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Press Release

Momentum Building Toward Full-Scale Introduction of Wind Power Generation Systems in the Russian Far East

― New Letter of Intent Signed at the Eastern Economic Forum ―
September  8,2017
New Energy and Industrial Technology Development Organization (NEDO)

NEDO has been carrying out demonstrations of wind power generation systems as part of an effort to promote their dissemination in Kamchatka Krai of the Russian Far East. In a ceremony held at the Eastern Economic Forum, NEDO’s Chairman witnessed the signing of two basic agreements on wind power generation systems to be installed by private companies. These agreements will pave the way for the full-scale introduction of wind power generation systems in the Russian Far East.

NEDO signed a letter of intent with the Government of the Sakha Republic of the Russian Federation and RusHydro on demonstrating energy management systems in the Russian city of Tiksi to encourage greater utilization of wind power generation systems.

Japanese and Russian companies can be expected to give these systems more detailed consideration as they prepare to quickly and fully introduce them. They will plan to conduct feasibility studies in accordance with the letter of intent so that the demonstration projects can get underway as soon as possible.

  • Photo of  Wind power generation system being demonstrated in Kamchatka Krai (Russian Federation)
    Fig. 1 Wind power generation system being demonstrated in Kamchatka Krai (Russian Federation)

1.Overview

The Russian Far East*1 has many isolated electrical power systems*2 reliant on diesel generators, and reducing energy costs has become a major issue. Wind power generation systems are a promising technology that will diversify energy sources and lower energy costs, but their output fluctuates depending on the weather.

On November 18, 2014, NEDO concluded a memorandum of understanding (MOU) with the Government of Kamchatka Krai of the Russian Federation as well as with RAO Energy Systems of the East (part of the RusHydro Group headed by the public limited company RusHydro*3). NEDO then selected Komaihaltec Inc., Fuji Electric Co., Ltd., and Mitsui & Co., Ltd., as project participants, and demonstrated a wind power generation system comprising three 300 kW wind power generators and a grid stabilization system in Ust-Kamchatsk in Kamchatka Krai. This demonstration was conducted from January to October 2016, with the wind power generation system achieving an estimated reduction in diesel fuel use in Ust-Kamchatsk of about 400 tons annually.*4 NEDO has been making efforts to disseminate information regarding these activities by organizing workshops to share the results and technical seminars for operators of wind power generation systems.

In light of the successful demonstration of this wind power generation system in Kamchatka Krai, NEDO has made it possible for Japanese companies, Russian regional governments, and RusHydro to reach new accords at the Eastern Economic Forum recently held in Vladivostok, Russia with the signing of two MOUs on undertaking efforts to introduce more wind power generation systems. NEDO has paved the way to full-scale introduction of wind power generation systems in the Russian Far East by realizing the signing of these two MOUs.

To make greater use of wind power generation systems in even colder areas surrounding Tiksi in the Sakha Republic, NEDO signed a letter of intent with the Sakha Republic and RusHydro on cooperating in a feasibility study aimed at establishing energy management technology.

With the relevant companies and local governments in both countries giving concrete consideration to introducing such systems, momentum is building toward full-scale introduction, and efforts will be made to promptly implement the demonstration project in Tiksi by sharing the basic system configuration and schedule for the demonstration project in accordance with the letter of intent. Once all of these projects have been implemented and the results of the Kamchatka Krai demonstration project analyzed, wind turbines with a generation capacity of more than 3 MW will be introduced in the Russian Far East, leading to an anticipated reduction in diesel fuel use of 1,300 tons or more annually.*5

2.Details of MOUs

(1)Efforts toward further introduction of wind power generation systems

NEDO's demonstration of a wind power generation system in Kamchatka Krai established cold-resistant wind power generator technology as well as grid stabilization technology for independent electric power systems. The successful results prompted Mitsui & Co., Ltd., Komaihaltec Inc., and RusHydro to sign two MOUs on introducing wind power generation systems in (i) Kamchatka Krai, and (ii) Chukotka Autonomous Okrug with their respective governments on September 7.

・MOU for the wind power expansion project in Ust-Kamchatsk
  • Mr. Yoshio Kometani, Chief Operating Officer, Infrastructure Projects Business Unit, Mitsui & Co., Ltd.
  • Mr. Susumu Tanaka, Managing Director, Komaihaltec Inc.
  • Mr. Vladimir Ilyukhin, Governor, Kamchatka Krai
  • Mr. Nikolay Shulginov, Chairman of the Management Board and General Director, RusHydro
・MOU for the wind power system project in Lavrentia in Chukotoka Autonomous Okrug
  • Mr. Yoshio Kometani, Chief Operating Officer, Infrastructure Projects Business Unit, Mitsui & Co., Ltd.
  • Mr. Susumu Tanaka, Managing Director, Komaihaltec Inc.
  • Mr. Roman Kopin, Governor, Chukotka Autonomous Okrug
  • Mr. Nikolay Shulginov, Chairman of the Management Board and General Director, RusHydro

(2)Letter of intent on demonstrating energy infrastructure, including wind power generation systems, in the Sakha Republic

The Sakha Republic is a particularly frigid region of the Russian Far East whose diesel generators are becoming increasingly antiquated, and its circumstances will inevitably hinder the stable supply of energy.

Introducing energy management systems that combine existing generating facilities with wind power generators, diesel power generators, and storage batteries when replacing the diesel generators, and demonstrating technology for grid stabilization and optimal energy control in a frigid climate will be of great help in resolving the issues confronting this region.

On December 16, 2016, in conjunction with a Japan-Russia summit meeting, NEDO signed a letter of intent to accelerate cooperation on information exchange in order to begin identifying and assessing technical issues, and to consider new demonstration projects in the Sakha Republic. Through subsequent information exchange, Mitsui & Co., Ltd., Takaoka Toko Co., Ltd., and Komaihaltec Inc., were selected on August 28, 2017, as the likely participants for this project’s feasibility study.

In addition, NEDO recently arrived at a common understanding with the Sakha Republic of the Russian Federation and RusHydro on conducting a feasibility study in Tiksi by sharing the basic system configuration and schedule for the demonstration project, and then signed a letter of intent on cooperation for the feasibility study on September 6.

Once the basic requirements for the demonstration project have been established through the feasibility study and an evaluation made by outside experts, NEDO will conclude a memorandum of cooperation with the Government of the Sakha Republic and RusHydro and start the demonstration project.

This project falls under one of the eight points discussed at the recent Japan-Russia summit meeting, cooperating in petroleum, gas, and other energy development and enhancing production capacity.

・Letter of Intent on Demonstrating Energy Infrastructure, Including Wind Power Generation Systems
  • Mr. Kazuo Furukawa, Chairman, NEDO
  • Mr. Yegor Borisov, Head, Sakha Republic
  • Mr. Nikolay Shulginov, Chairman of the Management Board and General Director, RusHydro

  • Figure of Envisioned demonstration of energy infrastructure, including wind power generation systems, in the Sakha Republic
    Fig. 2 Envisioned demonstration of energy infrastructure, including wind power generation systems, in the Sakha Republic
  • Figure of  Locations scheduled for introduction/demonstration of wind power generation systems
    Fig. 3 Locations scheduled for introduction/demonstration of wind power generation systems

3.Signing ceremony

At the Eastern Economic Forum held in Vladivostok, Russia on September 6, a signing ceremony took place for documents pertaining to wind power generation systems in the Russian Far East.

The ceremony began with the signing of a letter of intent on demonstrating energy infrastructure, including wind power generation systems. This was followed by the signing of two MOUs by Japanese companies and Russian officials, both witnessed by NEDO Chairman Furukawa and Executive Director Watanabe.

[Glossary]

*1 Russian Far East
The territory belonging to the Far Eastern Federal District, comprising Primorsky Krai, Khabarovsk Krai, Sakha Republic, Amur Oblast, Sakhalin Oblast, Kamchatka Krai, Jewish Autonomous Oblast, Magadan Oblast, and Chukotka Autonomous Okrug.
*2 Isolated electric power system
An independent electric power system is a system not connected to a large-scale power grid
*3 RusHydro
One of Russia's largest state-run power producers with a power generation capacity of 38.9 GW; the Government of the Russian Federation holds a 60.6% share in RusHydro
*4 About 400 tons annually
An approximate 8% reduction in diesel fuel use was achieved by employing a wind power generation system in the rural locality of Ust-Kamchatsk.
*5 1,300 tons or more annually
Estimated from the results of the demonstration project conducted in Kamchatka Krai

4.For more information, please contact:

NEDO Smart Community Department
Contacts: Kaneko, Akaiwa, Honma TEL:+81-44-520-5269­

NEDO International Affairs Department
Contacts: Sakai, Komoto, Yagyu TEL:+81-44-520-5190­