Evaluation of the Development of the Renewable Energy Markets in Russia

The aim of this study is to systemize and present the quantitative and quality evaluation of the economic and non-economic effects of the implementation of the new mechanism of the support of renewable energy in Russia. It should allow meeting the middle-term goal of 2.5 % of renewables at the Russian wholesale electricity market by 2024. To achieve this aim, in the introduction part of the article, a detailed description of the new mechanism of the support of the renewable energy in Russia is presented. It is based on the payment for energy in the wholesale electricity market. The estimated aggregate positive effect resulting from this mechanism’s implementation was expected as follows: a) replacement of non-renewable fossil fuels to renewable energy, b) reduction of carbon dioxide emissions, c) the average prices reduction in the wholesale electricity market, d) reduction of the costs on environmental measures and health protection measures in traditional power generation, e) creating new jobs, f) reduction of fresh water used for cooling in traditional power generation, g) multiplicative effects from the development of renewable energy and etc. The resulting economic effect is estimated at 47.77 billion rubles per year by 2024. The authors relied on expert estimates, forecasts of the Ministry of Energy and the Ministry of Economic Development, the Russian Energy Agency, the International Energy Agency, the International Agency for Renewable Energy, the Renewable Energy Policy Network for the 21st Century, the experience of foreign countries, the data of Russian Federal State Statistics Service.