Page 124 - RusRPTFeb22

HPPs moderating from the record levels of 2020, driving HPP production (ex Boguchanskaya HPP) down 4.7% y/y (-4.3% y/y with Boguchanskaya HPP). At the same time, two HPPs set record high annual outputs: Sayano-Shushenskaya HPP (+10.4% y/y) and Zeiskaya HPP (+37.9% y/y). Fossil-fuel generation increased 1.5% y/y in 2021. These dynamics were driven by demand and the weather conditions. Heat sendout improved 2.6% y/y to 30,109thGCal. Supply volumes increased 2.1% y/y.
Enel Russia reported its 4Q21 and FY21 operating results yesterday, 3 February. ENRU's electricity generation was up 9.6% YoY to 5.7mn MWh in 4Q21, and the company’s electricity generation in FY21 was up 18% YoY to 22.6mn MWh. Electricity consumption across Russia was up 5.2% YoY to 297mn MWh during the quarter, and ENRU’s heat output was up 2.6% YoY to 1.3mn Gcal. The strong generation results, combined with higher electricity prices in the European part of Russia (+16.7% YoY), likely had a positive effect on the company’s 4Q21 revenue from electricity sales.
Russia plans to raise up to RUB600bn of investments in climate projects by 2024, according to Deputy Prime Minister Victoria Abramchenko including ‘green bonds’ in the amount of more than RUB400bn. There is a plan to create up to 15mn hectares of forest on agricultural land and up to 29% of the reserve forest area in climate projects. These activities will make it possible to increase the absorption capacity of Russian ecosystems by 10%. Russia is working on measures to adapt the economy to the challenges of the climate agenda and is to spend RUB10.9bn on this in the next three years (RUB4.5bn in 2022). By 2024, the system for monitoring greenhouse gases is to be created and 78 national climate standards are to be approved (five were already approved in 2021). This has to be approved and verified both inside the country and internationally, and would mean Russian carbon units could become internationally recognized. Russia is actively working on the climate agenda and related regulation. The country has already approved the law on emissions, green taxonomy, and the low-carbon strategy to 2050 (with a carbon neutrality goal by 2060). It also has the CO2 trading experiment in the Sakhalin region and is making progress on drawing up the regulations for green certificates. The increase in the absorption capacity of forests is one of the pillars of the long-term, low-carbon strategy, and so we expect more details on its implementation to appear. In our view, forestry projects, a reduction in methane emissions and waste management projects, as well as the decarbonisation of the power sector via renewables, are going to be the first options for decarbonising the Russian economy.
It was announced that the wind projects joint venture of Fortum and Rosnano would be terminated on Tuesday 18 Januaryv, and that Fortum and Gazprombank had created a JV in renewable energy, with all the assets (renewable projects with 1.256GW capacity) previously owned by the former JV to be taken over by the new JV. The 1.256GW includes the commissioned 529.2MW capacity in Rostov, Astrakhan and the Volgograd region, as well as
124 RUSSIA Country Report February 2022 www.intellinews.com