News Release from Russian Association of Windpower Industry (RAWI)

Wind Industry Profile of

Russian Association of Windpower Industry (RAWI)

06/06/2018

RAWI: The first selection round of RES projects completed. Intrigue ahead.

Now then, the first selection round of renewable energy projects has been completed, and it has already demonstrated a high level of competition among bidders for the construction of wind farms.

In accordance with the rules for the selection of wind energy projects, the bidding period starts at 9:00 am (Moscow time) on May 29 and ends at 6:00 pm (Moscow time) on June 9, 2018. The selection is carried out in two stages: the first stage is in the period from 29 May to 4 June 2018, the second phase is from 5 to 9 June 2018.

At the second stage, the submission of updated bids is allowed for projects, bids for which were included in the list of bids following the results of the first stage, and only with respect to changing the value of the “planned capital costs” parameter (the new value can not exceed the previous one).

The list of the first stage bids for the wind energy projects selection was published on the NP Sovet Rynka website:

In 2019, 11 bids of a total capacity of 208.80 MW with a capital expenditure level of 130 927 RUR / kW of installed capacity were submitted;
In 2022, 23 bids of a total capacity of 627.20 MW and with a capital expenditure level of 130,665 RUR / kW of installed capacity were submitted;
In 2023, 43 bids of a total capacity of 1337.67 MW with a capital expenditure level of 130,400 to 130,404 RUR / kW of installed capacity were submitted.

As is evident, the total amount of bids submitted is 2213.67 MW, which is more than twice bigger than the established value of 829.94 MW (the planned power capacity required for selection, taking into account additional capacity calculated in accordance with the changes made to the Wholesale Market Rules by a decree of the Government of the Russian Federation Federation ? 432 from 11/04/2017, for years from 2019 to 2023). It is noteworthy, that for the years of commissioning, the following capacities were set: 2019 – 100 MW, 2021 – 229.94 MW, 2023 – 500 MW.

At the second stage of the selection, this means significant reduction of the capital costs by 1 kW of installed capacity of facilities is expected from the participants, which would stimulate rivalry at the competition and will eventually identify the winners.