Development prospects for the Russian market of equipment and services to microgeneration under sanctions

Abstract

Subject. Due to the pressure of increased sanctions on Russia’s economy, the development of renewable energy depends heavily on internal and external solvent demand for photovoltaic panels and wind turbines. A significant share of demand can be provided by the development of microgeneration based on renewable energy sources in the residential and commercial sector. Objectives. The aim is to perform a comprehensive analysis of real and potential barriers to the development of the microgenerating equipment market on the basis of renewable energy sources, both on the demand side and on the supply side. Methods. We conducted the supply-side research by studying the official websites of Russian companies offering solutions for autonomous and backup power supply. Then we interviewed representatives of companies, using the "mystery shopper" method. The demand-side research was undertaken through telephone interviews with professionals and stakeholders related to the microgeneration market development. Results. We found that nowadays the main barriers to market development are high capital costs and a long payback period for microgeneration projects, as well as insufficient level of development of services for design and installation of microgenerating equipment. Conclusions. The proposed range of equipment for microgeneration is quite wide and is unlikely to be reduced due to new sanctions imposed by Western countries. The equipment is made either in Russia or in China. However, the quality of information about products and services provided by producer companies is insufficient to successfully promote microgeneration.