RENEWABLE ENERGY IN RUSSIA. CURRENT STATE AND DEVELOPMENT TRENDS Vladimir Karghiev Senior Expert on renewable energies EU Russia Energy Dialogue Technology Centre Solar Energy Center Intersolarcenter Moscow, Russia Russia has not only extended resources of fossil fuels, but also huge resources of renewable energy (geothermal, solar, wind, ocean energy and biomass energy). Technical potential of renewable energy sources (RES) is about 4.6 billion t c.e.; this is 5 times more than current total energy consumption in the country. Economical potential is 270 million t c.e., which is 25% of annual internal consumption of energy in Russia. Despite huge RES potential its use is very insignificant. Share of RES (excluding large hydro) in electricity generation in the world is about 10%, but in Russia this share is less than 1%. Figures on RES power generation (excluding large hydro) and its capacities are presented in Table 1 1.The RES share in total power generation amounts to about 0.6% (including small hydro), whereas RES heat production totals 4% 2. Renewable electricity production in Russia, excluding large hydro, million kwh Type 2000 2001 2002 2003 Wind turbines 2.917 4.12 6.65 12.3 Geothermal stations 58,199 91,196 149.051 308.16 Small hydro 2301,171 2371,163 2412.989 2500 Biomass electric stations 1895,304 2226,895 2426.54 2600 Total: 4256,588 4693,374 4995.23 5420.48 Total electricity production in 876*10 3 888,4*10 3 892*10 3 914.5*10 3 Russia RES share, % 0,5 0,53 0.56 0.6 Table 1 Today we can single out the following areas where RES usage can already be considered economically viable. These fields are listed below in the order of their economic efficiency and availability 3 : 1 Bezrukikh, P. and others (2002). Resources and Efficiency of using RES in Russia. Nauka, Saint Petersburg 2 Besrukikh, P., Strebkov, D. (2005), Renewable Energy: strategy, resources, technologies: VIESH, Moscow. 3 Renewable energy sources potential in the Russian Federation and available technologies. Analytical Review prepared by EU Russia Energy Dialogue Technology Centre. Moscow, 2003
1) Small and micro hydropower plants construction of small and micro hydropower stations is possible in almost all mountain regions of Russia that have sufficient hydro energy resources. A number of companies operate in Russia, producing high quality equipment for small hydropower sector and constructing small hydropower plants. 2) Solar heating heating and hot water supply. Russia manufactures a number of different types of solar collectors. Manufactured collectors include models of plastic, steel, aluminum, and combined ones. Collectors may be used seasonally almost all over the Russia territory, whereas in the southern regions and in East Siberia and the Far East they may be used the whole year round. 3) Geothermal plants for heat supply of settlements in the Far East and North Caucasus. 4) Biomass energy generators at wood processing facilities by means of pyrolysis and gasification, including pellets production and firing. 5) Small wind power stations. There is a market for wind power stations (with capacities of up to several tens kw) in Russia. These stations may be used for supplying power to autonomous facilities that are not connected to district power grids. They also may be used in autonomous power systems and in mixed wind diesel or wind solar power generators. 6) Photovoltaic power plants for power supply of low power facilities and individual housing in the southern Russian and Eastern Siberia. The abovementioned technologies are ready for commercial application and do not require much state support. Other RES technologies such as large photovoltaic power plants, wind parks, geothermal power plants using low potential heat (including geothermal heat pumps), biomass processing technologies for producing biogas and biofuel require state support and economic incentives. Today Russia has competitive technologies, equipment and experience of its use, production capabilities, project and construction organizations that can meet ten times the current needs. The following equipment is manufactured in Russia: micro and small hydropower plants with units of 5 kw to 1 MW; photovoltaic cells and modules with efficiency up to 15 19%; solar collector for heating and hot water supply systems (few manufacturers, no mass production); geothermal plants and equipment;
wind turbines with capacities from tens watts up to hundred kw for stand alone applications. The market determines the volumes, types and range of capacities of produced renewable energy equipment. Currently, renewables are mostly used only for power very small (up to 1 kw) or remote objects. Bigger renewable energy projects exist (several wind farms, biomass heat and power stations, geothermal plants), but they are rather exception to the rule. Taking into account the current situation in the RES sector, without specific programmes for its development in Russia no significant increase in RES use can be expected. Development of renewable energy is declared in the Energy Strategy of RF (2003), however, in spite of foreseen introducing of up to 1000 MW of electrical and 1200 MW of heat generating renewable energy capacities, their share in energy balance in 2020 will not exceed 2 3%. This is definitely not sufficient for achieving sustainability goals. Taking into account the development of renewables in last several years, even these modest targets will not be reached if existing development trends will be preserved. Although there are several policy documents in place already Energy Strategy, Ecological Doctrine, Concept of Sustainable development, Concept of National Security, Kyoto Protocol commitments etc. their influence on movement towards cleaner and more sustainable economy is not sufficient. Experience of countries where renewables are rapidly developing, shows that for notable increase of renewable energy share in energy balance the supporting legislation framework has to be in place. This is especially the case for Russia where prices for fossil fuels are significantly lower than the world average ones. In Russia there were several attempts to introduce such framework. In 1999 Renewable Energy Law was approved by State Duma (parliament), but President Eltsyn put veto on it. Currently, the new concept of the RE Law is being elaborated by RAO UES (state owned electricity generation and distribution monopolist). It is expected that the new RE law will be discussed in 2006 at the State Duma sessions. Among proposed measures in this new concept of the RE Law are 4 : 1. Setting of long term national targets for use of renewable sources of energy 2. Setting a 15% share of the total budget funds allocated for the development of national fuel end energy sector for renewables. This share can be distributed on tender base (possible way) 4 Sinyugin, V., Kopylov, E. (2005). Elaboration of renewable energy law for Russia: second attempt. Renewable Energy Bulletin. Intersolarcenter, issue October, 2005.
3 Conservation of tariffs after reaching the amount of fossil fuel saved (if renewables will replace fossil fuels) 4. Setting of tariffs which will ensure minimum rate of investments return at the level of 20% 5. Sharing the cost of a grid connection with a grid company within economically feasible limits6. Accelerated amortization for the RE equipment 7. Connection of small renewable energy installations to the grid used for covering of part of energy consumption of an object on basis of net metering (i.e. energy provided to the grid will be subtracted from an energy bill) 8. Introduction of the certification system to verify a renewable source of energy generated and consumed. If these measures (definitely not comprehensive) will be in place, one can expect break through in renewable energy development in Russia. Next stage could be introducing measures for renewable energy heat and for biofuels (both for power generation and for transport). Though there is no legislative framework for renewables in place yet, work on elaboration of system which will prove that energy was produced from renewable energy source, is started. Work on investigation of possibilities for setting Renewable Energy Certificate (REC) system in Russia was started 2 years ago. Currently this is international project funded by European Commission, and organizations involved are: European Biomass Industry Association, ETA Florence, Berica Impianti Energia, (Italy), WIP KG (Germany), Intersolarcenter, VIEN, Informelectro, Sowena, Solar energy Institute (Russia). Renewable energy certificates can be used as guarantees of origin for the energy produced by RES stations. This system will be demanded if quotas or obligations for renewable energy generation or consumption will be introduced in Russia. Together with fixed price mechanism (proposed by point 4 in list of measures to be included into Federal RE Law above), renewable certification can be effective tool for support of renewables in Russia. Cheap fossil fuels and electricity is, from one side, good for economy of country located in severe Northern conditions, but from another side, this is keeping back the development of new sustainable technologies in renewable energy and energy efficiency. There is still no understanding at highest levels that to achieve sustainable development it is not enough to ensure increasing extraction and exports of fossil fuels. There is no enough attention and support to renewable energy and energy efficiency at state level. Instead, existing Energy Strategy sets targets to increase use of nuclear energy. Public awareness about possibilities and prospect of new clean technologies is also low. Renewable energy is not considered as real alternative to fossil fuels and nuclear energy. The possibilities of new clean energy technologies for increasing of employment levels and creation of new jobs are not known by public.
At the same time, latest developments in EU, which is highly dependable on energy imports, shows, that share of renewable energy can be increased significantly in short period of time, if appropriate supporting policy is in place. Energy efficiency has even bigger potential in Russia, because currently economy of Russia is very much energy intensive. The hope still exists that Russia will make breakthrough in development of clean energy technologies before the fossil fuels reserves will be devastated. Though generation of electricity from nuclear energy is backed by military industry and is important part in energy mix of Russia, in long term perspective it is not the way to meet rapidly increasing demands in energy. Policy makers in Russia have to understand the importance of renewable energy and act now to set conditions for development of new clean technologies both R&D and application of them.