Russia to launch tender for 6.7GW of renewable energy

Fixed-return investment guarantee through capacity payments will support wind project pipeline of up to 4.1GW, industry believes

by Nadia Weekes 17 August 2021

Through the tender, Russia aims to award contracts to 4.1GW of wind, 2.4GW of solar PV and 200MW of small hydropower projects (pic credit: RAWI)

The Russian government aims to tender nearly 7GW of renewable energy projects in the first competitive round in its second state support programme.

A two-stage call for applications is scheduled for the first half of September, to be followed by a review of the bids received. Total support will be RUB360 billion ($4.9 billion), targeted at an estimated 4.1GW of wind, 2.4GW of solar PV and 200MW of small hydropower projects.

“The support will make it possible to reduce the cost of sustainable energy generation [and] increase the equipment local content level,” the Russian Association of Wind Power Industry (RAWI) stated.

The Russian government revealed plans last October to change its support system from one based solely on capital cost to a contract for difference (CfD) type of support that also takes into account the operating costs of power generation. 

Introducing these changes “is expected to accelerate the decline in the cost of green energy and bring grid parity closer”, according to RAWI.

Under new rules introduced earlier this year, failure by wind farm operators to fulfil local-content and export requirements will lead to hefty fines. 

“This seriously raises barriers to market entry for new entrants and leads to market monopolisation, which in turn can have the opposite effect of alienating the prospects of grid parity,” RAWI has warned.