FAS: EXPANSION OF MECHANISMS FOR APPLICATION OF STORAGE DEVICES FOR ENERGY GENERATED BY RES WILL REDUCE ITS COST FOR CONSUMERS

It was stated by Vitaly Korolev, Deputy Head of FAS Russia, at the SPIEF-23

The speaker noted that by 2035, the share of renewable energy sources (RES) in the installed capacity in the Russian energy system could reach 6 %. In the structure of the cost of generation from RES, unlike coal and gas power plants, the costs of purchasing equipment and its modernization prevail. Therefore, with the development of technologies and the reduction of such costs, wind and solar generation will become more attractive to investors.

In the wholesale electricity market, a mechanism has been launched to stimulate investments in renewable energy generation by paying for the capacity of such facilities under relevant contracts (Capacity Supply Agreement). Since the beginning of such a support program, as of January 1, 2023, 186 facilities have been put into operation.

In 2022, FAS Russia approved a methodology for setting tariffs for electricity and capacity produced at generating facilities using renewable energy sources to compensate for losses in networks*. Due to the document, selected RES receive a fixed long-term tariff for the period of return on investment.

Deputy Head of FAS Russia noted that it is advisable to develop RES in regions where it may be economically profitable. For example, in technologically isolated territories, in the Far East or the Arctic zone, where the use of solar energy allows you to reduce the cost of electricity and save fuel resources of diesel power plants.

According to FAS Russia, for the development of RES, it is necessary to reduce the cost of capital expenditures for the production of a unit of generating equipment. In particular, it will be facilitated by the development of the production of Russian components and its localization. In addition, the expansion of mechanisms for implementation of storage devices for energy generated by RES will allow to reduce the cost of electricity for consumers.

Besides, green energy is able to compensate for the cost of electricity for general household needs by installing appropriate facilities in apartment buildings.

* Order of the FAS Russia No. 104/22 of 02/14/2022