WIND POWER IN RUSSIA:  OPPORTUNITIES, BARRIERS AND PROSPECTS

The article was written in the framework of the international project «Prospects of the wind energy market in Russia» under the leadership of the World Wind Energy Association. The project aims to improve the understanding of the opportunities and the existing barriers that characterize the wind energy sector. The focus of the study lies on the grid-connected regions of Russia, but the isolated regions are discussed as well. Recently, the wind power market in Russia has gained momentum for dynamic growth and in the summer of 2016 the results of the first competitive selection of 700 MW wind projects in the wholesale electricity market were announced, to be built over the next three years. According to the Government Decree no. 449, 3.6 GW of installed capacity will be installed by 2024. This study shows that there are a number of barriers in the wind energy market, which remain to be addressed: a general lack of investments and investors, a significant number of weaknesses in the regulatory framework, challenges with the grid connection. The retail market has been analyzed in particular with regard to the barriers in the remote and isolated regions of Russia. There is only a rather small number of wind power projects in this market, which is lacking in regulatory frameworks and in cost transparency, and has a poor infrastructure. The main findings are based on analysis of the data obtained in interviews with the key stakeholders of the Russian wind power sector. The study concludes with recommendations on how the identified barriers can be addressed. Creating a sizable market also includes the tasks of improving the existing standards, introducing a state territory planning program for wind energy projects and starting a massive-scale state participation in pilot projects in remote and isolated regions.