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for more active participation from CHP projects have been discussed since late 2020 and could imply capex per kW becoming higher at further auctions, as well as deeper modernization.
That would be positive for gencos (for details, see our Russian Utilities Yearbook 2021 – EU BCA to drive investors out of Russian utilities, Fourth edition, of 25 February). At the same time, the approval has not been given yet, while gencos are currently preparing for the 2027 DPM2 auction and the 2027-29 auction with localised turbines (with all gencos under our coverage having expressed an interest).
In terms of renewables support, both the Ministry of Energy and the Ministry for Economic Development have stated the view that the support needs to be cut and the size of the programme is the only outstanding issue for the programme, with strict terms having been approved (Russian gencos – DPM renewables terms approved, of 10 March). Indeed, renewable capacity as a means of de-carbonisation continues to remain entirely off the agenda of the key decision-makers, with the focus on the development of equipment and export opportunities.
The government is to approve the inclusion of nuclear power plants into the ‘green’ certificates mechanism, Izvestia writes. According to the report by Deputy Prime Minister Victoria Abramchenko to President Vladimir Putin, climate issues and the move to carbon neutrality are to be the core focus in 2021. The key takeaways are as follows.
§ The government admits that nuclear energy is low carbon (and is to be included into the green certificates) and is to work on promoting nuclear energy as low carbon abroad.
§ It is also going to oppose foreign initiatives that enforce foreign regulations in Russia concerning artificial trade barriers and instead support the promotion of ‘green’ financing.
The Ministry for Economic Development is in charge of developing the directives to come up with a national position and defend the country’s economic interests. The ministry has said that declaring nuclear power to be low carbon means it will be possible to reach the national climate targets and also as implies that there is export potential (under the strategy, by 2030 Russia is to reduce GHG emissions to 70% of the 1990 level, implying NPP capacity is to increase 7%). According to the ministry, each country must be able to choose how it achieves the climate goals.
Thus, Russia has adopted a wide definition of low carbon energy (as was proposed by the Ministry of Energy) and is to include nuclear power into its certification mechanism, with the final legislation to be approved soon. As
147 RUSSIA Country Report April 2021 www.intellinews.com