Russia’s first renewable energy auction deemed a successOctober 8, 2013
Russia holds first ever renewable energy auction
Russia has completed its first ever renewable energy auction this week. The country has been a modest supported of clean power over the past several years, focusing the majority of its interests on oil and other fossil-fuels. Russia has been growing more concerned over the economic prospects of fossil-fuels, however, and has been working to bolster the support it shows for renewable energy. The recent auction is expected to increase the country’s solar and wind energy capacities significantly over the coming years.
New solar and wind projects to take root in Russia
Through the auction, Russia has approved a total of 504 megawatts worth of renewable energy projects. Approximately 399 megawatts comes from solar energy projects with another 110 megawatts coming from wind. Bother solar and wind energy systems only account for 0.8% of Russia’s energy supply and both forms of clean power have been targeted for support from the government. Russia has adopted fairly ambitious renewable energy goals in the hopes of cutting down on the emissions it is responsible for and mitigating the potential effects of climate change.
Projects promise low capital costs
The projects that received support from the Russian government offered the lowest capital costs. Renewable energy is often coupled with a high upfront investment, making it a difficult sell to governments that are already concerned with a turbulent global economy. Renewable energy projects that promise limited financial support are also expected to produce inexpensive electrical power. This makes such projects attractive to the government as well as those that will be consuming the energy these projects produce in the future.
Renewable energy may trigger transition away from fossil-fuels
Russia boasts of a total solar energy capacity of 3 megawatts, with wind energy capacity falling somewhat below that. The country does have a fairly impressive hydroelectric capacity, however. Hydroelectric systems account for 16% of Russia’s energy supply. With an increased focus on other forms of renewable energy, Russia is expected to begin transitioning away from fossil-fuels to some degree in the near future.