After 2024 the goals for supporting renewable energy must change

28 september 2017

"Today it is important for us to understand what method of supporting affordable and clean energy must be implemented after 2024 and what measures are already being proposed and why," Victoria Gimadi, the Head of the Department for the Fuel and Energy Sector of the Analytical Center, said as she opened the round table on the development prospects of renewable energy in Russia after 2024.

Ministry of Economic Development of the Russian Federation representative Elena Anikeeva pointed to the negatives in the implementation of the existing mechanisms for supporting renewable energy. "There are a number of mechanisms in place that create excess costs for investors: these include excessive requirements for ensuring the transit of power and for the reliability and safety of wind power facilities as well as the need to ensure that the transport infrastructure of wind power facilities meet the requirements for public roads," the expert said. At the same time, renewable energy is more beneficial for isolated territories where it reduces the payback periods of projects and electricity prices as well as the amount of budget subsidies needed to buy fuel for diesel power plants, the expert noted.

"Renewable energy market players do not support the extension of the existing industry support program in its current form. We need to change the goals of supporting renewable energy sector after 2024," believes the deputy chair of the Market Council Oleg Barkin. After 2024, the main goal of the renewable energy support system must be the creation of economic conditions for the efficiency improvement of renewable energy produced in Russia to allow it to become competitive in the domestic market and eventually at the global level as well, the expert noted. According to Mr. Barkin, a number of countries have already achieved a grid parity where renewable energy accounts for roughly 50% of the energy that goes into the grid, taking into account the grid component. "In Russia we can expect to see a grid parity for some types of renewable energy in about 10-15 years," the expert believes.

"Grid parity is inevitable and it's happening faster than expected, so that many countries are already changing their energy policy accordingly," believes the deputy CEO of GK Hevel Oleg Shutkin. Thus, France has announced it would be implementing an energy sector reform and the UK is moving in that direction as well. Technology trends are ahead of forecasts and are forcing projects to catch up with renewable energy, the expert believes.