Renewable Energy in Russia: System Analysis of Barriers

Abstract

Considering the current ecological situation in the modern world, the quality of life depends not so much on a stable energy supply as on an environmentally friendly way of producing and consuming energy, which has turned social and research attention to the opportunities of renewable energy systems (RES). In spite of the vital necessity of transitioning to environmentally friendly energy production, the implementation and development of renewable energy technologies face a range of barriers: socio-cultural, technological, economic, institutional and environmental. To overcome these barriers, the authors of this article use the systems approach to gain deeper understanding of RES interconnection and interdependence. They apply STEEP analysis for classification and qualitative analysis of RES development barriers in Russia. The article proposes the analytical methodology, which reveals system specifications of the national RES development barriers and predicts the chain reaction of overcoming particular barriers. Using this methodology, the authors identify the main socio-cultural roots of RES development barriers in Russia: state control of the development of the energy sector, the political stake in hydrocarbons and the lack of consistent policies on RES development. The authors’ suggested analysis methodology is appropriate for identifying the root problems in energy socio-economic systems and for effective decision-making process in the energy sector.

Demand-Supply Gap in Energy Use in BRICS Countries with Special Reference to India - Emerging Challenges and Policies

“…The study of Fu et al (2021) was to examine three key issues: (a) the impact of energy obtained from renewable sources on economic growth, (b) the impact of energy obtained from renewable sources on the emissions of CO 2 by the BRICS countries, and (c) the sensitivity of CO 2 emissions to economic growth and whether or not the EKC theory could be proven in the case of BRICS countries. Ljovkina et al (2021) pointed out that in spite of the necessity of transitioning to environmentally friendly Renewable Energy System (RES), the implementation and development of renewable energy technologies face some barriers: (a) socio-cultural, (b) technological, (c) economic, (d) institutional and (e) environmental. To overcome the barriers, the authors utilized the systems approach to gain a deeper understanding of RES interconnection and interdependence.…”

“…The findings of the present study recommended that policymakers should encourage the utilization of renewable energy by providing incentives in financial terms. Ljovkina et al (2021) pointed out that in spite of the necessity of transitioning to environmentally friendly Renewable Energy System (RES), the implementation and development of renewable energy technologies face some barriers: (a) socio-cultural, (b) technological, (c) economic, (d) institutional and (e) environmental. To overcome the barriers, the authors utilized the systems approach to gain a deeper understanding of RES interconnection and interdependence.…”

The Russian Federation's renewable energy development determinants: evidence from empirical research

“…Main RE development barriers in the Russian Federation: Socio-cultural barriers: The development of the energy sector is in the hands of the state. Corporate innovation activity is low and risk aversion is high. There is a lack of knowledge and interest in RE from all market players. A negative image of hydroelectric power plants exists. Technological barriers: There is a huge infrastructure requirement for installing RE resources. The installed energy capacity is excessive. The capacity of RE sources is low compared to traditional energy sources. There is a lack of a complete production cycle of wind generation and bioenergy in small and medium hydro production. There is lack of R&D on RE and lack of necessary professional skills. Economic barriers: The competitiveness in RE resources is low. Compared to typical energy generation, there are high investment expenses. There is a lack of price parity in the cost of RE. Heavy electricity debts exist. There are high financial and investment risks. Electricity generation from RE sources increases electricity prices for the customer. Institutional barriers: There are many legal gaps in the RE field. There is a lack of coherent policies on RE development. Government support for RE innovation is the lowest among wholesale energy market participants. There is a lack of effective networking institutions and forms of collaboration among the actors involved in the innovation procedure. Environmental barriers: The Russian Federation has different amounts of RE available in different regions. There is negative ecological impact of RE sources. There is alienation of an important region when establishing plants that generate electricity from RE sources. Significant damage to nature occurs from accidents that occur frequently in hydroelectric power plants (Ljovkina et al , 2021, p. 107). …”

“…Environmental barriers: The Russian Federation has different amounts of RE available in different regions. There is negative ecological impact of RE sources. There is alienation of an important region when establishing plants that generate electricity from RE sources. Significant damage to nature occurs from accidents that occur frequently in hydroelectric power plants (Ljovkina et al , 2021, p. 107). …”

International finance and economic institutions: Can Russian Ruble become the world’s leading currency?

“…In spite of all that, Russia has set on the path of modernizing its energy sector and reaching the low-carbon or even decarbonized economy as dictated by the world's leading trends (Rausser at al., 2018;Ljovkina et al, 2021). The institutional settings of the energy market design are changing slowly but gradually (Strielkowski et al, 2019).…”