Russia

Russia

Enel enters Russia but Fortum dominates auction

RUSSIA: The renewables arm of Italian energy firm Enel has secured contracts for 291MW of capacity in the country's tender, which saw a total of 1.65GW secured for delivery between 2018 and 2022.

Over 1.6GW of wind capacity was auctioned
Over 1.6GW of wind capacity was auctioned

Enel Green Power will make its first move in to the Russian wind market by developing two projects, a 90MW development in Rostov, southern Russia; and a 201MW site in the Mumank region in the north-west of the country.

The projects are expected to be online by 2020 and 2021 respectively.

The Italian firm expects to invest a total of €405 million in the projects. The power will be delivered on to Russia's wholesale market, and Enel will receive capacity payments.

"We see the outcome of this tender as the starting point of a sustainable wind industry in Russia, with benefits for the environment as well as for the full development of a renewable value chain in the country," said Enel Green Power CEO Antonio Cammisecra.

Enel does have some experience in Russia. It operates 9.5GW of thermal capacity in the country.

Finnish developer Fortum's joint venture with local energy group Rusnano was the biggest winners in the auction, securing contracts for 1GW of wind power.

The Fortum-Rusnano JV will deliver 26 projects between 2018 and 2022, securing between €115-€135/MWh in capacity payments.

In April, it was reported that up-to-1.4GW of the available capacity had been reserved for the developer.

JSC VetroSGC, the wind energy subsidiary of state nuclear firm Rosatom, has been awarded 360MW of capacity, across 15 sites.

In February 2017, Rosatom selected Dutch turbine manufacturer Lagerwey as a technology partner to set up turbine manufacturing plants in Russia.

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