Institutional barriers to the development of small-scale power generation in Russia

Abstract

The energy strategy of Russia involves a transition to a diversified energy generation characterised by a structural diversity of plant types, as well as the use of small-scale energy technologies. The purpose of the study is to identify the barriers that hinder the implementation of small-scale power generation in the Russian Federation and justify the avenues for its development. Methodologically, the paper relies on the systems approach. Methods of content and logical structural analysis, in-depth interviews are applied. The empirical evidence comes from analytical reports, normative and legal documents, as well as results of surveys of 96 specialists in the field and heads of power plants and power engineering enterprises conducted during 2021– 2023. The findings indicate there are four groups of problems in the Russian energy system: technological backwardness; difficulties with integration of small-scale power generation facilities into the energy market; absence of state support mechanisms; surplus of power generation capacity. Accordingly, the paper provides recommendations for overcoming them, in particular, it is necessary to introduce mechanisms for the support of small-scale power engineering and integration with engineering and consultancy companies, as well as make use of energy service agreements; second, to introduce standards for connecting small-scale power generation facilities, develop guidelines for designing and commissioning them; third, to amend tax regulations and learn from successful foreign experience; fourth, to replace retired power generation equipment with new small-scale power generation facilities located closer to load centres. The theoretical significance of the research is linked with detailing the concept “small-scale power generation” as a segment of energy sector as well as its structure in relation to the Russian Federation, specifying classification characteristics of low-capacity power units. The findings are practically valuable for government authorities, power generation enterprises and equipment manufacturers due to the developed organisational and methodological guidelines.