if setting up business in remote area, then social licesning required

Gazprom (natural gas) - 4,6 billion

Lukoil (oil) 3 billion
ROSNEFT (oil) 2.9 billion
Rio Tinto
BHP Bhiliton
Social enterprising ??
Issue for disucssion
1 policy issue
2 power issue
3 power issue grounded from kremlin
Options for expansion
Opportunity1 - russia
opportunity2 - russia
Opportunity1 - australia
opportunity2 - autralia
Renewable Energy Commercialization Program (RECP) and Renewable Energy Support F
und (RESF)
vs australia
23.13 million

Russia
143.5 million
Russia is one of the world's richest countries in raw materials, many of which a
re significant inputs for an industrial economy. Russia accounts for around 20 p
ercent of the world's production of oil and natural gas and possesses large rese
rves of both fuels.
Australia has a very strong industrial and economic base; it is the 12th largest
national economy pe nominal GDP (CIA factbook) Australia has the major reliance
on its mining manufacturing and services sector for the economic infrastructure
. But, In recent years a great progress is seen in the field of energy sector in
australia, majorly in renewable energy sector, where civil society and govermen
t came in collaboration to promote renewable energy products in australia. this
essay is going to discuss these prospect of renewable energy sector in australia
. And how australian goverment putting efforts to encourage renewable energy bus
iness.
Russia has abundance of raw materials and natural resource deposits, and these f
actors leads russia to sustain a good industrial economy. Apart Apart from being
a huge land mass, Russia has plethora of natural resources, renewable and non-r
enewable one (reference).
Advancing renewable energy development is the effective
approach to address energy security and climate change
Russia has vast renewable energy resources. Because of its geographic size and t
he
variation in its climate and terrain, the type of renewable energy available var
ies
considerably
The national energy strategy, adopted by the Russian government in May 2003, sta
ted
the strategic goals of the development of renewable energy and local fuels (wood
and
peat):
reduce the use of non-renewable energy sources;
reduce the negative environmental impacts of the energy sector;
stabilise energy supply in decentralized regions and for isolated consumers;
reduce expenses on fuels that are transported over long distances.
The National Energy Strategy started in 2003 to develop and promotion of renewab
le energy and local fuel aims mainly at gradual decline in usuage of non-renewab
le energy resources; cut down transportation cost of fuels and provide stable ma
rket for renewable energy.
Also, to encourage renewable energy business several other renewable energy prog
ramme like Energy Efficient Economy and Renewable Energy in Northern Territories are
introduced with an investment of 1.2 billion Rub and 3.2 billion roubles ,respe
ctively.
The Federal Programme Energy Efficient Economy aims to allocate only 1.2 billion
roubles ($ 39.4 million at July 2003 rate) over the period 2003-2005 and 3.2 bil
lion
roubles ($ 105 million) in 2006-2010 from the Federal Budget for the implementat
ion
of the sub-programme Renewable Energy in Northern Territories. It stipulates that
the remaining funds necessary to achieve these targets i.e. 10 billion roubles (
$329
million) over the first phase and 42.5 billion roubles ($ 1.4 billion) over the
second
phase will come from the non-budget (private) sources.5
IFC helps expand access to renewable energy financing by making available financ
ial products needed by renewable energy developers and investors, such as long t
erm project financing
IFC provide assitance for renewable energy developers,investors and stakeholders
through financing long term renewable energy project; also one of the major key
initiative by IFC is to create awareness among local civil society and stakehol
ders towards renewable energy products, and how this emerging market can provide
brilliant market opportunities through usuage of environment friendly energies.
Russias 150 million people, in 89 separate regions,
have experienced enormous
While Russias per-capita energy consumption is roughly
equivalent to developed countries in Western Europe
and elsewhere with similar climates and industries,
the structure of Russias energy consumption is quite dierent from these countries
heat production and consumption
is much more important in Russia than in most
other industrial countries; heat represents 4045% of
nal energy consumption across all sectors, while twothirds
or more of total energy consumption in the residential
sector is for heat and hot water
Russia with a approx population of 150 million has 89 different regions, its per
capita consumption is similar to that of western european counterparts, the maj
or consumption of russian residential consumers is basically relies on heat and
hot water.
In most of Russia, wind speed is greater in winter or autumn,
except for the southern part of Central Siberia where maximum wind speeds occur
in
warmer months. The highest speeds over Yakutia and the Trans-Baykal Region are
observed in April-May.
Several attempts have been made to estimate the exact potential of wind energy i
n Russia,
beginning with the Wind Atlas published in the Soviet Union in the 1930s. More
recently, Bezrukikh et. al. have estimated gross wind potential at 26,000 millio
n tones
of coal equivalent
The highest mean wind speeds are found along the coasts of the Barents and Kara
seas,
the Bering Sea and the Sea of Okhots. Other areas with relatively high wind spee
d (5-
6 m/s) include the coasts of the East-Siberian, Chukchi and Laptev seas to the n
orth
and the Japan Sea to the east. Slightly lower wind speeds (3.5-5 m/s) are found
on the
coasts of the Black, Azov and Caspian seas
Wind energy potential varies over Russia. The Russian Wind Atlas7 shows that the
re
are numerous areas where the annual mean wind speed exceeds 6.0 metres per secon
d
Million Ton of Coal Equivalent (MTCE)
Solar radiation depends largely on latitude, i.e. it is strongest at the equator
and
diminishes towards the poles. Russia is located between 41 and 82 degrees north
latitude, and solar radiation levels vary considerably. According to Russian est
imates,
the average solar radiation in the remote northern areas is 810 kWh/m2 per year,
while in the southern regions it is more than 1400 kWh/m2 per year.13 Solar radi
ation
levels also exhibit great seasonal variations. For example, at latitude 55 degre
es solar
radiation is 1.69 kWh/m2 per day in January, and 11.41 kWh/m2 per day in July.
Russia has the second highest level of mean annual river runoff
The average runoff varies considerably across the country. Over the Northern Cau
casus
the runoff exceeds 2000 mm, in the North Urals, in the Altai and in the mountain
s
of Eastern Siberia it is close to 1000 mm. In the European part of Russia, the r
unoff
is considerably lower, ranging from 300 to 400 mm
According
to the World Commission on Dams, Russias hydropower potential is 2,900 billion kW
h
per year, of which 83% is from large and medium-sized rivers
Geothermal energy is energy derived from the natural heat of the earth. Geotherm
al
resources can be classified as low temperature (less than 90-100C), moderate
temperature (90-100C to 150C), and high temperature (greater than 150C). The
highest temperature resources are generally used for electric power generation.
crustal plate margins or at rifting locations
and are generally characterized by the presence of volcanoes, hot springs and ot
her
thermal phenomena.
Oleg Povarov estimates that geothermal energy could theoretically produce
16.9 billion kWh, or almost 2% of Russian electricity production
subsidies
Energy subsidies have played an important role in Russia's past as a way to make
energy affordable for industrial and residential consumers.
From an economic perspective, subsidies artificially reduce prices thus encourag
ing higher consumption and discouraging investment in new energy infrastructure
and efficiency measures
Russia approved an incentive program to boost renewable-energy production, targe
ting almost 6 gigawatts of new capacity by 2020 and its first solar parks.
Russias president Vladimir Putin ratified the subsidy program, which is intended
to wean the country off its reliance on fossil fuels
Rennewable Energy Subsidies always play an significant fucntion to promote the s
ector; Russian President Vladimir Putin has sanctioned a subsidy program to enco
urage renewable energy production, targetting to increase the production share o
f renewable energy from 0.8% to 2.5% and augmenting the production capacity to 6
Gigawatts by 2020
low taxes
More importantly, there exist tax incentives in russia to help grow renewable en
ergy sector, tax policies like Renewable Energy/Investment Tax Credit (ITC), Ren
ewable Energy/Production Tax Credit (PTC) and State tax credits are creating an
alluring base for small medium renewable energy busines to setup and flourish th
emselves.
low production cost
geothermal electricity generation economically very attractive. An initial 12-MW
geothermal plant under development in Kamchatka estimated an electricity produc
tion cost of only US 2 cents/kWh
Existing diesel fuel costs were approximately US 1520 cents/kWh, while the cost o
f biomass fuel was estimated to be only US 0.3 cents/kWh
Typical wind power production costs range from US 610 cents/kWh in the West, with
newer wind turbine technology reducing these costs to the neighborhood of US 45
cents/kW
industrial electricity prices in Russia ranged from an equivalent of less than U
S 1 cent/kWh in Irkutsk
Similarly, for hydro power the production cost accounts around 4-9 cents/kwh dep
ending upon the region in russia
Various energy sources like geothermal energy plant in kamchatka estd per unit c
ost is $2cents/ KWh; per unit production cost for wind energy (eg wind turbines)
is low as 4-5 cents/kwh to 6-10 cents/kwh depending upon the region and in some
areas like irkutsk it is low as 1 cent/kwh; Similarly, for hydro power the prod
uction cost accounts around 4-9 cents/kwh depending upon the region in russia.
low installation cost
low labour cost