Russia plans to cut government funding for the green energy sector by nearly a quarter, or 22%, according to the business newspaper Kommersant reported Thursday.
The government’s budget for its 2025-2035 renewable energy program will be cut from 400 billion rubles ($ 5.4 billion) to 313 billion rubles ($ 4.3 billion), unnamed sources said Kommersant, citing a Meeting of Deputy Prime Ministers Alexander Novak and Yury Borisov on March 11th.
Originally, the Department of Commerce had planned to cut funding for renewable energy by half, while the Department of Energy insisted on cutting it by a third, Kommersant reported. Officials aim to keep rising electricity prices within the inflation rate.
The new renewable energy program would also reportedly oblige manufacturers to meet green energy export targets on pain of fines and increase production localization requirements.
Renewable energy investors interviewed by Kommersant warned that the cuts could lead to plant closures, which could lead to job losses and ultimately monopolize Russia’s renewable energy market.
A representative of the Association for the Development of Renewable Energies also criticized the new export targets.
“Investing billions in the country’s economy to sell 25% of annual production in the local market is an inexplicable decision from an economic point of view,” the representative told Kommersant.