Russia plans to cut state funding for the green energy sector by 22percent, according to the Kommersant business daily.Thus, the government’s budget for its 2025-2035 renewables program will be cut from USD 5.4 billion to USD 4.3 billion.
Initially, the Economy Ministry had planned to cut funding for renewable energy by half while the Energy Ministry insisted on cutting it by one-third. Also, officials aim to keep rising electricity prices within inflation.
Renewables investors interviewed by Kommersant warned that the cuts could lead to shutdowns of facilities, leading to job losses and ultimately monopolizing Russia’s renewables market.
“Investing billions of dollars in the country’s economy for the sake of selling 25 percent of annual production on the local market is an inexplicable decision from an economic point of view,” mentioned a representative for the Association for the Development of Renewable Energy.
