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LONDON, Nov. 18 /PRNewswire/ -- The potential of renewable energy in
Russia may become the answer to experts' warnings about future depletion of
country's energy resources. Currently, Russia is the world's largest gas
producer with rich oil and coal reserves as well as subsidised domestic gas
and electricity prices. However, the traditional oil and gas resource bases
of Volga-Urals and West Siberian regions approach depletion and could face a
rapid production decline. While initial steps have been taken for developing
the renewable energy sector, reaching its full potential will require a large
amount of investment, as well as government support.
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Different regions within Russia offer unique renewable energy resources.
The South-West region, Southern Siberia, and the Far East boast significant
solar energy potential, while the coastal areas in the north, low and middle
Volga regions and the Urals offer wind energy. Hydro energy potential is
mostly found in Central and Eastern Siberia and the Far East. Biomass is
linked to Siberia as well as the Far East. Finally, geothermal energy
prospects are promising in the Far East, Northern Caucasus and the Far East.
"If ranked based on the economic potential, geothermal energy would come
first accounting for about 40% of overall renewable energy potential, small
hydro is second reaching 24% and biomass accounts for 13%," notes Frost &
Sullivan's Research Manager Alina Bakhareva. "These three leading sources
account for nearly 80% of the total potential. Overall, the early nineties'
estimate of the renewable energy potential in Russia was in a range of 260-300
million tons of coal equivalent each year. This could be enough to supply as
much as a third of Russia's energy needs. This potential is largely
underutilized with less than 1% of "green" electricity and less than 5% of
"green" heat in total annual power and heat output."
As mentioned earlier, although Russia holds about 32% of the world's
proven natural gas reserves and about 12% of the proven oil reserves, the
traditional oil and gas production regions could face a rapid production
decline. Developing new resources is necessary for Russia and will soon become
an imperative. Green energy could well become a perfect alternative to
bringing new often remotely-located oil and gas fields into production.
However, there are some impediments to the green energy growth. First of
all, the sector hasn't had much support from the government so far and
favourable legislation is a paramount need for the sector to pick up. In
2003, Russia's Energy Policy only asked for 1% of electricity to be generated
by renewable energy sources by the year 2020. Furthermore, since the draft of
the Renewable Energy Law has not yet been ratified into law the renewable
energy sector is left unregulated.
Despite these set backs, RusHydro, a newly-formed hydro generation
company, is paving the way for renewable energy. Recently inheriting 49
hydropower stations with a total installed capacity of over 25 GW, RusHydro is
turning into the largest power generation company in Russia and, what's most
important for the green energy, RusHydro is driving renewable energy
development in Russia. The sector receiving the most investment so far is
small hydro, concentrated in vast territory of Siberia. RusHydro has created
a New Energy Fund whose major objective is to develop a National Programme for
Small Hydro Sector Development as well as implement projects.
The potential for Russian development of renewable energy is great and
becoming recognised. With more robust government support in terms of
renewable energy targets and Russian and foreign investors expected to
actively explore the hidden potential of green energy in Russia, the green
industry will be able to develop and to grow generating interesting
opportunities.
Frost & Sullivan has a dedicated team working on consulting projects and
research on the Russian and CIS markets. Our experts based in the region
evaluate industry opportunities and trends to gather an in-depth insight.
Their first-hand knowledge of the market is invaluable for those companies who
are interested in investing in Russia and in all other CIS countries.
If you are interested in receiving more information on the renewable
energy Market in Russia, in Europe and globally, and on our research in the
CIS region, then send an e-mail to Chiara Carella - Corporate Communications
at chiara.carella@frost.com with your full contact details. A complimentary
brochure will be sent to you by e-mail.
Frost & Sullivan, the Growth Partnership Company, partners with clients to
accelerate their growth. The company's TEAM Research, Growth Consulting and
Growth Team Membership(TM) empower clients to create a growth-focused culture
that generates, evaluates and implements effective growth strategies. Frost &
Sullivan employs over 45 years of experience in partnering with Global 1000
companies, emerging businesses and the investment community from more than 30
offices on six continents. For more information about Frost & Sullivan's
Growth Partnerships, visit http://www.frost.com.
Contact:
Chiara Carella
Corporate Communications - Europe
P: +44 (0) 20 7343 8314
M: +44 (0) 753 3017689
E: chiara.carella@frost.com
SOURCE Frost & Sullivan
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