Energy Shift to Cost Russia Billions of Dollars


According to Russian Deputy Prime Minister Andrei Belousov, the transition to a green energy system will cost the nation 90 trillion rubles ($1.3 trillion). The idea, according to Izvestia, is to raise money from big corporations rather than from the government budget.

According to Artem Tuzov, Executive Director of Univer Capital’s Capital Market Department, investment in a carbon-neutral economy necessitates first and foremost the conversion of thermal power plants to operate on gas and hydrogen rather than coal and fuel oil. “When they generate green energy, it will be able to create cars that operate on gas and hydrogen rather than diesel fuel and gasoline. The method will eventually be similar to that of the European Union, since the EU’s planned carbon price is the economic engine pushing these advances “, the expert made a remark.

“The energy transition will not only cost Russia a lot of money that businesses will have to pay, but it will also need a fresh rethinking of the whole fuel and energy complex,” said Ekaterina Kosareva of WMT Consult.

According to Tuzov, the EU’s aim of guaranteeing energy transition and decarbonization resulted in the present energy crisis. “Once coal and fuel oil power generation became expensive and partially shut down, and wind and solar renewables failed to ensure continuous power supplies,” the expert explained, “demand for gas soared, along with gas prices, and it ended up being more cost-effective to use coal for electricity production than gas, even after paying fines.”

Games like these may be acceptable in the EU, where the weather is warmer, but energy security, according to Tuzov, is a matter of life and death in Russia. “As a result, the government’s primary goal isn’t to transition to a carbon-neutral society. Nonetheless, the global political consensus on the green transition will force Russia to join the process.” The expert offered a comment.