A fan is spinning
Green energy reducing prices
In 2016, the largest amount of investment in power generation means was directed to European wind power, that is 43bn EUR. This trend has been registered for the last few years. 2016 recorded the installation of 12,5 GW of wind power in Europe (a total of 50 GW globally), which boosted the wind capacity in 28 EU member states up to 153,7 GW (16,7% of overall European installed energy capacity).
Within 5 years wind has outperformed hydro, nuclear and coal power, ranking second after gas in Europe. Germany is still the leader for wind power development, having almost a third of all wind power installed capacities in the EU. It is followed by Spain, UK and France.
The sector features a high competition level, which furthers price reduction.
Wind power is the largest section of RES development programme in Russia. In a target gain in capacity as of 5,5 GW to be launched before 2024, wind power accounts for 60% (with solar and hydro covering the rest). However these volumes are quite small-scale if compared to Europe.
As far as the companies gain the experience in building the wind farms in Russia (for instance, the WPP as of 35MW will be commissioned in Ulyanovsk by the end of the year), they highlight the opportunity for cost reduction in case of legal framework adaptation РФ and requirements release.
The positive effect of net cost reduction can be also expected as a result of equipment localisation in Russia. For example, Vestas Wind Systems A/S intends to build a fan and wind unit facility in Ulyanovsk, with investment exceeding a billion RUB. Rosatom intends to increase wind unit localisation up to 80%.