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Legal support for the Implementation of Environmental Projects with Financial Instruments in FEC (Case Study: PJSC RusHydro)
 
PIIS231243500028026-6-1
DOI10.61525/S231243500024443-5
Publication type Article
Status Published
Authors
Tatyana Kokoreva 
Occupation: Advisor to CEO for Legal Affairs at Ust-SrednekanGESstroy JSC
Affiliation: Ust-SrednekanGESstroy JSC
Address: Russian Federation, Khabarovsk
Journal nameEnergy law forum
EditionIssue 3
Pages70-77
Abstract

The development of the fuel and energy sector is the most important strategic task of the Russian Federation for the foreseeable future. Obviously, it cannot be solved without timely and high-quality statutory regulation. A related problem is the global environmental degradation, which is largely due to the long and complex process of modernization of production facilities of both extractive and processing industries. In particular, the fuel and energy industry is associated with serious environmental risks arising during the extraction, transportation and storage of natural energy resources. In this regard, it seems that the fuel and energy sector associated with generating heat and electricity from renewable energy sources is the least exposed to environmental risks related to the reduction of natural resources. At the same time, the equipment used, for example, in hydropower generation urgently needs modernization, as the current stock causes environmental damage, but such activities require additional funding sources. The purpose of this study is to systematically analyze the application of legal mechanisms of financing environmental projects implemented in the fuel and energy sector. The methodological framework of the study was determined by the approach of materialistic positivism, which determines the application of a set of general scientific and special legal methods of scientific cognition, in particular, the methods of formal logic, systematicity, analysis, comparative-legal and formal-legal methods. As a result of the study, the author proved that developing the legal doctrine of securities as a way of investment, namely creating a legal structure of digital green industrial mortgages, is applicable to the fuel and energy industry. Based on the results of the study, the author concludes that the synergy of relations between economic entities, lending institutions and investors will have a multiple positive effect both on the country’s economy and on the environmental situation, if the priority legal instruments is applied to the relations arising in the implementation of environmental projects in the fuel and energy sector of the economy. The author proposes amendments to current laws, namely: to formalize a definition and legal framework of digital securities and their types in the annex to Chapter 7 of the Civil Code of the Russian Federation.

Keywordsenergy law, hydropower, investment operations, digital green industrial mortgage
Received03.04.2023
Publication date12.10.2023
Number of characters22367
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1 Since the last century, energy resources have occupied an essential place in the foundation of the production cycle, as their availability, methods of extraction and transfer between economic entities are key to ensuring the viability of all other sectors of the economy, while the level of development of the energy sector has an immediate effect on the financial and economic performance of the country [1].
2 The Russian Federation possesses a significant and diverse stock of natural resources characterized by fuel and energy properties, a developed infrastructure of energy production and transportation, scientific and human resources, which together form the national asset and contribute to ensuring the energy and economic sovereignty of the state. In this regard, at the present stage, both the state, which is the main source of harmonious and fair legislation, and society, which includes representatives of the industrial sector, the scientific community, and end users (citizens), a priori demand research aimed at finding new and “innovative” ways to fulfill the task of timely and quality legal support for the development of the fuel and energy sector. Especially in the period of unprecedented sanctioning pressure from unfriendly countries on the economy of the Russian Federation, which plays an important role in establishing a competitive and fair basis in international economic, political and social relations, it is necessary more than ever to pay attention to the legal and financial aspects of the fuel and energy sector and to seek alternative effective methods of ensuring the energy security of the state. We should be in agreement with the position of researchers on the priority of energy security as a component of national security [2].
3 It should be noted that the domestic fuel and energy sector includes a number of industries of the national economy that perform the functions of extraction, processing and transportation of natural energy resources, production, transportation and distribution of electricity. In accordance with Federal Law No. 256-FZ On the Safety of Facilities of the Fuel and Energy Sector of July 21, 2011, the sector includes facilities of the electric power, oil production, oil refining, petrochemical, gas, coal, oil shale and peat industries, as well as facilities of oil product supply, heat supply and gas supply [3]. As it is noted in the scientific literature, Russia’s fuel and energy sector has a peculiar feature, which is expressed in the fact that organizations united by the single focus of economic activity, consisting in the solution of energy problems, are assigned to the fuel and energy sector [4].
4 However, we have to bear in mind that the extraction and processing of non-renewable natural energy resources, which currently dominate the fuel and energy sector of Russia, is associated with a high degree of negative impact on the environment, which carries an additional risk of creating a threat to environmental safety not only at the national, but also at the global level. At the same time, it is absolutely undeniable that green technologies are the least profitable in comparison with traditional brown production. This fact is confirmed by foreign studies [5].
5 According to N.S. Kudelnikov, one of the sources of environmental damage is associated with the extraction, transportation and storage of hydrocarbons [6]. Meanwhile, the system of energy production from renewable sources developed during the Soviet planned economy, including elements of nuclear, solar, air and water energy utilization, is now actively developed and supported by the state through the creation of business entities partially owned by the state.
6 In Russia, the share of hydroelectric power plant equipment has increased over the last two decades. However, this includes equipment that is nearing the end of its service life, as a significant number of hydroelectric power plants were built in the mid-20th century. Therefore, in the early 2000s, there was an urgent need to reconstruct and modernize the equipment. RusHydro PJSC was entrusted with the task of restoring the operating life of hydroelectric power plants. In December 2011, a program of comprehensive modernization of the power generation facilities was adopted, which provided for the repair and replacement of more than half of the turbines, generators, transformers, as well as more than 8,000 units of secondary communications and 4,000 units of auxiliary equipment, and the reconstruction of hydraulic structures [7].
7 Today, RusHydro Group is the undisputed leader in the field of power generation from renewable energy sources. The holding integrates research and development, construction, and production complexes that ensure the country’s uninterrupted energy supply and uses technologies that enable the extraction of electricity and heat from various sources, in particular through the construction of hydroelectric, thermal, solar, wind, and geothermal energy facilities. In addition, the excess energy produced is exported abroad.

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