17 Feb 2022 15:58

Investors interested in renewable energy projects in Caucasus, but fear non-payment - expert

ROSTOV-ON-DON. Feb 17 (Interfax) - Investors are expressing interest to the regions of the North Caucasus in terms of implementation of renewable energy projects, but have certain concerns, head of the Russia Renewable Energy Development Association (RREDA) Alexey Zhikharev told reporters on Thursday.

"A number of investors have certain concerns about entering the region, including due to a certain non-payer status. It is a known fact that that non-payment in the North Caucasus is a problem in the energy market. But as far as the investors under the RES CDA program are concerned, there are payment guarantees here. I hope that in the near future the problem of lack of payment discipline will be resolved. The Energy Ministry and the Market Council are now implementing a lot of measures aimed at restructuring debts and setting straight the process of payment for electric power," Zhikharev said.

The regions of the North Caucasus are attractive for investors, he said, primarily due to their climatic characteristics, as in terms of renewable energy "the region is very rich in all resources: small hydropower plants, solar and wind."

The Rostov Region is showing positive results in terms of RES development, Zhikharev also added.

"As of 2021, [in the Rostov Region] you already have more than 5% [share of 'green energy' in the power balance] - 10 times more than in Russia [as a whole]. By 2025 this should be 10%. By 2025, Russia will have 1%, so [the region] will be 10 times ahead of indicators for Russia as a whole," the expert said.