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Press Release

NEDO, the Government of the Sakha Republic, and PJSC RusHydro Sign a Joint Declaration of Intent

-Aiming to Expand Use of Wind Power Generation Systems in the Russian Far East-
December 16,2016
New Energy and Industrial Technology Development Organization (NEDO)

On December 16, 2016, NEDO, the Government of the Sakha Republic, and PJSC RusHydro signed a joint declaration of intent (JDI) on cooperation in the field of renewable source development. The JDI aims to promote the expansion of wind power generation systems in the Russian Far East, where a number of communities use isolated grid areas, by disseminating the results of a demonstration project NEDO carried out in Kamchatka Krai. In addition, the parties agreed to cooperate with each other in order to determine the feasibility of a new demonstration project in the Sakha Republic, which has great potential for introducing wind power generation systems, through information exchange and other means.

  • photo;
    Demonstration project on wind power generation system in Kamchatka Krai, Russia

1. Overview

There are approximately 5,300 isolated grid areas*1 in the Russian Far East*2 and electric power largely depends on diesel power generation. This leads to high power generation costs due to the expense of transporting fuel. As a result, local governments with policy measures to maintain electricity prices that are comparable to those of other areas have a financial burden. Therefore, wind power generation systems have been attracting attention in the Russian Far East as a promising technology to reduce power generation costs. The potential for introducing new wind power generation system capacity in the region is estimated to reach up to 300 MW*3. However, it is necessary to develop wind power generation systems capable of withstanding extremely cold climates and establish technologies to stabilize the fluctuating output of a wind power generation system connected to an independent power grid.

On November 18, 2014, NEDO signed a memorandum of understanding (MOU) with OJSC RAO Energy Systems of East Vostoka, a wholly-owned subsidiary of PJSC RusHydro*4, and the Government of Kamchatka Krai. Under the MOU, NEDO entrusted its work related to the project to Komaihaltec Inc., Fuji Electric Co., Ltd., and Mitsui & Co., Ltd. A demonstration project on a wind power generation system consisting of three 300 kW wind turbines and a grid stabilization system was subsequently carried out in Ust-Kamchatsk. Based on the results of demonstrative operation conducted in Ust-Kamchatsk from January to October 2016, it was estimated that diesel consumption could be reduced by about 400 tons per year*5.

Like Kamchatka Krai, the Sakha Republic has many isolated and remote communities that use isolated grid areas. The Sakha Republic has considerable potential for the introduction of wind power generation systems but it is necessary to overcome technical challenges to expand use of such systems since its climate is colder than that of Kamchatka Krai.

Against this backdrop, Mr. Hiroshige Seko, Minister of Economy, Trade and Industry and Minister for Economic Cooperation with Russia, and Mr. Aleksandr Novak, Minister of Energy, agreed to promote the introduction of wind power generation at the first meeting of the Japan-Russia Energy Initiative Council held on November 3, 2016. Moreover, based on "cooperation of energy", as part of a cooperation plan with eight points discussed at the Japan-Russia Summit Meeting on December 15 to 16, 2016, a joint declaration of intent was concluded.

In the future, NEDO will promote the sharing of information obtained in its previous demonstration project in Kamchatka Krai and start necessary studies for implementing and expanding use of wind power generation systems in several areas of Kamchatka Krai. At the same time, NEDO will accelerate cooperation with the Sakha Republic government and PJSC RusHydro, such as exchanging information in order to identify and evaluate technical issues with a view to developing new demonstration projects.

2. Joint Declaration of Intent Signing Ceremony

On December 16, 2016, Mr. Kazuo Furukawa, Chairman of NEDO, His Excellency Yegor Borisov, Head of the Sakha Republic, and Mr. Nikolay Shulginov, CEO of PJSC RusHydro, signed the joint declaration of intent on cooperation in the field of renewable source development at the Japan-Russia Business Dialogue meeting in Tokyo.

【Glossary】

*1 Isolated grid areas
An electrical grid which is not connected to large transmission and grid systems.
Source: Report of Energy System Institute of Siberian Branch of the Russian Academy of Science (2011)
*2 Russian Far East
Part of the Far Eastern Federal District of Russia which covers Primorsky Krai, Khabarovsk Krai, Sakha Republic, Amur Oblast Sakhalin Oblast, Kamchatka Krai, Jewish Autonomous Oblast, Magadan Oblast, and Chukotka Autonomous Okrug.
*3 Estimated to reach up to 300 MW
Source: Report of Local Energy System Institute of Far Eastern Federal University
*4 PJSC RusHydro
One of Russia's largest and partly government-owned hydroelectric companies with 38.7 GW of installed electricity generation capacity.
*5 About 400 tons per year
Diesel fuel consumption saved in Ust-Kamchatsk due to the installation of a wind power generation system, which is equivalent to about 8%.

3. For more information, please contact:

NEDO International Affairs Department
Contact parsons: Kohmoto, Sakai, Yagyu Tel: +81-44-520-5190­