1

STATE POLICYFOR ENERGY EFFICIENCY INCREASE AND USE OF

RENEWABLES IN THE REPUBLIC OF BELARUS

Andrei Malochka

Head of the departmentGeneral EnergyState EnterpriseBelorussian Heat-Energy InstituteMinistry of EnergyRepublic of Belarus

Second International Energy Efficiency ForumDushanbe, Tajikistan12-14 September 2011

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Department for Energy Efficiency of the State commi ttee on standardization is a governmental body authorized to implement stat e policy in the field of efficient use of fuel and en ergy resourcesincluding renewable energy sources.Main tasks include:1. implementation of state policy in the field of ef ficient use of fuel and energy resources;2. establishment of technical norms, standardization and confirmation of compliance of energy consuming production, works and services, control of compliance of technical and economic ind icators of energy consuming and energy generating equipment with stat e standards, norms and requirements in the field of efficient us e of fuel and energy resources;3. participation in the conduct of the state experti se of energy efficiency of project designs on the construction o f new sites, development (reconstruction, modernization) of oper ating sites with regard to compliance with requirements of efficient use of fuel and energy resources;4. ensuring in accordance with established procedure state surveillance of:rational use of fuel, electric and heat power,implementation of measures to save fuel and energy resources by users and producers of these resources, andcompliance with norms for furnace fuel consumption, electric and heat power consumption.

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Legislation in the field of energy efficiency anduse of renewables

1. Law of the Republic of Belarus «On energy conserva tion» of15 July 1998 №190-З.

2. Law of the Republic of Belarus «On renewable energ y sources»of 27 December 2010 №204-З.

3. Directive of the President of the Republic of Bel arus «Saving and thrift are the main factors of economical security o f the state» of14 June 2007 №3.

4. Republican programme on energy conservation for 2 011-2015(approved by the Regulation of the Council of Minis ters of the Republic of Belarus of 24 December 2010 №1882).

5. Strategy of energy potential development of the R epublic of Belarus (approved by the Regulation of the Council of Ministers of the Republic of Belarus of 9 August 2010 №1180).

6. National programme «Development of domestic, rene wable and nonconventional energy sources for 2011-2015».

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Legislation in the field of energy efficiency anduse of renewables

7. Other special programmes in the field of energy e fficiency and renewables:

7.1. State programme for the construction of power s ources fired by domestic fuels in 2010-2015 (approved by the Regula tion of the Council of Ministers of the Republic of Belarus of 19 July 2010 N1076);

7.2. Programme for the construction of power sources fired by biogas in 2010–2012 (approved by the Regulation of the Council of Ministers of the Republic of Belarus of 9 June 20 10 N885);

7.3. State programme for the construction of hydro p ower plants in 2011-2015 (approved by the Regulation of the Counci l of Ministers of the Republic of Belarus of 17 December 2 010 N1838).

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Objectives for energy efficiency and use of domestic energy resources

and renewables in Belarus

1. Reduce the GDP energy intensity:- by 29-32 per cent in 2011-2015;- by 20 per cent in 2016-2020.

2. Ensure energy saving (in comparable conditions):- at least 7.1-8.9 million tons of fuel equivalent i n 2011-2015;- at least 5.2 million tons of fuel equivalent in 20 16-2020.

3. Ensure use of domestic energy resources in the e nergy balancefor the production of heat and electric power:- at least 25 per cent in 2012;- at least 28 per cent in 2015;- at least 32 per cent in 2020.

66

91.7 83.579.1 75.9 71.7

68.0 63.0 59.3 56.8 51.6 46.9 44.6

44.3

108.4112.1 118.6 124.2

130.4139.5

155.4170.0

187.0203.1

223.8

224.2

241.3

99.4 93.6 93.8 94.3 93.4 94.8 97.9 100.7 106.2 104.8 105

99.9

106.8

0

50

100

150

200

250

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010GDP energy intensity GDP GCFER

Dynamics of GDP, gross consumption of fuel and ener gy resources (GCFER) and GDP energy intensity in 1997- 2010 (%)

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GDP energy intensity in 2008 (source: International Energy Agency)

0.250.21 0.19

0.17 0.17 0.160.14 0.14

0.12

0.31

0.400.42

0

0,1

0,2

0,3

0,4

0,5C

anad

a

Fin

land US

A

Pol

and

Sw

eden

Hun

gary

Ger

man

y

Japa

n

Aus

tria

Bel

arus

Ukr

aine

Rus

sia

(toe

/ th

ousa

nd 2

000

US

$ P

PP

)

Belarus 2015 - 0.2-0.21

Belarus 2010 - 0.29

GDP energy intensity

Country 1990 2008

Russia 0.58 0.42Ukraine 0.55 0.4Belarus 0.78 0.31

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Structure of the gross consumption of fuel and ener gy resources in the Republic of Belarus in 2010 (%)

63.12.13.2

5.28.3

13.64.5

natural gas

black oil

light oil

other fuels

renewables

secondary energyresourceselectric powerimport

Gross consumption of fuel and energy resources is 39.4 million tons of fuel equivalent.

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Share of domestic fuel and energy resources consump tion, including renewables, for heat and power production

in 2005-2020 (%)

32

28

17.217.0

20.7

18.1 18.320.3

25

15

17

19

21

23

25

27

29

31

33

2005 2006 2007 2008 2009 2010 2012 -target

2015 -target

2020 -target

1010

42.7

7.98.1

38.1

0.020.3 3.0

firewood

wood chips

wood waste

secondary energyresourceswind power

hydro power

other fuels

Balance of renewables in 2010 (%)

1111

Investments in the use of domestic energy resources , including renewables in 2004-2010

127.8

65.870.1

14.27.4

101.4

122.5

0

20

40

60

80

100

120

140

2004 2005 2006 2007 2008 2009 2010

million USD

1212

Investments in energy efficiency and the use of dom estic energy resources in 2001-2010

1397.8

360.1

205.792.5 91.3

1213.9

863.4

599.9

438.9

1063.8

0

200

400

600

800

1000

1200

1400

1600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

million USD

13

17677

19243

17532

1705816292

317.2

347.8

319.3

327.2328.4

12000

14000

16000

18000

20000

2006 2007 2008 2009 2010

1000 Gcal

300

310

320

330

340

350

360mln. kWh

Heat power consumed for heating and hot water suppl y

Electric power consumed

Dynamics of fuel and energy resources consumption b y housing stock

98.599.4

100.6101.6

102.8

Dwelling area, mln. m2

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RUE «Bobruisky plant of tractor components and sets»

296148

264827

244000

188910

133910

94303

7184252174

3862332933

1022395311380018753198141818015848160271657715618

0

50000

100000

150000

200000

250000

300000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

50000

100000

commodity output, million Belarusian rublesFER consumption, tons of fuel equivalent

million Belarusian rubles tfe

89206

7837777655

63962

523080,11

0,16

0,20

0,120,13

50000

55000

60000

65000

70000

75000

80000

85000

90000

2006 2007 2008 2009 2010

Out

put

of

prod

uct

s, m

ln.ru

bles

0,10

0,11

0,12

0,13

0,14

0,15

0,16

0,17

0,18

0,19

0,20

0,21

0,22

Pro

duc

ts e

ner

gy

inte

nsi

ty, t

f e/

mln

.rub

lesProduct energy intensity

Output of products, million Belarusian rubles

«Ivatsevichydrev» public corporation

1030810225

10021

9565

10338

Generalized power imputs, tons of fuel equivalent

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• Investment contract between the Republic of Belarus and Enertrag AG (Germany) on construction and operation of wind power plants with total installed capacity of 160 MW.

• Agreements between organizations of the Republic of Belarus and TelDaFax AG (Switzerland) on constructio n of biogas complexes at agricultural organizations(2 sites) and landfills (4 sites).

Examples of successful projects with direct investment in 2010

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Change in GDP, the share of energy costs, the gross consumption of energy resources and energy to the level of GDP in 2005 (% )

95,8

87,1

79,275,2

69,0

100

119,5

146,4

131,6

110,0

131,9

105,4 104,0 104,299,2 101,1

50

60

70

80

90

100

110

120

130

140

150

2005 2006 2007 2008 2009 2010

Energy intensity GDP Gross energy consumption

9,8%

17,3%

20,9%

25,3% 29,0%

34,2%

share of energy costs on GDPshare of energy costs on GDP

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Forecast of dynamics of GDP, gross consumption of fu el and energy resources (GCFER) and GDP energy intensity i n 2011-2015

(%)

71.075.081.087.093.0

147.0

110.0

131.6

162.0

119.5

115.0112.0109.0106.0103.0

60

80

100

120

140

160

180

2010 2011 2012 2013 2014 2015

GDP energy intensity GDP GCFER

1919

Investments in energy efficiency anduse of domestic energy resources in 2010-2015

1804.6

1680.4

1397.8

1667.4

1816.71693.4

1200

1400

1600

1800

2000

2010 2011 2012 2013 2014 2015

million USD

Total amount of financing in the field of energy ef ficiency and domestic energy resources use in 2011-2015 will amount to 8 662.5 million USD.

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Cooperation with the World Bank

• Social Infrastructure Retrofitting Project –22.6 million USD (2002-2008).

• Social Infrastructure Retrofitting Project (additio nal loan) – 15 million USD (2008-2010).

• Post Chernobyl Recovery Project –50 million USD (2007-2011).

• Energy Efficiency Project in Belarus – 125 millionUSD (2009-2014).

• Post Chernobyl Recovery Project (additional loan) –30 million USD (2011-2013).

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• Project “Biomass Energy for Heating and Hot Water Supply in Belarus” – 3.129 million USD (2003-2008).

• project “Removing Barriers to Energy Efficiency Improvements in the State Sector in Belarus” –1.4 million USD (2007-2011).

• Preparation of a project “Improving Energy Efficien cy in Residential Buildings” – 4.5 million USD (2011-2015 ).

• Preparation of a project “Wind Energy Development i n Belarus” – 3.5 million USD (2011-2015).

Cooperation with the UN Development Programme,Global Environment Fund and the UN Economic

Commission for Europe

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Thank you !

Andrei Malochka

Head of the departmentGeneral EnergyState EnterpriseBelorussian Heat-Energy InstituteMinistry of EnergyRepublic of Belarus+375 17 226-55-09+375 29 621-07-52

Second International Energy Efficiency ForumDushanbe, Tajikistan12-14 September 2011