The Arctic region has high potential for the development of renewable energy, said Russian Energy Minister Alexander Novak during The Arctic: Territory of Dialogue international forum, TASS reports.

"I would emphasize not only the development of systems, but <…> the development of renewable energy sources. The Arctic region has good potential for this, it's a good place to develop wind power and solar power, and these kinds of projects are used to lower the energy production costs in the first place," Mr. Novak said.

According to the minister, the power sector is not being developed as dynamically as oil and gas projects in the region. Electricity projects are developed in the region mostly to satisfy the needs of local users.

The same applies to the development of coal projects in the Arctic. Mr. Novak said that the coal industry is only 2.7 percent of all energy projects in the region. However, in some Arctic areas coal projects already result in exports, in addition to local use.