The Russian government plans to reduce funding for the country’s wind power sector next year onward. It is reported that the government will lower its funding support from RUB 133 billion to RUB 66.6 billion for wind projects between 2025 and and 2035.
The government’s proposal to cut the budget for wind power projects stems from a set of changes that will be introduced at the end of the year. The new rules are expected to come into effect next year, a local media reported.
In addition, the government is planning to ensure that all wind farm components are produced in the country. This will increase from the existing 65 percent localisation requirement, and hike fines for developers who will commission projects surpassing the stipulated deadlines. Last year, it was reported that the country had plans to inject EUR 5.65 billion in renewable energy.
It is reported that the country is also expected to change the way it awards wind power contracts in tenders from next year. It appears that investors would take their projects for tenders and they will bid for the lowest rate per unit of energy and receive revenue through Russia’s day-ahead market. The first round is anticipated to be held in 2021.
More recently, Anglo-Russian metal mining group Polymetal signed an agreement with Societe Generale for a green loan worth $125 million. This will be the first green loan in the country’s metals and mining industry under the green financing framework.