Russian Association of the Wind Power Industry
(RAWI) has agreed with investment agency Invest in Russia
(RIA) to form a RUB-100-billion (USD 1.69bn/EUR 1.46bn) fund that will support the development of wind power projects.
The financing vehicle will have a lifespan of 15 years, which can be further extended, and a target return rate of 15%, RAWI said on its website on Monday. The independent organisation noted that entities involved in the establishment of investment funds in Russia benefit from a mechanism of state guarantees of return of funds.
According to the Russian Investment Agency, onshore wind farms are currently the most competitive power source thanks to a drop in certain capital costs from wind turbines and the cost of generated electricity. Still, most investors are not able to pay a high price in order to find land and prepare projects, RAWI noted.
According to RAWI's estimates, around 2,276 MW of wind farms will be installed in Russia between 2017 and 2022. Last month the country selected a total of 2,221 MW of projects, of which 1,651 MW wind farms, in its 2017 renewable energy auction.
(RUB 10 = USD 0.169/EUR 0.146)
Source: Renewables Now