An economic evaluation of renewable energy development in Russia's Arctic region

Abstract

This study examines the anticipated socio-ecological and economic impacts of a mechanism to promote renewable energy development in Russia. The proposed mechanism supports the government's objective of increasing renewable energy share to 2.5 per cent of total energy production and consumption in the wholesale electricity and capacity market by 2030. A quantitative analysis of these effects within Russia's Arctic zone indicates an estimated impact valued at RUB 11.34 billion in 2030. The findings highlight the potential for renewable energy to contribute significantly to the sustainable development of regions with harsh environmental conditions, by reducing carbon emissions and diversifying energy sources. The study also underscores the importance of targeted policies and financial incentives for renewable energy development. The research provides important insights for stakeholders and policymakers aiming to balance economic growth with environmental sustainability. It also identifies specific policy recommendations for fostering a robust and sustainable renewable energy sector in Russia's Arctic Zone.