By Swann Bigot, lawyer and consultant in international affairs, for Eurasia Network – April 22, 2019

Wind turbine, June 2018 - Photo credit S.Bigot

Wind turbine, June 2018 – Photo credit : Swann Bigot

A competitive tender for investment projects on the construction of renewable energy capacities in the Russian Federation from 2019 to 2024 was launched on March 11announced a press release the Russian “NP Market Council” (the Russian energy market regulator).

The competitive selection of projects will be carried out from May 28 to June 10, 2019.

The tender volume has been set at 313.532 MW of wind, solar and hydro power new capacities. The previous auctions took place in June 2017 and 2018.

The tender procedure will be carried out in two stages :

  1. First stage from May 28 to June 3, 2019 ;
  2. Second stage from June 4 until June 10, 2019.

Applicants will have the right during the second stage to submit updated applications for projects which have been included in the list of accepted applications following the results of the first stage. However, the amount of “planned capital expenditures” presented by applicants cannot exceed the previous one presented during the first stage, stressed the press release of the Russian NP Market Council.

The procedure for submitting applications is established by the Regulations for the selection of renewable energy projects, which is Annex No. 27 to the Agreement on Accession to the Russian Wholesale Market Trading System (DOP).

Planned volumes of power required for the years from 2020 until 2024 (MW) :

Generating facilities based on renewable energy sources that will be installed in the Russian Federation 2020 2021 2022 2023

2024

Wind power plants

2.3 75.8
Solar power plants 5.6

Hydropower plants with a capacity less than 25 MW 93.2 10.7 10.7 11.872

103.36

The information necessary to take part in the competitive tender was released on the official website of the ATS on March 11, 2019.

This competitive tender takes place as the Russian Federation is developing its wind power and solar power capacities. Several large projects with foreign investors are carried out across the country. New generation capacities and manufacture plants are built. The Ulyanovsk oblast, the Rostov oblast, the Adygea Republic in Caucasus or the Republic of Tatarstan now host leading projects, while 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 to invest € 132 million in a large wind farm in Southern Russia

The Association “NP Market Council” was created in accordance with the Russian federal law “On electric power industry” dated 26 March 2003. The task of the entity is to unite on a membership basis all structures taking part in the electricity wholesale market including the organizations operating the commercial and technological infrastructure.

The main purpose of the association is to ensure the functioning of the commercial infrastructure of the national wholesale electricity and power capacity market (OREM).

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

In accordance with the law, all subjects of the wholesale market must become members of the Association. The Association “NP Market Council” had 415 members as of May 16, 2018.

Read also : Rusnano and Fortum to build 450 MW of wind power in Kalmykia by 2021

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

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© Copyright 2019 – Swann Bigot, lawyer and consultant in international affairs.

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