Work

Could Russian Hydropower Projects Reach Economic Efficiency? Justification of Possible Scenarios

Year: 2024

Type: conference-paper

Abstract: Classical investment analysis shows that even in conditions of preferential pricing of capacity, Russian hydropower projects are not economically attractive for investors.The purpose of this work is to identify the conditions in the Russian energy market under which capital-intensive and expensive-tooperate hydropower projects are able to achieve economic feasibility.The objects are Russian small hydropower projects selected for the wholesale energy market as part of the first programme of state support for renewable energy.The author's approach to assessing the economic efficiency of these projects based on the calculation of basic investment indicators is proposed.This approach takes into account the industry-specific features of capacity pricing, as well as the author's tools for assessing the cost of risks specific to these energy facilities.As a result, 12 possible scenarios for the implementation of small hydropower projects in the national market taking into account changes in the volume and timing of government support, as well as the degree of influence of political and environmental risks are developed.Based on the results of the scenario assessment of the economic efficiency of these projects, recommendations for the development of a programme of state support for Russian hydropower are proposed.

Source: WIT transactions on ecology and the environment

DOI: 10.2495/sdp240091

Author: GALINA CHEBOTAREVA

Institution: Ural Federal University

Language: English

Topic: Renewable energy and sustainable power systems

Subfield: Renewable Energy, Sustainability and the Environment

Field: Energy

Domain: Physical Sciences

SDGs: Affordable and clean energy, Industry, innovation and infrastructure

Open Access status: bronze

Funder: Russian Science Foundation