Federal Law No. 35-FZ of March 26, 2003 "On the Electric Power Industry" defines the types of renewable energy sources (RES) in Russia, as well as the key provisions of the Russian renewable energy development state management system. A system of regulatory support measures operates in order to incentivize investment in the development of the renewable energy sector in Russia, including tendering mechanisms to select and support investment projects on the wholesale electricity and capacity market (WECM) by capacity payments under Capacity Supply Agreements (CSA RES), and selections of investment projects on the retail electricity markets (REM) for further
priority sale of renewable energy in order to compensate grid losses of electric grid companies, as well as a mechanism for "balancing" electricity generation by microgeneration facilities and consumption of energy by residential and commercial consumers under 15 kW.
#GeneralRules #WECM #RetailMarket #Microgeneration

The Order defines the main directions of increasing the power sector energy efficiency based on the renewable energy sources for the period up to 2035 The main directions for renewable energy development contain targets for the renewable electricity production and consumption in the total balance of electricity production and consumption. The Government of the Russian Federation sets the target indicators for the share of renewable electricity in the country's energy balance at the level of 4.5 % by 2024 and up to 6% by 2035 Moreover, Russian Government sets an individual cost limit for each technology, which cannot be exceeded. Before 2020 inclusively, tenders for renewable
energy investment projects on the wholesale market were held based on the main criteria of minimizing capital costs for their implementation. From 2021, projects are selected based on the facility's efficiency indicator declared by the participants (i.e., a straight-line rate). This change in the project selection principles is intended to incentivize the most efficient projects in terms of the amount of electricity production.
#WECM #RetailMarket

Since 2013 on the wholesale electricity and capacity market, there is a mechanism for stimulating investments in renewable energy generation by paying for the capacities of such facilities. Investors are granted the right to enter into capacity supply agreement (CSA RES), which guarantees payments for installed capacity for 15 years in addition to the revenue from the sale of electricity at free prices on the day-ahead market, which provides for the return on invested capital with a rate of return of 12%. The right to enter into a CSA RES is given to the winners of the tenders for RES investment projects, which are held annually based on quotas approved by the Government of the Russian Federation.
The Government Decree defines the procedure for competitive selection of investment projects for the construction of renewable energy generation facilities, the procedure for selling capacity under CSA RES, the requirements for the renewable energy facilities operation on the wholesale market.
#GeneralRules #WECM

The Government Decree defines the mechanism for supporting renewable energy facilities on the wholesale market, the rules for the determining capacity price of renewable energy facilities. The CSA RES conclusion establishes the investor's obligation to build a power plant in accordance with the capacity and commissioning period specified in the application. Among other things, payment for capacity is calculated on the basis of capital expenditures for the construction of a generation facility, which were announced for the tender. The investor shall be penalized for a violation of capacity supply obligations (within the period prescribed by CSA RES) or a failure to comply with the requirements to achieve the minimum capacity factor. One of the key criteria for receiving full payment for capacity with an appropriate rate of return is reaching the target indicators of the production localization (local content requirements) for elements of the main and auxiliary equipment of a RES generation facility.
#WECM

The Decree of the Government establishes the criteria and procedure for qualification of renewable energy generation facilities, determines the procedure for establishing the compliance of renewable energy facilities with target indicators of the local content requirements in the Russian Federation.
One of the key criteria for receiving full payment for capacity with an appropriate rate of return is reaching the target indicators of the local content requirements for elements of the main and auxiliary equipment of a RES generation facility. For projects selected before 2020 inclusively, the maximum values for local content requirements by equipment types are established at the levels: wind power plants – 65%, solar power plants – 70%, small hydro power plants – 65%.
#WECM #RetailMarket

The Decree of the Government establishes the requirements for industrial products for the purpose of classifying them as products manufactured on the territory of the Russian Federation. Within the framework of Decree of the Government of the Russian Federation of June 3, 2008 No. 426, the contribution of equipment elements to the local content requirements for a renewable energy generating facility in the production of individual equipment elements (equipment assembly) is assessed by a certain number of points. Equipment requirements are given in the Annexes to this Decree.
#WECM

The Government Decree defines the Rules for maintaining a register for the issuance and redemption of certificates confirming the volume of electricity production at qualified renewable energy generating facilities, as well as for the provision and disclosure of information contained in this register.
#WECM #RetailMarket

The Decree of the Government determines the Rules for the technological functioning of the UES (Unified Energy System) of Russia and technologically isolated territorial electric power systems; the procedure and conditions for ensuring the parallel operation of electric power facilities and power receiving installations as part of the electric power system, general requirements for planning the power system development, planning and managing the operating modes of power systems, organizing and implementing operational dispatch and operational technological management in the electric power industry, etc.
#GeneralRules

The basis for the RES support mechanism in retail electricity markets is laid down in the Federal Law No. 35-FZ "On the Electric Power Industry", which provides the norm for mandatory priority purchase by grid companies of renewable electricity in order to compensate for their losses in electrical grids. The mechanism entered into force in 2015 with the adoption of this Decree that defined the main conditions and rules for the inclusion of RES generation facilities in regional prospective development programs and schemes (PDPS). In August 2020, the support mechanism for renewable energy projects in retail markets was upgraded by the Russian Government Resolution No. 1298 in order to further attract investors to the retail market segment, reduce the risks of RES projects in this market, and increase the transparency of the support mechanism. Uniform rules for the competitive selection of projects for the construction of RES generation have been established for all regions in accordance with the adopted amendments.
#RetailMarket

The Government Decree establishes the rules for the electricity (capacity) sale in the retail electricity markets: electricity (capacity) produced at qualified renewable energy generating facilities is sold by the producer of electricity (capacity) in the retail market at free unregulated prices, except for cases of sale electricity produced at qualified renewable energy generating facilities, to grid organizations in order to compensate for grid losses.
#GeneralRules #RetailMarket

According to the Government Decree, the system of regulated prices (tariffs) for electricity (capacity) in the retail markets includes: prices (tariffs) or marginal levels of prices (tariffs) for electricity (capacity) produced at qualified renewable energy generating facilities and purchased in order to compensate for grid losses. The executive authorities of the Russian Federation constituent entities in the field of state tariffs regulation establish, using the method of long-term indexation of the necessary gross revenue, long-term prices (tariffs) for electricity (capacity) produced at qualified renewable energy generating facilities.
#GeneralRules #RetailMarket

The Government Decree defines the rules for the development and approval of regional prospective development programs and schemes (PDPS), as well as the procedure for including in the PDPS renewable energy projects selected through competitive selection in the retail electricity markets. Based on the results of the competitive selection of projects for the construction of renewable energy generation facilities, projects with the lowest electricity prices in applications receive the right to include the renewable energy generating facility in the region's PDPS. Then the regulatory authority sets a tariff for such an object for the sale of electricity to the grid company.
#RetailMarket

The Order updated the Guidelines for calculating long-term prices (tariffs) and (or) marginal prices (tariffs) for electricity (capacity) produced at qualified renewable energy generating facilities and purchased in order to compensate for losses in electrical grids, as well as for calculating long-term prices (tariffs) for electricity produced at qualified renewable energy facilities operating in technologically isolated territorial electric power systems. Long-term prices (tariffs) in different cases are calculated by the method of long-term indexation of the required gross proceeds or by the method of economically justified expenses (costs).
Order of the Federal Antimonopoly Service of Russia dated September 30, 2015 No. 900/15, which previously regulated similar legal relations, becomes invalid.
#RetailMarket

The rules approved by this Decree determine the procedure and features of the technological connection to electric grids of power receivers of electricity consumers, facilities for the production of electrical energy, including microgeneration facilities operating on the RES basis. This Decree regulates the procedure for technological connection, determines the essential terms of the agreement on the implementation of technological connection to electric grids, establishes the requirements for the issuance of technical conditions, the procedure for verifying that the applicant and the grid organization fulfill the technical conditions, the criteria for the presence (absence) of the technical feasibility of technological connection, etc.
#Microgeneration

Another promising area for renewable energy development is the microgeneration support mechanism adopted in 2021, which provides electricity consumers with the opportunity to sell surplus electricity in the amount of no more than 15 kW to the common grid based on mutual offsetting or so-called balancing. The Government Decree regulates the rules and procedures for the operation of microgeneration facilities, their interaction with grid and power supply companies. The goal is to determine the features of the legal regulation of relations on the functioning of microgeneration facilities; development of the microgeneration market in Russia. This document defines the features of technological connection (TC) of microgeneration facilities, application content, the content of the technical specifications for the TC; forms of a standard TC contract, etc.
#Microgeneration

In this Decree, the Government approved the Energy Strategy of the Russian Federation for the period up to 2035. Technologies that have a special role in low-carbon development include hydrogen energy technologies. The document sets out the first goals and objectives for the development of production and consumption, the export of hydrogen from Russia and the entry of the Russian Federation into the ranks of world leaders in this industry. According to the Energy Strategy, hydrogen, which is used today mainly in the chemical and petrochemical industries, in the future is able to become a new universal energy carrier and form a "hydrogen economy".
#Hydrogen

This Decree defines a roadmap for the development of hydrogen energy in Russia until 2024, which provides a set of measures aimed at the successful implementation of projects in the field of hydrogen energy in Russia, support for R&D, as well as the improvement of legal regulation and government incentive mechanisms.
#Hydrogen

This Order approved the Concept for the Development of Hydrogen Energy in Russia. The goal is to unlock the national potential in the production, application and export of hydrogen, as well as Russia's entry into the leading countries in this industry. This document defines the goals and objectives of the development of a new industry at various planning horizons. Among the strategic initiatives of the Concept are: the launch of pilot projects for the production of low-carbon hydrogen, the creation of consortiums for the equipment and components production, as well as the formation of infrastructure for the storage and transportation of energy. In addition, the document notes the need to create hydrogen and industrial clusters, the development of renewable and other low-carbon energy sources for hydrogen production.
#Hydrogen

This Decree aims at ensuring by 2030 a reduction in greenhouse gas emissions of up to 70% compared to 1990 levels, taking into account the maximum possible absorbing capacity of forests and other ecosystems and the sustainable and balanced socio-economic development of the Russian Federation.
The task was also set to develop a Strategy for the socio-economic development of the Russian Federation with a low level of greenhouse gas emissions until 2050 and approve it; ensure the creation of conditions for the implementation of measures to reduce and prevent emissions of greenhouse gases, as well as to increase the absorption of such gases.
#ReducingEmissions

The federal law creates a fundamentally new mechanism for regulating the economy. This law is aimed at ensuring sustainable and balanced development of the Russian economy while reducing greenhouse gas (GHG) emissions and provides for the introduction of a phased model for regulating greenhouse gas emissions. For enterprises that are the largest emitters of GHG emissions, mandatory carbon reporting is introduced. The collection and compilation of this reporting will be carried out by the authorized government body. At the first stage, until 2024, large issuers (more than 150 thousand tons of carbon dioxide equivalent per year) are required to submit carbon reporting. Other organizations are entitled to submit carbon reporting on a voluntary basis. From 2024, enterprises with annual emissions of more than 50 thousand tons of carbon dioxide will have to submit reports.
#ReducingEmissions

This Government order defines the key directions of the Russian state policy for the development of investment activities and the attraction of extrabudgetary funds in projects related to a positive impact on the environment, the development of sustainable development areas. Priority goals related to positive environmental impacts include: maintaining, protecting or improving the state of the environment; reduction of emissions and discharges of pollutants and/or prevention of their impact on the environment; reducing greenhouse gas emissions; energy saving and increasing the efficiency of resource use.
#ReducingEmissions

The Decree determines the criteria for projects of sustainable and (or) green development in the Russian Federation, the requirements for the verification system for these projects. The approved criteria include the criteria for green projects (providing, in particular, the creation and modernization of facilities and infrastructure for renewable energy sources and low-carbon fuels, etc.), as well as the criteria for adaptation projects (including the construction, modernization or replacement of existing energy facilities aimed at improving energy and environmental efficiency, reducing emissions of greenhouse gases and (or) harmful substances, which reduces the negative impact on the environment, etc.). The goal is to develop investment activities and attract extra-budgetary funds to projects aimed at implementing the national development goals of the Russian Federation in the field of green financing and sustainable development.
#ReducingEmissions

This order defines the Strategy for the Social and Economic Development of the Russian Federation with a Low Level of Greenhouse Gas Emissions until 2050. The goal is to achieve carbon neutrality with sustainable economic growth; to meet the target of reducing cumulative net greenhouse gas emissions between 2021 and 2050, which will help sustain global average temperature increases. The strategy includes two scenarios - inertial and target (intensive). In the target scenario the key task is to ensure the competitiveness and sustainable economic growth of Russia in the context of the global energy transition. Under the target scenario, it will be possible to grow the economy while reducing greenhouse gas emissions. By 2050, net emissions will fall by 60% from the 2019 level and by 80% from the 1990 level. Further implementation of this scenario will allow Russia to achieve carbon neutrality by 2060.
This document is also one of the incentives for the development of hydrogen energy in Russia. To implement the target scenario of the Strategy, it is planned to create complexes for the production of low-carbon hydrogen, create an export sector to enter the international market, and increase the share of hydrogen in exported products.
#ReducingEmissions #Hydrogen

In accordance with this Federal Law, an experiment is being conducted on the territory of certain constituent entities of the Russian Federation, the purpose of which is to achieve carbon neutrality: on the territory of the Sakhalin Region - until December 31, 2025; in the territories of other subjects of the Russian Federation - within the time limits established by amending the Federal Law. Among the objectives of the experiment: stimulating the introduction of technologies to reduce greenhouse gas emissions and increase their absorption; formation of an independent verification system; creation of a system for the circulation of carbon units.
#ReducingEmissions

The Decree determines the procedure for verifying the results of the climate projects implementation for issuing carbon credits obtained as a result of their implementation. The basis for verification is the contract for verification concluded between the verification body and the executor of the climate project. If a positive conclusion is received, the climate project executor has the right to initiate the issuance of carbon units circulation.
#ReducingEmissions

The Decree defines that from September 1, 2022, the creation and maintenance of the register of carbon units in the Russian Federation will be carried out in accordance with the rules established by the Government. It is determined that the registry is an information system that registers climate projects and keeps records of carbon units and transactions with them.
#ReducingEmissions

The purpose of the Order is to determine the procedure for classifying projects as climate projects and the procedure for submitting a report on the implementation of a climate project. The subject of the procedure for classifying projects as climate projects (project validation) is information about a project. Project validation is carried out on the basis of an agreement concluded between the validation body and the project executor. After receiving a positive conclusion on the project validation, the climate project executor has the right to initiate the inclusion of climate project information in the register of carbon units.
#ReducingEmissions