PRESS: Renewable energy support program may cost 900 bln rbl

MOSCOW, Jul 12 (PRIME) -- Russia’s Economic Development Ministry has proposed to support a new program of capacity supply agreements for renewable energy in a volume of no less than 10 gigawatts (GW) until 2035, and extension of support mechanisms could cost 900 billion rubles, Kommersant business daily reported Friday.

The daily cited a letter of Deputy Economic Development Minister Mikhail Rasstrigin to the Energy Ministry and the government. Deputy Prime Minister Dmitry Kozak is expected to hold a meeting on this issue next week.

For several years, the wholesale energy market has stimulated the development of green energy through capacity supply agreements for renewable energy, which imply a return of capital expenditures within 15 years through excessive payments by consumers. Tenders in the first wave of support in the volume of 5.4 GW until 2024 ended in summer, and the government seeks to prolong support. Market participants insist on construction of at least 10 GW of capacities on previous terms: capacity supply agreements, a yield of 12%, and a return of investments within 15 years.

The ministry proposes to select renewable energy projects at tenders not by capital expenditures, but on a one-part price that includes capital expenditures, operating expenditures, and a yield, annually lowering the tariff ceiling. Under new capacity supply agreements, investors will be obliged to supply part of the equipment for exports.

(62.9944 rubles – U.S. $1)

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