Competitiveness of Renewables in the Electric Power Industry of Russia (on the Example of the Activities of PJSC" Fortum")

The depletion of traditional energy sources and the negative impact of their use on the environment stimulate the development of technologies focused on the renewable energy sources (e.g. solar energy, wind power, biomass). As energy sources are perfect substitutes on the energy market, the cost of energy becomes the key factor of competitiveness. The developed RES sector in European countries is explained by the state support along with the permanently increasing cost of traditional fuel. For instance, in Germany and the UK, the cost of wind energy is almost the same as that of gas turbine generators. With the development of new technologies, RES become more attractive than fossil fuels in terms of costs. In Russia, the use of renewable energy is limited by large reserves of natural resources and by the lack of government support. As a result, energy generation using renewable resources is local and its share in total energy generation usually does not exceed 3%. But still renewable energy is becoming more competitive under developing technologies and increasing costs of fossil fuels even in Russia. This paper considers the experience of introducing technologies of alternative energy in Russia by the company Fortum and the prospects for the development of this sector in the energy market. Currently, PJSC Fortum manages three solar and one wind power stations in Russia. According to the results, one of the most likely scenarios for the development of the renewable energy market in the country includes the import of technology and operations of foreign players in the internal market.