Businesses showing interest in distributed generation in remote areas of the Far East

Within the 20th specialized exhibition “Energy of the Far East Region” in Khabarovsk, an expert session was held on the topic “Development of distributed generation in remote and isolated areas of the Far East and the Arctic.” The event was organized by the Russian Far East and Arctic Development Corporation (FEDC) together with the Association of Small-Scale Power Generation.

Within the 20th specialized exhibition “Energy of the Far East Region” in Khabarovsk, an expert session was held on the topic “Development of distributed generation in remote and isolated areas of the Far East and the Arctic.” The event was organized by the Russian Far East and Arctic Development Corporation (FEDC) together with the Association of Small-Scale Power Generation.

The event was opened by Deputy Chairman of the Government of the Khabarovsk Region Kerim Sungurov. According to him, the topic of developing distributed generation is especially important for the region, where there are 64 diesel power plants and more than 450 fuel oil and coal-fired boilers, and there is also a high need to provide energy to new industrial consumers far fr om the power grid infrastructure. The implementation of such projects lays a long-term foundation for the socio-economic development of remote areas, and attracting private investment for their implementation relieves the burden on the region’s budget.

Per the discussion moderator, the head of the FEDC’s energy and housing sector, Maksim Gubanov, the topic of developing local energy is a priority of the state energy policy and policy for the socio-economic development of the macro-region; it is of considerable interest to technology companies and investors in the field of energy, housing, and communal services and especially relevant in the current economic climate.

“Distributed generation in remote and isolated areas of the Far East and the Arctic has the greatest potential in terms of attracting private investment to energy and housing and communal services, which is why the FEDC is actively developing this area. In order to implement investment projects and constantly improve their efficiency, it is necessary to ensure a regular dialogue and exchange of experience between representatives of businesses and regional authorities, which is why we’re holding an expert session as part of a specialized energy forum in Khabarovsk, wh ere representatives of relevant departments of all subjects of the macro-region participate,” noted Maksim Gubanov.

The words of the co-organizer of the session and President of the Association of Small-Scale Power Generation Maksim Zagornov confirmed the significant interest of businesses in the field of distributed generation to projects in the Far East and the Arctic. He believes this is due to high tariffs for electricity and heat, while at the same time, government support measures are needed to unlock the industry’s investment potential.

“The association notes the need to implement regulatory measures aimed at removing administrative barriers and increasing the economic attractiveness of projects. These include the open placement of information about existing distributed generation facilities and the need to ensure new consumers, the availability of gas infrastructure and local fuels, ensuring guaranteed demand and payment for generated energy, tax incentives, and subsidizing interest rates in commercial banks. Together with the FEDC, we are actively working to promote measures at the federal level and are confident in the further dynamic development of the industry,” Maksim Zagornov said.

Deputy Prime Minister of Primorsky Region Yelena Parkhomenko reported on the state of distributed generation in remote areas of the region, noting it has significant potential to use various energy resources and is actively interacting with private investors who offer the most effective solutions. According to her, the replacement of inefficient diesel generation with hybrid energy complexes based on renewable energy sources and the use of LNG are priority areas.

Director of the Regional Center for the Development of Energy and Energy Saving Svetlana Filippova and Pavel Sultin, a representative of the Municipal Unitary Enterprise Housing and Public Utilities of the Bilibino Municipal District of the Chukotka Autonomous Okrug, spoke about ongoing and potential projects in other subjects of the Far Eastern Federal District.

Deputy Head of the Electricity Regulation Department of the Federal Antimonopoly Service of Russia Sergei Dudkin spoke about the current regulations and legislative initiatives to attract private investment in local energy modernization projects.

The session was attended by specialized investors in the area of distributed generation, who presented their technological solutions and shared their experience in implementing investment projects in the Far Eastern Federal District and other regions of Russia.

General Director of Arctic Power Capital LLC Vladimir Toshchenko spoke about projects for the modernization of diesel power plants based on solar energy, implemented in the Republic of Sakha (Yakutia). Via its subsidiary KER LLC, the company is building five facilities with a total capacity of more than 8 MW and an investment of more than 1 billion rubles based on an energy service agreement with Sakhaenergo JSC (RusHydro Group).

“We successfully launched our first facility in the village of Taballah as part of the Eastern Economic Forum in 2021. The autonomous hybrid energy complex includes a 400 kW-capacity solar power plant and a 600 kW-capacity diesel power plant, as well as 100 kWh-capacity energy storage systems. By the end of summer 2022, energy complexes will be built and put into operation in the settlements of Moma, Kulun-Elbut, Sasyr, and Tebyuli. Thanks to the state support mechanisms for private investment with the participation of the FEDC and the Ministry for the Development of the Russian Far East and Arctic, we plan to scale up our energy service experience in other regions of the Far Eastern Federal District. The Khabarovsk Region will be a priority,” stated Vladimir Toshchenko.

The speakers also included General Director of ENELT Group LLC Alexei Kremer, General Director of Generation LLC Alexander Kurchatov, representative of NP NAEVI in the Far Eastern Federal District Vladimir Rozhkov, Managing Partner of Fizika Tepla Group Felix Borisov, and Deputy General Director of Altren LLC Dmitry Stepanov.

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© Russian Far East and Arctic Development Corporation, 2024