Hostile whirlwinds blow on the blade – WWN No. 61 (7506) dated 04/08/2023

The Russian Association of the Wind Industry (RAWI) calls for the cancellation of the results of the selection of projects for the construction of new wind farms (WPPs) in the Russian Federation in 2025–2029, fearing that Chinese equipment manufacturers will enter the Russian market this way. The entire volume of the competition, we recall, took the joint venture “Fortuma” and the power supply company “Vostok” “Uralenergosbyt”. According to Kommersant, the Chinese Dongfang Electric may become Fortum’s technology partner in the construction of wind farms. The Russian Fortum, which does not recognize its participation in the last selection, confirmed that they are negotiating the localization of equipment for wind farms with Chinese companies, emphasizing that we are talking only about 1.65 GW of wind farms unfinished under previous obligations.

The Russian Association of the Wind Industry demands the cancellation of the results of the competition for the construction of wind power plants, which ended on the eve of the DPM, follows from the statement of its chairman and State Duma deputy Sergey Morozov. The entire wind quota – 17 wind farms with a capacity of 740 MW and a commissioning period of 2025-2029 – was taken by Uralenergosbyt at the selection, which had not previously been seen in the construction of wind farms in the Russian Federation (see “Kommersant” dated April 6).

The RAWI intends to appeal to the authorities “with a proposal to cancel the selection results due to their inconsistency with the current political moment and the industrial policy of the state,” the statement says. Mr. Morozov notes that Uralenergosbyt, which received the entire volume of the WPP quota, “is still the same Fortum together with the ESC Vostok.”

“Under the guise of these businessmen, Chinese manufacturers of wind turbines are entering the Russian market,” the deputy says. “There has only been a change in the technological donor.”

In the Ministry of Energy, Kommersant’s request was redirected to the FAS, they said that they had not yet received an appeal and would consider it if received. In the “Market Council” (energy market regulator), “Kommersant” did not answer.

In Finnish Fortum, the day before, they distanced themselves from belonging to Uralenergosbyt, recalling that the process of selling the Russian division is ongoing and the Finnish company will not make or approve any new investments in Russia. “PJSC Fortum independently made a decision on the admission of Uralenergosbyt to participate in the auction. This decision is contrary to the clear instructions of Fortum Corporation and is not approved by the parent company,” Fortum emphasized. Fortum stated that they did not take part in the tender and do not control Uralenergosbyt.

The victory of Fortum and its partner in the selection caused a mixed reaction in the market due to the fact that the generating company, having lost its main technological partner, the Danish Vestas, has already postponed the launch of about 750 MW of wind farms and refused to build another 460 MW of wind farms. After all the key foreign equipment manufacturers – Siemens Gamesa and Vestas – left the Russian Federation, it was assumed that the entire vacant niche would be occupied by the Rosatom structure Novawind.

According to Kommersant, Fortum has been negotiating a technology partnership with China’s Dongfang Electric Corp. over the past year. Kommersant’s interlocutors, who are aware of the progress of the negotiations, argue that this company will localize production in the Russian Federation.

Fortum has already used Dongfang turbines in the construction of its first wind farm in the Ulyanovsk region.

In Fortum, Kommersant was reminded that, based on the results of previous selections, the company still has obligations to build 1.65 GW of wind power. “In order to fulfill them, we are negotiating with various foreign, including Chinese, equipment manufacturers, who will have to localize their production in our country to the same extent as existing domestic players,” they said.

Kommersant’s interlocutors in the market are still cautious about the possibility of revising the selection results. They note that according to the results of the competition, applications with the most favorable parameters won, “therefore, there are no grounds for its cancellation.” Aleksey Zhikharev, director of the Association for the Development of Renewable Energy, urges avoiding harsh assessments and believes that the competitive selection took place in compliance with all the norms established by law, while “there is reason to believe that the winner made a balanced decision, understanding the level of responsibility.”

Tatyana Dyatel