No Joke: Sunny Russia Offers Green Investors Solar Subsidies
The world’s largest oil producer plans to develop its renewable energy sector – which currently produces just 0.8% of the country’s power – and has hosted its first clean power auction, with 39 ventures securing subsidies. Russia’s president Vladimir Putin ratified the subsidy program, which is intended to wean the country off its reliance on fossil fuels (sic).
Russia has offered its first ever state-backed support for renewable energy, offering subsidies for 39 clean power ventures with a combined capacity of 504 MW.
Solar power won the day, with 399 MW secured, while the wind power sector won just one-tenth of the 1,100 MW of wind capacity offered in the auction. By contrast, solar developers bid for nearly 1,000 MW, winning 32 projects to be built between 2014 and 2017.
“The tender has been quite successful for solar energy, showing that the Russian market can attract developers,” the head of the Russian Solar Industry Association, Anton Usachev, told Bloomberg. Because developers are required to use at least 50% of materials sourced from local contractors, the wind power sector may have been reluctant to invest, he believes.
Solar bidders, on the other hand, were evidently confident in their ability to satisfy local content requirements.
Russia’s president Vladimir Putin ratified the subsidy program, which is intended to wean the country off its reliance on fossil fuels.