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Modeling the effects of the new Russian capacity mechanism on renewable energy investments

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  • Kozlova, Mariia
  • Collan, Mikael

Abstract

Russian renewable energy policy, introduced in May 2013, is a capacity mechanism-based approach to support wind, solar, and small hydro power development in Russia. This paper explores the effect of the new mechanism on the profitability of new renewable energy investments with a numerical example. The sensitivity of project profitability to selected factors is studied and the results are compared ceteris paribus to results from a generic feed-in premium case. Furthermore, the paper gives a complete and detailed presentation of the capacity price calculation procedure tied to the support mechanism.

Suggested Citation

  • Kozlova, Mariia & Collan, Mikael, 2016. "Modeling the effects of the new Russian capacity mechanism on renewable energy investments," Energy Policy, Elsevier, vol. 95(C), pages 350-360.
  • Handle: RePEc:eee:enepol:v:95:y:2016:i:c:p:350-360
    DOI: 10.1016/j.enpol.2016.05.014
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    References listed on IDEAS

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    Cited by:

    1. Evgeny Lisin & Galina Kurdiukova & Pavel Okley & Veronika Chernova, 2019. "Efficient Methods of Market Pricing in Power Industry within the Context of System Integration of Renewable Energy Sources," Energies, MDPI, Open Access Journal, vol. 12(17), pages 1-16, August.
    2. Tatiana Nevzorova, 2020. "Biogas Production in the Russian Federation: Current Status, Potential, and Barriers," Energies, MDPI, Open Access Journal, vol. 13(14), pages 1-21, July.
    3. Valeriy V. Iosifov & Evgenii Yu. Khrustalev & Sergey N. Larin & Oleg E. Khrustalev, 2020. "Strategic Planning of Regional Energy System Based on Life Cycle Assessment Methodology," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 62-68.
    4. Smeets, Niels, 2017. "Similar goals, divergent motives. The enabling and constraining factors of Russia's capacity-based renewable energy support scheme," Energy Policy, Elsevier, vol. 101(C), pages 138-149.
    5. Alexander N. Alekseev & Aleksei V. Bogoviz & Ludmila P. Goncharenko & Sergey A. Sybachin, 2019. "A Critical Review of Russia’s Energy Strategy in the Period until 2035," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 95-102.
    6. Kozlova, Mariia & Fleten, Stein-Erik & Hagspiel, Verena, 2019. "Investment timing and capacity choice under rate-of-return regulation for renewable energy support," Energy, Elsevier, vol. 174(C), pages 591-601.
    7. Lanshina, Tatiana A. & “Skip” Laitner, John A. & Potashnikov, Vladimir Y. & Barinova, Vera A., 2018. "The slow expansion of renewable energy in Russia: Competitiveness and regulation issues," Energy Policy, Elsevier, vol. 120(C), pages 600-609.
    8. Sharmina, Maria, 2017. "Low-carbon scenarios for Russia's energy system: A participative backcasting approach," Energy Policy, Elsevier, vol. 104(C), pages 303-315.
    9. Evgeny Lisin & Wadim Strielkowski & Veronika Chernova & Alena Fomina, 2018. "Assessment of the Territorial Energy Security in the Context of Energy Systems Integration," Energies, MDPI, Open Access Journal, vol. 11(12), pages 1-14, November.
    10. Kozlova, Mariia & Collan, Mikael, 2020. "Renewable energy investment attractiveness: Enabling multi-criteria cross-regional analysis from the investors’ perspective," Renewable Energy, Elsevier, vol. 150(C), pages 382-400.
    11. Boute, Anatole & Zhikharev, Alexey, 2019. "Vested interests as driver of the clean energy transition: Evidence from Russia's solar energy policy," Energy Policy, Elsevier, vol. 133(C).
    12. Mastropietro, Paolo & Rodilla, Pablo & Batlle, Carlos, 2019. "De-rating of wind and solar resources in capacity mechanisms: A review of international experiences," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 253-262.
    13. Svetlana Balashova & Svetlana Ratner & Konstantin Gomonov & Andrey Berezin, 2020. "Modeling Consumer and Industry Reaction to Renewable Support Schemes: Empirical Evidence from the USA and Applications for Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 158-167.

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