Russia’s New Capacity-based Renewable Energy Support Scheme : An Analysis of Decree No. 449
On 28 May, 2013, the Government of the Russian Federation adopted decree no. 449 on the mechanism for the promotion of renewable energy (RE) on the wholesale electricity and capacity market. Decree no. 449 integrates support for renewable energy so...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
Moscow
2017
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| Online Access: | http://documents.worldbank.org/curated/en/898211480317256904/Russia-s-new-capacity-based-renewable-energy-support-scheme-an-analysis-of-decree-no-449 http://hdl.handle.net/10986/25795 |
| Summary: | On 28 May, 2013, the Government of the
Russian Federation adopted decree no. 449 on the mechanism
for the promotion of renewable energy (RE) on the wholesale
electricity and capacity market. Decree no. 449 integrates
support for renewable energy sources for electricity (RES-E)
into the capacity market. This is a very different approach
to that applied in most of the existing support mechanisms
in other countries, where RES-E is promoted on the basis of
the electricity output (MWh) rather than the installed
capacity (MW or MW per month) of RE installations. Promoting
RES-E through the capacity market is a way for the Russian
authorities to overcome some of the legal and technical
challenges faced by previous support initiatives and,
importantly, to control the costs of RE. This approach fits
well with the specific regulatory architecture of the
Russian wholesale electricity market, which comprises both
an energy and capacity segment. This report introduces
Russia’s new capacity-based scheme and examines how the
Russian authorities have integrated the variability of RE
sources into the regulation of capacity supply. This
analysis will highlight the risk of legal uncertainty
affecting the business case for RE investors under the
capacity-based scheme. For more publications on IFC
Sustainability please visit www.ifc.org/sustainabilitypublications. |
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