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is that for investment in wind to make sense, you need a stable regulatory (or at least pricing) framework over a large-ish number of years (10 to 15, at least).

That kind of long term stability is hard to expect, in russia, and it is even harder in a context where most of the electricity is produced from gas which is sold to the generating companies at low domestic regulated prices, and is thus a lot cheaper than what wind can achieve. Furthermore, they are decent arguments to argue that energy should indeed remain at low regulated prices in Russia (it's a vital necessity, and it's probably the fairest way to ensure effective across-the-board support to the population - physical infrastructure is harder to corrupt than policy schemes).

So I'd be surprised to see wind take off in Russia in the foreseeaable future.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Fri Apr 11th, 2008 at 09:35:43 AM EST
Could the Stranded Wind initiative be a good venture for Russia tho ? That way they're not competing with low price gas.

Although we're not at peak gas yet, wouldn't it make more sense strategically for Russia to have more gas to export and use wind for domestic purposes ? I always remember a friend who was involved in the gas industry that the best thing to have done with N Sea gas was to leave it in the ground until prices improved its value. He felt the bonaqnza was somewhat wasted.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Fri Apr 11th, 2008 at 10:58:38 AM EST
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ammonia is also manufactured from natural gas...

As to your other point, the answer would be yes, but they should first of all improve the efficiency of their existing gas-fired power plants - bringing them to state-of-the-art thermal efficiency would save Russia tens of billions of cubic meters of gas each years (ie something worth $10-20 billion per year...)

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Fri Apr 11th, 2008 at 11:20:45 AM EST
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Either that or you need the state to get involved in the development.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
by Migeru (migeru at eurotrib dot com) on Thu Apr 24th, 2008 at 04:31:38 PM EST
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