Wind power capacity at 500 MW by 2030: Belarus on the path of creating more favorable conditions for attracting investments in wind energyJun 5, 2017
The UNDP-GEF project “Removing Barriers to Wind Power Development in Belarus” in cooperation with United Nations Development Project and the Ministry of Natural Resources and Environmental Protection of the Republic of Belarus produced a report on derisking renewable energy investment. The study defines principal risks and barriers to the sustainable development of wind power in Belarus and offers a set of governmental instruments to securing private investments in the sector.
"The development of wind energy in Belarus refers to, first of all, energy security and diversification of energy sources. Wind power breaks new ground in our country – instead of stand-alone wind turbines that have been in use, wind farms with new modern equipment are being built. Establishing a dialogue between the state and investors is the key to achieving optimal working conditions in this area to the benefit of all concerned," – said “Wind Energy in the Republic of Belarus" project manager Marina Belous.
The study "Derisking Renewable Energy Investment” is based on the innovative DREI methodology, which makes it possible to clearly define the contribution of various instruments to the renewable energy development by means of a structured and transparent analytical process. Fragmented quota system and volatile rates for wind energy, limited funding and lack of investment experience of wind energy projects are among the main obstacles to the sustainable development of the sector.
Based on the study outputs a set of government measures to reduce the risks of financing wind energy has been developed, the implementation of which will create significant financial savings when achieving the investment goal of introducing 500 MW of additional wind power capacity by 2030 in the Republic of Belarus. These measures include securing private investments, transparent planning of energy sector, development of a long-term national strategy for wind energy and others.
If implemented the proposed measures will reduce the levelized cost of wind energy from USD 12.6 per kWh to USD 9.2 per kWh, which almost corresponds to the cost of gas power generation (USD 9.1 For kW / h).
Results of the study have been unveiled on May 18, 2017 during a seminar on reducing the risks of wind power investments in Minsk, organized as part of the project. About 30 representatives of the Ministry of Natural Resources and Environmental Protection, the Ministry of Economy, the Ministry of Finance, the State Committee for Standardization, UNDP, as well as project’s international and local consultants took part in the discussion on the use of renewable energy sources.
The project “Removing Barriers to Wind Power Development in Belarus” supports Belarus in creating a sustainable investment vehicle to building wind farms. In 25 years of operation of the 25 MW wind turbines created under the project, greenhouse gas emissions will be reduced by 9 697 thousand tons of CO2 equivalent.
The project is funded by the Global Environment Facility and United Nations Development Programme. The project’s budget is USD 3 345 000.
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