Country:Russia
Year:2013 (June 11th)
Policy status:In Force
Jurisdiction:National
Date Effective:2013 (June 11th)
Policy Type:Economic Instruments, Economic Instruments>Fiscal/financial incentives, Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Regulatory Instruments>Obligation schemes , Regulatory Instruments>Other mandatory requirements
Policy Target:Multiple RE Sources, Multiple RE Sources>All
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
Agency:The Ministry of Energy of the Russian Federation
Description:

The Decree No. 449 established mechanism supports renewable electricity deployment through capacity markets. Selected renewable power projects receive capacity payments for a period of 15 years for maintaining readiness to generate electricity on demand. In the case when power plants will not be able to meet previously agreed availability requirements, their capacity remuneration levels will be reduced accordingly.

Auctions are being held on an annual basis to award these capacity remuneration contracts. For now, only wind, solar PV and small hydropower plants are eligible to participate and biomass is excluded from the support.

In order to be eligible to participate in the auctions, proposed projects must be equal to or exceed 5 MW; hydropower plants cannot be larger than 25 MW.

Contracts are awarded to projects with the lowest capital costs. Eligible proposals also have to comply with high local content requirements:

Minimum local content requirement

Year

Wind farms over 5 MW:

35%

2014

55%

2015

65%

2016-2020

Solar PV over 5 MW:

50%

2014 to 2015

70%

2016 -2020

Small hydro over 5 MW:

20%

2014 to 2015

45%

2016-2017

65%

2018-2020

Projects selected through the auction system are to sign “Agreements for the Supply of Capacity” where the price level of RES capacity and the duration of capacity supply are specified. As mentioned above, the price for the RES capacity can be lowered in cases when the plant is unable to provide agreed power capacity. 

The Decree No. 449 and the Art. 32 of the Federal Electricity Law guarantee priority purchase for the renewable power.

In order to control the increase of newly added renewable generation capacities, and thus the mechanism’s impact on electricity prices and the costs of the mechanism, the Resolution No. 861 of May 2013 has been adopted. The Resolution established yearly limits for new renewable generation capacity up to 2020 (expressed in MW):

 

2014

2015

2016

2017

2018

2019

2020

2014 - 2020

Wind

100

250

250

500

750

750

1 000

3600

Solar

120

140

200

250

270

270

270

1520

Small hydro

18

26

124

124

141

159

159

751

Total

238

416

574

874

1 161

1 179

1 429

5 871 

 

The first auctions were held in September 2013. The second round of auctions took place in June 2014.

Results of the renewable energy capacity tenders in Russia:

Tender round

Year held

Results announced

Renewable technology

Capacity open for bidders (MW)

Awarded capacity (MW)

Deadline by which projects must be commissioned

First

September 2013

October 2013

Total

-

504

End of 2017

Solar PV

700

339

Wind

1100

110

Second

Mai 2014

June 2014

Total

-

576.6

End of 2018

Solar PV

-

505

Wind

1160

51

Small Hydro

415

20.6

 

Related Documents:

In order to download full version of the Decree No. 449 on the Mechanism for the Promotion of Renewable Energy on the Wholesale Electricity and Market (in Russian only) please, click here.

Last modified: Thu, 23 Jul 2015 11:09:23 CEST