Ilkovskiy K. K., General Director,Candidate of Economics Sciences, e-mail: 703208@mail.ru, “Yakytskoe” Company; Timofeev D. I., Deputy Director of Investment, Far East Energy Management Company.

Now energy industry is on the beginning of revolutionary change, which happened both on the demand and supply side. There are a lot of technological and organizational innovations in energy. Industry paradigm changes from product to service logic. Borders between supply and demand gradually disappear. Problem of sustainability and energy poverty put the pressure on the fuel and power company. New “green” energy technology replace tradition one and hydrogen energy will come soon. Tree basic principles of 21-centure energy will be (1) decentralized generation, (2) gradual exclusion of fossil fuel and accept limit in growth of the global energy production (3) rapid growth of renewables and “green” energy technologies. Novel business-model integrates production and consumption of the energy on the base of “smart grid” and renewables. Role of different types of renewables is very important. It was a long way from idea to first power plant, for instant in wind it takes 19 years, photovoltaic — 22, biogas — 25, solar heat generation — 30 years. Now development of “green” technology become faster and now innovational cycle is much shorter, e.g. wind -5 and photovoltaic — 7 years. China, USA and several EU countries get leading position in the field of “green” energy. Installed capacity of renewables in the USA — 53,4, China — 52,5, Germany — 36,2 GWatt. The latest IEA’s World energy outlook has forecast of 20-50% growth of renewables, but even in this case Green Peace estimates that world use only 0,5-1% of global “green” energy potential. Global financial crisis was the reason for decline in “green” energy investment, but now all country especially Asia-Pacific region show impressive dynamic in installation renewables generation. The main problem of “green” energy is high cost to compare with traditional fossil-fuel generation. In the 2010 hydro station USA has tariff 3-5 cents, wind — 5–9, biomass — 5–12, photovoltaic — 15-30, solar concentrator — 14-18, “solar house” — 40–60 cent/kWt. But improvement in technologies will close the gap between different types of energy generation. In the 2030 specific investment ($/Watt) will decline dramatically, for instance wind — 1.5, photovoltaic — 2, solar concentrator — 2. The main social request to the traditional power industry is reliability that is why utilities don’t have incentive to technology innovation. Russia has a great potential of renewable energy, but it has to separate development of the “green” energy from traditional electricity in order to get fast growth in wind, solar and hydro energy.