The Russian wholesale electricity and capacity market: opportunities for the future

16/08/2018

As part of the Russian electric power industry’s complex shift towards decentralised public regulation, Electricity Law No. 35-FZ, as a general concept, determined that economic relations in this sector are based on market mechanisms and competition. At the same time, the Law provides for concepts such as energy security, and uninterrupted and secure operation of the electric power sector. As a result, the Russian electricity and capacity market today is a complex structure that consists of both typical market elements and public regulation mechanisms. The purpose of this article is to provide general insight into how the Russian electricity and capacity market and its wholesale segment (the “Wholesale Market”) are being organised. The market’s main participants and their roles will be outlined, and a description will be given of the main methods of selling electricity and capacity on the Wholesale Market. A special focus will be placed on the sale of electricity produced using renewable energy sources.