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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.

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  • 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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