RES Support on the Retail Markets: Time to Intervene

The support mechanism of the renewable energy sources (RES) on the Wholesale Electricity Market of the Russian Federation was adopted in 2013. Since then, about 2,000 MWh of green generation projects has been selected in the RES tenders, 100 MWh has already been commissioned. There is still no development in the segment of retail generation, though formally RES support mechanism exists. It was represented in 2015. Until now, not a single project has been implemented on the retail market in accordance with the new rules, though he potential for the development of such projects is estimated at 3,000 MWh, with total investments of up to 8 billion US dollars.

In this study “RES support on the retail markets: time to intervene” VYGON Consulting experts have analyzed the adopted support mechanism and the reasons for its current inconsistency. We have identified the measures to optimize the system and assessed the economic effects on the tariff formation at the level of a particular region within the price zone of the wholesale market.


Partner, Power Sector Practice