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Renewable energy in Russia: markets, development and technology transfer

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  • Martinot, E.

Abstract

Five potential markets in Russia offer commercial opportunities for renewable energy that are nearly cost-competitive with conventional forms of energy--grid-connected electricity from wind power, electricity for villages and small settlements from hybrid wind-diesel and biomass, district heating for buildings from biomass, hot water for buildings from solar thermal, and electricity and heat from geothermal. Over the last several decades the Soviet Union conducted research and development on several forms of renewable energy. Technological infrastructure, scientific and technical knowledge, engineering and technical skills, and factories and equipment are all well developed assets. But the translation of these assets into commercial renewable energy technologies and markets is a problem because associated market-oriented skills and institutions are still lacking. Many barriers also exist, including lack of information and demonstration experience, lack of long-term commercial financing, a perceived climate of high investment risk, technology acceptance, some direct and indirect energy price subsidies (most energy prices have risen to "market" levels), utility monopolies and the absence of operational regulatory frameworks for independent power producers, and historical enterprise specialization. Market intermediation is very important for renewable-energy investments and technology transfer, providing the knowledge, information, skills, services, financing, and analysis that is necessary to overcome barriers. Joint ventures with foreign multinational corporations represent another important means for overcoming barriers, one that takes advantage of Russian technological capabilities. Four case studies illustrate the most prominent examples of renewable energy technology transfer with Russia, Ukraine, and the Baltic States during the period 1992-1996.

Suggested Citation

  • Martinot, E., 1999. "Renewable energy in Russia: markets, development and technology transfer," Renewable and Sustainable Energy Reviews, Elsevier, vol. 3(1), pages 49-75, March.
  • Handle: RePEc:eee:rensus:v:3:y:1999:i:1:p:49-75
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    1. Hurst, Christopher, 1990. "Establishing new markets for mature energy equipment in developing countries: Experience with windmills, hydro-powered mills and solar water heaters," World Development, Elsevier, vol. 18(4), pages 605-615, April.
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    1. Proskurina, Svetlana & Heinimö, Jussi & Mikkilä, Mirja & Vakkilainen, Esa, 2015. "The wood pellet business in Russia with the role of North-West Russian regions: Present trends and future challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 730-740.
    2. Zeng, Shihong & Liu, Yuchen & Liu, Chao & Nan, Xin, 2017. "A review of renewable energy investment in the BRICS countries: History, models, problems and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 860-872.
    3. Kapoor, Karan & Pandey, Krishan K. & Jain, A.K. & Nandan, Ashish, 2014. "Evolution of solar energy in India: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 475-487.
    4. Shrestha, Anil & Mustafa, Andy Ali & Htike, Myo Myo & You, Vithyea & Kakinaka, Makoto, 2022. "Evolution of energy mix in emerging countries: Modern renewable energy, traditional renewable energy, and non-renewable energy," Renewable Energy, Elsevier, vol. 199(C), pages 419-432.
    5. Patlitzianas, Konstantinos D. & Doukas, Haris & Psarras, John, 2006. "Enhancing renewable energy in the Arab States of the Gulf: Constraints & efforts," Energy Policy, Elsevier, vol. 34(18), pages 3719-3726, December.
    6. Yaqoot, Mohammed & Diwan, Parag & Kandpal, Tara C., 2016. "Review of barriers to the dissemination of decentralized renewable energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 477-490.
    7. Pettersson, Fredrik, 2007. "Carbon pricing and the diffusion of renewable power generation in Eastern Europe: A linear programming approach," Energy Policy, Elsevier, vol. 35(4), pages 2412-2425, April.
    8. Meiramkul Saiymova & Aliya Shakharova & Aliya Rakaeva & Madina Serikova & Aslan Tasmaganbetov & Yuliya Tyurina & Zhibek Bimagambetova, 2020. "Energy Security, Economics and Environment in the Eurasian Economic Union: Current and Future Scenarios," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 293-299.
    9. Pristupa, Alexey O. & Mol, Arthur P.J. & Oosterveer, Peter, 2010. "Stagnating liquid biofuel developments in Russia: Present status andfuture perspectives," Energy Policy, Elsevier, vol. 38(7), pages 3320-3328, July.
    10. Khoshrou, Abdolrahman & Dorsman, André B. & Pauwels, Eric J., 2019. "The evolution of electricity price on the German day-ahead market before and after the energy switch," Renewable Energy, Elsevier, vol. 134(C), pages 1-13.
    11. Darmani, Anna & Arvidsson, Niklas & Hidalgo, Antonio & Albors, Jose., 2014. "What drives the development of renewable energy technologies? Toward a typology for the systemic drivers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 834-847.
    12. Kang, Jin-Su & Kholod, Tetyana & Downing, Stephen, 2015. "Analysis of Russia's biofuel knowledge base: A comparison with Germany and China," Energy Policy, Elsevier, vol. 85(C), pages 182-193.
    13. Sarah Hafner & Olivia James & Aled Jones, 2019. "A Scoping Review of Barriers to Investment in Climate Change Solutions," Sustainability, MDPI, vol. 11(11), pages 1-19, June.
    14. Zhang, Huiming & Li, Lianshui & Cao, Jie & Zhao, Mengnan & Wu, Qing, 2011. "Comparison of renewable energy policy evolution among the BRICs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4904-4909.
    15. Cowan, Kelly R. & Daim, Tugrul U., 2011. "Review of technology acquisition and adoption research in the energy sector," Technology in Society, Elsevier, vol. 33(3), pages 183-199.
    16. 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.
    17. Vasileva, Evgeniia & Viljainen, Satu & Sulamaa, Pekka & Kuleshov, Dmitry, 2015. "RES support in Russia: Impact on capacity and electricity market prices," Renewable Energy, Elsevier, vol. 76(C), pages 82-90.
    18. 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.
    19. van Alphen, Klaas & Kunz, Huden S. & Hekkert, Marko P., 2008. "Policy measures to promote the widespread utilization of renewable energy technologies for electricity generation in the Maldives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(7), pages 1959-1973, September.

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