Initial government plans had indicated that it should be based on similar power support programs in the country, where standard capital and operating costs are considered, in order to calculate tariffs.
However, the government has concluded the costs for solar are too high. According to state estimates, the amount of standard capital costs for 1 kW of solar generation is 2,519, which is significantly higher than the typical capital costs associated with traditional sources of power generation. Operating costs are also said to be higher, with 1 MW reportedly costing 10,000 a month.
Furthermore, Russias government was intending to make RUB 160 billion (4 billion) in subsidies available until 2020. However, publication of these figures sparked sharp criticism from many Russian analysts.
Consequently, it has now said it is considering the introduction of a solar auction, in order to select projects, and is not expected to make more than RUB 50 billion available until 2020. The main goal of the system is to save on project implementation costs and a local content requirement is likely to be applied. The auction system is scheduled to be in place by Q2 2013.
According to state plans, by 2020 11.03 GW of renewable energy will be put into operation, of which 2 GW will account for solar power.
Edited by Becky Beetz.