News & Analysis

Russia has the world’s largest natural gas reserves, the second-largest coal reserves and seventh-largest oil reserves. It is the largest exporter of natural gas and since 2009 has periodically overtaken Saudi Arabia as the world’s largest oil producer. It currently supplies around 30% of the oil and 25% of the gas that the EU consumes, and is also a significant global force in the nuclear power industry.

Russia is, after the US, China and Japan, the world’s fourth-largest electricity producer. Russia is a net exporter of electric energy, but unlike in other energy commodities, electricity exports are not at all important for the system as a whole.

Thermal generation accounts for a very high proportion of total electricity generation in Russia. All this fossil fuels comfort makes the Russian Government relatively reluctant to pay attention to renewable sector development and solar and wind sectors particularly. However, the picture started to change at the end of 2012. Russia’s aim is for renewables to supply 2.5% of power by 2024, up from 0.8% now. In May 2013, Russia announced a target of reaching 6.2 gigawatts of renewable vitality capacity by 2020 (excluding massive hydro). After that target year was changed to 2024.

Russia has organized its first state government auction, which given support for renewable energy in May 2013. Uncertainties in the legal and regulatory framework for renewable energy, the conflict with Ukraine from 2014, the economic crisis in the country, currency devaluation and penalties imposed to the Russian economy by USA and EU, finally led to delay in the development of the photovoltaic industry in Russia

Prime Minister of Russia, Mr. Dmitry Medvedev signed on July 28, 2015, an essential regulatory document called “Decree № 1472-r”. This document is fixing previous weak points from the Russian renewable energy law and is expected to create a more comfortable and attractive business environment for local and international clean energy investors and particularly those in solar power plants in Russia.

First MW scale photovoltaic power plants in Russian Federation were launched into commercial operation in 2014, and the first half of 2015, whilst pipeline of over 1,300 MW (1.3 GW) solar projects are progressing in different stages of the development process with the expectation to be finished by 2020. You will find out Renewable Market Watch’s latest midyear update after in-depth analysis and careful review of Russian solar PV market performance in the first half of 2015. More information about this challenging market you may read here: Russia Photovoltaic Market: Outlook 2015÷2020