Media about RUSNANO

Expert: ‘Prices for Renewable Power Generation Catch Up with Prices for Conventional Sources’

15 June 2018

“Capital costs are falling below average in Europe,” says head of the New Energy research and information center Vladimir Sidorovich.

“The price for renewable power generation is catching up with the price for conventional sources due to a fall of capital costs that affect, foremost, the cost of an energy unit,” head of the New Energy research and information center Vladimir Sidorovich said to TASS on Thursday.

Joint-Stock Company Trading System Administrator has announced earlier selection results for renewable power generation projects scheduled for commissioning in 2019-2023. A choice had to be made between the wind farm investors and solar park investors. The Wind Energy Development Fund, established by RUSNANO and Fortum, has won the most amount of wind power generation.

“The prices for renewable power generation are catching up with the prices for conventional sources. Capital costs that affect, foremost, the cost of an energy unit, fell below the average costs in Europe even. Such a fall is caused by the exceptional project portfolio of the main tender winner, RUSNANO-Fortum Fund, and resulting economy of scale for the wind farm construction,” said V. Sidorovich.

Moreover, he said that Vestas, a Denmark-based technology partner of the Fund, was a global leading manufacturer of wind turbines with international localization expertise. The levelized cost of electricity (LCOE) after the tender fell to competitive, by international standards, rates.

“The ‘standard’ Capacity Utilization Factor that is used in Russia for wind energy facilities is 27%. Moreover, Russia has the greatest wind energy potential in the world. It has certain regions where a higher Capacity Utilization Factors can be used. Where the Capacity Utilization Factor of 35% is used in calculations, the LCOE will come near the costs of new Combined Cycle Gas Turbine plants, even despite the Russian domestic (subsidized) prices for natural gas”, said the expert.

V. Sidorovich believes that the further development of renewable energy sources in Russia requires the determination of clear objectives for 2030-2035.Today, the objectives for the renewable energy resources in Russia are quite limited compared to western countries. For instance, in 2017 nineteen countries already had the available wind energy capacity exceeding the Russian target capacity for 2024,said the expert.

Source: TASS, 14.06.2018