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Assessing the effectiveness of renewable energy sector support mechanisms

Vol. 26, Iss. 6, JUNE 2020

Received: 7 May 2020

Received in revised form: 21 May 2020

Accepted: 4 June 2020

Available online: 29 June 2020

Subject Heading: INVESTING

JEL Classification: O14, O22, P18

Pages: 1392–1413

https://doi.org/10.24891/fc.26.6.1392

Ratner S.V. V.A. Trapeznikov Institute of Control Sciences of Russian Academy of Sciences (ICS RAS), Moscow, Russian Federation
lanarat@mail.ru

https://orcid.org/0000-0003-3485-5595

Subject. This article discusses the effectiveness of government programmes to support renewable energy and whether they should continue to be implemented.
Objectives. The article aims to conduct a comprehensive analysis of the changes in solar and wind power projects under the State support programme within the period from 2014 to 2019 and assess the effectiveness of the acting incentive mechanisms.
Methods. For the study, I used the Learning-by-Doing theory and Project Management principles and methods.
Results. The article proposes to consider the local content of the projects implemented as the key effectiveness indicator of the renewable energy support programme in Russia. For solar projects, this figure is currently significantly higher than the planned one, and it corresponds to the planned one for wind projects. In general, therefore, the programme can be considered effective.
Conclusions. Further improvements in renewable energy support mechanisms should take into account the need to drastically increase the pace of training in the full cycle of the renewable energy project, including the operation phase of generating equipment and the supply of electricity to the grid.

Keywords: renewable energy, government incentives, capacity market, risk management, learning curve

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