Prime Minister Vladimir Putin has signed government guidelines on renewable generation to make the industry more profitable, the Energy Ministry said Tuesday.
The state plans to invest in research and infrastructure for water, heat, solar and wind-based power, as well as attracting private funds to the industry.
"The law should give some impetus for renewables, offering at least a minimum level of support from the state," said Dmitry Skryabin, analyst with VTB Capital. He said RusHydro, Russia's biggest hydropower producer, would benefit most from subsidies to renewable energy projects.
Russia is the world's third-largest emitter of greenhouse gases, and its generation industry accounts for a quarter of the emissions.
Boosting the share of renewables to 4.5 percent would mean building 22,000 megawatts of capacity, equivalent to a fleet of 22 nuclear reactors, according to the government's 2020 energy strategy.
The renewable energy guidelines, signed by Putin, do not take into account hydropower plants with a capacity of more than 25 megawatts.
Including all of Russia's hydropower capacity, the world's biggest energy exporter generates 2.9 percent of its power from renewable sources, the least of any Group of Eight nation except Britain, according to the International Energy Agency.
The European Union wants renewable energy to account for 20 percent of its output by 2020.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Remind me later.