The World Market of Electricity from Renewable Sources: Development Trends and their Manifestation in the Russian Economy

The presented study analyzes world trends in the global renewable energy market in the context of complex impact on the Russian economy and examines peculiarities in the development of the domestic market of renewable energy sources (RES) in Russia.

Aim. The study aims to explore the peculiarities of renewable energy development in Russia in the context of global trends.

Tasks. The authors identify trends in the development of the global renewable energy market, analyze the impact of the global RES market on the Russian economy, and examine peculiarities in the development of the domestic RES market in Russia.

Methods. This study analyzes the works of Russian and foreigns authors on renewable energy, statistical data of New Energy Outlook 2019 and the International Renewable Energy Agency (IRENA), and analytical insights of the head of RUSNANO A. Chubais, who is also the Chairman of the Russia Renewable Energy Development Association.

Results. The global trend of RES development is steady, which will inevitably cause a decline in revenues from hydrocarbon exports from Russia in the medium term. In Russia, there are fundamental preconditions that make hydrocarbon energy efficient in the longer term than in Europe. This makes trying to catch up with other countries impractical, given that Russia has a natural advantage. The electricity industry is inertial and therefore should be created by the time parity is achieved, otherwise the economy will overpay for electricity that could be cheaper. Technological advancement in the global RES market establishes a base of scientific and technological developments in this field, which can be used in the Russian market, or upgraded to be used more efficiently in the domestic market, or exported. Hevel Group is an example of a company that has successfully implemented this strategy. Further development of RES in the world creates global demand for high-tech products in the field of renewable energy, which gives Russia an opportunity to switch from commodities exports to high-tech exports.

Thus, industrial development in the RES sector would make a significant contribution to GDP by manufacturing high-tech products, leading to the creation of a cluster that would combine science and education and facilitating the development of related industries and implementation of projects that were previously considered impossible or inefficient.

Conclusions. Global development of renewable electricity not only poses medium-term threats to the Russian economy, such as declining revenues from hydrocarbon exports, but also raises the possibility of economic reorientation towards high-tech exports. Development of RES in the domestic market is advisable to ensure the creation of the necessary base in Russia by the time grid parity is achieved.

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