WSHPDR_2013_Final_Report-updated_version

As more and more rural residents got connected to the
main electricity grid, construction of small hydropower
plants stopped and many were shut down, mainly
because they could not compete with the low electricity
prices, due to, among other reasons, poor design and
the lack of skilled workers. In 2010, Russia had only
about 300 small hydropower plants left, with a capacity
of 1,300 MW, although the rising electricity prices make
their construction and operation more and more
attractive. 9 About the same amount of small
hydropower is realistically developable in the medium
term, exact figures are not available at the moment
(figure 2).
SHP installed
capacity
SHP potential
unknow n
1300 MW
0 500 1000 1500
Figure 2 Small hydropower capacities in Russian
Federation
Source: Enov 9
Russia accounts for about nine per cent of the world's
water resources so the availability of hydropower
resources in Russia ranked second highest in the world,
surpassing the United States, Brazil and Canada. To date,
the total theoretical hydropower potential is 2,900,000
GWh of annual electricity, but the country now only
utilizes 20 per cent of this potential. One of the barriers
to the developing hydropower is the remote locations of
potential sites and distance from the main electricity
consumers, which are concentrated in central and
eastern Siberia and the Far East. 5
Renewable energy policy
The Russian Government has published a decree called
‘On the Main Trends of National Energy Policy aimed at
Increasing the Energy Efficiency of Electric Power
Generation through the Use of Renewable Energy
Sources during the Period up to 2020’. Renewable
energy sources include small hydropower, wind, tidal,
geothermal and thermal power using biomass with an
aggregate installation of 25 GW until 2020. 10 The aim is
to increase the share in electricity generation from
renewable energy from 1-4.5 per cent in 2020 with
80 per cent of electricity stemming from small
hydropower. Including large hydro (above 25 MW) the
target is 19 – 20 per cent. 11 For this purpose, a Small
Hydropower Association was created with the approval
of the Ministry of Energy, uniting different institutions
and aiming for the involvement of Russian and foreign
investors as well as specialists. 9
Barriers to small hydropower development
The main obstacle to small hydropower development in
Russia is the lack of long-term financing for construction
projects, partly due to the long payback time, but also
because of the long process of land allocation and the
difficulty in obtaining approvals. 9 In addition, Russia
remains dependent on its traditional and still relatively
cheap energy sources (oil and gas) and incentives
schemes such as subsidies are scarce. 12
References
1. Central Intelligence Agency (2012). The World
Factbook. Available from
www.cia.gov/library/publications/the-world-factbook.
2. Kotlyako, V. (2002). Land Resources of Russia CD-
ROM with copyrights with International Institute for
Applied Systems Analysis in Austria and Russian
Academy of Sciences. Available from
http://webarchive.iiasa.ac.at/Research/FOR/russia_cd/c
lim_des.htm Accessed November 2012.
3. Russian Federation, Ministry of Energy (2012). Electric
Utilities – Structure and Organization (In Russian).
Available from
www.minenergo.gov.ru/activity/powerindustry/powers
ector/structure/ Accessed November 2012.
4. Russian Federation, Ministry of Energy (2012). Electric
Utilities – Main Indicators. Available from
www.minenergo.gov.ru/activity/powerindustry/basic_in
dicators/ Accessed November 2012.
5. Russian Federation, Ministry of Energy (2012). Main
types of Electricity Production in Russia (In Russian).
Available from
www.minenergo.gov.ru/activity/powerindustry/powers
ector/structure/manufacture_principal_views/ Accessed
November 2012.
6. Organisation of Economic Co-operation and
Development and International Energy Agency (2012).
Toward a More Efficient and Innovative Electricity
Sector in Russia Consultation Paper. International
Energy Series – Insights Series.
7. Export.gov (2012). Russia Electric Power Generation
and Transmission Equipment Overview. Available from
http://export.gov/trademissions/russiaenergy/eg_main
_045461.asp Accessed November 2012.
8. JSC RusHydro (2011). Annual Financial Report 2011.
Available from
www.eng.rushydro.ru/upload/iblock/67a/3.pdf.
9. Enov, B. (2010). Small Hydropower in Russia: Past,
Present and Future. Powertec, Issue 2. Available from
www.powertecrussia.com/PDF/Issue_02/6_ESHA_Small
_Hydropower_Russia.pdf.
10. Institute of Energy Strategy (2010). Energy Strategy
of Russia for the period up to 2030. Approved to the
public and business magazine Energy Policy.
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