Russia’s top leadership  is on record supporting the development of solar power projects in the country. At a March 2008 meeting with Vladimir Putin and Dmitry Medvedev, Chairman of the State Duma Boris Gryzlov stressed the importance of solar power for electricity generation and mentioned a patented Russian technology for solar power applications that could be marketed.  Gryzlov’s August 2008 article in the  Russian Journal “Expert” noted  that “Development of renewable energy will  make it possible not only to address the problem of energy supply, reduce dependence  on  hydrocarbon raw materials and improve the ecological situation, but also to make money from the production and export of high-tech products and engineering solutions.” 

In October 2008, Prime Minister Vladimir  Putin supported a proposal  made by  the state corporation Rosatom to invest in polysillicon production  and  to construct  a solar equipment plant in Krasnoyarsk Region to produce solar modules.   This project would involve Rosatom’s Zheleznogorsk polysilicon plant, the state-owned Krasnoyarsk Machine-Building Plant (Krasmash), and OJSC Krasnoyarsk Non-Ferrous Metals Plant (KrasTsvetMet).   Other state corporations, Rosnanotekh and Vheshekonombank, might participate in co-financing the project, whose goal is to create a vertically integrated manufacturing value chain  from the supply of  raw materials  to the assembly of solar modules.

In September 2008, Rosnanotekh signed a strategic cooperation agreement with Oerlikon, a Swiss industrial technology corporation partly   owned by  the  Renova Group of Companies,  a  leading asset management company  in Russia. In May 2008, Renova Industries Ltd increased its stake in Oerlikon to 39.1 percent.  Oerlikon’s subsidiary, Oerlikon Solar, is a  major producer of equipment for manufacturing solar cells.

Private initiatives  [noted in a previous posting “Russian officials approach renewables cautiously” dated September 9, 2008] include Nitol Solar’s new construction project in Irkutsk Oblast, with its projected annual polysilicon capacity of 3,700 tons in 2009.  Nitol produced its first industrial batch of polysilicon in early 2008.  Krasnodar-based producers Solar Wind Ltd and Kvark Ltd  are also interested in the creation of a manufacturing value chain in Krasnodar Region.  The required investment for this project was estimated in 2007 at about 260 million euros ($372 million).  Kvark has  already produced and installed solar-powered light posts in the southern city of Krasnodar.  Solar Energy LLC, a Russian subsidiary of Industrial Investors Group, has a project for a 1200 MT polysilicon production facility near the city of Lipetsk.  Production is expected to start in 2009, with some output exported and some used for domestic production of solar cells in the city of Ryazan. 

The  present financial crisis  will most likely produce delays in some of these projects.  However, state-controlled companies  will probably find it easier to raise the significant amounts needed to launch large-scale solar projects than will private companies.

Present producers of solar cells and/or solar modules in Russia include the following companies:

1. Solar Wind Ltd (city of Krasnodar, Krasnodar Krai)
2. OJSC Krasnoe Znamya (city of Ryazan, Ryazan Oblast)
3. Kvark Ltd (city of Krasnodar,  Krasnodar Krai)
4. CJSC Telecom STV (city of Moscow)
5. OJSC Ryazan Metal Ceramics Instrumentation Plant (RMCIP) (Ryazan Oblast)
6. JSC Bogoroditsk Plant of Techno-Chemical Products (BTCP) (city of Bogoroditsk, Tula Oblast)

Present producers of polysilicon for solar applications include the following companies:

1. Nitol Solar (city of Usolye-Sibirskoye, Irkutsk Oblast)
2. Zheleznogorsk Polysilicon Plant of the Krasnoyarsk Mining & Chemical Complex (city of Zheleznogorsk, Krasnoyar s k Krai)

Present producers of monocrystalline silicon for solar applications include the following companies:

1. OJSC Podolsk Chemical Metallurgic Plant (city of Podolsk, Moscow Oblast)
2. OJSC Krasnoyarsk Non-Ferrous Metals Plant (city of Krasnoyarsk, Krasnoyarsk Krai)

For further information about this topic, please contact Akin Gump.