The Director of the Trading System (ATS), the regulator of energy markets, summarized the results of the competition for investment projects in the field of renewable energy for the year 2023-2028. Companies whose projects won the competition offered a price of 1 megawatt-hour of “green” energy two to three times lower than in previous years. As a result, wind and solar energy have approached world prices in terms of cost and are beginning to compete with conventional generation sources in the Russian market.
A total of 69 projects were selected for which capacity supply agreements will be signed. They will provide investors with cost recovery over the next fifteen years. CSA is a type of contract concluded between the buyer and the generating company for the wholesale market, which is included in the list of the Government of the Russian Federation. Under the CSA, the generation company is obligated to release capacities with specified characteristics and within a certain period, subject to guaranteed payment for power.
Draws were made on all contracts for the provision of capacity among themselves by large companies. In wind generation, the total volume was 1.85 GW, split by OOO Wind Farms FRV (PJSC Fortum and RUSNANO Group) – 1.39 GW and JSC VetroOGK-2 (part of the JSC NovaWind Control Loop) – 0.46 GW. In the solar sector, the total volume of 775 MW was distributed among them by Unigreen Power LLC, New Energy LLC and Solar Retail LLC. Total hydroelectric generation was 96 MW. Three small HPP stations will be built in the North Caucasus Federal District by PJSC RusHydro.
Fortum acquired the largest volume of wind generation with an average price of 2,000 rubles. For 1 megawatt-hour, the minimum price is 1,717 rubles. For 1 MW * h. As a result, wind generation has become one of the cheapest sources of electricity. Solar energy prices also fell significantly and reached the level of 4.3 to 6.4 thousand rubles. per 1 megawatt-hour, approaching global indicators. ARVE Director Alexei Zhikharev described the results of competitive selection as revolutionary for the domestic renewable energy industry, as the country’s “green” energy has become cheaper than conventional energy.
“Something happened for the sake of which the entire Russian renewable energy industry was created – the price of electricity from renewable sources fell to the level of traditional energy prices. We expected to reach this by the end of the twenties, but thanks to a well-designed strategy, this has happened now, ” Anatoly Chubais said at the press conference.
Also, according to Chubais, the construction of coal-fired power plants has become meaningless, because. Renewable energy generation is cheaper for both buyers and investors. He noted that while “green” energy is losing its combined cycle prices, it can actually compete with steam generation. “This is a fundamental shift in the generation structure of the Russian energy industry,” Summarizing the representative of the president. Alexey Zhikarev, President of ARVE, predicted that solar generation will catch up with prices with combined cycle gas by 2027-2028.
According to Alexei Zhikharev, the results of investment selection show that the energy transition in Russia will occur much faster than was expected a year ago. According to ARVESince 2013, the cost of wind and solar energy has fallen by 85%, and the downward trend will continue until at least 2030.
In response to a question about why the price of renewable energy generation has fallen to such a level, the experts explained that for the first time in the competition for investment projects, the main criterion was the declared performance indicators, and not the specific level of capital. costs. This made it possible to reduce the price and implement three times more projects than planned. In addition, the price was affected by the high level of production localization, that is, the winning companies had their own machine-building base in Russia. Also, according to Anatoly Chubais, sharp and open competition without collusion made it possible to reduce the cost of energy.
According to the Renewable Energy Development Association, Share RES Of the total production capacity of power plants in Russia 1.3%. According to the forecasts of Alexey Zhikharev, by 2035 there will be 15-16 GW of “green” energy in the wholesale market and about 2 GW in the retail market. This will amount to approximately 5% of the total electricity generation in Russia. Anatoly Chubais was more optimistic, but did not mention any numbers.
“I am convinced that in the next year and a half or two years, the country will again fundamentally rethink the goals of the Russian energy sector. In 2035, there will be other standards for renewable energy in general. I deeply believe in it. Within three years, We will be amazed at the new standards and tasks that the state will set for itself in this field.” The representative of the President concluded his speech.