Russia issued government tenders on Monday for contracts to build 1.9 gigawatts of renewable energy capacity by utilizing foreign direct investment to create thousands of jobs for the country's citizens, who are facing a multi-year recession.
"Russia has had a long history of leadership in the energy sector and now has the opportunity to extend that leadership into renewable energy," Adnan Amin, of the International Renewable Energy Agency, told Bloomberg. Developing green energy "can significantly contribute to the country's economic objectives such as economic growth and employment," he added.
Strict local-content rules passed in 2012 and 2014 for parts used in renewable energy initiatives have stifled the sector's growth in recent years. The proportion of Russian-made parts necessary for any wind turbine or solar panel plant to function in the country stands at 40 percent in 2017. In the coming years, that percentage will become more stringent.
The new tenders will open up investment to foreign parties willing to abide by the local content rules and develop Russia's renewable energy scene.
"You bid to build a project of a certain capacity in a given year," said Victoria Cuming of Bloomberg New Energy Finance. "This year it's for 2018 to 2021. It takes time to build manufacturing capacity so even with a 2021 project, you'd be hoping that someone makes a move into Russia very soon."
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Recently, Russia's state-owned nuclear power company, Rosatom Corp. said it would be reconfiguring some of its factories to make wind turbines via a partnership with Siemens, General Electric, or another leading manufacturer in the sector.
Russia's oil industry is currently cutting 300,000 barrels per day of production, according to a deal Moscow struck with members of the rival Organization of Petroleum Exporting Countries (OPEC). The reduction will continue until March 2018 due to an extension announced last week.
By Zainab Calcuttawala for Oilprice.com
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Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on… More
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