Memorandum Signed By The Republic Of Kalmykia And Vetroenergetika MC LLC

Vetroenergetika Management Company LLC (manages the Wind Development Investment Fund established by Fortum PJSC and RUSNANO JSC) and the Government of the Republic of Kalmykia signed a non-legally binding cooperation agreement that provides for construction of wind power plants with total capacity of up to 450 MW on the territory of the region in 2018-2021.

The document was signed by Alexey Orlov, the head of the Republic of Kalmykia, and Alexander Chuvaev, the CEO of Vetroenergetika Management Company LLC.

The agreement defines the general principles of cooperation between the parties on the development and implementation of projects for the wind farms construction in the region. Investments will be made on the basis of individual decisions.

“The Republic of Kalmykia has great environmental assets suited for using renewable energy sources, in particular, wind power. We are confident that on the back of active collaborative work with the Government of Kalmykia, one of the centers for the development of windpower-based generation would be able to emerge in the region,» – said Alexander Chuvaev, the CEO of Vetroenergetika Management Company LLC.

“For our region, developing our own energy industry is of paramount importance. I am convinced that our cooperation will grow, and soon, I hope, we will see the first fruits of it,” – said the republican leader, Alexey Orlov.

 “Kalmykia has become one of the pioneers in the wind power development in Russia, having established its own program for the emerging of a new kind of generation back in the 2000s. We welcome the efforts of the Kalmykian authorities to develop this promising industry in the region and expect these plans to be successfully implemented in close collaboration with the Wind Development Investment Fund,” – stated Alisher Kalanov, the Chairman of the Board of Directors of Vetroenergetika Management Company LLC.

Earlier, Vetroenergetika MC also signed a cooperation agreement with the Rostov Oblast in December 2017, where the company plans to build a wind farm with a total capacity of up to 600 MW by 2021. Vetroenergetika MC is currently conducting an active construction work on the first 50 MW wind park in Ulyanovsk, and the commissioning is scheduled for Q1 2019. Fortum has previously built a wind farm in the Ulyanovsk Oblast with an installed capacity of 35 MW. The power plant has become the first windpower-based generation facility in Russia, commercially working in the wholesale market for electricity and power (WMEP). Since January 2018, the windfarm in Ulyanovsk has been included in the national grid capacity market register.

The Wind Development Investment Fund was created on a parity basis by Fortum and RUSNANO. The Fund is managed by the Vetroenergetika Management Company, which belongs to the partners in equal shares. According to the results of competitive selection of investment projects for the construction of RES-based generation, the Fund has won the right to build almost 2 GW of wind power. Wind farms are to be commissioned in the period 2019–2023.