OVERVIEW - Russia looks for leap in wind this year

When in early 2016 Russian President Vladimir Putin inked an executive order On Holding the Year of the Environment in the Russian Federation in 2017, many thought it would be just one of many met by the Russian authorities often lackadaisically...especially in the energy sector, where Russia continues to favour conventional energy sources such as pipelined gas and grid electricity.

However, with Rosatom and Rusnano, two Russian mega-size companies, preparing to exuberantly push forward the implementation of major wind projects in the country this year, Russia’s wind power sector may be on the threshold of a major leap.

RUSNANO

At the end of 2016, Anatoly Chubais, CEO of state nanotechnology company Rusnano, announced the establishment of an international consortium tasked with investing up to RUB 10 billion (USD 173.5m/EUR 164m) in wind power projects in the years to come. In another development, Rusnano has also signed an agreement with Finnish energy utility Fortum to deploy up to 200 MW of wind power in the Russian Federation over the next few years.

Last August, the company said it is pursuing production of blades for wind generators with China’s DEW in the Ulyanovsk Region, where Russia’s first large wind power park will be built by Fortum. Its first stage will have a capacity of 35 MW, which will later be increased to 350 MW.

ROSATOM

Meanwhile, Rosatom, the Russian state-controlled Atomic Energy Corporation, unveiled in early February 2017 that it would create with a Dutch company a joint venture to harness 610 MW of wind power through 2018-2020 in Russia.

“In 2016, Rosatom has won competition for the construction of wind farms with an overall capacity of 610 MW. The first wind farms will operate in southern Russia, in Adygeya, Krasnodar, Stavropol and Rostov regions, to be precise, where the required wind speed measurements show favourable conditions for wind power development. The wind farm in Adygeya will be launched first in 2018,” Olga Kayukova, the spokeskperson of OTEK, Rosatom’s business unit responsible for renewable energy programs, told Renewables Now.

With forecasts for 3.6 GWh of annual wind power generation by 2024, the growing share of renewables will create huge local demand in wind farm construction and, consequently, wind turbines, believes Kayukova. According to Rosatom, the estimated volume of the market for wind power equipment, facilities and maintenance, as well as other services, is to reach USD 6.3 billion.

In pursuing the wind projects with Dutch Lagerwey, Rosatom’s business partner for wind projects in Russia, the Russian company plans this year to start preparing the site for a wind farm in Adygeya, initiate wind measurements in Krasnodar for other wind farm sites, and proceed with localisation of manufacturing of the wind turbine components in Russia’s Volgodonsk, where Rosatom has a major production site.

“For the moment, our key priority is the development of the wind energy projects. In Russia, we actually create the industry form the scratch. The process includes not only the construction of wind farms and production localisation, we also have to do a tremendous job in the development of new regulatory norms and standards, training of personnel, certification and qualification of new industrial processes and products,” Rosatom’s representative stressed.

According to her, the Dutchmen have committed to the 65% requirement on wind equipment production localisation in Russia.

“We look forward to creating this year a joint venture with equal participation of Lagerwey and OTEK, Rosatom’s business unit responsible for renewable energy programs,” Kayukova added.

In her words, Rosatom may take on solar energy projects in the future, too, if there comes a possibility.

SPEAKING OF SOLAR..

With Viktor Vekselberg, CEO of Renova, which is called Russia’s leading privately-owned diversified business group, and Anatoly Chubais, the chief of Rusnano, investing heavily in Hevel, a joint company to tap solar potential in the country, Russia’s solar energy sector has seen remarkable growth during the last two years.

The installed capacity under solar tenders is already at 80% of what has been awarded until 2020, according to Russian media. Out of the projected 3.6 GW capacity of wind power to be harnessed by 2020, only 190 MW have been installed as of date, which puts in doubt Russia’s plan to generate 3,500 MW from wind and 1,500 MW from PV plants by 2024. Russia has set a renewable energy target of 4.5% in the power total by 2020, according to Russian media reports.

“In Russia, solar energy has already been a fact. Now, in 2017, it may be wind’s turn to become reality,” Chubais, the Rusnano chief, has underscored in the Gaidar Forum in Moscow in early January. Still, he admits that the situation with wind power energy remains “very complicated” in Russia.

Rusnano did not answer Renewables Now's query for information.

GREEN ENERGY IN RUSSIA

As of 2015, renewable energy, excluding large hydro power plants (HPPs), accounted for less than 1% of Russia’s power generation capacity. That number surges to a hefty 17% – more than in France or the United Kingdom - with the capacity of HPPs included. Meanwhile, approximately 10% of Russia’s population has no access to centralised electric power supply, according to Russian media.

The commitment by Russia in the Lima Climate Summit in 2014 to curb its greenhouse emissions by 70-75% by 2030 also prompts to act.

(RUB 100 = USD 1.74/EUR 1.64)

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