The recently-unveiled RUSTEC project is set to change the face of the European wind energy market, but can Russia’s Arctic farm plan really plug Europe’s energy gap? We weigh-up the project – and consider the impact of giving Russia control of both traditional and renewable energy sources.
There is no renewable energy market in Russia yet. In a country where commodities such as gas, oil and coal are overly abundant and on which the national economy basically thrives, this is normal. Due to this situation, the federal government never gave a second thought to alternative energy, however, with the adoption of amendments to the electricity energy law in November 2007 the Russian federal government took the first step to fill this void. That first step is step is set to be RUSTECT.
A statement by the Dutch Ministry of Economic Affairs has revealed that Windlife Energy BV has realised the limitless potential Russia has for renewable energy and subsequently formed a consortium with among others Ecofys/Evelop, ING Bank NV, the EBRD and a regional energy generating company, TGK-1 from St Petersburg, in order to study the potential for wind energy developments in the country. As officials of the Kola Science Centre, close to Murmansk in north-western Russia, were also involved, the study was concentrated on that part of Russia.
Existing power supply in the Kola Peninsula at the present time mainly comes from generation of hydro-electricity (approx. 50%) and the other half from the existing nuclear power plant (Kola NPP) in the region. Some generation is from gas-fired plants, however these are mainly meant for heating. Current demand is basically in line with the generation. However it is foreseen that future increase in economic activity in the Arctic cannot be met by the existing capacity. Furthermore there is a limitless demand for energy to be used in boilerhouses (CHPs).
Looking at a wind atlas of the Russian Federation, it can be easily calculated that the potential for wind energy in Murmansk Oblast is enormous. Due to favourable climate conditions this is one of the best on-shore wind locations in Europe with average wind speeds of + 8,5 m/s. This already had been confirmed at the time by DEWI, a prestigious German wind engineering firm, through a report from 1996, which was commissioned under a grant by the European Union.
Next to very favourable wind conditions, the sheer seize of the country and its emptiness make it a prime opportunity for wind parks. With only approx. one million inhabitants and a surface of roughly four times The Netherlands, the “not in my backyard” objection is barely valid.
Surprisingly, infra-structure is excellent, this is due to existing small generation from hydro sources and extensive economic development in the Arctic region, especially around the city of Murmansk. The regional government of the Murmansk Oblast has been found to be very cooperative to the plan thus far. Within 12 months after commencements of the study three agreements (Protocols) with the regional government were signed. Next to a PPP agreement (Public Private Partnership), the consortium signed a Preliminary Building Permit agreement and an option agreement for a large parcel of land in the chosen location.
