Fossil fuels continue to dominate Russia's energy markets despite growing interest in renewable energy sources from foreign investors, a new study found.

A report from data and analytics firm GlobalData indicates that the availability of natural gas, uranium for nuclear power, and hydropower, combined with government policies that favors those energy sources, will preserve their dominant place in the country's energy future. Nuclear and hydropower are expected to make up nearly half of total electricity generation by 2030, according to Chiradeep Chatterjee, a power analyst for GlobalData.

Non-hydro renewables are expected to make up only 3.9% of total installed capacity in Russia in 2030, compared to 66% coming from thermal power. While Russian energy policies continue to hold back renewable energy's full potential, GlobalData reported that bid prices for renewable energy projects are becoming more competitive with conventional energy resources.

"The Russian renewable power sector is thus becoming more cost-competitive and chances are that in the future, renewable electricity might be able to challenge gas-based electricity in the country," Chatterjee said.

Eastern Europe, meanwhile, is expected to see major growth in onshore wind. According to research from Wood Mackenzie Power & Renewables, the region will see a compound annual growth rate of 9% in wind installations between 2018 and 2027, adding 16,000 MW of new capacity over the next decade. The implementation of auction schemes in Russia, Poland and Ukraine will drive the expansion, said Sohaib Malik, a market analyst for Wood Mackenzie.

South Africa's state-run utility Eskom Holdings SOC Ltd. moved one step closer to improving renewable energy's integration with its power grid as it released its framework for its highly anticipated solar-plus-storage program.

According to the plan, Eskom will implement the first phase of the project in December 2019 in four of South Africa's provinces, installing 800 MWh of distributed battery storage near Eskom's existing renewable energy plants to better connect clean energy to the grid. The second phase, consisting of 640 MWh of distributed storage with 60 MW of distributed photovoltaic, will be implemented in all nine provinces by December 2021.

"Should the technology prove successful, there is a potential of scaling up similar technology to allow increased capacity in energy storage from future wind and solar powered projects," the report said. "This, in turn, will lead to increased access to energy in other geographical areas of South Africa. Electricity storage can also be used to help integrate more renewable energy into the electricity grid."

Some 63% of South Africa's electricity comes from coal generation, according to Eskom. Coal consumption has increased 23% since 1992, as total electricity demand across the country has grown. Eskom expects 75% of the country's coal plants will shut down by 2040, and the government does not want to rely on hydropower or nuclear for low-carbon energy, making it critical to better integrate non-hydro renewable energy sources.

Australia said it will provide 50% of the funding for the country's biggest trial to produce hydrogen using solar and wind energy.

The A$15 million project from pipeline company Jemena is a 500-kW electrolyser, a device that will use solar and wind power to split water into hydrogen and oxygen. The hydrogen would be routed to the local gas network.

"As Australia transitions to renewable energy, hydrogen could play an important role as energy storage and also has the effect of decarbonizing the gas network with 'green' gas," said Darren Miller, CEO of the Australian Renewable Energy Agency, which is providing the funding on behalf of the Australian government.

The experimental project follows the country's recent decision to not revise Australia's renewable energy target after 2020 and to scrap its National Energy Guarantee, an initiative that aimed to reduce emissions by 26% by 2030.

"Owing to policy uncertainty and a lack of clarity on the future direction of the national energy sector some large international players are looking to exit the Australian renewable market," said Arkapal Sil, a power analyst for GlobalData.

Elsewhere

* Three offshore wind projects in the United Kingdom with a combined capacity of nearly 3,200 MW are closer to going online in the early 2020s after securing financing in the nation's most recent clean energy tender.

* Pakistan's National Electric Power Regulatory Authority will review two solar PV projects with a combined capacity of 100 MW, according to pv magazine.

* The Gulf Cooperation Council Interconnection Agency is considering an electricity link with Ethiopia to import hydropower, Climate Home News reports.

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