October 24 (Solar) – Russia’s recent renewable power auctions have sparkled foreign investors’ interest in the sector but the country’s power market is still dominated by conventional energy sources, GlobalData said on Tuesday.
According to GlobalData’s latest Russian power market outlook to 2030, the country is still highly dependent on traditional power as those resources receive increased support by the government and their dominance is seen to continue in the future, as well. In the meantime, it started holding auctions for non-hydro renewable power back in 2013 and prices have been falling ever since, making them even more competitive than conventional energy sources.
“The Russian renewable power sector is thus becoming more cost-competitive and chances are that in the future, renewable electricity might be able to challenge gas-based electricity in the country,” said power analyst Chiradeep Chatterjee. He added that non-hydro renewables, wind and solar in particular, are set to experience the highest growth in 2018-2030 as compared to their conventional rivals but will account for just 3.9% of Russia’s total installed capacity in 2030, against 66% for thermal power. The share of hydropower in the same year is expected to be 19.3%, while for nuclear it is seen at 10.8%.
Under its 2030 energy strategy, Russia’s goal is to source almost 50% of its total power from hydropower and nuclear power. That is why the government has ceased maintaining a comprehensive policy for non-hydro renewables and relies on “on the cheap availability of conventional energy sources,” GlobalData said.