans the building of a 60 MW offshore wind farm in the White Sea by 2020, for a cost of $ 147 million.

Read also: A 60 MW wind farm in Northern Russia

In 2015 the Finnish company Fortum decided to invest € 65 million in the building of wind power capacity of 35 MW in the Ulyanovsk oblast which would be achieved by the end of June 2017.

Read also: Solar power plant is expanding in Russia’s Orenburg region

Russia has fixed the goal of 3.6 GW of wind power capacity and 1.5 GW of solar power capacity by 2024.

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© Copyright 2017 – Swann Bigot, legal expert and consultant in international affairs.

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[1] Approved by the Resolution No. 1172 of October 27, 2010 adopted by the Government of the Russian Federation.