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November 19, 2019

Russia will hold the largest bid to buy green power capacity

Russia electricityRussia will hold the largest bid to buy green power capacity between May 29th to June 9th. The local authorities expect bids for 1.99 Gigawatt. The procedure is an attempt to attract foreign investors to create jobs in the country. The government-sponsored auction has already attracted the interest of the largest Finnish energy company Fortum Oyj, as well as the Italian Enel.

The largest share in Russia’s energy mix has ‚Äč‚Äčnatural gas – 43%, followed by solid fuels (25%) and nuclear power (11%). The developing green energy is an opportunity for economic growth and new jobs.

Recently, the green energy in Russia stumbled after the government changed its legislation and banned the construction of renewable power plants unless part of the equipment was produced in the country. It was an attempt to promote the sector, but at the same time no Russian company produced such equipment.

But things are about to change fundamentally,as Rosatom nuclear corporation said it would start producing wind turbines in some of its plants. The company also announced that it will seek the cooperation of the leading companies in the sector – Siemens, General Electric and Vestas Wind Systems. At this stage, there is no confirmation from Western manufacturers about the partnership.

The climate in Russia implies the development of wind and water power plants rather than the placement of solar panels.

One bidder today, Fortum Oyj, has a 35 megawatt wind farm built near Moscow in 2015 when the legislation was not yet so restrictive. The Finnish company uses Chinese turbines to produce electricity.

The cost of electricity is about 150 EUR per megawatt hour. According to the estimates this price is 70% higher than the average price of wind farms in Europe.

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