The market for solar and wind power looks to expand in the coming years, thanks to new governmental targets for electricity generation from renewable energy sources (RES).1
Investors in renewable energy who are participating in upcoming tenders on the Russian wholesale electricity and capacity market will be able to bid on:
- An additional 279.6 MW for solar power plants to be commissioned in 2023 and 2024
- An additional 32.1 MW for wind power plants to be commissioned in 20242
By 2024, the sum total of state targets for installed capacity of all RES types will be 5,863.7 MW, which includes 3,415.7 MW of wind power capacity, 2,238 MW of solar and 210 MW of capacity from small hydroelectric power plants3.
Tender applications will be accepted from 18 November to 1 December 2020 by JSC "Trading System Administrator of Wholesale Electricity Market Transactions".4 Winners will be able to enter into long-term capacity supply agreements, allowing them to collect increased payments for capacity based on a 12% basic investment return rate for 15 years.
In related news, Russian RES power companies will soon be able to sell certificates confirming green energy production under the I-REC international certificate system, helping corporate buyers achieve their renewable energy procurement goals.5