Examples of NovaWind sustainable practices

1. Sales of low-carbon electricity and green certificates associated with wind generation

NovaWind keeps working to expand the range of voluntary climate impact mitigation tools, such as green certificates and guarantees of origin (to be launched as part of the national green certification system) and free bilateral agreements (FBA). The conclusion of bilateral contracts to confirm the use of renewable energy is an established global practice that meets the reporting standards of the Climate Disclosure Project (CDP).

NovaWind subsidiaries have concluded FBAs with EcoNiva Group, Delo Group, Sberbank branches in Tula, Voronezh and Yaroslavl, Nestlé Purina PetCare, Henkel Rus, SiburEnergoManagement, and other consumers. The total amount electricity generated by wind and supplied under free bilateral agreements is planned to reach 1,000 million kilowatt-hours by the end of 2023, both through sales to the customers of AtomEnergoSbyt and through direct contracts between WindSGC and WindSGC-2 and distribution companies.

2. Raising green finance

Green bonds

In 2021 and 2022, AtomEnergoProm made two public offerings of exchange-traded green bonds. The money raised from the bond issues was used to refinance capital expenditures under the Wind Energy programme for:

• Construction of 610 MW of wind capacity and a wind turbine factory
• Construction of 375 MW of wind capacity

These financial instruments are listed on the Moscow Exchange, in the Green Bonds segment of its Sustainable Development sector. The rating agency Expert RA confirmed that the bonds issued comply with the International Capital Market Association (ICMA) Green Bond Principles (GBP) and the Russian Green Project Taxonomy.

ESG loans

NovaWind has experience with raising finance through ESG loans at an interest rate discount of 0.1%. GazpromBank has provided an ESG loan facility to NovaWind to finance the construction of 340 MW of wind capacity in Russia subject to the following covenants:

• 2,700 GWh of renewable electricity produced
• At least 70% of wind turbine components supplied by ISO 9001 certified manufacturers
• No environmental degradation on the territories adjacent to the wind farm site as compared to the environmental conditions prior to the start of construction.