Efficiency of Developing Renewable Energy Market in Russia

Abstract

The goal of this study is to systematize and provide a quantitative and qualitative assessment of potential positive economic and non-economic effects of the implementation of a new mechanism for supporting renewable energy in Russia. It should result in achieving the national medium-term objective to increase the share of renewable energy in the wholesale electricity and capacity market to 2.5 % by 2024. The introduction examines the mechanism for supporting the generators of renewable energy by capacity charge in the wholesale electricity and capacity market. It is assumed that the main positive effects from implementing this mechanism will be the replacement of hydrocarbon fuels burned for generating the electricity in traditional coal or gas power plants; improvement in the trade balance; multiplier effects from the development of RES in related industrial sectors, new value added and jobs in the sectors producing the generating and auxiliary equipment for generators; reduction of carbon dioxide emissions; decrease in average prices in the wholesale electricity market; reduction of expenditure on environmental activities and measures to protect the health in the territories with traditional power plants; additional scal charges. As a result, the quantification of these effects amounts to 47.77 billion rubles in 2024. The authors rely on the experience of foreign countries, expert estimates, forecasts by the Russian Ministry of Energy and the Ministry of Economic Development, research by the Russian Energy Agency, International Energy Agency, International Renewable Energy Agency, Community for Renewable Energy Policy in the 21st Century (REN21), statistics of Russian Federal State Statistics Service.