Mikhail Mishustin, the Chairman of the Government of the Russian Federation, signed an order on stimulating the further development of renewable energy.
The order approves financial parameters, i.e., limits on capital and operating expenditures, for the period after 2024 to perform competitive selections of investment projects aimed at constructing renewable energy generation facilities on electricity retail markets.
This refers to the competitive selections of renewable energy generation facilities to subsequently sell the electricity generated to grid companies.
This shall be done to compensate the grid companies' losses in power grid facilities (in the regulated amount of 5%). Tenders are held by the constitutent entities of the Russian Federation annually for a five-year period regarding the facilities generating solar, wind, and hydropower, as well as other generation types based on renewable resources.
Period until 2024 was set previously for the limits on capital and operating costs of renewable energy facilities, on the basis of which the payback of projects and electricity tariffs are calculated. Now these parameters shall be calculated for the period until 2035.
In addition, the order instructs the Ministry of Energy to annually monitor the dynamics of renewable energy development on both the electricity wholesale and retail markets, including microgeneration.
"Extending the mechanism for supporting renewable energy on retail markets will help attract investors to the implementation of renewable energy projects and, in the long term, ensure an increase in the share of low-carbon generation in the constituent entities of the Russian Federation. At the same time, monitoring the development of the renewable energy market will allow us to assess the efficiency of the existing measures to support the green electricity sector", said Alexander Novak, the Deputy Chairman of the Government.
Source: Government of the Russian Federation