The implementation of a functioningscheme for the support of electricity production fromrenewable energy sources (RES-E) in Russia has suffered fromconsiderable delays. This report aims to analyze the role ofregions as alternative drivers of RE policy in Russia. Inparticular, it examines how regions can stimulate thedevelopment of renewable energy sources in their electricitysystems by establishing RES-E tariffs. The analysis focuseson the possibility for regional authorities to requirenetwork companies to purchase RES-E at regulated prices tocompensate losses on their network. The implementation ofregional renewable energy support policies in response tolimited regulatory progress at federal government level isnot uncommon in federal states. The analysis focuses on thepossibility for regional authorities to require networkcompanies to purchase RES-E at regulated prices tocompensate losses on their network. The report is structuredas follows: section one gives introduction. Section twointroduces the division of powers for renewable energyregulation between the federal and regional levels ofgovernment. Section three reviews progress achieved so farwith the regulation of RE support at federal governmentlevel. Section four discusses the policy objectives that, inthe context of limited federal interest for RES-E, can driveregional clean energy policies. Section five analyzesfederal regulatory and political obstacles to the adoptionof regional RES-E tariffs in Russia, in particular RES-Etariffs for the electricity that network companies purchaseto compensate losses on their network. Section six makesrecommendations of ways to overcome the obstacles by makinguse of the broader regulatory powers under the FederalEnergy Efficiency Law. For more publications on IFCSustainability please visit www.ifc.org/sustainabilitypublications.
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