Russian govt allows investors to delay new renewable energy capacity by two years

MOSCOW. Nov 1 (Interfax) - The Russian government has allowed investors in renewable energy projects to delay commissioning new capacity by two years.

The relevant government resolution was published on Friday evening.

A clause was added to the wholesale market rules, according to which an investor can postpone new capacity by two years with the approval of the relevant government commission. Commissioning of plants fueled by solid municipal waste can be postponed by three years. Capacity suppliers also have the opportunity to abandon projects.

Investors in the sector have 180 days after the resolution comes into effect to submit requests. They will be permitted to alter the date of commencement of capacity supply only once.

The Renewable Energy Development Association at the start of this year requested a deferral of obligations for 54 facilities with total installed capacity of 2,067 MW.

The reasons for this were the suspension of operations in Russia by foreign equipment manufacturers for the industry and halt in equipment supplies, as well as lack of capacity among local manufacturers to produce equipment "in the necessary volumes and within a short timeframe, taking into account the possible further increase in equipment volumes required for projects in the Far East."

Investors also cited difficulties raising loans and the deterioration of the financial and economic parameters of projects. In this regard, postponing by up to two years projects for which the capacity supply date has not yet passed was discussed.