Russian Federation Power EPC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Russian Federation Power EPC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Russian Federation EPC power market is expected to grow at a CAGR of more than 2% in the forecast period of 2020-2025. Factors such as increasing population and power consumption are resulting in the growth of the power market. With growing power demand, new projects are under construction, which is driving the market significantly. The rapidly increasing renewable market is likely to drive the EPC market in the forecast period. However, installing new projects, especially renewable projects, are investment extensive, which can restrain the growth rate significantly.

Key Highlights

• In 2019, thermal energy dominated the Russian power market. During the forecast period, with several projects, the thermal sector is expected to dominate the market
• According to IRENA, in Russia, onshore wind capacity is expected to reach 23 GW, solar PV to 5 GW, and bioenergy to 26 GW by 2030. With this anticipated growth, multiple opportunities are expected in the power EPC market.
• Russian Federation has witnessed continuous growth in the EPC market of renewable projects. With 55,190 MW renewable capacity in 2019, the Russian Federation can see a significant increase in the EPC market with upcoming renewable projects.

Key Market TrendsThermal Projects to Dominate the Market

• In 2019, the Russian government approved the modernization of three-generation units, each with 150MW capacity at Krasnodar power plant. The units are scheduled to be commissioned in 2022-2024.
• In 2019, RusHydro launched coal-fired power Sakhalinskaya GRES-2 on Sakhalin Island. The plant has a capacity of 120 MW and replaced Sakhalinskaya GRES, which was scheduled for decommissioning.
• As of 2019, Russia has four nuclear power reactors under construction, 24 reactors under planned, and 22 units under the proposed stage. In December 2019, Russia had officially commissioned the world’s first floating nuclear power plant (NPP)-Akademic Lomonosov, driving the EPC market significantly.
• The electricity generation capacity of the Russian Federation is expected to grow in the forecast period creating opportunities for the construction of new power plants and driving the market further. With 1064 TWh in 2014 and 1118 TWh in 2018, generation capacity is increasing gradually.
• Russian Federation, with its ambitious policies and upcoming projects, is expected to create ample opportunities and a vast market for the growth of the EPC market in the power sector in the forthcoming period.

Renewable Energy Creating Opportunities for the Market

• The share of renewable energy in power generation is increasing in the Russian Federation significantly with the upcoming of multiple projects. With 50,958 MW in 2014 and 55,190 MW in 2019, the installed capacity of renewable projects is continuously growing.
• Russia, with upcoming tenders of 279.6 MW for solar power plants and 32.1 MW of wind power plants, which are to be commissioned in 2023 and 2024, is creating opportunities for the EPC market.
• Fortum Oyj engaged the services of Hevel Solar for its PV power projects in Russia. Fortum company was awarded the right to build 116 MW of solar generation during an auction in 2018 and 2019. The projects are expected to be commissioned by 2020.
• In September 2019, the Russian government allocated up to RUB 222 billion for the construction of wind power plants, RUB 148 billion for solar power plants, and up to RUB 30 billion for small hydropower plants.
• Despite a slow acceptance of renewable energy, with upcoming projects and ambitious goals, the renewable sector is likely to significant opportunities to drive the EPC market.

Competitive Landscape

The Russian Federation power EPC market is moderately fragmented. The major companies include Siemens AG, OJSC Power Machines, Enka İnşaat ve Sanayi AS, Inter Rao Ues OJSC, JSC Atomenergoprom, and others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

JSC Atomenergoprom
General Electric Company
Mitsubishi Hitachi Power Systems, Ltd
OJSC Power Machines
Enka ?n?aat ve Sanayi AS
Inter Rao Ues OJSC
Siemens AG
Hitachi Zosen Corporation

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