Wind Power Market in Russia is expected to grow in the period 2017 - 2026. Government plans of Russia include development of wind energy sector ...
Update: April, 2018
Format: 1 file(s) (PDF report) in English language and 1 file(s) in MS Excel with data from charts and tables
Author: Renewable Market WatchTM
Pages: 145
Report production №: RMWIN3492017185
Delivery: 24 hours by e-mail
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This market report offers an incisive and reliable overview of the wind energy sector of the country for the period 2016 ÷ 2025. In view of recent cuts in FIT’s announced in Germany, Spain, France, UK, Czech Republic, Slovakia, Bulgaria, Greece and Italy, the Russian Federation represents a challenging investment opportunity in CIS region with state renewable energy support scheme. Current cumulative installed wind power capacity in the country is insignificant, but a number of fully permitted and ready to build projects will promptly increase in 2016 and next years. First large scale wind power plants started construction at the end of 2015, whilst pipeline of over 1,570 MW (1.57 GW) wind projects are progressing in different stages of development process. Russia has launched at the end of September 2013 its first state support scheme for renewable energy with regulated capacity prices and 15 year PPA term, which is expected to enable further growth of wind energy market in Russian Federation.
Prime Minister of Russia, Mr. Dmitry Medvedev signed on July 28, 2015 very important regulatory document called "Decree № 1472-r". This document is fixing previous weak points from the Russian renewable energy law and is expected to create more comfortable and attractive business environment for local and international clean energy investors and particularly those in solar power plants in Russia.
The report provides a complete picture of the market situation, dynamics, current issues and future prospects. You will find more than 145 pages of valuable information in this unique in-depth analysis of the Russia wind power market. With comprehensive market data this report brings clear and concise insights, to help investors in their decision making process. As 2016 and 2017 were challenging years for world wind energy industry, the time for taking right decisions during 2018 and the next few years is limited. Fast changing market environment requires relevant and accurate information. For your convenience we offer opportunity for orders with customized report content. Reasons to buy this market report are, but no limited to:
- Wind resource potential in Russia
- Historical market data provided from 2000 to 2017 and forecasts until 2026
- Financial Model and Analysis of 50 MW Wind Power Plant Investment in Russia (IRR, WACC, Payback, NPV, Cash Flow, etc.)
- Over 55 charts, tables and maps
- Overview of Russia wind energy market development 2000 ÷ 2026
- Development scenario of Russia wind power sector until 2026
- Major active and upcoming wind power plants in Russia
- Current market prices of fully permitted and operational wind energy projects
- Attractiveness indices for wind energy nvestments in Russia and CIS countries
- SWOT Analysis (detailed in 5 pages)
- Overview of Russia legal and regulatory framework for RES generation
- Review of most relevant financing and supporting incentives
- Project developers, EPC providers and Consultants in Russian wind energy sector
- Key organizations and stakeholders affecting development of the wind energy sector in Russia
- Investment potential and opportunities
At next pages you will see the full table of content of this report. To order this report just click on the button "ADD TO CART". If you have any other questions please do not hesitate to call us on ++44 203 60 80 138 or write an e-mail to orders@renewablemarketwatch.com
TABLE OF CONTENTS 3
FOREWORD 8
1 METHODOLOGY AND LIMITATIONS 10
1.1 Research Methodology 10
1.2 Limitations 11
2 EXECUTIVE SUMMARY 12
2.1 Historical and Current Development Overview of Wind Power Market in Russia 12
2.2 Russia Wind Resource Potential 12
2.3 Key Stakeholders Affecting Wind Power Market Development in Russia 13
2.4 Market Drivers and Constraints 14
2.5 Key Recent and Pending Changes in Renewable Energy Law in Russia 14
2.6 Market Forecast Summary 14
3 RUSSIA POLITICAL AND ECONOMIC ENVIRONMENT. PEST ANALYSIS 16
3.1 Basic Country Data 16
3.2 Political Climate and Ruling Party 19
3.3 GDP and Economic Growth 21
3.4 Taxes 24
3.4.1 VAT 24
3.4.2 Income and Corporate Taxes 25
4 COMMONWEALTH INDEPENDENT STATES (CIS) AND CENTRAL-EAST EUROPE (CEE) POWER MARKET 26
4.1 General Electricity Market Information 26
4.2 Wind Power in Energy Sector 32
4.3 Single Electricity Market of European Union 36
4.4 CIS States Common Electricity Market (CIS CEM) 39
4.5 Electricity Market Concept of Eurasian Economic Union 39
5 COMMONWEALTH INDEPENDENT STATES (CIS) WIND POWER MARKET 40
5.1 Market Overview 40
5.2 Cumulative (CAGR) Installed Wind Power Capacity and Revenue 41
5.3 Annual Installed Wind Power Capacity and Revenue 42
5.4 Future Development Trends 43
6 RUSSIA POWER MARKET 44
6.1 Electricity Transmission and Distribution 44
6.2 Wholesale Power Market Structure 47
6.2.1 Electricity Market 48
6.2.2 Capacity Market 50
6.3 Retail power market structure 52
6.3.1 Retail Companies 53
6.3.2 Electricity Producers that are not Participants of the Wholesale Market 54
6.3.3 Contract Structure of Retail Market 54
6.3.4 Pricing in the Retail Market 55
6.4 Electricity Consumption and Generation 58
6.5 Electricity Imports and Exports 60
6.6 Electricity Prices for Business and Households 62
6.7 Renewable Energy Sources (RES) Targets 63
7 RUSSIA WIND POWER MARKET 66
7.1 Why Invest in Wind Power in Russia? 66
7.2 Russia Wind Resource Potential 67
7.3 Licensing Period Duration 69
7.4 Regional Substation Capacities for Wind Power Projects in Russia 70
7.5 Overview of Wind Power Market in Russia 70
7.6 Market Structure Analysis 73
7.7 Investment Trends and Development Roadmap 73
7.8 Competitive Environment in Wind Power Market 74
7.9 Profiles of Key Players and Investors in Wind Power Market 76
7.10 Cumulative (CAGR) Installed Wind Power Capacity and Revenue 76
7.11 Annual Installed Wind Power Capacity and Revenue 77
7.12 Market Prices for Wind Power Projects in Russia in Development, Ready to Build and Operational (Grid Connected) Condition 78
7.13 Key Cost Structure Elements of Wind Power Plant in Russia 79
7.14 Levelized Cost of Energy (LCOE) for Wind Power in Russia 79
7.15 Key Wind Power Projects in Russia Under Development 79
7.16 Mergers and Acquisitions 83
8 DRIVERS AND CONSTRAINTS OF WIND POWER MARKET IN RUSSIA. SWOT ANALYSIS 84
8.1 Market Drivers 84
8.2 Market Drivers Explained 84
8.3 Market Constraints 84
8.4 Market Constraints Explained 84
8.5 SWOT Analysis 85
9 FINANCIAL ANALYSIS OF WIND POWER MARKET IN RUSSIA 88
9.1 Financing Options of Wind Power Projects in Russia 88
9.2 Financial Model and Analysis of 5 MW Wind Power Plant investment in Russia (IRR, WACC, Payback, NPV, Cash Flow, ETC.) 92
10 TECHNOLOGY ANALYSIS 95
10.1 Wind Power Technology Overview 95
10.2 Technology Trends 96
11 CIS COUNTRIES RENEWABLE ENERGY POLICY LANDSCAPE 99
11.1 RES Regulations and Directives of European Union (EU) affecting CIS countries 99
11.1.1 Precedent Regulations 99
11.1.2 EU 2030 Framework for Climate and Energy Policies 100
11.1.3 EU Energy Roadmap 2050 104
11.2 Renewable Energy Sources (RES) Strategy for CIS Countries Developed by UN ECE 106
11.2.1 Development of Educational Activity and Personnel Training 107
11.3 Renewable Energy Sources (RES) Mandatory Targets for CIS Countries 108
12 RUSSIA RENEWABLE ENERGY SOURCES (RES) LEGAL AND REGULATORY FRAMEWORK 110
12.1 Main Laws and Regulations 110
12.2 Support Schemes 111
12.2.1 Government Decree № 1839 „On approval of a package of measures to stimulate production of power by generating facilities operating on the basis of renewable energy sources (RES)“ 111
12.2.2 Federal Law No. 35-FZ on the Electric Power Industry 112
12.3 Key Recent and Pending Changes in Renewable Energy Law in Russia 112
12.4 Zoning, Planning and Construction Related Authorizations 113
12.5 Environmental Related Authorizations 113
12.5.1 Environment Protected Areas 114
12.5.2 Clean Development Mechanism (CDM) and Joint Implementation (JI) 115
12.6 Energy Law Authorizations 116
12.6.1 Power Generation Licensing 116
12.6.2 Grid Interconnection and Quota Limitations 117
12.6.3 Power Off-Take and Power Purchase Agreement (PPA) 117
12.6.4 Feed-in Tariff (FIT) 127
12.6.5 Green Reneable Energy Sources (RES) Certificates (Guarantees of Origin) 128
12.7 Additional Incentives for Wind Power Projects in Russia 129
12.8 Future Market Pricing Mechanisms 129
13 KEY STAKEHOLDERS AFFECTING WIND POWER MARKET DEVELOPMENT IN RUSSIA 130
13.1 Government Stakeholders 130
13.2 Non-Government Stakeholders 132
13.3 Electricity Generation, Transmission System Operator (TSO) and Distribution System Operators (DSO’s) 132
14 CONCLUSIONS AND RECOMMENDATIONS 141
15 LIST OF ABBREVIATIONS 144
16 REFERENCES 146
17 DISCLAIMER 149
APPENDIX I. WIND RESOURCE MAPS OF CIS COUNTRIES AND RUSSIA 150
- Map 1: Where is Russia on the European Map 16
MAP 2: Russia Road Network 17
MAP 3: Russia Administrative Regions Map 18
MAP 4: The Synchronous Grids of Europe and CIS States 26
MAP 5: Interconnection Grid Map of Central-East Europe and CIS States 27
MAP 6: Existing and Planned High Voltage Power Lines of Russia and Interconnection with Neighbor Countries 44
MAP 7: Electricity Grid Map of Russia 45
MAP 8: Wind Resource Map of Russia at 80 m.a.g.l. 67
MAP 9: Murmansk and Arkhangelsk Regions Wind Resource Map 69
MAP 10: Environment Protected Areas in Russia 114
Map 12: Mean Wind Speed in CIS Countries at 80 m.a.g.l. 150
Map 13: Global Mean Wind Speed at 80 m.a.g.l. 151
Chart 1: Russia Real GDP Growth for the Period 2000 ÷ 2026 (including forecast) 23
Chart 2: Russia GDP Growth Compared to EU-27 for the Period 2000 ÷ 2026 (including forecast) 24
Chart 3: Corporate Tax Income in Selected Central-East Europe (CEE) and Commonwealth Independent States (CIS) 25
Chart 4: Physical Energy Flows Values in GW in Central-East Europe (CEE) and Commonwealth Independent States (CIS) in 2017 28
Chart 5: Share of Renewables in Electricity Generation in Selected Central-East Europe (CEE) Countries and Commonwealth Independent States (CIS), 2017 (in %) 30
Chart 6: Average Base Load Electricity Price in Selected European Countries (EUR/MWh): 2008 - 2017 31
Chart 7: Forecast for RES Generation Capacity by Source Type in the EU to 2020 and 2030 (in GW), ENTSO-E 32
Chart 8: Net Power Generation Added Capacities in the EU 28 in 2017 (MW), WindEurope, SolarPower Europe 33
Chart 9: Age of Power Plants in Europe in 2017; WindPower Europe 34
Chart 10: Share of New Power Generation Capacities Added in the EU 28 in 2017 (MW), WindPower Europe 35
Chart 11: Installed Power Generating Capacity per Year (MW) and Renewable Share (in %) 2000 – 2017, WindPower Europe 35
Chart 12: New Installed and Decommissioned Power Generation Capacity in the EU 27 for 2017 (GW), WindPower Europe 36
Chart 13: Cumulative (CAGR) Installed Capacity of Wind Power Plants (in MW) in Commonwealth Independent States (CIS) 2000 ÷ 2026, including forecast 41
Chart 14: Cumulative (CAGR) Revenue of Wind Power Plants (in Millions USD) in Commonwealth Independent States (CIS) 2000 ÷ 2026, including forecast 42
Chart 15: Annual Installed Capacity of Wind Power Plants (in MW) in Commonwealth Independent States (CIS) 2000 ÷ 2026, including forecast 42
Chart 16: Annual Revenue of Wind Power Plants (in Millions USD) Commonwealth Independent States (CIS) 2000 ÷ 2026, including forecast 43
Chart 18: Structure of Russia Wholesale Power Market 46
Chart 19: Share of Renewable Energy Sources (RES) Electricity from Total Installed Power Capacity in Russia in 2016 59
Chart 20: Russia Total Annual Electricity Consumption (in TWh) 2000 ÷ 2017 60
Chart 21: Russia Power Generation Capacity Breakdown by Source (Fuel) Type in 2017 60
Chart 22: Russia Electricity Imports and Exports 2000 ÷ 2026 (in TWh) including forecast 61
Chart 23: Russia Targets for Renewable Energy Sources (RES) by 2030 (in %) 64
Chart 24: Cumulative (CAGR) Installed Capacity of Wind Power Plants in Russia (in MW) 2000 ÷ 2026, including forecast 76
Chart 25: Cumulative (CAGR) Revenue of Wind Power Plants in Russia (in Millions USD) 2000 ÷ 2026, including forecast 77
Chart 26: Annual Installed Capacity of Wind Power Plants in Russia (in MW) 2000 ÷ 2026, including forecast 77
Chart 27: Annual Revenue of Wind Power Plants in Russia (in Millions USD) 2000 ÷ 2026, including forecast 78
Chart 28: Levelized Cost of Energy (LCOE) for Wind Power in Russia 79
Chart 29: RUSEFF Structure 89
Chart 30: Cumulative Cash Flows and Break-Even Point of 50 MW Wind Power Plant Investment in Russia 94
Chart 31: Wind Power System Price Evolution (€/MW) 2000 ÷ 2017 96
Chart 32: Corporate Governance Structure of Russia Federal Grid Company 134
Chart 33: Districts (Service Area) Covered by Russian Grids JSC 136
Chart 34: Corporate Governance Structure of Inter Rao UES ОJSC 140
Table 1: Russia Electricity Prices for Business and Households 62
Table 2: Support Schemes for Renewable Energy Sources (RES) Generation in the EU Countries and CIS Countries 66
Table 3: Market Prices for Wind Power Projects in Russia for 2016 ÷ 2025 in Development, Ready to Build and Operational (Grid Connected) Condition 78
Table 4: Key Cost Structure Elements of Wind Power Plant in Russia 79
Table 5: Database with Major Operational (Grid Connected), Under Construction and Planned Wind Power Projects in Russia 81
Table 6: Key Financial Parameters of 50 MW Wind Power Plant Investment in Russia 92
Table 7: Key Financial Viability Indicators of 50 MW Wind Power Plant Investment in Russia (IRR, NPV, Payback, Benefit-Cost) 93
Table 8: Project Costs and Savings (Income) Summary of 50 MW Wind Power Plant Investment in Russia 93
Table 9: Yearly Cash Flows of 50 MW Wind Power Plant Investment in Russia (Pre-tax, After-tax, Cumulative) 94
Table 10: Wind Turbine Prices in 2017 97
Table 5: Limits on Wind Power Installed Capacity in Russia by 2026 120
Table 6: Limits on Capital Costs for Wind Power Projects in Russia by 2026 122
Table 7: Fixed Operating Costs for Wind Power Projects in Russia 123
Table 8: Local Content Procurement Requirements for Wind Power Projects in Russia 123
Table 9: Minimum Capacity Factor for Wind Power Installations in Russia 127
Table 11: Feed-in-tariffs for Electricity from Renewable Energy Sources (RES) in Russia 128
