Regional energy policy reviews Caspian and Black Sea regions. Thea Khitarishvili Office of the Global Energy Policy Paris, 7 April 2014
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1 Regional energy policy reviews Caspian and Black Sea regions Thea Khitarishvili Office of the Global Energy Policy Paris, 7 April 2014
2 Regional energy policy reviews Can regions be reviewed? Regional similarities Common challenges National contexts Sound energy policies Political consensus Clear long-term vision Stable institutions Leadership Stakeholders engagement Regional integration 3 Es Environmental Protection
3 Background INOGATE Programme EU Programme for 11 Caspian and Black Sea countries Armenia, Azerbaijan, Belarus, Georgia, Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Ukraine Uzbekistan and Turkmenistan Peer reviews; 2012 and 2013 review cycles Review team IEA experts, INOGATE Technical Secretariat, peer-reviewers from the participating countries, the local INOGATE experts Major objectives 4 pillars: energy security, sustainable development, investment attraction, market convergence General energy policy and energy balances Compendium publication in Q4 2014
4 Regional Energy mix Total Primary Energy Supply Resource reach regions Manageable import dependency/feasible self sufficiency Need for smart solutions and justified investments Increase export potential to neighboring markets Mtoe Biofuels and waste Hydro Nuclear Natural gas Oil Peat Coal
5 Electricity generation Dominant share of coal in Kazakhstan and Ukraine The role of natural gas across the region Vast hydro potential in Georgia, Kyrgyzstan and Tajikistan Nuclear power and the role of renewables energy 250 TWh Biofuels and waste 200 Hydro Nuclear Natural gas 150 Oil Peat 100 Coal 50 0
6 Energy intensity Positive trends, yet lack of long-term sustainability More robust policy actions required Impact on all sectors of economy toe per USD GDP PPP Armenia Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Tajikistan Turkmenistan Ukraine Uzbekistan
7 Common challenges and opportunities Common challenges Robust energy demand Lack of long-term perspectives Strategy on basis of sound data Aged infrastructure; investment requirements Lack of energy technology related research and development Weak regional cooperation Key opportunities Medium and long term energy policy scenarios with different fuel mix options; use of energy data for policy planning Maximising energy efficiency gains Utilisation of renewable energy potential Phasing out import dependency; maximizing export potential Promotion of energy market developments
8 Energy Security Set long term energy policy outlook and goals Improve the quality and the use of statistics data Diversify energy supply/export options Decrease energy intensity in all areas of economy Maximise energy efficiency gains Utilise renewable energy potential Phase out energy related subsidies Develop emergency response mechanisms Promote energy technology related RD&D
9 Sustainable Development Focus on sustainability of energy systems Upgrade/replace aging energy infrastructure Demand side management Establish robust energy efficiency policies and measures Introduce/implement primary and secondary legislation Improve energy efficiency governance Promote funding and incentive mechanisms Develop energy efficiency indicators to monitor progress Ensure timely implementation of set policies and measures Encourage deployment of renewables Ensure sound grid integration and clear support mechanisms
10 Market Convergence Promote market opening/developments Develop effective market model Enable market driven investments Introduce secondary legislation Ensure independency of the regulator Promote establishment of consumer protection board Remove energy related subsidies and move towards targeted subsidy schemes Encourage regional market developments
11 Investment Attraction Maintain clear, predictable and transparent investment framework Harmonise primary and secondary legislation Ensure smart investment policies and measures Support investments in the long term sustainable development Encourage public participation in the key energy investment decisions Promote investments in deploying State of the Art energy efficient technologies
12 Thank you
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