Italian Enel to invest € 132 million in a large wind farm in Southern Russia

By Eurasia Network – September 30, 2018

Wind turbines, June 2018 – Photo credit : Swann Bigot

The 90 MW wind farm will be built on an area of 133 hectares and will be able to generate about 300 GWh per year, for a global investment of 132 million euros. Italian Enel and Russian companies work together on the development of wind power capacities in the region, as Russia set an ambitious renewable energy target by 2024.

PJSC Enel Russia, the Russian subsidiary of the Italian energy company Enel, will invest 132 million euros in the construction of a 90 MW wind power plant in the Azov district near the city of Rostov-on-Don in Southern Russia, confirmed a press release of the local agency for investment development.

This large wind farm, which is registered among the investments priorities of the Rostov oblast, will be able to generate about 300 GWh per year and must be completed before 2020. Design and exploration works are currently in their final stage, and the first preparatory work on the selected site would start this year. Enel Russia won the right to build this facility during the federal tender over renewable energy sources held in June 2017.

“In the Rostov oblast, acting through its subsidiary “Enel Rus Wind Azov”, PJSC Enel Russia will build a wind farm in the Azov district, which is scheduled to enter in operation in 2020. […] The announced volume of investments in the project amounts to 132 million euros”, reported the press release.

The authorities of the Rostov oblast signed with Enel Russia the agreement regarding the construction of the 90 MW wind farm during the Russian Investment Forum held in Sochi in February 2018. The press release of Enel Russia mentioned that the initial developer of this wind power project was the German holding SOWITEC, which did a lot in preliminary work.

Read also : German company to build a 90 MW wind farm in southern Russia

Earlier, the governor of the Rostov oblast Vasily Golubev said that with the implementation of energy projects announced by Russian and foreign companies (Rosnano, Rosatom, Enel), the oblast will be able to provide up to 25% of Russia’s wind power. Significant financial efforts have been announced, as at least 100 billion rubles (1.334 billion euros) would be invested starting in 2018 in wind power generation capacities in the Rostov oblast.

Enel Russia presented its project of construction of a large wind farm in the Rostov oblast during the session of the All-Russian festival of energy saving (#ВместеЯрче) held in the city of Rostov-on-Don on September 15. Representatives of Enel Russia held lectures on wind power, energy saving and respect of natural resources, which were attended by over 100 visitors. They also presented a wind turbine model and organized thematic workshops where children learned about wind energy and designed paper windmills.

The subsidiary of the Italian energy company is a strategic partner of the Rostov oblast in the development of local wind power capacities, reported the regional ministry of industry and energy. This new industry attracts in the region investments in both the construction of wind farms and the manufacture of components for wind generators. Six wind farms are expected to be completed by 2022 in the oblast. All these projects are carried out by leading players in the industry. The project of Enel Russia is one of the most advanced today as the 90 MW wind farm in the Azov district can be put into operation before 2020.

Partnership with Rosatom

Another agreement was signed with the company AO Novawind (a subsidiary of the Russian state corporation Rosatom) over the construction of wind power plants and the organization of assembly of wind turbine components in the city of Volgodonsk. Preliminary investment in these projects amounts to 15 billion rubles (200 million euros).

Read also : The Danish Vestas will build its first blade factory in Russia

Based in Moscow, AO Novawind was registered in September 2017 and is engaged in manufacture of engines and turbines, repair services of electrical equipment, generation of renewable energy, construction of power stations and wholesale trade of electricity according to the legal documentation.

A manufacture plant for wind farm equipment by June 2019

The administration of Volgodonsk reported in July that the construction of the manufacture plant of modular steel towers for wind farms had already begun. The investor in this project is the company OOO VetroStroyDetal, which was specially registered in January 2018 to localize under license from Dutch company Lagerwey the production of modular towers for wind turbines in the Russian Federation, as requires the legislation. The global investment amounts to 1.129 billion rubles (15.05 million euros). The project of construction of this manufacture plant was announced in October 2017.

The city of Volgodonsk with 171,500 inhabitants is located on the banks of the river Don and has strong industrial assets in metallurgy, energy and mechanical engineering. These factors made it an ideal place to build the manufacture plant. The expected production capacity is at least 120 towers (26 thousand tons of finished products) per year and more than 60 new jobs will be created before 2019, revealed the local administration. The construction should be completed by June 2019.

Russia towards more renewable energy

Usually described as a major oil and gas producer, Russia is progressively moving towards renewable energy and a new market is rising, bringing new technology solutions and development opportunities to the national economy and foreign investors. The growth of this new sector is driven by the official target of 4.5% of renewable energy share in the national energy mix by 2024. 

Read also : Italian Enel will build the largest wind farm in Arctic

Russian state authorities and foreign companies work together to develop the new wind power capacities. Thus, the first 35 MW wind farm of Russia, built by the Finnish company Fortum in the city of Ulyanovsk, officially started to supply electricity to the local power grid last January. The construction started in December 2016 and cost 65 million euros. The 14 wind turbines DF2.5MW-110 have been manufactured and supplied by the Chinese company Dongfang Electric Wind Company Limited.

The Ulyanovsk oblast also hosts a new blade factory under construction by the Danish company Vestas Wind Systems A/S, which invested in this project more than 1 billion rubles (13.35 million euros). The new factory manufacturing blade for wind turbines will create 200 new local jobs.

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