Grigory Vygon moderated a key session “Developing Alternative and Local Energy Markets in the Russian Far East” at the 2nd Eastern Economic Forum 2016

Sep 3, 2016

Panelists included representatives of federal and regional authorities – first Deputy Minister of Energy of the Russian Federation Alexey Texler, Deputy Minister of Economic Development of the Russian Federation Nikolai Podguzov, first Deputy Chairman of the Government of the Republic of Sakha (Yakutia) Alexey Kolodeznikov, as well as General Director of RAO ES of East (RusHydro subsidiary) Sergey Tolstoguzov, General Director of Hevel LLC Igor Shakhray and foreign business representatives – Kazuo Furukawa (NEDO), Bernhard Jucker (ABB Ltd), Johan Vanderplaetse (Schneider Electric) and Alex de Valukhoff (Aggreko Eurasia).

Alexey Texler noted at his speech, that today electricity generation from Renewable Energy Sources (RES) is the fastest growing sector in the world, however renewables in Russia cannot be the priority energy source in terms of excess generation capacity in the Unified Energy System, thus the first order of business is implementing a program of domestic technological competence development. The Ministry of Energy plans to add 6 GW of installed capacity powered by RES by 2024 in the wholesale market zone. Around 200 renewable power plants to be introduced during the next 5-7 years.

Nikolai Podguzov outlined, that Far East as no other region fits the proliferation of alternative energy, since it has good economic background, in particular, the region has a huge territory (36% of the Russian Federation) with a population density of just 6% and considerably distant from electricity production sources, and therefore there is abundance of isolated power systems.

The most efficient type of RES for Yakutia is solar power by virtue of high insolation (260 days per year) and return on investment within 10 years for such projects. 14 solar plants have already been constructed in the region, with the largest one to be the Batagai, explained the regional representative Alexey Kolodeznikov.

According to Sergei Tolstoguzov, RES plants are most efficient and profitable in a distributed or local power generation, which corresponds to many Far East areas. Не pointed out, that setting up technological market, equipment supply and investment market is of high priority today. RAO ES of EAST under its program sets an ambitious target to bring about 150 MW of wind, solar and other renewable energy to the market.

Igor Shakhray, General Director of Hevel LLC has shared his experience on successful implementation of RES projects with full technological cycle – from R&D to building technological lines, solar panels and turnkey construction of power plants. He also noted that the entire electrically-powered equipment cluster has emerged in Russia, while international companies operating in this country started to face competition, especially against invertor equipment industry.

Johan Vanderplaetse expects the energy needs to increase by 50% in the next decade. Electricity production growth and GHG emissions reduction is the main global challenge, while the future of electric power is closely linked to new technology expansion and decentralization. In turn, the representative of Japanese company NEDO Furukawa emphasized the wind power to be the most efficient energy source for the Russian Far East due to suitable geographical conditions.

Power technologies for alternative and local power should be the major issue discussed within the Russian Energy Strategy, finalized Grigory Vygon. He stressed, that RES power would apparently get off on a sidetrack; nevertheless, technological focus should be on the agenda and highly debated given the global demand upturn and ready domestic companies solutions.


Managing Director