The struggle between investors in the production of components for wind farms in the Russian Federation has begun

The Ministry of Industry and Trade plans to announce a competition for the conclusion of a special investment contract, which will determine which companies will produce a “sovereign wind turbine” in the Russian Federation. The investor must produce blades, nacelles and hubs in the Russian Federation, and generators and control systems – at will. Market players criticize the proposal, considering it obligatory to manufacture all critical components in the Russian Federation, and also advise not to let investors with foreign roots enter the competition. Rosatom, Silmash with Chinese Harbin and Fortum with Chinese Dongfang can apply for a special investment contract.

The Ministry of Industry and Trade is preparing to announce a competition among investors for the conclusion of a special investment contract (SPIC 2.0) to launch the production of components for wind power plants (WPPs) in the Russian Federation. The Ministry proposes to include in the list of modern technologies for the competition for SPIC 2.0 the technology for the production of “sovereign high-capacity wind turbines (WPPs) and key components.” The power of wind turbines on gearless technology should be at least 4.5 MW, and geared – at least 5 MW. Several players can win the competition.

The Ministry of Industry and Trade published an application for the inclusion of a “sovereign wind turbine” in the list of modern technologies on gisp.gov.ru on June 23, and public discussions of the application ended on June 26, Kommersant sources say. Judging by the text of the application, investors applying for a SPIC are required to launch mass production of nacelles, blades and hubs in the Russian Federation. Localization of generators and control systems is optional.

But the requirements for the technical characteristics of wind turbines contain other information: all components, including generators, must be produced in the Russian Federation no later than three years after the signing of the SPIC. The investor must “use Russian wind turbine control software”. He must also be able to make design changes to the wind turbine. The Ministry of Industry and Trade did not respond to Kommersant’s request.

Three players can apply for the conclusion of SPIC 2.0. Fortum (controlled by the Finnish Fortum), which is under the control of the Federal Property Management Agency, is negotiating with the Chinese Dongfang Electric, and Aleksey Mordashov’s Power Machines is negotiating with the Chinese Harbin Electric. Novavind (part of Rosatom), which produces 2.5 MW generators in the Russian Federation, back in 2021 spoke about plans to produce a 4.5 MW machine under an agreement with the German Enercon. In “Fortum” and “Novavinda” they did not answer the questions of “Kommersant”.

Silmash says they are ready to launch independent production of wind turbines with a capacity of more than 5 MW with 100% ownership of intellectual property and full technology. In the application for the technology of “sovereign wind turbines”, according to Silmash, it is necessary to include the production of a generator in the Russian Federation, the use of only Russian software and the full possession of intellectual property by a company not affiliated with a foreign one. “Otherwise, Russia will again receive pseudo-production for a specific order under the renewable energy support program without further development of its own competencies,” they warned.

In 2022, the Danish Vestas left Russia: the company stopped supplying generators to Fortum and broke the SPIC by closing the production of blades in the Ulyanovsk region. Yulia Miroshnikova from Kept agrees that localization should first of all touch on the most complex and irreplaceable elements, which in the event of another embargo will be difficult to quickly produce on our own: “I would certainly add a generator and blades to this list.” She believes that in three years it is quite possible to launch the production of components for wind turbines “if there is serious state support, ready-made technology and a clear long-term program for the commissioning of wind farms.”

The Russian Wind Industry Association (RAWI) believes that it is necessary to establish special requirements for applicants for SPIC 2.0. The head of the RAWI, State Duma deputy Sergei Morozov believes that an investor should not be a legal entity in whose authorized capital foreigners participate.

Polina Smertina