Russia does not limit FDI in the renewable power generation: Expert

MOSCOW, May 22, 2020, Pan Pacific Agency. There are no restrictions on foreign direct investment (FDI) in the renewable power generation in Russia, although the most of the foreign partners preferred to pile into the wind generation market, Alexei Zhikharev, director at the Renewable Energy Development Association, said during a press conference in Russian news agency TASS.

“The larger half of the FDI comes into the wind power generation’s development. Among Russia’s partners there are: Siemens Gamesa Renewable Energy (a Spanish-based wind turbines manufacturer), Lagerwey (a Dutch wind turbines manufacturer), Vestas Wind Systems (a Danish wind turbines manufacturer). All of them are investing in the renewable energy sector together with Russian partners,” the expert said, answering Pan Pacific Agency’s question.

Meanwhile, the situation in the Russian solar renewable power market is “a bit different,” he admitted. The main manufacturer of solar energy equipment in Russia Hevel LLC is a Russian company. Solar Systems company, owns by Chinese shareholders, is the only one major foreign company invested in solar energy in Russia.

“We see no restrictions on the entry of new foreign investors into the Russian market. Perhaps the size of the market might confused they. Of course, we cannot boast of the market’s volumes. About 100 GW of generating capacities are going on stream annually in China, and only 300 MW are in Russia. Perhaps it could refrain a large foreign investor from entering the Russian project,” Alexei Zhikharev said.

Russian legislation does not require a foreign manufacturer to localize production if its renewable energy facilities constructed in the energy isolated areas. “It is possible to build generating capacities on the basis of foreign equipment there. There are such successfully examples in the Russian Far East: Kamai wind generators were used for the power generation in Tiksi and Ust-Kamchatsk. As far as I know, they works well,” the expert said.

Russian version of this article is available here.