Russia's Energy Ministry proposes increasing support for small hydro plants

SOCHI. Sept 25 (Interfax) - Russia might increase financial support for construction of small hydropower plants, Deputy Energy Minister Pavel Snikkars told reporters on the sidelines of the NP Market Council conference.

"Investors in hydro generation are currently showing weak interest in this program. For example, not a single bid was received in the last selection [of projects]. Therefore, in order to more fully use Russia's huge hydro potential we proposed to increase the total amount that is allocated for support of small HPP under capacity supply agreements for renewable energy sources by 30 billion rubles for the period of 2030-2035, which will make it possible to launch up to 82 MW of small HPP per year," Snikkars said.

The ministry has submitted a corresponding request to expand the support program to the government and the proposal is now going through the approval process, he said.

In June, the Energy Ministry announced plans to revise the renewable energy program as regards quotas and prices. Snikkars said at the time that there might be a "review of the maximum flat rate price and, possibly, an increase in the quota."

Russia's first program to support renewable energy generation concludes in 2024. The previously adopted second program (to 2035), like the first, operates through capacity supply agreements, which guarantee investors a return with payments from the energy market. There has not been any demand for small HPP under the second program, and the last tender for projects did not draw any bids.