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Wind Power Status in Russia

and the CIS Countries


Regional Wind Power Market and Potential

Armenia Moldova
Azerbaijan Russian federation
Belarus Tajikistan
Georgia Turkmenistan
Kazakhstan Ukraine
Kyrgyzstan Uzbekistan
Foreword
Imprint Wind Power Status in the CIS Countries

Published by:

World Wind Energy Association


WWEA Head Office
Charles-de-Gaulle-Str. 5
53113 Bonn
Germany
Tel: +49-228-369-4080
Fax: +49-228-369-4084
E-mail: secretariat@wwindea.org
www.wwindea.org

Editor: Stefan Gsänger

Author: Alina Prokopenko

Cover: Jean-Daniel Pitteloud

Valuable inputs of the following experts are acknowledged and appreciated:


 Andriy Konechenkov (Ukraine)
 Georgiy Doroshin (Kazakstan)
 Pavel Bezrukih (Russian Federation)
 Sergey Nikitin (Belarus)
 Temur Pkhovelishvili (Georgia)
 Tony Nelson (Kyrgyzstan/Tajikistan/United Kingdom)
 Viktor Elistratov (Russian Federation)

Acknowledgements by the author: The author of this report expresses her deepest gratitude to
all contributors of the given publication: the Secretary General of the World Wind Energy
Association and the personnel of the organisation for overall support during the working process,
local experts and NGOs from the CIS countries who kindly shared their knowledge, valuable
insights and experiences. Special thanks to Andriy Konechenkov, Athanasios Papazoglou, Peter
Zhang and Stefan Gsänger for their assistance in reviewing and editing the texts.

© WWEA 2012
Duplication, reproduction, translation or distribution of the whole report or its parts requires a
prior consent of WWEA.

3
Foreword Wind Power Status in the CIS Countries

Dear Readers of the CIS Report,

The CIS countries are representing a world region with huge wind potentials, but where
so far wind energy plays only a marginal role: The total wind installations have only reached
178 MW, a tiny share of the global wind capacity of 254’000  MW  (as of June 2012).

The reason for this minor share is certainly not a lack of wind potentials, although
existing estimations are still very conservative. The main reason lies rather in the current
political and economic structures: Only few countries do have comprehensive policies for
renewable energy in place. And some countries do have major fossil resources such as coal,
oil or gas – which may create the illusion that there is no need to look for alternative options.
However, the global debate on climate change, environmental pollution and simple economic
considerations are recently leading to an increasing interest in wind power in most of the CIS
countries.

Ukraine, without doubt, is currently in the pole position, representing by far the largest
share of wind power installations, with 151 MW installed. The country has also started to
establish a domestic wind turbine industry, in cooperation with international companies. Also
without doubt, many more countries in the region do not only have big wind resources, but at
the same time the basic industrial capacities that are necessary for manufacturing and hence
to make full use of the benefits of wind power utilisation.

WWEA has decided to publish this book in order to highlight the huge economic and
social potentials and to provide a comprehensive overview of the situation in the CIS
countries. We want to contribute with this report to kick-start the deployment of wind
technology in the region by providing information and by raising awareness amongst
decision-makers from within and outside the region, amongst governments, industry as well
as academia – and civil society.

May this report contribute to this important objective – and may it be useful for your work!

Stefan Gsänger
Secretary General
World Wind Energy Association

5
Foreword Wind Power Status in the CIS Countries

Dear Friends!
“Energy   independence   is   a   ‘lifeline’ of any nation. The
development of renewable energy is an urgent need; only renewable
energy sources can ensure a  sustainable  development!” said the 11th
President of India, Dr. Abdul Kalam. Renewable energy development
is an irreversible process based on environment-friendly sources of
production,  reliability  and  cost  effectiveness  of  “green”  technologies.  
Intensity of the process depends primarily   on   the   politicians’   will   to  
make a decision in favor of creating a secure future independent from
fossil fuels.
Unfortunately, today it is still too early to speak about large-
scale deployment of renewable technologies in the economies of the CIS countries, whose
governments have so far built their economic prospects on the basis of conventional energies.
Meanwhile,  it’s  worth  noting  that  over  the  past  three  years  the  situation  has  started  to  change  for  
better, although very slowly. Many legislative acts aimed at promoting energy-saving technologies
and production of electricity and heat from renewable energy sources have already been adopted
on the territories of the former USSR. At the same time, the majority of the adopted laws are more
declarative in their nature, creating numerous barriers for attracting investments.
What can force the political decision-makers to reconsider their approach in favor of local
renewable energy resources? In any case, continuously rising natural gas and oil prices will lead
to economic turmoil in the countries whose governments do not invest in renewable energy.
Legislative support for renewable energy plays a major role in securing not only reliable power
supply, but also in preventing the crisis of the economy as a whole.
Naturally, changes of the existing situation and general acceptance  of  the  “green”  technologies  by  
the population involve, first of all, a national large-scale public awareness campaign, the
involvement of business in the development of local renewable energies.
Today, renewable energy, and wind energy in particular, stimulates the growth of economic
well-being of a nation, increases its energy independence, lowers energy-related expenses,
reduces risks associated with the prices for energy carriers, increases competitiveness, facilitates
the export of technologies and creates new jobs. Nowadays globally there are more than 5 million
jobs in renewable energy.
The book on the current status of wind energy sectors in CIS countries by the World Wind
Energy Association presents a comprehensive overview of the existing policy and legislative
frameworks in the wind energy sectors of these countries. I believe that the publication of this
book is very important and timely; it will draw international attention to the new markets with
enormous potential for the wind industry.  It’s  time  to  take  action.  A  lot  of  work is waiting for us.

Best wishes,
Andriy Konechenkov

Board Member of WWEA and Representative for CIS Countries


Chairman of the Board of Directors, Ukrainian Wind Energy Association (UWEA)

Kyiv, November 2012

6
Contents Wind Power Status in the CIS Countries

Index
Foreword.........................................................................................................................................................5

Table of Contents...................................................................................................................................7

I. Introduction................................................................................................................................9

II. The Commonwealth of Independent States: An Overview.............13

III. Assessment of Regional Wind Potential................................................17

IV. Country Reports............................................................................................................21

- Armenia.......................................................................................................................................22

- Azerbaijan......................................................................................................................................33

- Belarus..............................................................................................................................................44

- Georgia..............................................................................................................................................54

- Kazakhstan....................................................................................................................................62

- Kyrgyzstan.....................................................................................................................................72

- Moldova............................................................................................................................................80

- Russia.................................................................................................................................................86

- Tajikistan.....................................................................................................................................108

- Turkmenistan...........................................................................................................................116

- Ukraine..........................................................................................................................................122

- Uzbekistan..................................................................................................................................134

V. Analysis: Common Trends, Shared Problems................................142

VI. Recommendations: Paving the Way to Sustainable Energy


Supply..........................................................................................................................................157

VII. Conclusion..............................................................................................................................162

VIII. References..............................................................................................................................165

7
Acronyms Wind Power Status in the CIS Countries

Acronyms and Abbreviations

ADB – Asian Development Bank


BWE – Bundesverband WindEnergie (German Wind Energy Associaion)
CHP – Combined Heat and Power (Power Plant)
CIS – Community of the Independent States
EBRD – European Bank for Reconstruction and Development
EU – European Union
FIT – feed-in tariff
GW – gigawatt (1 GW = 1000 MW)
HPP – Hydropower Plant
IEA – International Energy Agency
IRENA – International Renewable Energy Agency
kW – kilowatt (1 kW = 1000 W)
kWh – kilowatt hour
MW – megawatt (1 MW = 1000 kW)
OSCE – Organisation for Security and Cooperation in Europe
REEEP - Renewale Energy and Energy Efficiency Partnership
REN21 – Renewable Energy Policy Network for the 21st Century
RES – renewable energy sources
UN – United Nations
UNDP - United Nations Development Programme
VAT – value added tax
W – watt

8
Introduction Wind Power Status in the CIS Countries

Introduction
After the dissolution of the Soviet Union, the history has witnessed a radical change of
the political world map and the emergence of a number of newly sovereign states. In the wake
of their newfound independence, these countries have been facing an earnest challenge of
overcoming an uneasy phase of transition from state planned to market economy.
Simultaneously, the conversion of their energy sectors, previously incorporated into a single
centralised system, has also become a critical task for the former USSR republics. Whereas the
Soviet Union was energy self-sufficient, supplied by its resource-rich regions, the independent
countries that appeared after its downfall are now confronted with the situation that they
have to secure the domestic energy supply on their own – whether with local energy
resources or via imported ones. Considering that the distribution of fossil energy reserves
among the ex-Soviet republics is uneven, some of them encountered a severe need to cover
the domestic demand purchasing fossil fuels from elsewhere, allocating large expenses for
this purpose and accumulating increasing debts.
At the same time, the vast regional potential of renewable energy sources (hereinafter –
RES), which could be utilised in order to substitute the share of imported hydrocarbons, still
remains untapped. Indeed, bearing in mind that energy security of a country is an intrinsic
element of statehood integrity and stability, and that it includes vital elements such as
independence, invulnerability and sustainability of state energy system, renewable energy
could  (and  should)  become  an  intrinsic  strategic  component  for  the  countries’  diversification  
of their national energy supply.
Out of the whole scope of available renewable energy sources, wind power deserves a
special attention due to its comparative advantages: firstly, it is available everywhere on the
planet, secondly, it is relatively cheap and thus commercially competitive, and thirdly, the
equipment for wind power generation is easily deployable in almost any location. Of course,
the wind resource varies across the countries and regions, but in the light of the regional
specific characteristics (geographical location, type of landscapes, level of economic
development etc.) it obviously appears as one of the most reasonable options for the analysed
states. Moreover, exploiting renewable and wind energy is actually beneficial for both fossil
resource-poor and energy self-sufficient countries: the former should opt for it in order to
enhance their energy supply security and decrease the dependence on imported fossil fuels,
and the latter could save more hydrocarbon reserves e.g. for export.
This publication is a unique comprehensive overview of the renewable energy and wind
power sector in twelve countries of the former Soviet Union (see the map below): Armenia,

9
Wind Power Status in the CIS Countries

Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russian Federation,


Tajikistan, Turkmenistan, Ukraine and Uzbekistan. The report is comprised by separate
country chapters and a general analysis of renewable and, more precisely, wind energy status
on the territory of the CIS.
Figure 1.1

Each country chapter encompasses socio-economic, geographical and political


background of a state, as well as the actual data on national energy sector structure and
management, provides an assessment of wind power potential, reviews current and planned
wind power projects, analyses existing political and legislative environment and the degree of
governmental support of RES, and outlines perspectives for the RES and wind power
development. Alongside with that, the report contains a general insight into the
Commonwealth of the Independent States, analysis of common trends and barriers to wind
power development and recommendations for future policies and actions. Furthermore, after
each country chapter a listing of useful contacts in the fields of state and governmental
agencies, local non-governmental organisations and non-profit associations, research and
scientific institutions, business and investment partners can be found. In such a way, a
multifaceted review with selective and country-specific data on 12 analysed countries
presented in this report can assist the RES industry professionals, investors and prospective

10
Introduction Wind Power Status in the CIS Countries

developers to shape an understanding of the local and regional markets and project possible
business opportunities.
The geographical scope of this publication, as follows from the heading, encompasses a
vast land area of the Commonwealth of the Independent States (CIS) members stretching
from Eastern Europe to Russia’s   borders   with   Alaska   and   from   the   Arctic   Ocean   to   Central  
Asia1. The data used in this report is based on publicly accessible sources, as well as on non-
public papers and partly on personal expert interviews and assessments. Although the
information presented in this report was thoroughly collected and analysed by the author and
appeared as the best available at the time, some minor inaccuracies may remain due to the
information scarcity and senescence.
The given publication is intended to be of a specific significance to a broad group of
readers, including renewable energy manufacturers, technology providers, wholesalers,
suppliers, project developers, operators, services companies, planning offices, consultancy
firms, financing institutions. The report is meant to be also useful for politicians and decision-
makers, as well as for academia, scientists, researches, students, different actors from the
public and private sector, NGOs and civil groups. The report might be valuable for both those
who are already active in the region or its markets, and for those exploring new possibilities
for their business activities.

Please   note   that   the   term   “Commonwealth   of   Independent   States”   (CIS)   is   used   in   this   report   in  
1

reference to the geographic area, and does not claim to reflect the peculiarities of the membership of each of
12 countries encompassed by the report (i.e. Turkmenistan is unofficially an associate member, Ukraine is a
de facto participant, and Georgia, after possessing a full-fledged membership for over a decade has
withdrawn itself in 2008).
11
The Commonwealth of
Independent States:
An Overview
Wind Power Status in the CIS Countries

The Commonwealth of Independent States: An Overview


The territory of the Commonwealth of Independent States spans over 2,1 million km2
covering 16,4% of the Earth surface with various climatic zones and distinct geomorphic
structure. The member countries of the CIS are homelands for 4,4% of world population -
272,5 million people of wide range of nationalities and ethnicities.
The soil occupied by the CIS countries is immensely rich in natural resources and
minerals of all kinds, including energy and renewable energy resources. As much as 20% of
world oil deposits, 40% natural gas deposits and 25% of coal reserves are located within the
borders of the CIS states with the latter generating 10% of world electricity. At the same time,
more than 10 million people in the region are not connected to power grids and suffer from
unstable electricity supply provided by the use of expensive and unreliable small gasoline or
diesel generators. In comparison with the international standards, the levels of energy use
intensity in the CIS remain extremely high, remarkably not only in the energy exporter
countries, but also in those deprived of fossil fuels, such as Belarus and Ukraine.
Renewable energy potential is also large and diverse, including massive solar, tide,
biomass, hydro, geothermal and wind resources, which remain almost untapped at the
moment. Even though the level of technically achievable economic potential of renewable
energy varies among CIS states, virtually in all CIS countries this RES potential by far exceeds
the current energy consumption. The current contribution of RES to total primary energy
consumption only comprises 5% in the whole region, out of which 85% is represented by
hydropower and biomass. The wind power capacity installed in the whole region represents
only less than 0,1% of the world share.
The diversity of natural resources in the Commonwealth of the Independent States also
applies to their allocation: the member states of the CIS can clearly be divided into fossil fuels
rich countries and energy importers. Practically, among the CIS states only Azerbaijan,
Kazakhstan, Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in
gas) possess – or, rather, produce - sufficient amount of energy locally to satisfy domestic
energy needs and even to export the excess abroad. Uzbekistan has significant gas reserves,
too, but still imports oil from its neighbours. Besides, Russia and Kazakhstan possess
substantial uranium reserves. Out of 12 countries, 4 have nuclear power plants with a joint
capacity of around 35 GW. All other states, except for those listed above, to a higher or lower
extent depend on primary energy imports; especially grave is the situation in energy-poor
countries such as Armenia, Georgia and Moldova.

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Wind Power Status in the CIS Countries

Table 1.1. Country Data of the CIS Member States


Population
Territory, Geographical
Country Population Density, per
km2 Position
km2
Armenia 29’743 2’970’495 108 landlocked
Azerbaijan 86’600 9’493’600 109,6 landlocked
Belarus 207’600 9’542’883 46 landlocked
Georgia 69’700 4’570’934 65,6 access to sea
Kazakhstan 2’724’900 15’522’373 6,4 landlocked
Kyrgyzstan 199’951 5’587’443 27,5 landlocked
Moldova 33’851 3’656’843 108 landlocked
Russia 17’098’242 138’739’892 8,4 access to sea
Tajikistan 143’100 7’768’385 54,3 landlocked
Turkmenistan 488’100 5’054’828 10,4 landlocked
Ukraine 603’550 44’854’065 74,3 access to sea
Uzbekistan 447’400 28’394’180 63,5 landlocked
Source: composed by the author.

All countries, with the exception of Moldova, Armenia and Georgia, cover vast land areas
(as seen in the table above), thus theoretically having enough land and resources for
renewable energy power plants deployment. The prevalent majority of the CIS countries are
landlocked, except for Georgia, Russia and Ukraine (Azerbaijan and Kazakhstan only have the
access to the Caspian and Aral Sea, both of which are landlocked). In practical terms that
means that for Ukraine and Georgia there is a possibility to consider offshore wind farm
development on the Black Sea, and Russia could deploy offshore wind farms on many sea
spots that it has direct access to.
Generally speaking, the countries of the Commonwealth of Independent States
represent an enormous territory with diverse nature, landscapes and resources. Practically
all kinds of renewable energy can be introduced and utilised in the given region, moreover,
the countries themselves would undoubtedly benefit from RES development. The wide-
spread exploitation of renewable energy thus becomes a mere question of time and political
will of the countries’   authorities,   who should, holding in their hands such a huge potential,
direct all their efforts to make a proper use out of it.

15
Assessment of
Regional Wind
Potential
Wind Power Status in the CIS Countries

Assessment of Regional Wind Potential


As stated previously, the CIS countries are endowed with significant renewable energy
potentials, including rich wind power potential. The wind resources on the post-Soviet space
are allocated unequally (see the distribution on the map below), however, each country has
enough suitable spots for wind farm deployment. Giants such as Russia and Kazakhstan
possess the highest – total and per capita respectively – wind power potential in the world. As
seen on the map below, the highest wind speeds are observed on the coastlines of the Arctic
and Pacific Oceans, fast winds are also present around the Caucasus and in the mountainous
areas.

Figure 1.2.

In order to obtain a comprehensive overview of the regional wind power status, it is


necessary to look at such important indicators like the installed wind power capacity. The
table below summarises the findings of the country chapters and provides an insight into the
states’  wind  power  sector and potential (as assessed for the current moment).

17
Wind Power Status in the CIS Countries

Table 1.2. Wind Power and Total Installed Capacity in the CIS Countries
Wind Power Assessed Wind Power Total Installed
Country
Installed Capacity Potential2 Capacity
Ukraine 151,1 MW 16’000  MW 53’549  MW
Russia 16,65 MW 90’000  MW 223’971  MW
Belarus 3,5 MW 1’600  MW 8’025  MW
Armenia 2,64 MW 4’900  MW 3’203  MW
Azerbaijan 2,2 MW 3’000  MW 5’798  MW
Kazakhstan 2,2 MW 350’000 MW 19’128  MW
Georgia 10 kW 2’000  MW 4’538  MW
Tajikistan 5,3 kW 1’900  MW 4’426  MW
Kyrgyzstan 2 kW 1’500  MW 3’720  MW
Moldova 0 MW 1’000  MW 1’029  MW
Turkmenistan 0 MW 10’000  MW 3’106  MW
Uzbekistan 0 MW 4’300  MW 12’551  MW
TOTAL: 178,31 MW 486,2 GW 343’044  MW
Source: composed by the author.

The total wind power potential2 of the region, according to the figures above, is
estimated at 486,2 GW, whereas only 178,31 MW of wind power capacity is installed – in
practical terms that means that only 0,037% of the explored wind potential is exploited.
Unfortunately, half of the CIS states have only negligible number of wind turbines in
operation, and those generators are prevalently small capacity stand-alone turbines. Another
notable peculiarity following from the table above is that the countries with the highest wind
potential – such as Kazakhstan, Russia and Turkmenistan – have also large oil and gas
reserves, which for a long time have been a significant disincentive to any kind of renewable
energy development.
Guided by pure logic, one would suppose that among the CIS states the Russian
Federation should possess the greatest wind potential just because of the size of its territory,
however, according to existing evaluations by local experts, Kazakhstan claims to have richer
wind resources. The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the
local experts and studies. The value of real (unassessed) potential shall appear much higher.

18
Wind Power Status in the CIS Countries

the countries progresses with a different pace, and those states lagging behind in this regard
should continue their scrutiny of available wind potential.
Taking a look at the installed wind power capacity it is easy to single out an absolute
leader – Ukraine. Not only it has the largest wind power installed capacity, but the whole
process of RES and especially wind power development is progressing faster in this country
than in the other eleven countries. Ukraine indeed can be considered a front-runner in this
regard,  which  can,  and  should,  stimulate  its  neighbouring  countries’  activities  on  advancing in
the field of renewable energy, fostering healthy competition and inciting a positive
breakthrough.

19
Country
Chapters
Armenia Wind Energy Status in Russia and CIS Countries

Armenia
Country Data
Area: 29’743  km2
Population: 2’970’495  
Population density: 108 per km2
Energy Sector Overview Wind Power Installed Capacity: 2,64 MW

The Republic of Armenia is a mountainous high-altitude landlocked country situated in


the South Caucasus and surrounded by Georgia to the north, Azerbaijan and Iran to the east
and south, and Turkey to the west. The multifarious terrain of Armenia is characterised by
highland plateaus and mountains (average altitude is 1800 m above sea level), further
enriched with valleys, forests, semi-deserts, lakes and fast flowing rivers.
Armenia is poor in terms of domestic fossil fuel reserves: despite some brown coal
mines located near the cities of Gyumri and Spitak, and recently discovered modest deposits
of hard coal (100 million tonnes) and shale (150 million tonnes), the country does not
produce any oil or gas and thus is fully depending on imported fuel, for transportation,
electricity generation and heat production – oil, natural gas and uranium, coming mostly from
Russia. Up to date, the shares of the main energy sources in electricity generation are as
follows: nuclear power – 40%, hydropower – 33%, fossil-fired thermal power plants – 21%,
small HPP and wind together – 6%. Thus, the only locally available energy sources are the
renewable ones: mainly wind, sun, bioenergy and hydropower. With the current exploitation
of the latter - including Sevan-Hrazdan and Vorotan HPP cascades plus over 150 small hydro
power plants with the total installed capacity of approximately 1 GW - Armenia only covers
less than 40% of the total internal energy demand. Other renewable energy resources remain
almost unexploited nowadays. In spite of lacking fossil fuels, Armenia has significant domestic
power generation capacities which provide the country with a generation surplus and allow it
to export electricity to the neighbouring states (e.g. to Iran during summer months).
As it is mentioned above, the total Armenian energy mix is strongly dominated by
nuclear power – about  40%  of  all  energy  in  the  country  is  generated  at  Armenia’s  sole  power  
plant, Metsamor. Nowadays, the decision has been made to shut down the plant by 2016, as
Metsamor was built on one of Earth's most earthquake-prone terrain in a zone with high
seismic activity. Actually, the power plant has been already destroyed once in 1988 by a
powerful earthquake, which turned out as a disaster for the whole Armenia. Now, the reason
for decommissioning is also that its exploitation period is expiring, and the plant cannot be
upgraded to meet internationally recognised nuclear safety standards. After Metsamor’s shut
down, Armenia will find itself in need of additional power capacity to replace the nuclear
energy generation.
22
Armenia Wind Energy Status in Russia and CIS Countries
With its population of nearly 3 million people, one third of which resides in rural areas,
Armenia has an extensive electricity grid, which, due to the legacy of the Soviet Union
industrialisation and electrification policy, reaches almost every place in the country
(although electricity cut-offs still occur from time to time). Thus, the majority of the citizens
have  access  to  electricity,  and  for  this  reason  the  local  experts  envisage  Armenia’s  future with
large grid-connected wind farms rather than with the wide-spread small wind, although the
latter should not be excluded.
The  energy  sector  of  Armenia,  being  of  an  essential  importance  for  the  country’s  socio-
economic development, has been exposed to serious challenges, such as underinvestment, a
lack of financing capital, production losses, artificially low electricity tariffs and non-payment
of debts. However, since the early 1990s the Armenian energy sector has undergone a
fundamental reform, aimed at privatisation of the key institutions and facilities and
increasing their operation efficiency. Due to this comprehensive reform, the energy sector
was transformed from vertically integrated state-owned structure into a freer and more
market-oriented framework, with unbundled actors for transmission, generation and
distribution. An independent regulator, Public Services Regulatory Commission of the
Republic of Armenia, was established. Besides, the energy market of Armenia includes a
distribution company,  CJSC  “Electric  Networks  of  Armenia”  (owned  by  the  Russian  “InterRAO  
UES”),   a   transmission   operator   CJSC   “High   Voltage   Electricity   Networks”, a single system
operator  CJSC  “Systems  of  Electroenergy”,  which  is  responsible  for  dispatching  services,  and
over 50 generation companies, most of which are privatised.
Although the abovementioned reform of the energy sector has alleviated most of the
grave problems, some of those still remain nowadays. Among them the most serious ones are
overdependence on Russia not only in terms of imported fossil fuels, but also because the
latter has acquired the shares of the whole range of key Armenian energy infrastructure and
enterprises,   including   CJSC   “Electric   Networks   of   Armenia”,   the   financial   management   of  
Metsamor  nuclear  plant,  Razdan  thermal  power  plant  etc.  Besides,  CJSC  “Electric  Networks  of  
Armenia”   remains   the   single   and   only   wholesale   buyer   on   the   market   that   purchases  
electricity from generating companies, turning a structure of the market into a de facto
monopoly. And finally, the country still faces a complex task of re-organising its energy sector
due to the envisaged shut-down of the Metzamor nuclear power plant. Without doubt,
renewable energy technologies could be implemented as the most reasonable solution for this
problem.

23
Armenia Wind Energy Status in Russia and CIS Countries

Wind Power Potential


With its rugged mountainous terrain, Armenia is considered to possess a significant
wind potential, however, detailed reliable assessments for the whole country are not
available yet. Existing estimations vary within a broad range and rise up to 10’000 MW.
Mostly the evaluations were performed for certain areas: thus, for example, north and north-
west regions of Armenia have an estimated economic potential of 300-450 MW. For a number
of other regions of the country, as concluded by the study performed by the US National
Renewable Energy Laboratory (NREL), the wind potential constitutes 4900 MW in four spots
with the total area of 979 km2 with good to excellent wind potential (wind class 4 to 7). The
overall potential of the country is assessed at the level of 10’000 MW, however, the
evaluations were not terminated yet.
Armenia’s   windiest   areas   are   typically   located   on   top   of   the   mountains   and   mountain  
ridges as well as in mountain corridors and passes with higher than average wind speeds. The
average wind speed for the whole country varies between 1 and 7 m/s, depending on the
location; usually the winds are stronger during winter months, which places an additional
advantage on wind power, as the peak demand is observed exactly in winter. The distribution
of  wind  speed  over  Armenia’s  territory  is shown on the wind map below.

Figure 2.1.

The best locations for wind power plants deployment in Armenia are situated at the
Zoda pass together with other spots near Lake Sevan (north and east coast), Arpi Lake area in
the north, Bazum mountain range, Karakhach, Pushkin, Semenovski, Selimski and Jajura

24
Armenia Wind Energy Status in Russia and CIS Countries
passes, Charentsavan region, the Gegham mountain range, Aparan area in the north-west of
the country, the uplands between Sisian and Goris in the East, and Meghri region next to the
border with Iran. Most of the above listed locations (marked on the map below) are located in
remote mountainous passes, typically with high elevation (2000 m and more) and with
limited or hampered access.

Figure 2.2.

Several wind atlases are available for Armenia: The first one was composed as early as
1989-90 by ECOTECH Scientific Association, based on analysis of the synoptic data from 37
hydro-meteorological stations of the country. It indicated a theoretical wind power potential
of 2’426  to 4’418 MW for two main zones of the republic. The second atlas was developed by
the US National Renewable Energy Laboratory (NREL) in collaboration with SolarEn
International Corporation and its Armenian subsidiary SolarEn LLC. The primary targets of
the project was to create detailed wind maps for all regions of Armenia and to produce a
comprehensive wind atlas documenting the results as well as to establish a wind monitoring
program to identify prospective sites for wind energy projects and help validate some of the
wind resource estimates. The NREL atlas provided a conclusive assessment of a theoretical
potential of 4’900 MW, out of which up to 500 MW would be economically feasible.
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Armenia Wind Energy Status in Russia and CIS Countries
The specific difficulty for Armenia is caused by its mountainous landscape: numerous
areas with high wind potential lie in the spots which are not easily accessible for heavy
machinery which is needed for the installation of wind turbines. Difficulties with equipment
transportation (towers, blades etc.) for large capacity installations may occur.

Political Conditions and Renewable Energy Legislation


In terms of institutional and regulatory management, the primary responsibility for the
Armenian energy sector supervision rests upon the Ministry of Energy and Natural Resources
(MENR), whereas the monitoring and implementation is also performed by the Armenian
Public Services Regulatory Commission (PSRC), an independent regulatory body established
in 1997 by the decree of the President of Armenia. The functions are divided as follows:
MENR is in charge of the elaboration of the national energy saving strategy and the promotion
of renewable energy use in Armenia, in accordance with the guidelines defined by the
government. At the same time, PSRC is an autonomous multi-member agency, while the
government entities are restricted from interference in its actions and decisions. PSRC acts as
a regulator in the energy sector and deals with vital issues such as licensing and tariff setting.
The legislative base of Armenia encompassing the energy sector and RES operation and
management is rather modest, but at the same time quite comprehensive. The general
overview is presented in the table below, and the extended interpretation is provided further
in the text.

Table 2.1. Energy Sector Legislation of Armenia


Date Document Title
7 March 2001
Law  “On  Energy”  
(first enacted in 1997)
9 November 2004 Law  “On  Energy  Saving  and  Renewable  Energy”
Energy Sector Development Strategy in the Context of Economic
23 June 2005
Development of the Republic of Armenia
National Plan of the Republic of Armenia on Energy Saving and
18 January 2007
Renewable Energy
Resolution of the Public Services Regulatory  Commission  №  207N  “On  
Definition of Sale Tariffs of Electricity Delivered from Power Plants that
4 May 2007
Generate Electricity by Utilization of Renewable Energy Resources in
the  Republic  of  Armenia”
Action Plan for the Ministry of Energy and Natural Resources of the
1 November 2007 Republic of Armenia Stipulated by the Provisions of the National
Security Strategies of the Republic of Armenia

Looking deeper into the above listed documents is helpful in order to discern the
peculiarities of the regulatory framework for renewable energy sources in Armenia, including
wind power.   For   example,   the   fundamental   law   of   the   Armenian   energy   legislation,   “On  

26
Armenia Wind Energy Status in Russia and CIS Countries
Energy”,   sets   the   basic   guidelines   for   regulation   of   the   energy   sector.   In   regard   to   RES,   the  
article 59 of this law guarantees the purchase of all (100%) electricity generated from
renewable energy sources by the state during the first 15 years of operation, starting from the
time point when the appropriate license was granted.
Another document, Energy Sector Development Strategy, adopted in 2005, emphasises
wind power as a high priority sector for the country, and highlights the importance of
enhancing energy independence and ensuring efficient use of domestic sources of energy. The
Strategy sets a national target of 500 MW installed grid-connected wind power capacity till
2025, alongside with 595 MW of hydropower and 25 MW of geothermal power.
As early as in 2004 (compared to   other   CIS   countries)   the   law   “On   Energy   Saving   and  
Renewable   Energy”   was   passed in the Republic of Armenia. The provisions of the law are
targeted at creating (in the future, by separate legislation pieces) additional favourable
conditions for renewable energy producers, such as tax privileges, zero-custom duties for the
imported equipment and feed-in tariff schemes. Interestingly, the given law also aims to
disseminate knowledge and raise public awareness about renewable energy. According to
Article 10, energy saving and renewable energy classes should be incorporated in the
curricula of educational institutions of all levels.
Armenia is one of the few states in the region with an established feed-in tariff
mechanism in place, underpinned  by  corresponding  legislation.  The  law  “On  Energy”  sets  the  
regulation of obligatory purchase of energy generated from RES during the first 15 years after
power plants commissioning and licensing for a higher price: As of January 2009, the tariff
amounted to 31,343 Armenian drams (AMD) per kWh without VAT, which equals to 0,08 USD
or 0,06 EUR (as of January 2012). The tariff is fixed in Armenian drams and should be
annually recalculated and adjusted to the changes of Armenian dram/USD exchange rate as
well as to the fluctuations of Consumer Price Index (CPI).
Approximate estimations for the costs of industrial size wind turbines installation lies
between $2 and $2,2 million per MW of installed capacity. Local experts assume that the
installation of 500 MW wind power, according to the target set by the National Energy Sector
Development Strategy, will require up to $1 billion investment (considering economy of scale
effect).
Generally, the policy of Armenian authorities towards renewable energy includes key
vectors such as active exploration and utilisation of local renewable energy resources,
diversification of energy supplies, enhancement of environmental and energy security and
promotion of energy efficiency and saving. The national leadership of Armenia, realising the
lack of fossil fuel reserves in the country and acknowledging economic and political
difficulties caused by overdependence on imported energy sources, seems to appreciate the
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Armenia Wind Energy Status in Russia and CIS Countries
importance of the development of the renewable energy sector. Despite the unstable political
landscape in Armenia, which is created by its problematic relations with neighbouring
Azerbaijan and Turkey and the unresolved conflict over Nagorno-Karabakh, there has been
positive economic growth in recent years. Apart from that, Armenia is increasingly active on
the international level trying to attract the necessary funding. On the other hand, the interest
inside Armenia has grown, too, so that there are all the reasons to expect that Armenia can
become an appealing new market in the sphere of RES and wind power, especially given the
statements of its officials and the pronounced interest in taking the flagship in regional RES
development and cooperation.

Operating and Planned Wind Energy Projects


Unlike some other CIS countries, Armenia expresses its interest in alternative energy
promotion not only in the form of the decisive statements of public officials, but also
underpins it with appropriate actions. In Armenia, there is already one constructed and
operating  wind  farm  “Lori-1”, built in 2005 in the
northern part of the country called Pushkin Pass,
along the Bazum Mountains (location indicated on
the   map   below).   “Lori-1”   consists   of   four   660   kW  
turbines (Vestas V47/660, blade diameter 47m),
equalling a total installed capacity of 2,64 MW, and
it generates an annual output of around 5 million
kWh.   “Lori-1”   is   the   first   wind   farm   set   up   in   the  
South Caucasus and provides energy for more
than 1000 local inhabitants in the mountainous
settlements nearby. The construction was performed by the Iranian company "Sunir" and
financed through a $3,5 million grant from the government of the Islamic Republic of Iran
within a special cooperation programme between Iran and Armenia.
Further development of wind power projects in the country includes, apart from the
plan  of  expanding  “Lori-1”,  other  wind  farms  construction,  such  as  the “Karakhach-1”  90MW  
wind farm performed by the Armenian-Italian   company   “Arenergy”   on   the   Karakhach   pass
(the feasible wind potential of the Karakhach plateau is estimated at 250-300 MW). At the
present moment, the wind monitoring has been completed, the necessary licenses have been
acquired  by  “Arenergy”,  and  the  construction  works  have  begun.  The  wind  farm is expected to
start operation in two years, however, the progress is hindered by difficulties with equipment
transportation and logistics caused by the mountainous Armenian landscape. The estimated

28
Armenia Wind Energy Status in Russia and CIS Countries
investment in the project constitutes $130-140 million.  In  the  future  the  “Karakhach-1”  may  
be expanded up to 200 MW, with an expected production output of 50 million kWh, which
would  equal  to  1%  of  the  country’s  total  generation.  
Alongside with wind farm planning, several ongoing wind power potential monitoring
projects are currently underway. Data monitoring is supposed to be applied for determining
the technically accessible and economically feasible grid-connected wind power potential in
several regions of Armenia. A number of pre-feasibility studies have also been conducted
recently, for example for the 34 MW Semenovka Wind Power Project for Gegharkunik region
(marz) of Armenia.
On the international level, Armenia receives generous support for its wind power and
other RES potential monitoring activities, as well as in tackling more general problems within
its energy and electricity sector, including the active assistance of organizations and
institutions, such as USAID, to the Energy Sector to Support Energy Security and Regional
Integration (ESRI) programme, the EU Commission’s and EU Tacis support to the Energy
Policy of Armenia" Project, and other organisations including World Bank, EBRD etc. Local
entities   are   also   actively   involved   in   the   country’s   renewable   energy   resources   exploration.  
For instance, the Armenian Renewable
Resources and Energy Efficiency Fund
(R2E2) – funded by the World Bank with
70%, and the rest provided by the
Armenian government – monitors the
situation in the renewable energy sector
in the country, provides support and
consulting and develops feasibility
studies. Besides, Armenia has a
sufficiently high level of local scientific
expertise and specialists working on
development and application of renewable energy technologies.
According to the recent assessments by USAID, the average costs of wind power project
development is at approximately $2,2 million per MW of installed capacity (only turbines and
equipment), for small wind, the estimation is $1000-1300 for a wind turbine with 1kW
capacity. However, additional 20 to 40% should be added to this sum to cover the additional
project expenditures.
Local  entrepreneurs  and  businessmen  state  that  there’s  an  increasing  interest  observed  
in wind power projects in Armenia from the side of international investors. Additionally, the
government is described to be helpful in supporting such initiatives, and although currently
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Armenia Wind Energy Status in Russia and CIS Countries
there are no local manufacturers of wind turbines and appropriate equipment, the amount of
indigenous skilled workforce and the level of their qualification is considered to be sufficient
to participate in innovative developments.

Prospects for the Future


Wind power in Armenia is nowadays in its conceptual stage of development. Despite
significant potential and fair prospects for its application, presence of highly educated local
personnel and clear signs of interest from government, population and international actors,
most of the programmes and initiatives on wind power have not been implemented yet.
In the absence of domestic fossil fuel reserves and in light of the heavy dependence on
imported fuel, Armenia could and should consider wind power as an alternative energy
source, which it should harness and develop domestically. Thus, the substitution of imported
energy sources with renewable energy would be a good stimulus to launch the local
electricity  production  from  renewable  sources,  enhancing  the  country’s  energy  security  in  the  
times when the energy demand is increasing alongside with the pace of economic growth,
development and urbanisation (results of a recent study indicate that a 1% increase in
renewable energy use is equivalent to 3,65 days of independent supply and hence reduces the
probability of a countrywide energy blackout). Besides, the RES sector expansion would
create new jobs in an innovative industry for the local population and bring modern
technologies to the country. However, the challenge for Armenia is not only to make the
internal energy supply more sustainable, but to rearrange it in the nearest future in such a
way that it would substitute for the supply loss caused by nuclear power plant shut-down.
Under such circumstances, the increase of RES share could be a reasonable and future-
oriented solution: According to rough estimations, renewable energy in the mid-term
perspective (by 2025) could satisfy about 35 % of the domestic demand.
A number of barriers to renewable energy proliferation remain, especially concerning
large, industrial-scale RES projects. Although the adoption of a feed-in tariff mechanism was a
significant step, the local experts assess the current feed-in rates as too low to enable the
viability of utility-scale wind farms and thus to attract the interest of foreign investors. Hence
its has been suggested to raise the rate by 25-30%. Besides, additional legislative and
financial incentives (tax privileges and VAT exemption, reduction of custom duties for
imported equipment etc.) are still to be officially approved and enacted.
The proactive renewable energy policy of Armenia should adhere to the guidelines of
improving regulatory and economic conditions so as to ensure competitiveness of renewable
energy resources and to protect the rights of all participants on the local renewable energy
market. Special attention should be devoted to the promotion of awareness of the population
30
Armenia Wind Energy Status in Russia and CIS Countries
(especially in the rural areas) about the advantages of RES utilisation and energy saving
issues. If the given measures are undertaken and a far-sighted and comprehensive wind
power development strategy is elaborated and implemented, Armenia has all chances to
become a full-fledged participant of the international wind energy market.

References:
 21st   Century   (2007):   Renewable   Energy   in   Armenia.   №2   (6),   2007.   V. Odabashyan, S.
Khachatryan.

 Armenian Renewable Resources and Energy Efficiency Fund (2008): Wind Power Development
in Armenia. Renewable Energy Project. A. H. Marjanyan. Yerevan, Armenia.

 Energy Charter Secretariat (2008): Review of investment climate and market structure of the
energy sector in Armenia.

 Energy Strategy Center (2011): Armenian Energy Sector Overview. Eduard Karapoghosyan.
Yerevan, Armenia.

 European Bank for Reconstruction and Development (2009): Sustainable energy development in
the  EBRD’s  countries  of  operations:  Group  “C”  Countries.  Country  profile:  Armenia.  

 Ministry of Energy and Natural Resources of Armenia (2009): Renewable Energy in Armenia.

 Regulación Eólica con Vehículos Eléctricos (2010): Wind Energy Focus in Armenia.

 Renewable Energy Armenia (2008): Wind Power Assessment. EU-Armenia Web Protal on
Renewable Energy.

 The Armenian Reporter (2011): Renewable Energy Assessment for Armenia. Tamara Babayan,
Areg Gharabegian, Artak Hambarian, Morten Søndergaard, Kenell Touryan. Published on
November 17, 2011.

 The Armenian Weekly (2010): Listening to the Wind of Change: Renewable Energy in Armenia.
January 2010. Jason Sohigian.

 U.S. National Renewable Energy Laboratory (2003): Wind Energy Resource Atlas of Armenia. D.
Elliott, M.Schwartz, G.Scott, S. Haymes, D.Heimiller, R.George.

 United States Agency for International Development (2007): Piloting Armenia's Energy Future.
Highlights from Energy Efficiency and Renewable Energy Pilot Project Success. USAID Armenia.

 Wind Power Database (2011): Wind Farms in Armenia.

 The World Bank (2006): From Crisis to Stability in the Armenian Power Sector. Lessons Learned
from  Armenia’s  Energy  Reform  Experience. Gevorg Sargsyan, Ani Balabanyan, Denzel Hankinson.
Working  Paper  №74.  Washington,  D.C.  

 European Commission (2007): TACIS Project: Support to the Energy Policy of Armenia.
Renewable Energy Economic Potential of Gegharkunik Marz. Feasibility Study Report. Volume II.
Yerevan.

 KfW Bankengruppe (2007): Renewable Energy and Energy Efficiency: Innovative Policies and
31
Armenia Wind Energy Status in Russia and CIS Countries
Financing Instruments for the EU's Southern and Eastern Neighbours. Renewable Energy in the
Republic of Armenia. Dr. Areg Galstyan. Berlin, April 2007.

Contacts:

State&Government
Rep. Square, Government Building 2
375010, Yerevan
Armenia
Ministry of Energy and Natural Resources Tel: +374-10-521-964
Fax: +374-10-526-365
E-mail: minenergy@minenergy.am
Web: www.minenergy.am
Saryan St. 22
375002, Yerevan
Armenia
Public Services Regulatory Commission of
Tel: +374-15-225-22
the Republic of Armenia
Fax: +374-15-255-63
E-mail: info@psrc.am
Web: www.psrc.am
International
American Ave. 1
0082, Yerevan
Armenia
USAID Armenia Office
Tel: +374-10-464-700
Fax: +374-10-464-728
Web: armenia.usaid.gov
NGOs
Proshyan Str., 1st lane, 32
0019, Yerevan
Armenia
Renewable Resources and Energy Efficiency
Tel: +374-10-545-222
Fund (R2E2)
Fax: +374-10-541-732
E-mail: info@r2e2.am
Web: www.r2e2.am
Miasnikyan 5/1
0025, Yerevan
Armenian Sustainable Energy Financing
Tel: +374-10-551-023
Facility (ArmSEFF)
Email: info@armseff.org
Web: www.armseff.org
Tel: +374-10-529-277
EcoTeam – Energy and Environmental
E-mail: ecoteam@freenet.am
Consulting
Web: http://users.freenet.am/~ecoteam
Business
Shrjanayin Str. 2/2
0068, Yerevan
Armenia
SolarEn LLC
Tel: +374-17-771-13
Fax: +374-17-771-82
E-mail:: info@solaren.com

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Azerbaijan WindWind
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Azerbaijan
Country Data
Area: 86’600 km2
Population: 9’493’600
Energy Sector Overview Population density: 109,6 per km2
Wind Power Installed Capacity: 2,2 MW

The Republic of Azerbaijan, one of the oldest oil producing countries in the world, is
located in the Caucasus region of Eurasia, in the south-eastern part of the Greater Caucasus
Mountains, and borders with Russia, Georgia, Armenia, Iran and Turkey. Azerbaijan is home
to a wide variety of landscapes: over half of its terrain consists of mountain ridges, crests and
plateaus, with the rest being plains and lowlands. The water system of Azerbaijan is rich:
there  are  8’350  rivers  of  various  lengths,  all  of  them  drain  into  the Caspian Sea, which bounds
the country in the west.
Azerbaijan has abundant resources of oil and gas on two thirds of its territory, located
mainly on the Absheron Peninsula and offshore underneath the Caspian shelf. Fossil fuels are
being exploited both for domestic consumption and for export to neighbouring states, which
makes Azerbaijan energy self-sufficient state and a net exporter of oil, oil products, natural
gas and electricity. Due to immense revenues from natural resources trade, the economy of
Azerbaijan has been showing high level of growth and a rapid reduction of its poverty rate,
placing the country among the five most developed CIS members. Moreover, Azerbaijan has
long been an oil hub and a regional focus of energy trade: in 1994, a 30-year contract - also
named  “The  Contract  of  the  Century”  due  to  its  tremendous  importance  - was signed between
the State Oil Company of Azerbaijan Republic (SOCAR) and 13 oil enterprises (including
Amoco, BP, LukOil, Statoil and Exxon) from eight countries (Azerbaijan, USA, Great-Britain,
Russia, Turkey, Norway, Japan and Saudi Arabia). The contract gave the legal rights to
Western oil companies to tap deepwater oil reserves untouched by the Soviet exploitation.
The total  installed  power  generating  capacity  of  Azerbaijan  amounts  to  7’100  MW.  The  
major part of the local energy demand in Azerbaijan - over 90% - is covered by fossil fuels
(thermal oil- and gas-fired power plants), the rest is produced from hydropower. The
essential part of Azerbaijan’s   power   generating   capacities   (up   to   80%)   is located in the
western part of the country, whereas 70% of extraction and consumption is concentrated in
the east. Therefore, firstly the fuel is extracted near the Absheron peninsula (east), then
transported hundreds of kilometres to thermal power stations in the western part and then
distributed to other regions of the country. Such composition of the energy infrastructure
leads to high technical and transmission losses. Due to the intensive and environmentally
unfriendly extraction and production of hydrocarbons and due to the increasing amount of

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consumed fossil fuels, Azerbaijan faces serious ecological problems: areas near Baku (one of
the most polluted cities in the world!) and the Absheron peninsula, as well as the waters of
the Caspian Sea, suffer from threatening levels of contamination from oil drilling and
shipping.
The favourable geographical location and the climatic conditions of Azerbaijan create a
large potential for renewable energy power generation, in particular, solar, wind, geothermal
and hydropower. Hydropower is being exploited quite widely, whereas other types of RES yet
remain untouched. The decentralised character of the renewable energy sources could be
especially suitable and useful for the Nakhchevan Autonomous Republic, due to its
remoteness from Azerbaijan’s main territory and its problems of frequent power deficits.
The energy sector of Azerbaijan is characterised by a vertically integrated monopolistic
structure and by the predominant role of the state. Electricity production and transmission is
managed by the 100% state-owned enterprise Joint   Stock   Company   “Azerenergy”,   which  
delivers it further to regional distribution companies. State Oil Company of Azerbaijan
Republic (SOCAR), which is 100% owned by the government of the Azerbaijan Republic, deals
with oil and natural gas extraction, processing and sales. In  its  turn,  “Azerigas” (a branch of
SOCAR) delivers natural gas produced by SOCAR to domestic customers and manages the
country’s   gas   supply   issues. The Tariff Council of Azerbaijan acts as a regulatory body,
covering many economic sectors including energy, and deals with tariff-setting and
monitoring. However, the Tariff Council remains subordinate to the government; an
independent energy sector regulator has not yet been established. According to Azerbaijani
legislation, transmission and distribution are not required to be separated from generation,
and neither a separate transmission, nor distribution system operator is envisaged in the
energy sector. Nonetheless, partial disaggregation has been achieved: two independent
regional distribution companies have been created, and some small-capacity power plants
have been privatised.
Azerbaijan is fully electrified: within the country, all cities and villages are grid-
connected, almost all customers are metered. The problem of low collection rate, which was a
critical issue since the early 1990s, was recently solved by the introduction of new metering
system, which allowed the payment rate to grow from 38,6% in 2006 to 90% in 2010.
However,   other   disturbing   aspects   of   Azerbaijan’s   energy   sector   remain   unhandled, such as
low electricity tariffs (below real market prices), government subsidies to conventional
energy, aging power plants and high energy losses. An extended period of under-investment
and limited maintenance has resulted in significant deterioration of generation capacities and
power infrastructure, leading to high losses in transmission and distribution networks.
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Wind Energy Potential


Geographic and climatic conditions favour the utilisation of wind power in Azerbaijan: a
whole range of territories have been identified as suitable for wind power installations. The
average wind speed varies across the country and depends in particular on the remoteness
from the Caspian Sea shoreline. In the coastal regions, the average speed is around 6 m/s,
whereas shifting away from the sea, this value drops to 4 m/s, and down to 1-2 m/s in other
regions. The number of windy days in the coastal areas and on the Absheron peninsula –
where Baku, the capital of Azerbaijan, is located and 8,1 million inhabitants reside - is
between 245 and 280 annually, and throughout an annual cycle the strongest winds are
observed in spring and summer, from March till July. Current conservative cumulative
assessments of the possible installed wind power capacity for the whole territory of
Azerbaijan varies from 800 to 3000 MW.
Wind maps and atlases are available for Azerbaijan in several versions: the first one was
published  in  1989  in  the  “Master  Plan  of  Wind  Power  Development  of  the  USSR  till  2010”  with
the wind measurements country-wide at 30m height and identifying the wind potential of the
country as fairly good; later editions were issued by the Ministry of Ecology and Natural
Resources of Azerbaijan, based on meteorological data of the past decades. Further wind
potential assessments have been undertaken – the Ministry of Industry and Energy has set 21
measuring stations around the whole country in order to indicate wind speed, directions and
duration in different regions at 80m height.
The most promising sites for wind farms are by far the Absheron Peninsula and the
Caspian Sea shoreline in the eastern part of the country. The average wind speeds in this area
vary between 7 and 8 m/s, reaching up to 8,5 m/s in the Qobustan region. Other favourable
locations include the Kura river basin (from the Kura spit in the south to the border with
Dagestan in the north) and the southern part of the Nakhichevan Autonomous Republic –
mainly separate localities near the Zangezur ridge (see the wind map below). Moreover,
generating facilities for offshore wind power could be installed in the Caspian Sea itself,
especially along the shoreline from Siazan to Alat, where the wind speeds are high and the
depth of the sea is around 10 meters on the distance of up to 4 km from the land. The islands
next to Absheron peninsula are also suitable for wind power development: among all
Pirallahi, Sengi Mugan, Neft Daslari (Oil Rocks), Khara Zire and Chilov.

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Figure 3.1.

In general, wind power could be exploited to a high extent in Azerbaijan, both industrial
and small capacity turbines. Installation of small generating units and wind water pumps
could provide water to the arid areas in such spots as Ganja-Dashkesen region, Sherur-Julfa
(Nakhchivan), Jeyranchol, Hajinohur, Shamakhi, Salyan, Altiaghaj and Ordubad. Besides, wind
power can be utilised as a decentralised electricity source and supply smaller towns and
villages, especially in the densely inhabited area around Baku. Since the electricity prices
tripled in 2007 in Azerbaijan and still keep growing, this option can be seriously considered
both by the local population and the government of the country.

Political Conditions and Renewable Energy Legislation


The legislative base of Azerbaijan in the field of renewable energy is far from being well-
composed and complete. Apart   from   core   laws   regulating   the   energy   sector,   such   as   “On  
Energy Sector”  (adopted  on  24 November 1998), “On  Electrical  Energy”  (of  3 April 1998),  “On  
Energy   Resources   Use”   (of   30 May 1996)   and   “On   Electrical   and   Heat   Power   Plants”   (of   28
December 1999), no other legislative acts has been devoted to renewable energy, in fact, a
separate law on RES has not been adopted up to date. Two target programmes were approved
by the president of the country, starting   from   2004,   including   “State   Programme   on   Use   of  
Alternative  and  Renewable  Energy  Sources  in  Azerbaijan”  (of 21 October 2004), focusing on
wind   and   hydropower   potential   assessment   and   development,   and   “State   Programme   for  

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Development of the Fuel-Energy Complex for 2005-2015”   (of   14 February 2005) calling for
Azerbaijan’s  energy  sector  expansion  by  means  of  increasing  renewable energy use.
Among the institutions, the central executive body for formulating, supporting and
implementing Azerbaijan’s  national  policy  in  the  sector  of  energy  is  the Ministry of Industry
and Energy of Azerbaijan. Performing the functions of regulation and control of the efficient
use of the fuel resources and supervision of energy complex development, it also issues the
annual fuel and energy balance and prepares state programmes on energy sector growth and
expansion. Accordingly, the given Ministry is in charge of the renewable energy sector in the
country, with additional assistance of the Ministry of Economic Development and the Ministry
of Ecology and Natural Resources. The electricity tariff regulation lies within the area of
competence of the energy regulator - the Tariff Council.
In 2009, the President of the country, Ilham Aliev, signed a directive establishing the
State Agency for Alternative and Renewable Energy Sources within the Ministry of Industry
and Energy. The given body is officially responsible for state policy in the field of renewable
energy, its key tasks include the assessment of renewable energy potentials, shaping of
relevant policies, initiation and supervision of RES projects, tariffs and licensing. Another
body, the Tariff Council also elaborates and controls tariff schemes and regulations. However,
Azerbaijan does not have a separate institution which serves as an independent regulator in
the energy sector.
Azerbaijan represents a peculiar case: despite rich oil and gas reserves in the country,
the president and the government, envisaging the boundedness of fossil fuels and planning
the future development of Azerbaijan, keep declaring their commitment to increase the share
of renewable energy in the total energy mix, emphasising in particular wind and hydropower.
Furthermore, the financial support for renewable energy projects is provided from the
Azerbaijan State Oil Fund, the Reserve Fund of the President and the state budget. However,
the Azerbaijani domestic policy of RES promotion is rather driven by the prospective
maximisation of oil and gas exports revenues, than by sensitivity to environmental pollution
and climate change issues.
The president of Azerbaijan has claimed numerous times in various statements to
support the promotion of renewable energy, and one of his last moves was an officially
adopted directive with a demand to prepare a new roadmap – a modern nationwide strategy
of renewable energy sector development for 2012-2020. The document is expected to be
issued still within 2012, and will set the national target of 20% renewable energy share by the
year 2020 (similar to the EU targets). Together with that, the  law  “On  Renewable  Energy” is
about to be passed, as its draft has been discussed for several previous months. The law will
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encompass the main issues of renewable energy regulation and will provide the necessary
incentives to the producers, such as tax privileges (wind turbines can already be imported
tax-free under the existing regulations) for renewable energy generation equipment, loans
with preferential rates and others. The purchase of all energy produced from wind and small
hydropower plants is obligatory at the present time, this priority is expected to be expanded
to other RES types.
The licensing rules and mechanisms for the renewable energy producers have been
recently elaborated and implemented by the government: the licences are granted within 30-
45 days by the Ministry of Industry and Energy to organisations and individuals, based on a
bidding procedure. Small-scale generators (less than 10 kW) are not subject to licensing.
The feed-in tariff rate was developed in 2009 by the Azerbaijani Tariff Council:
according to the existing regulations, the electricity produced by wind generators is being
purchased for 4,5 gapiks (equal to 0,04 EUR3) per kilowatt hour. Local and international
specialists claim that the current rate is too low to incentivise the investors. Besides, the given
tariff model is only valid for wind and hydropower and does not apply for other renewable
energy types.
Generally, one of the targets of the Azerbaijani officials is to harmonise the national
energy legislation with that of the European Union, as Azerbaijan is closely cooperating with
the latter within the frameworks of the European Neighbourhood Policy, Eastern Partnership
and INOGATE programme. Taking the external dimension, Azerbaijan conducts productive
cooperation in the field of renewable energy with international organisations and institutions,
including the European Bank for Reconstruction and Development (EBRD), the Asian
Development Bank (ADB), the World Bank, United Nations Industrial Development
Organization (UNIDO), United Nations Development Programme (UNDP) and others. In
cooperation with the latter, the State Agency for Alternative and Renewable Energy Sources
has launched a new project in spring 2011, named   “Promoting   the   Development   of  
Sustainable   Energy   in   Azerbaijan”,   aiming   to   assist the government of Azerbaijan in
overcoming barriers to the RES exploitation by reviewing and amending existing legal and
institutional frameworks. In 2009, Azerbaijan also became a member of International
Renewable Energy Agency (IRENA).

3 As of January 2012.
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Operating and Planned Wind Energy Projects


Over the past years, despite a maturing political discourse on renewable energy, only a
few wind turbines were installed in Azerbaijan, although the information is being spread that
the government has purchased over 60 units, out of which only three are operating at the
moment. The first two turbines (850 kW each, Vestas V52/850) were mounted and
commissioned by the Caspian Technology company in 2009 in the Shurabad field in Yashma
village of Khizi district, 55 km away from Baku. Another turbine of 500 kW capacity – Vestas
V39/500 – was installed at the same place and serves as a training spot for the local wind
energy engineers and specialists. The plans are announced to expand the given wind farm up
to 48 MW, with 16 Vestas V90 turbines.
As the Absheron peninsula is considered to have the best wind potential in the country,
more wind farms are constructed and planned in this area. For instance, the German company
PowerWind is engaged in a 3,6 MW wind project (4 PowerWind56 turbines) in Sitalcaj, 40 km
from Baku, with a preliminary completion date of December 2012. Another German wind
turbine producer, Fuhrländer, started the construction of a 50 MW wind farm (20 x 2,5 MW
FL 2500 turbines) near the city of Sumgayit, close to Baku. Several other projects for more
than 250 MW installed capacity are in the planning and development stage. Currently the
government of Azerbaijan is actively negotiating with other countries and companies on
further development of wind power in the country.
Small capacity wind turbines in Azerbaijan, similarly to other CIS countries, are
sporadically used by the local population and farmers for irrigation and lighting. The quantity
and locations of these units are not estimated, although a growing interest among the
population has been observed. Some other small wind turbines were installed in the last few
years within special or experimental projects: thus, under the Caspian Program supported by
the Canadian International Development Agency, two 2 kW wind generators were mounted in
the Caspian Sea as pilot projects. Also four MaxWind generators (10 kW each), together with a
number of solar panels, were installed in the “Ecological   Park”   near   Cala   village   on   the  
Absheron peninsula, within an environmental project of Tatiev Oil Extracting Direction.
According to Azerbaijan State Agency for Alternative and Renewable Energy studies and
assessments, the most effective solution for the country is the construction of hybrid systems,
using the combined energy of water, wind, sun and biomass in order to guarantee a stable
energy supply whatever the weather conditions are. Following these conclusions, the Agency
is planning to put into operation the first hybrid power station of 5,5 MW, using wind, solar
and biomass energy in Qobustan. The construction of wind turbines has already been

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launched near the city of Maraza, the commissioning is expected to follow in the nearest
months.

Prospects for the Future


The renewable energy sector remains in its early stage of establishment in Azerbaijan,
whereas   fossil   fuels   stand   squarely   at   the   heart   of   the   country’s   economy   and   political  
decision-making. The  strategic  development  of  Azerbaijan’s  oil  and  gas  resources  kept driving
the  country’s  rapid economic growth in the last decade, and for this reason the attention of
the government has been constantly chained to conventional energy. However, lately the
sector of renewable energy has experienced a steady increase of interest from the ruling elite,
development banks and international organisations active in Azerbaijan, and this trend will
most probably remain in the near future. Thus, although up to date the major influx of
investments in the energy sector is targeted at oil and gas industry, with the lapse of time
Azerbaijan has all chances to become a broad and promising future market for almost all
types of renewable energy, including wind power.
Although there has been little implementation of wind energy projects in Azerbaijan so
far, the country has a good wind potential and favourable climatic conditions for wind
generation, including the possibility of offshore wind resources exploitation in the coastal
waters of the Caspian Sea. Nevertheless, a wide gap remains between the intention to
promote RES and its implementation. A number of stumbling blocks are still to eliminate,
including legislative, institutional and financial barriers. Fighting within the first group of
problematic issues concerning insufficient legislative support, the government of the country
should first and foremost pass a law encompassing the sector of renewable energy, followed
by determination of an attractive remuneration tariff for all renewable energy types. A
necessary action within the institutional improvements is an establishment of an independent
agency to regulate the energy sector in a fair and transparent manner. The lack of financial
means for RES growth stimulation can be countered by both offering the funds from state
budget and by attracting private businesses and foreign investment. Lastly, measures such as
raising public awareness and drawing attention of the population to ecologic advantages of
alternative energy utilisation versus harmful environmental impacts arising from
hydrocarbon extraction and consumption could be productive within a long-term RES
development strategy.
In case that Azerbaijani  government  is  able  to  grasp  the  “green  push”  and  to  undertake  
immediate actions on drafting, passing and enforcing proper legislative regulations for RES

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support and promotion coupled with sufficient financial support, Azerbaijan’s   fledgling  
renewable energy sector could experience fast and progressing growth.
Opting for renewable energy, Azerbaijan could represent a notorious example, proving
the world that endowment with fossil fuel is not an obstacle on the way to cleaner energy
utilisation   and   consequent   shift   to   sustainable   development.   Azerbaijan’s   case   thus   could  
serve as a success story prototype for other countries, both within the CIS borders and in
other parts of the globe, which find themselves in a similar situation.

References:
 Asian Development Bank (2009): Azerbaijan Alternative Energy Sector Analysis and Roadmap.
Dr. Randall Baker, Dr. Enver Safarzade.

 Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) (2009): Renewable Energies in


Central Asia. Country Chapter: Azerbaijan.

 Energy Charter Secretariat (2011): Azerbaijan: Follow-Up In-Depth Review of the Investment
Climate and Market Structure in the Energy Sector.

 Environmental Policy Research Centre (2009): Recommendations for Azerbaijan on Feed-in


Tariff Design. David Jacobs. December 2009.

 European Bank for Reconstruction and Development (2009): Renewable Development Initiative.
Country profile: Azerbaijan.

 European Bank for Reconstruction and Development (2009): Sustainable energy development in
the  EBRD’s  countries  of  operations:  Group  “C”  Countries.  Country  profile:  Azerbaijan.  

 INOGATE (2010): Azerbaijan: Energy Sector Review. Renewable Energy. Energy Portal.

 International Center for Trade and Sustainable Development (ICTSD) (2011): Renewable Energy
Development Perspectives in Azerbaijan. Murad Nadzhafbeyli, Emin Teymurov.

 IREX (2010): Can Oil Pave the Way for Renewables? The Potential for Alternative Energy in
Azerbaijan. Bogdan Prokopovych. May 2010.

 IREX (2010): Solving the Green Riddle: Prospects and Challenges for Reforming the Alternative
and Renewable Energy Sector in Azerbaijan. Scholar Research Brief. Blake L. Ratcliff.

 Organisation for Security and Cooperation in Europe (OSCE) (2009): Wind Power Status and
Development Perspectives in Azerbaijan. Prof. R.I. Mustafaev.

 United Nations Development Programme (2011): Project Document: Promoting Development of


Sustainable Energy in Azerbaijan.

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Contacts:

State&Government
Ü. Hajibeyov Str. 40
1000 Baku
Azerbaijan
Ministry of Industry and Energy Tel: +994-12- 598-03-84
+994-12-598-16-75
E-mail: azer.mensimli@mie.gov.az
Web: www.mie.gov.az
Ü. Hajibeyov Str. 40
1000 Baku
Azerbaijan
State Agency for Alternative and Renewable Energy
Tel: +994-12- 493-15-26
Sources Fax: +994-12-493-16-97
E-mail: info@abemda.az
Web: www.abemda.az
International
50th Anniversary Str. 3
1001 Baku
Azerbaijan
United Nations Development Programme (UNDP)
Tel: +994-12- 498-98-88
Office in Azerbaijan Fax: +994-12- 498-32-35
E-mail: office@un-az.org
Web: www.un-az.org/undp
Nizami Str. 96
1010 Baku
Organization for Security and Cooperation in Azerbaijan
Europe (OSCE) Tel: +994-12-497-23-73
Office in Baku Fax: +994-12-497-23-77
E-mail: office-az@osce.org
Web: www.osce.org/baku
Scientific
Hasanbey Zardabi Str. 96
1012 Baku
Azerbaijan
Research and Scientific Institute of Energy and
Tel: +994-12- 431-42-08
Energy Planning of Azerbaijan
Fax: +994-12- 432-80-76
E-mail: info@pei.az
Web: www.pei.az
M. Arif Str. 5
1073 Baku
International Ecoenergy Azerbaijan
Academy Tel: +994-12-438-23-70
+ 994-12-438-40-25
E-mail: ie_academy@yahoo.com
Business
The East of Jeyranbatan Lake
0102 Khyrdalan, Absheron
Azerbaijan Energy Engineering and Consulting Azerbaijan
(LLC) Tel: +994-12- 408-83-77
E-mail: office@azeec.com
Web: www.azeec.com
Shamakhi Highway 4
0100 Khirdalan
Azerbaijan
Alten Group
Tel: +994-12- 480-20-48
Fax: +994-12- 496-12-56
E-mail: info@alten-group.com
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Web: www.alten-group.com
Ahmad Javad Str. 15
1003 Baku
Azerbaijan
Caspian Technology Company (LLC) Tel: +994-12- 497-48-13
Fax: +994-12- 497-48-14
E-mail: info@ ctc.az
Web: www.ctc.az

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Belarus Country Data


Area: 207’600 km2
Population: 9’542’883
Population density: 46 per km2
Energy Sector Overview Wind Power Installed Capacity: 3,5 MW

The Republic of Belarus is a landlocked country in Eastern Europe surrounded by


Russia and Ukraine in the east and south and bordering Poland to the west and Lithuania and
Latvia to the north. The landscape of the country is relatively flat and contains large tracts
of swamp land, over 40% of the country is covered by forests. Water resources are also rich:
many  rivers,  streams  and  11’000 lakes are found in the country.
Belarus is quite poorly endowed with hydrocarbon resources. Despite possessing 75 oil
fields, the quality of the extracted oil and the level of abilities for their mining remain low, and
the country imports the necessary fossil fuels from abroad – mostly from Russia. In general,
energy imports account   for   over   80%   of   the   country’s   total   primary   energy   consumption,  
whereas the rest 20% is utilised from domestic deposits: peat, oil, casing-head gas, wind,
biomass etc. Out of domestic energy resources, Belarus is especially rich on wood stock and
peat deposits, and it also has a fair potential for small hydropower. Dependency on Russian
gas supplies, instability of relations between the countries and an accumulated bill of $50
billion has made Belarus revise its energy strategy and to concentrate on domestic energy
sources as much as possible, to ensure the security of its energy supplies.
Belarus has a fair potential for renewable energy sources such as solar, wind, biomass
and hydropower, although for a long time it has been considered that Belarus has negligible
potential for all kinds of renewable energy, apart from biomass. For this reason the main
emphasis of the government has been placed on biomass plants development and usage of
wood and wood waste. The highest share in renewable energy utilised in the country also
belongs to biomass, followed by small HPPs, and then wind power.
The Belarusian energy sector is a vertically integrated monopoly managed by the state-
owned company   “Belenergo”, responsible for generation, transmission and distribution of
electric energy. There is no independent energy regulatory authority in Belarus, neither there
are privately owned mid- and large capacity power stations,. “Belenergo”  is  the  single  buyer  
of all electricity (including imported and produced from small power stations). At the regional
level, generation, transmission and distribution are carried out by integrated regional
enterprises,  which  are  also  part  of  “Belenergo”. Belarus has well-developed gas transmission
and distribution networks countrywide, ensuring stable supplies of natural gas to the

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consumers even in remote towns and villages. The national electricity grid is also branched
out reaching out to distant settlements.
Generally, the energy sector of Belarus suffers from insufficient domestic funding, cross-
subsidies and enormous discounts to the residential and municipal sector and farmers; oil
and gas prices, set artificially low by the authorities, covering only a fraction of the actual
costs; corruption and lack of free competition. However, over the past few years, Belarus has
made significant efforts to reduce energy consumption and increase energy efficiency and
savings, including improvement of electricity bills collection rates, which was raised from
45% in 2002 to 92% in 2008.

Wind Power Potential


As for the moment, an accurate assessment of wind power resources for the whole
territory of Belarus has not been performed yet. First investigations of the wind potential
were conducted in Belarus in 1990-1995. The result of these assessments was the
identification of 1’840 spots appropriate for wind turbines/farm deployment, most of them
situated on the hill ridges, with the altitude 250m above the sea level and higher, where the
average wind speed varies from 5 to 8 m/s. The wind map of Belarus with wind speed
estimations at 10 m height was also developed (as below).
Figure 4.1.

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The wind speed data indicates that the average annual wind speed at 10 m height in
most parts of the country is around 4-5 m/s, reaching up to 8 m/s in certain elevated
locations - Dzerzhynsk region, Novogrudok region, Oshmiany region, Volozhinski and
Smorgon regions.
The currently available estimation of an economically feasible wind potential in the
country is 1’600 MW, with an annual potential for electricity production of 6,5 billion kWh,
which is obviously low considering the size of the country’s   territory.   Nevertheless, further
assessments, if performed, are likely to result in a higher figure. Local institutions and
specialists, such as the State Committee on Hydrometeorology, Republican
Hydrometeorological   Center,   “Vetromash”,   “Aerolla-Energo”   and   “Belenergosetproekt”   and  
others started conducting wind measurements during the last decade and continue working
on it.
The most favourable locations for wind turbines deployment in Belarus are considered
to be elevated areas north and north-west of Belarus, the Grodnensk region, the city of
Vitebsk and the elevation around, Polotsk, and the central zone of the Minsk region (the wind
speed in the Dzerzhinsk region averages 8,6 m/s) including adjacent areas to the west of the
district. These regions are marked with circles on the wind map below. As seen on the map,
the majority  of  the  country’s  territory  has  wind  velocities  of  about  5  m/s  at  a  height  of  80 m
and up to 7 m/s on the elevated areas.

Figure 4.2.

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Political Conditions and Renewable Energy Legislation


Since its independence in 1991, Belarus has adopted a whole range of legislative acts
regulating its energy sector and covering issues such as energy efficiency, energy saving,
renewable energy use etc. The key documents are listed in the table below, and its most
relevant provisions are outlined further in the text.

Table 4.1. Energy Sector Legislation of Belarus


Date Document Title
Resolution of the State Council of the Ministers №400  “On  Small  and  
24 April 1997
Alternative  Energy  Development”
Resolution  of  Ministry  of  Economy  “On Tariff Setting for Energy Purchased
22 May 1997
from Small and Alternative Energy Producers”
Resolution  of  the  State  Council  of  the  Ministers  №  935  “On  Privileged
23 July 1997
Crediting  of  Energy  Saving  Projects”
Resolution  of  the  State  Council  of  the  Ministers  №504  “On  Measures  of  
31 March 1998 Economic Incentives for Actors Aiming at Energy Resources Use Reduction
and  Implementation  of  Energy  Saving  Technologies”
19 June 1998 Resolution  of  the  State  Council  of  the  Ministers  №965  “On  Measures of Energy
Saving Policy Reinforcement”
16 January 2001 Republican Programme on Energy Saving for the Period 2001-2005
28 February Resolution of the State Council of the Ministers №288  “On  Development of
2002 Small and Non-conventional Fuel Power Plants”
Resolution  of  the  State  Council  of  the  Ministers  №1578  “On  Additional  
14 November
Measures of Stable Energy Resources Supply of National Economy and
2002
Population”  
27 December Resolution  of  the  State  Council  of  the  Ministers  №1820  “On  Additional  
2002 Measures of Sustainable  and  Effective  Use  of  Energy  Sources”
Resolution of the State Council of the Ministers №1680  “Target Programme on
30 December
Supplying at Least 25% of Energy and Heating from Domestic and Alternative
2004
Energy Sources  in  Belarus  for  the  Period  until  2012”
State Complex Programme on Modernisation of Key Production Units of
25 August 2005 Belorussian Energy Sector and Increase of Domestic Energy Resources Share
in Belarus for the Period 2006-2010
2 February 2006 Republican Programme on Energy Saving for the Period 2006-2010
President Directive №3 “Economy  and  Saving  as  Key Factors of Economic
14 June 2007
Security of the State”
15 July 2007 Law  “On  Energy  Saving”
17 September
Strategy of Energy Security of the Republic of Belarus
2007
State Complex Programme on Modernisation of Key Industries of Energy
15 November
Sector, Energy Saving and Increase of Domestic Energy Resources Share in
2007
Belarus for the Period up to 2011
22 February Resolution  of  the  State  Council  of  the  Ministers  №248  “On  Measures for
2010 Increasing Effectiveness of Energy Resources Use  for  the  Period  up  to  2012”  
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State Programme on Energy Generating Plants Construction Using Domestic
19 July 2010
Energy Resources for 2010-2015
9 August 2010 Strategy of Energy Potential Development in the Republic of Belarus
24 December
Republican Programme on Energy Saving for the Period 2011-2015
2010
27 December
Law  “On  Renewable  Energy  Sources”
2010
National Program of Local and Renewable Energy Sources Development for
10 May 2011
2011-2015
Resolution  of  Ministry  of  Economy  “On  Tariffs  for  Energy  Produced  from  
30 June 2011
Renewable  Energy  Sources”
Source: composed by the author.
Judging from the amount and specifics of Belarus’ energy legislation, the development of
RES and the use of local energy sources as a means of providing security of energy supply are
undoubtedly included into primary strategic goals of the country. As one can observe, the
legislation base for the energy sector regulation in Belarus is developed and comprehensive
(as compared to other CIS states), but bulky, intertwined and patchy from the other hand: a
number of aspects have not been yet encompassed by the legislative acts.
Renewable energy was first addressed by legal acts as early as 1997, with the adoption
of the resolution № 400 “On   Small   and   Alternative   Energy   Development”,   in   which   wind  
power was included into the notion of alternative energy. Immediately after that, the 1998
resolution   “On   Measures   of   Energy   Saving   Policy   Reinforcement”   prescribed   the   ministries  
and the local governments to activate the measures directed at local renewable energy share
increase in the energy balance of the republic.
During the last two decades, four national Republic programmes on energy
savings were consequently adopted for the periods of 1996-2000, 2001-2005, 2006-2010 and
2011-2015. The main goals of these programmes were to improve security of energy supply
and reduce dependency for energy imports in response to the rising energy prices of
imported oil and gas, also by means of broadening the RES sector.
The legislative framework also sets strategic goals envisaging the increase of domestic
energy sources and renewable energy share in total production, up to the level of at least 28%
in 2015 and 32% in 2020. For wind power, the target was set to install 460 MW by 2015.
The latest successful step of the country towards RES development was the recent
adoption of the law   “On   Renewable   Energy   Sources”   in   December   2010 – the document
established a legal base for renewable energy sources development in Belarus. Under the
given law, renewable energy generators are granted the right of guaranteed access to the grid
and guaranteed sale of all energy to state energy supply organisations. Equipment imported
to Belarus and used for electricity generation, transformation, accumulation and/or
transmission from renewable energy sources is exempt from VAT and custom duties. Land
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spots occupied by any units and plants constructed for the production of renewable energy
sources are not subject to land tax, and, lastly, the energy purchased from RES producers is
granted a preferential tariff.
Belarus is one of the few CIS countries with an established feed-in tariff mechanism:
during the first ten years of exploitation, energy produced from all types of alternative
sources (including wind) is purchased by the state energy supply organizations and priced
with a x1,3 coefficient, solar energy has an increased rate of x3,0. Over the next ten years, the
coefficient is lowered to x0,85 for all types of RES. The 20 years payment period was chosen
according to an average estimate of renewable energy projects economic viability and
payback term.
The state institutions responsible for energy sector guidance, management and
supervision have traditionally been the Ministry of Energy, the Ministry of Natural Resources
and Environmental Protection and the Ministry of Economy. The former is charged with
ensuring security of supply and meeting the national energy needs, guaranteeing a connection
of RES power plants to the grid and public networks, and the latter has a jurisdiction over
economic regulation. Tariffs for gas, electricity and heating are regulated by the government
for the residential sector and by the Price Policy Department of Ministry of Economy for all
other consumer groups. The tariffs are approved by the Ministry of Economy in coordination
with the energy sector enterprises (SIE Belenergo and SIA Beltopgaz) and after submission of
expected costs and mark-ups by the energy companies. The Ministry of Natural Resources
and Environment of the Republic of Belarus is responsible for development and maintenance
of the State Cadastre of Renewable Energy Sources, issuing certificates confirming the origin
of energy and identification of spots suitable for RES plants location (and further informing
local executive and administrative bodies about the results). All the ministries take an active
part in elaborating state programmes for RES development.
Apart from that, the State Committee on Science and Technology and Belorussian
Academy of Sciences are engaged in executing research and development of scientific and
technical background for implementation of alternative energy projects, several other NGOs
are active in renewable energy field; the preparations are underway for the creation of a
Belorussian Renewable Energy Association.

Operating and Planned Wind Energy Projects


Current installed wind power capacity in Belarus is still very modest, although
exceeding the indicators of some other CIS countries – it constitutes around 3,5 MW. The

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given number is comprise two operating  wind  farms:  “Druzhnaya”  and  “Minsk”, as well as
by separately placed wind turbines.
The “Druzhnaya”   wind   farm   is   situated   on the shore of the largest Belorussian lake,
Naroch, 150km of the  country’s  capital  Minsk,  and  has a joint capacity of 850 kW, comprising
two wind turbines (600kW and 250kW) installed in 2000-2002. The wind generators
REpower Systems 48/600 (the bigger one) with blade diameter 48,4m and
NORDEX 29/250 with rotor diameter of 29,7 m produce approximately 1 GWh annually and
supply around 700 inhabitants of nearby villages. Implementation of the project was partly
financed by the German NGO   “Heim   Statt   Tschernobyl”   (Home   Instead   of   Chernobyl)   and  
partly by the German government. The plans are pronounced to expand the wind farm spot
with one more NORDEX 1 MW generator in the future. Another  wind  farm,  “Minsk”, is located
in the central part of the state near Belarus capital city and has a capacity of 1,080 kW and an
estimated yearly production of 2 GWh, enogh to provide around 900 people with electricity.
Recently a major event in Belarus was the installation of the largest on the whole
territory of the CIS and the first MW-class wind turbine in the country: the 1,5 MW generator
(model HW82/1500, rotor diameter 80m, tower height 90m) was erected in Grabniki village,
a few kilometres from Novogrudok city and 320 meters above sea level. The construction
works began in September 2010, preliminary measurements and wind monitoring for the
chosen location were performed by Belorussian Malaya Energetika Ltd., the general designer
was SLC "ENECA", the turbine was manufactured by the Chinese company “HEAG”, and CJSC
“Zapadelektrosetstroy” completed the installation and launched the generator in May 2011.
The estimated annual electricity production will amount to 3,183 million kWh, and if the
given wind turbine will be proven as effective, it will be complemented with other turbines
(up to 25 MW in total), according to the local government.
A number of other stand-alone turbines is documented in Belarus: such as 2-blade 80
kW Lagerwey 18/80 in Zhukovo village, completed by the Belgian company Blue Planet Wind,
a 11,4 kW turbine near the industrial base in Mogilev city, two turbines in Volma, as well as
some small capacity turbines in Kobrin (three 7,5 kW turbines). In total, according to state
authorities, 13 wind turbines are installed in Belarus (as for November 2011) with a joint
capacity of slightly over 3 MW. Local production of wind generators and equipment is not
developed in Belarus: although some companies (such   as   “Aerolla”)   produce small capacity
generators and separate components for small turbines, most of the generators are imported
from Russia, Europe or China.
Information exists about future plans and projects on installing additional wind power
capacity in Belarus. For example, an agreement was reached between regional Minsk

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Power in Russia
Status andCIS
in the CISCountries
Countries
authorities and the German company Enertrag AG to set up a 160 MW wind farm in the
Dzerzhinsk region near Minsk during the next few years. The construction is planned to be
performed in two phases: Firstly, it will include launching 80 MW (30 turbines) in summer
2012 (after thorough wind assessments on spot), and the second one envisages building up
additional 80 MW until 2014. The  total  cost  of  the  project  is  estimated  at  €360  million.  Apart
from that, the Turkish company Global Wind Power has shown its willingness to invest up to
€200  million  in  the  construction  of  wind  power  installations  in  Belarus,  with  possible  location  
in Volozhin, Minsk Region.

Prospects for the Future


Throughout the last decade, Belarus is struggling to obtain energy independence by
means of reducing the energy import rates and increasing the share of local energy
production. As the prices for fossil fuels has been increasing worldwide and the energy
demand continues growing, putting a major stake on renewable energy, and specifically on
wind power, could be a wise decision on a way to energy self-sufficiency of Belarus. Especially
it is reasonable at times, when both local concerns over RES are spreading on one hand, and
on the other hand, the number of interested parties in launching RES projects in Belarus from
abroad is growing as well.
The first step the country should undertake is to advance its exploration of available
wind resources, carry out exact measurements country-wide, issue an actual wind atlas,
reveal the best locations for the wind farms and conduct feasibility studies for the most
favourable spots. Without such primary data, further development of wind sector seems quite
problematic.
Further on, taking into account the deficit of domestic funds and the uncertainty of
foreign partners caused by the dubious image of Belarus and poor knowledge of the market,
Belarus should advance its efforts on attracting foreign investments, and for doing so, the
government of the country should take care of providing necessary incentives to potential
funders by developing the necessary legislation base which would guarantee the investors a
secure environment and stable paybacks.
A next step could be setting up local production of wind turbines and equipment,
especially small capacity generators that could be used by local population, and that are
suitable for Belarus climatic conditions. Paying a proper attention to spreading the knowledge
about RES among the population and initiating public debates out of academic and scientific
circles should also be considered, as well as preparing local engineers and specialists in the
field of renewable energy, who are capable of conducting feasibility studies, planning,
designing and managing wind farms.

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Belarus Wind Energy
Wind Status
Power in Russia
Status andCIS
in the CISCountries
Countries
Concluding the Belorussian chapter, it has to be noted that one of the major obstacles
for wind power development in the republic is a wide-spread opinion that the country has a
poor wind potential, stemming from some rather poor study results conducted in the 1980s.
Nowadays, even with sporadic modern wind assessments, this judgement tends to be proven
wrong, and probably will ultimately turn out so throughout future evaluations. Instead of
relying on outdated dubious information, the efforts should rather be concentrated on
collecting   the   world’s   best   RES   development   practices   and to engage into interregional and
international cooperation attempting to develop RES sector which appears of a great
importance especially considering a strong incentive that Belarus has to reduce energy
imports and in terms of overall positive economic and environmental impact.

References:
 Association  “Renewable  Energy” (2009): On Wind Power Generators in the Republic of Belarus.

 Clifford Chance (2011): Incentivising Renewables: the Baltics and Belarus.

 Economics Institute of the National Byelorussia Sciences Academy: Outlooks of realization of a


wind energy potential in Belarus. Pavel Stroev.

 ENECA (2011): Now the Belorussian Sky Has Wings. Anna Pleskach.

 European Bank for Reconstruction and Development (2006): Renewable Energy Resource
Assessment. Renewable Energy Country Profile: Belarus.

 European Bank for Reconstruction and Development (2009): Renewable Energy Development
Initiative. Country profile: Belarus.

 Heinrich Boell Stiftung (2006): Renewable Energy in Belarus. G. W. Kuzmich, I.P. Usova

 Regulación Eólica con Vehículos Eléctricos (2010): Wind Energy in Belarus.

 Renewable Energy Portal of Belarus (2010): Legislative Support of Alternative Energy Sources.
E.L. Guyda.

 Research Center IPM (2010): Energy Sector of Belarus: Increasing Efficiency. Elena Rakova.

 RESector (2007): Wind Power Sector of Belarus. V.G. Pekelis, N.A. Lavrientiev, G.G. Kamlyuk.

 State Committee on Standardization (2011): State Policy for Energy Efficiency Increase and Use
of Renewables in the Republic of Belarus. Leonid Shenets. Presented at Global Forum on
Sustainable Energy. Vienna, Austria.

 UNDP/GEF (2011): National Renewable Policy Success Stories and Project Implementation Best
Practices: Republic of Belarus. Alexander Grebenkov. Presented at Seminar on Energy Efficiency
and Carbon Financing. Tbilisi, Georgia.

 Wind Power Database (2011): Wind Farms in Belarus.

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Belarus Wind Energy
Wind Status
Power in Russia
Status andCIS
in the CISCountries
Countries

Contacts:
State&Government
Marx Str. 14
220030 Minsk
Belarus
Ministry of Energy of the Republic of
Tel: +375-17-218-2102
Belarus +375-17-218-2395
Fax: +375-17-218-2468
Web: www.minenergo.gov.by
Kollektornaya Str. 10
220004 Minsk
Ministry of Natural Resources and
Belarus
Environmental Protection of the Tel: +375-17-200-66-91
Republic of Belarus Е-mail: minproos@mail.belpak.by
Web: www.minpriroda.by
Svobody Pl. 17
220030, Minsk
Department of Energy Efficiency of the Belarus
State Committee for Standardization of Tel: +375-17-227-5051
the Republic of Belarus Fax: +375-17-227-5563
E-mail: energoeffekt@telegraf.by
Web: energoeffekt.gov.by
NGOs
Dolgobrodskaya Str. 23
220070 Minsk
Belarus
Association  “Renewable  Energy” Tel: +375-17-230-5414
Fax: +375-29-653-9967
E-mail: aven2009@tut.by
Web: energy-aven.org
Scientific&Research
Dolgobrodskaya Str. 23
220070 Minsk
Belarus
International Sakharov
Tel: +375-17-230-69-98
Environmental University Fax: +375-17-230-68-97
E-mail: info@iseu.by
Web: www.iseu.by
Akademicheskaya Str. 15/2
220072 Minsk
Institute of Power Engineering at the Belarus
National Academy of Sciences of Belarus Tel: +375-17-294-94-72
Fax: +375-17-284-13-26
E-mail: ipe@bas-net.by
Business
Zamkovaya Str. 27
220048 Minsk
Belarus
ENECA Tel: +375-17-306-0188
E-mail: eneca@yandex.ru
Web: www.eneca.by
Simonova Str. 73, building 2
212021 Mogilev
Belarus
Tycoon Ltd. Tel: +375-22-247-8292
Fax: +375-22-247-8292
E-mail: mail@tycoon.by
Web: www.tycoon.by

53
Georgia Wind Power Status in the CIS Countries
Wind Power Status in the CIS Countries

Georgia Country Data

Area: 69’700 km2

Population: 4’570’934
Energy Sector Overview
Population density: 65,6 per km2

The Republic of Georgia, with a population of 4,6 million, is located in the Caucasus
Wind Power Installed Capacity:
region of South-Western Asia, bordering Turkey and Armenia in the South, Russia in the North,
10 kW
Azerbaijan in the East and having a 310 km coastline of the Black Sea in the East. Possessing no
fossil energy resources (oil, gas or coal), Georgia imports all needed organic fuel supplies from
abroad (mostly from Azerbaijan). However, due to its favourable geographic location, Georgia
is a strategic land corridor for Caspian oil and gas delivery to Mediterranean and European
markets, making profit of transit fees (also getting some portion of transferred goods as a fee)
for fuels transported through Baku-Supsa and Baku-Tbilisi-Ceyhan oil pipelines and Baku-
Erzurum gas pipeline.

Due to a solid installed power generating capacity - about 3000 MW with annual
production of 7,3 TWh - Georgia is able to export electricity to all four neighboring countries.
As of today, the energy sector of Georgia is fully privatised, except only Ingury Dam, operated
jointly by Georgia and a partly recognized state of Abkhazia. Domestically, Georgia exploits its
abundant water resources increasingly, generating over 80% of the electricity from
hydropower plants (and more than 15% from thermal ones). Nevertheless, Georgia's reliance
on hydropower leaves the country vulnerable to climate and seasonal fluctuations, requiring to
import the deficient amount during times of droughts, and allowing to produce and export
more electricity in the rainy seasons. During the last years, Georgia has overcome the chronic
energy shortages and gas supply interruptions of the past by reinvigorating its worn-out
hydropower plants and by shifting its natural gas imports from Russia to Azerbaijan as its main
source.

Wind Energy Potential

Georgia has considerable potential of almost all types of renewable energy sources: solar,
wind, geothermal, hydro and biomass. The overall achievable annual potential in renewable
energy is estimated at 15’000  GWh,  which  is  twice  more  than  the  country’s  consumption rate.
54
Georgia Wind Power Status in the CIS Countries
Wind Power Status in the CIS Countries
The mountainous landscape of Georgia represents a suitable base for wind energy use.
Seasonally, stable strong winds blow mainly during autumn and winter months – exactly at the
time when the energy consumption increases due to the heating demands of the population.
The technical wind power potential is currently estimated  at  2’000  MW  capacity,  yielding  up to
5’000 GWh per year, which, if used fully and effectively, could satisfy over a half of the
country’s  energy  demand  (electricity  consumption  in Georgia is around  7’000 GWh).

The Ministry of Energy of Georgia subdivides the territory of the country into four zones
according to their wind potential (see table below). The zones are also marked on Georgia’s
Wind Map with respective colours.

Table 5.1. Wind Zone Types and Areas in Georgia

Map Mark
Zone Type Geographic Area
Colour
Mountainous regions of
Southern Georgia, Kakhaberi
High Speed Zone Red
Vake and the central region of
Kolkheti Valley
Mtkvari gorge from
Partly High/Low Mtskheta to Rustavi, Southern
Yellow
Speed Zone part of Javakheti, Black Sea line
from Poti to Kakhaber Vake
Low Speed Gagra mountain range,
Mountain - Effective Kolkheti Valley and Eastern Green
Exploitation Zone Georgian lowlands
Low Speed
Iori Zegani and Sioni
Mountain - Limited Blue
water reservoir
Exploitation Zone
Source: composed by the author; data from Georgia Ministry of Energy.

The map below reflects the average annual wind speed in Georgia at the height of 80
meters, with the most windswept areas being situated at the central part of the country, where
the speed reaches up to 9 m/s.

55
Georgia Wind Power Status in the CIS Countries
Wind Power Status in the CIS Countries
Figure 5.1.

According to a number of other assessments, the areas with the highest wind potential
suitable for deploying wind mills are the high mountain zone of the Great Caucasus, the Kura
river valley, the South-Georgian (Djavakhet) highland, the Southern part of the Black Sea coast
Poti, Kutaisi, Mount Sabueti, lands from Hashuri to Gori and Kaspi, Paravani, Samgori, Rustavi
and near Chorokhi (see black circled marks on Georgia Wind Map above).

An analysis of different locations’ suitability for wind farms was conducted by the
Ministry of Energy, and some areas were revealed, where there is a possibility to construct
significant wind power generation facilities. The figure below reflects these spots and the
quantity of feasible or planned capacity:

56
Georgia Wind Power Status in the CIS Countries
Wind Power Status in the CIS Countries

Figure 5.2.

Political Conditions and Renewable Energy Legislation

After the collapse of the Soviet Union, the political situation in the sovereign Republic of
Georgia has been characterized as unstable during the last two decades. Rose Revolution in
2003, war with Russia in August 2008, unresolved issues with breakaway republics of
Abkhazia and South Ossetia – all these events have been shattering the fragile political climate
of  the  country,  resulting  in  a  shady  investment  climate  in  Georgia,  lack  of  investors’  confidence  
and scarcity of investments, including the energy sector and renewable energies.

Nevertheless, since the early 2000s Georgia has undertaken a number of measures to
rebuild the state apparatus, revitalize the national economy and to pave its way to the global
markets. The energy sector was restructured, too: its liberalization and privatization targeted a
long-term  strategy  to  satisfy  the  country’s  energy  demand  from  domestic  hydropower  plants,
alongside with seeking new investors in Georgian energy. Similarly, the current government of
Georgia increasingly shows its intentions to resort to renewable energy in order to reach the
point of energy self-sufficiency of the country. Thus, for instance, the State Programme
“Renewable   Energy   2008”   aimed   to   support   new   renewable   energy   plants   construction   in  
Georgia and to attract foreign investments to this field, but its implementation was not
complete.

57
Georgia Wind Power Status in the CIS Countries
Wind Power Status in the CIS Countries
Unfortunately, despite the politically defined goals to develop the sector of renewable
energy, the proclaimed objectives of the authorities in this area are not underpinned by
appropriate legislation base (except some provisions on hydro power, as it has historically
been a wide-spread energy source for the country). The Tax Code adopted in 2005 does not
provide any tax benefits for the production, usage or import of renewable energy, neither for
manufacturing power saving equipment. Renewable energies are not subject to any financial
support or subsidies, no laws or law provisions exist on energy efficiency standards regulation
either.

On the international level, Georgia participates in many environmental and climate


change initiatives: Georgia joined the United Nations Framework Convention on Climate
Change, the National Climate Protection Programme and ratified the Kyoto Protocol in 1999.
Also, some international funds support Georgia in the area of energy and renewables: USAID
provides assistance on a number of energy and environment projects; UNDP GEF launched a
programme “Georgia – Promoting the Use of Renewable Energy Resources for Local Energy
Supply”,   besides, the German Development Bank (KFW) has established a 5 million euro
Georgia Renewable Energy Fund for the development of small hydro power plants. Georgia is
an observer in the European Energy Community, and since last year (2010) Georgia has been a
member of the International Renewable Energy Agency IRENA.

Operating and Planned Wind Energy Projects

Currently the wind potential of Georgia is not exploited to any significant extent:
operating wind energy capacity is not installed, with the exception of a 10 kW turbine in the
Skra, Gori region and several further small generators ranging from 100 W to 6 kW.

Out of the wind power projects under development, the Samgori wind farm was one of
the few initiatives in the country. In 2007, the Government of Georgia signed the Memorandum
of Understanding with the Georgian-American   company   “Karidani”   on   the   construction   of   a
24 MW wind power plant in the north-east suburbs of Tbilisi (near Tbilisi Sea). For the future
the wind farm was planned to be expanded up to 60 MW (20 turbines of 3 MW capacity each).
Approximate cost of the project was estimated around €58 million. However, up to the present
moment there has been no observable progress in the implementation of this initiative, some
local experts state that it had been stalled and might not be proceeded.

Recently the government of Georgia stated that another investor – Wind Energy Invest
from Czech Republic – has been found for a planned 50 MW wind farm to be located near the
58
Georgia Wind Power Status in the CIS Countries
Wind Power Status in the CIS Countries
Paravani lake (Southern part of the country). So far the information on this project is scarce: it
is only claimed that the wind farm is expected to produce 170 GWh annually. The construction
should start in May 2013 and be completed by November 2014; approximate investment
estimation is at $100 million.

Although to a great extent wind energy projects are supposed to be financed by the
government and through foreign and local investments, generally renewable energy projects in
Georgia can seek funds from USAID   Energy   Capacity   Initiative’s   Energy   Sector   Development  
Grant programme and within the framework of European Neighbourhood and Partnership
Instrument.

Prospects for the Future

Georgia, as a country with considerable potential of all types of renewable energy


resources, has promising perspectives for further development in this sector. Presently, the
most wide-spread form of RES in the country historically used to generate electricity is hydro
power, and the hydro plants projects firmly occupy the first place in terms of quantity, priority
and importance. Nevertheless, wind power generation is also considered to be an intrinsic part
of  Georgia’s  energy  future,  with  its  government  undertaking  the  efforts  to  attract investment to
the wind energy sector. In particular, wind power can be an ideal supplement to hydropower
schemes, which may balance the fluctuation in wind generation.

In the last years, a number of evaluations were conducted to estimate the wind potential
of the country and to reveal the most favourable locations for wind farms (technical wind
capacity is currently estimated at around 2’000   MW).   Country-wide wind atlases of Georgia
and data on wind measurements are availiable. As of today, wind energy generation facilities
are not used widely in Georgia, although one relatively big-scale wind farm is planned to be
constructed with governmental support.

In order to facilitate the development of the RES sector and to obtain a more attractive
investment climate, Georgia should overcome its internal political perturbations, establish an
up-to-date and comprehensive legislative base and regulatory framework on renewable energy
and guarantee the special status and guarantee auspicious conditions for renewable energy
producers (e.g. taxes reduction, feed-in-tariff, etc). Renewable energy sources development –
especially a combination of traditionally utilised hydropower with other RES types, such as
solar power and wind energy – would enhance and solidify Georgia’s  energy  independence and
allow to satisfy its energy demand from indigenous energy sources.
59
Georgia Wind Power Status in the CIS Countries
Wind Power Status in the CIS Countries
References:

 European Bank for Reconstruction and Development (2009): Renewable Energy Development Initiative.
Country profile: Georgia.

 UNDP/GEF (2011): Legislation and Policies to Promote Energy Efficiency and Renewable Energy.
Renewable   Energy   Fund   in   Georgia.   TACIS   Project   “Support   to   Kyoto   Protocol   Implementation”.   Paata  
Janelidze. Tbilisi, Georgia.

 Ministry of Energy and Natural Resources of Georgia (2011): Wind Energy Potential and Investment
Opportunities in Georgia.

 Deutsche Gesellschaft für Internationale Zusammenarbeit/GIZ (2009): Renewable Energies in Central


Asia. Country Chapter: Republic of Georgia.

 Karenergo Scientific Wind Energy Center (2004): Wind Energy Atlas of Georgia. Regional Estimations.
Volume 1. Ed. by Ph.D. A. Zedginidze. Tbilisi, Georgia.

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Georgia Wind Power Status in the CIS Countries
Wind Power Status in the CIS Countries
Contacts:

State&Government
Gulua 6

0114 Tbilisi, Georgia

Ministry of Energy and Natural Tel: +995-32-235-78-00


Resources
Fax: +995-32-235-78-01

E-mail: mail@menr.gov.ge

Web: www.menr.gov.ge
12 Al. Kazbegi Ave.

0160 Tbilisi, Georgia


Ministry of Regional Development
Tel: +995-32-251-05-91
and Infrastructure
+995-32-251-06-98

E-mail: press@mrdi.gov.ge
150 David Agmashenebeli Ave.

0112 Tbilisi, Georgia

Municipal Development Fund of Tel: +995-32-243-70-01


Georgia
Fax: +995-32-243-70-77

E-mail: mdf@mdf.org.ge

Web: www.mdf.org.ge
Research&Scientific
Dzotsenidze 4a/1, apt. 9

0183 Tbilisi
G.Tsulukidze Mining Institute
Georgia

Web: www.mining.org.ge

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Kazakhstan Wind Energy Status in Russia and CIS Countries
Wind Power Status in the CIS Countries

Kazakhstan Country Data


Area: 2’724’900 km2
Population: 17’522’010
Population density: 6,4 per km2
Energy Sector Overview Wind Power Installed Capacity: 2,2 MW

The Republic of Kazakhstan, the largest of the former Soviet republics after Russia and
the ninth largest country in the world, is located at the border of two continents, Europe and
Asia. The neighbouring states of Kazakhstan include the Russian Federation, China,
Kyrgyzstan, Uzbekistan and Turkmenistan, and the Caspian Sea is a part of its eastern border.
Kazakhstan occupies spacious territories of 2,7 million km2, stretching from Siberia to the
deserts of Turkmenistan and Uzbekistan, and from China to the lowlands of the Volga river.
The terrain of the country is comprised by various types of landscapes, ranging from flat
steppes and deserts to hills, rock canyons and snow-capped mountains.
Kazakhstan possesses enormous reserves of various natural resources, including oil (30
billion bbl), coal (40 billion tonnes), natural gas and uranium, all of which are actively utilised
for energy production. Kazakhstan is a world leader in uranium production and occupies top
places in the world by proven oil reserves and production. The country is a net exporter of
gas, oil and coal; most of the exported volume is sold on Russian, Ukrainian and other
neighbouring  countries’  markets.   Based on its hydrocarbons extractive industries as well as
its mining   and   fossil   fuels   trade,   the   country’s   economy   has   been   growing   rapidly   (9%   per  
year) from 2000 through 2007, which allowed it to become the first country of the former
Soviet Union to receive an investment-grade credit rating.
Kazakhstan, owning 4% of the global fossil fuel reserves, generates 90% of its electricity
from conventional energy sources, while 10% is produced by three large hydropower plants
and some small-capacity HPPs. The total installed capacity for power generation in
Kazakhstan   equals   19’128 MW. The energy landscape of Kazakhstan is dominated by coal-
fired power plants inherited from the Soviet era – those produce 75% of the electricity
generated in Kazakhstan, natural gas accounts for 12%.
Main electrical power generating capacities are located in the northern part of the
country, near the mines of the coal-producing regions Karaganda and Ekibastuz, and provide
for 80% of the total electricity production. On the contrary, areas of South Kazakhstan are
dependent on coal fire plants production of northern Kazakhstan and electricity imported
from Uzbekistan.
With its population of 16,4 million, Kazakhstan is one of the most sparsely populated
countries in the world, with a density of only 6 people per square kilometre. The shares of
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Kazakhstan Wind Energy Status in Russia and CIS Countries
Wind Power Status in the CIS Countries
rural and urban population are nearly equal – 48% and 52% accordingly, and, due to the
heritage of large-scale electrification policies of the Soviet Union, only a small fraction of the
rural inhabitants (less than 4%) do not have access to the electricity grid.
Kazakhstan is endowed with enormous resources of renewable power, in particular
solar, wind, biomass and hydropower. However, as a consequence of the abundance of
domestic fossil resources and generous state subsidies to conventional energy, the RES
potential remains largely untapped. Except for large hydropower, the share of renewables in
the total energy mix of the country barely exceeds 0,5%. Wind and concentrated solar
thermal power are particularly well-suited to be utilised in Kazakhstan, with its numerous
windy sites and the highest level of insolation per capita.
The energy sector of Kazakhstan is one of the best developed sectors in Kazakhstan’s  
economy, as it plays   a   leading   role   in   the   country’s   economic   development   and   contributes  
about 17 % of the GDP. Despite the fact that the power sector of Kazakhstan has been
historically evolving as a monopolised and strictly controlled system dependent on extracted
fossil fuels (mainly coal), Kazakhstan was nevertheless one of the first former Soviet republics
to reform its energy market and privatise energy enterprises starting from 1996. Nowadays,
as a result of such reform, 70% of the generation assets are in private ownership, although
the sale of regional electricity distribution companies has been proceeding with a slower
pace. Although it is still early to speak about a fully competitive energy market, the structure
of the wholesale power market in Kazakhstan is considerably more advanced than elsewhere
in the region, with the exception of Russia.
The power sector of Kazakhstan is represented by the following key participants:
Kazakhstan Electricity Grid Operating Company (JSC KEGOC) - the system operator of the
Unified Grid System of Kazakhstan, electricity producers – 60+ power plants with various
forms of ownership, and over 20 regional electricity distribution companies supplying power
to retail customers. JSC KEGOC is responsible for the transmission of electricity on an
interregional and interstate level and manages the operational dispatch control over high-
voltage transmission lines, substations and the central dispatching apparatus. The electricity
tariffs are regulated by the Agency for Natural Monopolies Regulation.
Currently the economic development of Kazakhstan is marked by huge energy
consumption due to irrational use of fossil fuel resources, deterioration generation capacities
and transmission lines, and high transmission losses (25–50 %). The wholesale prices for
electricity are remarkably low, ranging from 3 to 5 cents USD, depending on the region, which
creates an additional barrier for the development of the power sector. Despite the absence of
seasonal variations of power supply, electricity shortages occur in remote rural areas.

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Kazakhstan Wind Energy Status in Russia and CIS Countries
Wind Power Status in the CIS Countries
Wind Power Potential
Wind power is considered to be the most propitious type of renewable energy for
Kazakhstan: with its vast steppe lands located   within   the   Northern   hemisphere’s   wind  belt,  
the country has amongst the world's highest potential of wind power resources per capita.
According to UNDP assessments, the wind resource potential of Kazakhstan is evaluated at
354 GW (929 billion kWh production per year), which exceeds the current total energy sector
capacity of Kazakhstan by 18 times. Seasonally, stronger winds are observed during the
winter period with gradual decrease in spring and summer, thus creating an apt concurrency
of windy seasons with energy demand curve.
Over  a  half  of  Kazakhstan’s  territory  is  exposed  to  4-5 m/s average wind speeds. In 14
regions of Kazakhstan the speed raises up to 5,6-7,8 m/s, and even exceeds 9m/s in some
spots. In total, more than 50’000 km2 of the lands with average wind speed of 7m/s and above
are suitable for wind power deployment. The map below indicates the wind speeds in a
number of selected locations, which are considered as most perspective for wind power by
local specialists and the experts of UNDP:

Figure 6.1.

The following wind map (below) depicts general wind speed distribution over the
territory of Kazakhstan. According to it, the regions with the highest wind speeds include:
1) Almaty region: Dzhungarian Gate - a mountain pass on the border with China,
natural aerodynamic tunnel with fierce constant winds; Shelek (Chillik) Corridor

64
Kazakhstan Wind Energy Status in Russia and CIS Countries
Wind Power Status in the CIS Countries
between Trans-Ili Alatau and Zhetysuskiy mountain ridges, as well as other
mountain passes and spots of Chinese-Kazakh border and Alatau mountains;
2) Akmola region: cities of Astana (capital) and Ereymentau in the northern part of
Kazakhstan and their surroundings;
3) Caspian Sea coast in Mangistau and Atyrau regions: Fort-Shevchenko and shore
lands in the western part of Kazakhstan;
4) Zhambyl region: Korday village and its surroundings in the southern part of the
country;
5) South Kazakhstan region: Zhuzumdyk village and areas near Karatau mountains.

Figure 6.2.

The wind potential of Kazakhstan has been examined and assessed thoroughly during
the last decade, both by local experts and with the help of international organisations (e.g.
UNDP and GEF projects). The amount of wind maps, atlases and wind speed measurements
for Kazakhstan is significantly higher than the volume of such information for other CIS
states. Wind maps were composed in various versions and for several heights. The most up-
to-date and complete data is presented on an interactive, web-based wind atlas launched in
2009 and depicting wind speeds at 80m height and detailed information for numerous spots4.

4 Availiable online at www.atlas.windenergy.kz.

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Kazakhstan Wind Energy Status in Russia and CIS Countries
Wind Power Status in the CIS Countries
Political Conditions and Renewable Energy Legislation
Kazakhstan’s   president   and  government   have   been   showing   an   increasing   enthusiasm  
about augmenting RES capacities in the country, which led to a moderate progress in
respective legislation development and signs of political support of clean energy.
Moving from the general to the particular, one should primarily indicate the
fundamental pieces of energy sector legislation: law “On   Energy   Saving” (of 25 December
1997)   and   “On   Electrical   Power”   (of   11 April 2006), as well as the Programme for Power
Sector Development until 2030 (adopted on 9 April 1999), state the necessity to develop and
use renewable energy sources and declare it as a priority vector, however, not imposing any
direct measures for RES support. Another document, the Strategy for Transition of
Kazakhstan towards Sustainable Development for 2007-2024 of 14 November 2006, states
that further sustainable economic development of Kazakhstan will require environment-
friendly and effective ecologically power generation, including particularly the use of
renewable energy and power from waste and recycled materials.
Kazakhstan has also recently adopted a separate law devoted to sustainable energy – on
4 July 2009,   the   law   “On   Support   of   Renewable   Energy   Use”   was   enacted.   Although its
adoption is a significant step on the way of creating a favourable for RES legislation base, the
law by itself contains rather general provisions and guidelines. The national target regarding
the share of renewables (all types, incl. wind power) in the total energy mix was set by the
State Program of Accelerated Industrial-Innovative Development for 2010-2014 (adopted on
19 March 2010) and prescribes to reach 1% RES generation by 2015 and 3% by 2020. By
2015, Kazakhstan plans to install 125 MW wind power, with a projected electricity generation
of 400 GWh. Besides, all electricity generated from the renewable sources has to be
purchased by KEGOC and by regional electricity distribution companies. However, important
issues, such as a feed-in tariff mechanism, tax and customs privileges etc., are not
encompassed by this law.
The first and the only legal draft specifically focused on wind power is the “National
Programme of Wind Energy Development Until 2015 with a Perspective Until 2024”,
prepared in the framework of a UNDP/GEF project. Emphasising the enormous wind
potential of Kazakhstan and the importance of its exploitation, the Programme sets the
national targets of reaching 250 MW of wind power installed capacity (or 1% of total
production) by 2015, and 2000 MW (4%) by 2030. In production terms, the given goals
correspond to 900 million kWh wind power generation by 2015 and 5 billion kWh by 2030.
The main public agency responsible for the formulation of the state policy in the energy
sector is the Ministry of Industry and New Technologies of Kazakhstan. The Ministry of
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Industry and New Technologies is also responsible for atomic and renewable energy
development. A separate regulatory authority, the Agency for Regulation of Natural
Monopolies, is in charge of monitoring the activity of key generating enterprises, setting
electricity transmission and distribution tariffs and defining the tariff methodology.
Wind power in Kazakhstan is not well developed yet to have a national association of
wind industry representatives; however, in order to encompass the sector of renewable
energy, a special Committee on Renewable Energy Sources was created within the
Kazakhstan Electric Power Association – a nongovernmental and non-profit organisation. The
Committee plays a role of a mediator in a dialogue between the RES interested parties and the
state authorities. Besides, it prepares proposals for legislation amendments and directs them
to the parliament.
In its efforts of RES development, Kazakhstan is being actively assisted by the
international community: the joint project of UNDP, GEF and the Government of Kazakhstan
“Initiative  of  Wind  Energy  Market  Development”  has  significantly  contributed  to  the evolution
of the wind energy sector. Within the given initiative, technical aid was provided in examining
15 spots for wind speeds and potential across the whole country, developing a wind atlas of
Kazakhstan, and assistance was offered in RES legislation formulation and adoption. Besides,
Kazakhstan is a partner country of the EU INOGATE Energy Programme.
The conclusion here is that the legislation of Kazakhstan contains the very basic legal
acts encouraging the exploration and utilisation of renewable energy, however, the whole
range of practical issues is not yet covered by the laws, such as acceptable level of feed-in
tariffs, procedures of purchasing of RES-generated electricity and format of Power Purchase
Agreements (PPA), etc. Currently, Kazakhstan is on its way to the elaboration and adoption of
a feed-in tariff, together with other regulations guaranteeing the producers of renewable
energy stable paybacks and safe operating environment.

Operating and Planned Wind Energy Projects


As for now, the installed wind power capacity of Kazakhstan is negligibly low comparing
to   the   country’s  potential – only 2,2MW. First grid-connected industrial-scale wind turbines
were launched only some months ago, in December 2011, on the site named Korday, near the
city of Almaty (Zhambyl region). The Kordayskaya wind farm consists of two 750 kW wind
turbines, and an expansion of up to 21 MW installed capacity is planned in the future. The key
investors of the project were "Central Asia Green Power", Relight Group and Visor companies.
The construction costs constituted KZT 370 million (=USD 2,5 million), whereas 40 new jobs
were created.

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Apart from the Kordayskaya wind farm, a number of middle-sized and smaller capacity
wind turbines were installed either as pilot projects or as autonomous electricity generators
for local inhabitants or enterprises. Detailed information can be found in the table below:

Table 6.1. Installed small and experimental wind turbines in Kazakhstan


Joint
Year of Number of turbines, model type and
Location capacity,
construction capacity
kW
Karaganda region, Ulyanovski 3  х  30 kW turbines, model AVE-30
1994 90
district,  Koktal’lsky  farm (produced in Kazakhstan)
Karaganda, testing field of 4 х  30 kW turbines, model AVE-30
1994 120
Karagandaintrwind factory (produced in Kazakhstan)
3  х  30 kW turbines, model AVE-30-3
Almaty region, Jurt camping 1996 90
(produced in Kazakhstan)
3 х  107,5 kW, model USW 56-100
Almaty region, Esiksk, Nurly 1996 322,5
(produced by WindEnergo, Ukraine)
Almaty region, Shymbulak Ski
2004 2 x 20 kW 40
Resort
South Kazakhstan region, Kentau 2004 2 x 500 kW (not operating) 0
Kyzylordinskiy region, Kazalinky
2011 1 x 40 kW 40
district, Azhar village
TOTAL: 702,5
Source:  TOO  “Kazselenergoproekt”,  2011.  

More large-scale wind power projects are


programmed for the upcoming years: A 45 MW wind
farm is planned to be built near Yereymentau, Akmola
region. Construction works have been launched,
approximate date of commissioning lies around
September 2012. Another project is 19,5 MW of installed
wind power capacity on the Caspian Sea shore in
Mangistau   region,   projected   by   JSC   “Kaspiy”.   Few wind
power projects in the South of Kazakhstan are currently
being in preparation stage. Total planned wind power
capacity is about 400 MW, with expected commissioning
dates in 2013-2014.
As for small wind sector, low capacity off-grid
turbines (1-5 kW) are widely utilised by the population of
rural areas. Local production of wind turbines is, however, only performed by a single factory
– “Karagandainterwind” – and most of the units are imported from China.

Prospects for the Future

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Utilisation of renewable energy sources in Kazakhstan was initiated only recently,
despite the enormous existing potential. To the highest extent, the RES sector is represented
by hydropower, with wind, solar and biomass energy lagging behind. Wind power in
Kazakhstan is also in its early stage of establishment with the first industrial wind farm
having been launched only by the end of 2011. For other types of renewable energy only
small pilot projects have been settled so far, mostly initiated by international donor
organisations in collaboration with the Kazakh government or by large international
investors.
The reasons for the slow development of renewable energy branch in Kazakhstan have
historically been the abundance of conventional energy sources, fossil fuels oriented economy
as a heritage of Soviet Union interrepublic energy system configuration, strong favouritism of
oil, gas and coal sector from the side of authorities. Low electricity prices and constant
availability of conventional energy sources have been hindering a necessary stimulus for RES
development.
Absolutely without doubt, the wind power in Kazakhstan could find a broad
geographical and regional range of applications: its decentralised character could benefit the
electrification of remote settlements, especially in the mountainous areas, the transportation
of conventional fuel to which is usually complex, logistics intensive and costly. Currently,
there are over 200 rural villages and communities not connected to the central grid or
experiencing power deficits. For instance, two of the windiest spots of Kazakhstan, Dzhungar
Gate and Shelek Corridor, are located in the area with constant electricity shortages, which
makes the utilisation of wind power even more reasonable and cost-efficient. What is more,
Kazakhstan has all the default preconditions for developing a local wind turbine
manufacturing capacity, starting from a well established heavy industry and machinery
branch, inexpensive qualified labour force and finishing with a growing local and regional
demand.
For the further renewable energy sector development in the country, a whole complex
of actions and measures still needs to be undertaken. Although the government of the country
has been demonstrating a somewhat evolving interest, as of today its plan towards renewable
energy sector expansion represents rather a declaration of intentions than a comprehensive
and far-sighted strategy. More commitment from the leadership of the country and the
governmental institutions is essential in order to boost the acceleration of renewable energy
share growth.
The main vector should be directed towards adjusting the national legislation in order
to legitimise renewable energy as a priority sector within the energy strategy of the country
and to stimulate the investment influx to this field. A very necessary step is the establishment
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of fixed feed-in tariff scheme for all types of renewable energy, whereas other incentivising
measures including custom and tax privileges should be considered as well, especially for
small-scale and local entrepreneurial projects.
All being said, Kazakhstan with its giant natural potential appears as a highly attractive
and promising market for renewable energy – practically, all types of RES projects could be
implemented in various regions of the country, whereas the wind sector could become one of
the most lucrative energy market segments. Now that the Kazakh government has firmly
decided to push forward the proliferation of renewable energy and to reach the (still very
modest) target of 3 % RES by 2020, a number of new opportunities for potential investors
might arise. Further on, utilising its rich wind resources, Kazakhstan could not only resolve
domestic rural areas supply problems, but also become a wind power exporter for its
neighbours in the foreseeable future.

References:
 Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) (2009): Renewable Energies in
Central Asia. Country Chapter: Kazakhstan.

 European Bank for Reconstruction and Development (2009): Sustainable energy development in
the  EBRD’s  countries  of  operations:  Group  “B”  Countries.  Country  profile:  Kazakhstan.

 Institute   “Kazselenergoproekt”   for   Power   and   Grid   Facilities   Design   (2011):   Experience   of  
“Kazselenergoproekt”  Institute  in  First  Wind  Power  Projects  Development  in  Kazakhstan.  

 Kazakhstan   Institute   of   Management   Economics   and   Strategic   Research   (2008):   Kazakhstan’s  


Potential for Wind and Concentrated Solar Power. Jaquelin M. Cochran.

 Power Engineers Union of Kazakhstan (2010): Policy Reforms in Renewable Energy Investments
in Kazakhstan. German Trofimov.

 Regulación Eólica con Vehículos Eléctricos (2009): Kazakhstan Wind Power.

 UNDP/GEF (2006): Prospective of Wind Power Development in Kazakhstan. Report prepared in


the  framework  of  UNDP/GEF  and  Government  of  Kazakhstan  project  “Kazakhstan  - Wind Power
Market  Development  Initiative”.  Almaty,  2006.      

 United Nations Development Programme (UNDP) (2009): On Legislative Support Mechanisms


for Renewable Energy Utilisation in Kazakhstan. Gennady Doroshin.

 United Nations Development Programme (UNDP) (2009): On Perspectives for Wind Power
Development in Kazakhstan. Gennady Doroshin.

 United Nations Development Programme (UNDP) (2010): Experience from Joint Project of
UNDP/GEF   and   Government   of   Kazakhstan   “Kazakhstan   - Wind Power Market Development
Initiative”.  Aynur  Sospanova.  Astana,  6-7 October 2010.

 United Nations Development Programme (UNDP) (2011): Lessons from the Project of
UNDP/GEF   and   Government   of   Kazakhstan   “Kazakhstan   - Wind Power Market Development
Initiative”.  Final  Report.  Prepared  by  Kiran Letis. Astana, 2011.
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 United Nations Development Programme (UNDP) (2011): Wind Atlas of Kazakhstan. Mikhail
Rakov. Astana, 17 February 2011.

 World Wind Energy Association (2011): Wind Energy International 2011/2012. Ed. Dr. Anil
Kane, Stefan Gsänger. Country Report: Kazakhstan. Gennady Doroshin.

Contacts:
State&Government
Kabanbay batyra Ave. 32/1
010000 Astana
Ministry of Industry and New Technologies Kazakhstan
Tel: +77-172-240-475
Web: www.mint.gov.kz
International
Bukei Khan Str. 26
010000 Astana
Kazakhstan
UNDP Office in Astana Tel: +77-172-592-550
Fax: +77-172-592-540
E-mail: registry.astana.kz@undp.org
Web: www.undp.kz
NGOs
Tauelsizdik Str. 12/1, VP-44, block 5B, office D
010000 Astana
Kazakhstan
Kazakhstan Electrical Power Association Tel: +77-172-689-657
Fax: +77-172-689-651
E-mail: kea.astana@mail.ru
Web: www.keakz.kz
Shevchenko Str. 162 G, cab. 417
050008 Almaty
Committee on Renewable Energy Kazakhstan
of Kazakhstan Electrical Power Association Tel: +72-729-823-26
Fax: +72-729-822-66
E-mail: kea.renewable@mail.ru
Scientific
Rayimbeka Pr. 193
050050 Almaty
Kazakhstan
Institute  “Kazselenergoproekt”  for  Power  and  Grid  
Tel: +77-272-333-406
Facilities Design
Fax: +77-272-333-553
E-mail: info.sep@mail.ru
Web: www.kazsep.kz
Baytursinova Str. 85
050012 Almaty
Kazakhstan
Kazakhstan Energy Scientific Research Institute
Tel: +77-272-920-860
E-mail: kazniienerg@mail.ru
Web: www.kazniie.kz
Business
Abylaykhana Str. 60, office 316
050000 Almaty
Kazakhstan
Samal Energy
Tel.: +77-072-152-013
E-mail: info@samal-energy.kz
Web: www.samal-energy.kz

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Kyrgyzstan Country Data

Area: 199’951 km2

Energy Sector Overview Population: 5’496’737

Population density: 27,5 per km2


The Kyrgyz Republic is a mountainous landlocked country in Central Asia, bordering
Wind Power of
with Kazakhstan, Uzbekistan, Tajikistan and China. The landscape Installed Capacity:
Kyrgyzstan 2
(formerly
kW
Kirghizia) is rugged: Tien Shan mountain range covers approximately 95% of the country’s  
territory with the average elevation of 2750 meters; the mountaintops are perennially
covered with snow and glaciers. The climate of the country is extremely diverse: being
mainly continental, it varies significantly between mountainous areas and desert valleys.

Generally, Kyrgyzstan is rich in mineral resources such as coal, gold, uranium,


antimony, and other valuable metals, but it only has poor deposits of commercially
exploitable fossil fuels, coupled with the lack of funds for their extraction and refinery.
Therefore, Kyrgyzstan today remains dependent on foreign sources of energy, importing
them from Uzbekistan, Kazakhstan and Russia. On the other hand, Kyrgyzstan with its
numerous rivers and lakes possesses enormous hydro power potential (around 163 billion
kWh), generating 92,5% of domestically consumed electricity from hydro power plants.
Currently, Kyrgyzstan export electricity to its neighbouring countries (in some cases in
return for imported fossil fuels) – China, Uzbekistan, Kazakhstan and Russia – especially
during summer months when the generation surplus is at the highest level. Although for
many decades the Kyrgyz Republic has considered the development of its hydro power
resources to be the primary focus of its energy strategy, not more than 10% of the total
hydro potential is exploited nowadays. Other renewable energy sources are presently not
used, except for some single private initiatives. Potentially, renewable energy could cover
Kyrgyzstan’s domestic energy demand; unfortunately, nowadays the share of renewables
(except large HPPs) in the total energy mix does not even reach 1% (to be more precise,
currently this share equals 0,17 %).

A  considerable  share  of  Kyrgyzstan’s  population (60%) lives in the rural areas in the
mountains and highlands, where the access to traditional energy sources is hampered due to
the absence of infrastructure and roads.  For  this  reason  around  250’000 Kyrgyz people are
under a constant risk of electricity and water shortages. In larger population centres,
electricity black-outs  often  occur  as  well,  as  the  country’s  dilapidated  energy  infrastructure  
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cannot provide a reliable electricity supply, especially given a high level of consumption per
capita and gross leakages during energy transmission.

To a major extent the energy sector of Kyrgyzstan is controlled by the state: 93,7% of
the shares of all power companies belong to the government. Many energy sub-sectors are
still  managed  “from  above”,  being run by state-owned companies, but private investment is
significant in some cases, such as petroleum exploration and production, refining and
distribution, and coal mining.

Kyrgyz energy sector suffers from low tariffs for domestic customers (and therefore
limited revenue), cross subsidisation of household customers and vulnerable low-income
customers, technical transmission system losses (as a consequence of worn-out
infrastructure), electricity production shortages during dry periods and winter months, and
commercial deficits due to negligent accounting and theft.

Wind Power Potential

Kyrgyzstan has a fair potential of almost all known renewable energy sources,
including wind: the only currently available estimated technical wind power potential is
1500 MW, obviously a far too conservative estimation, which would mean an average
possible production of up to 90 billion kWh per year. The annual mean wind speed in the
country is 4-5 m/s, although in some mountainous spots exceeding 6 m/s (mainly in the
North). The wind speeds are noted to be higher during the winter months, when the river
flow is low (and the energy supply through HPPs is not sufficient), and the domestic demand
increases due to the heating season. Over a half of all the winds in Kyrgyzstan are calm and
light breezes by the character of wind flow, 30-40% - weak winds, and the rest share being
moderate and brisk winds.

Territorially, a wide range of the Kyrgyz areas and regions are theoretically favourable
for wind energy installation. Among them there are: Chuiskiy district (crest and northern
spurs of the Kyrgyz ridge north-east from the capital city of Bishkek); Osh district (the
Pamirs foothills near the border with Tajikistan and Fergana ridge); Issyk-Kul district
(mountain ridges south and west from the Issyk-Kul lake); and Djelal-Abad district in the
West of the country, namely, the mountain ridges at the border with Uzbekistan. In the
abovementioned regions, low capacity turbines (1-10 kW) can be widely used to satisfy the
needs of small local settlements and consumers located remotely from the central grid.

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The underwater stone in case of Kyrgyzstan is that despite the abundance of
mountainous windy areas, actually very few of them are situated in accessible locations
where wind turbines could be installed. According to ETC4CA agency, there are only four
such areas in the country: Balikchi, Song-Kul, Torugart and Alay Valley (marked red on the
map below). In the rest of the areas, the installation of the turbines is either technically
almost impossible or very expensive, furthermore, there are no settlements in these spots,
and thus, no end-consumers for the generated energy.

Figure 7.1.

The country-wide wind atlases for Kyrgyzstan are available at least in two versions,
however, no further detailed, spatiotemporal distribution of RES physical, technical and
economic potential assessments were conducted so far, neither any kinds of feasibility
studies. Extremely rugged foothills and mountains terrain of Kyrgyzstan determine great
variability of wind speeds over short distances. Such micro-climatological changes in wind
speeds might be significant for prospects assessments of different locations selected for
mantling of wind energy generators. Thus, additional studies need to be completed in order
to identify specific sites and quantify the wind resources in certain areas and regions of
Kyrgyzstan. Lack of such important information is one of the reasons for the
underdevelopment of the wind power sector in the country.

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Political Conditions and Renewable Energy Legislation

When assessing the legislation on renewable energy and the initiatives of the Kyrgyz
government to advance the position of RES in the country, one can state that the situation is
quite ambiguous. On one hand, the foundation for the legislative base on RES has been
already established:   Kyrgyzstan   has   a   separate   law   “On   Renewable   Energy   Sources”  
(adopted on 31 December 2008) together with other, broader documents, e.g. the laws “On  
Energy” (adopted on 30 October 1996),   “On Power Generation” (adopted on 23 January
1997),  “On  Energy  Saving” (adopted on 7 July 1998)  and  “On  Energy  Efficiency  in Buildings”  
(adopted on 30 June 2011). Actually, Kyrgyzstan was the first Central Asian state to pass a
separate law on renewable energy.

On the other hand, the existing legislative base is prone to a number of shortcomings.
First and foremost, the above mentioned documents represent only common mechanisms
without necessary details and specifications (e.g. tariffs and licenses for construction and
operation, tax conditions, grid connection etc.) rather than a clear legal and regulatory
framework for RES implementation and development. Thus, for example, the law “On  
Renewable  Energy  Sources”  sets  the  guarantees  for  exemption from customs duties for the
import and export of equipment and installations required to produce renewable energy
and obligation for energy companies to purchase electricity produced from renewable
energy sources (mandatory purchase obligations), but does not specify the amounts,
quantities, terms or numbers. Moreover, the law provisions lack the proper mechanisms for
their implementation and collide with the statements of other normative documents.

Several state programmes were also issued, such as Strategy for Energy Sector
Development until 2025 (of 16 July 2001), Programme for Development of Small and
Medium Energy in the Kyrgyz Republic until 2012 (of 14 October 2008), and National
Energy Program of the Kyrgyz Republic for 2008-2010 and the Fuel and Energy Complex
Development Until 2025 (of 24 April 2008). All these programmes mostly contain basic
goals and guidelines for energy sector development and just briefly mention the importance
of RES share increase in total energy mix.

Undertaking further initiatives, in 2008 the government of Kyrgyzstan has created a


Centre on the Problems of Using Renewable Energy Resources (CPURER), which together
with the Kyrgyz Association of Renewable Energy Resources has been elaborating a
programme for development of renewable energy resources including biomass. Also, the

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Centre for the Problems of Renewable Energy Application (KUN) was established to
coordinate the development of renewable energy sources. However, there is no further
information on functioning of these institutions available, which is most probably connected
with political perturbations in Kyrgyzstan.

The last but not the least important factor influencing the development of the Kyrgyz
energy sector is political instability in the country. History showed the importance of a
reasonable energy management in the country, when rising energy prices and
mismanagement of the public sector became one of the premises of riots and
demonstrations in 2010. Currently, the Kyrgyz interim cabinet is struggling to restore and
revitalise the economy of the country, but the emphasis on renewable energy, apart from
traditional hydropower, is obviously not the first priority of the government today.

Therefore we can observe that although Kyrgyz policy and legislation on renewable
energy envisage a package of measures, including improvement of the regulatory legal
framework, increase of energy efficiency and development of renewable energy, the
practical implementation is not advancing quickly enough, due   to   the   country’s   ongoing  
economic and political pressures.

Operating and Planned Wind Energy Projects

Currently there are no major wind generating facilities installed in Kyrgyzstan,


however, anecdotal evidence exists about the usage of small capacity turbines by the rural
population. Apart from that, a pilot Hummer (Anhui Hummer Dynamo Co Ltd) 2 kW wind
generator H3.8 was installed high in the mountains in a remote rural location of the Talas
region of Kyrgyzstan on the initiative of the Etc4CA venture research team. The assumption
of the experts here is that further pilot turbines will be installed no earlier that spring 2013,
whereas the main barrier remains the poor funding of RES projects and lack of investments.
Although Kyrgyzstan produces polycrystalline silicon, solar collectors and diverse
modifications of solar water heaters, wind energy generation equipment production has not
been revealed in the country.

Prospects for the Future

In Kyrgyzstan, no significant developments in the field of wind energy can be


observed, neither there is a progress on renewable energy promotion in general, apart from

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hydropower. The latter has been historically well-developed in the country, and certainly
remains the key strategic focus for the Kyrgyz government and people in terms of electricity
generation. The given fact does not mean, however, that there are no other alternatives or
perspectives: Kyrgyzstan has a fair potential for wind energy and minimal basic legislation
fundament on renewable energy which can (and should!) be built upon and modified in
order to create a solid ground for RES support and development in the country.

Although the use of wind energy in large scale or for industrial purposes is certainly
questionable in short- and mid-term, the low capacity wind generators could be put into
operation to eliminate the energy poverty of Kyrgyz rural population even nowadays.
Utilisation of wind power (also combined with other RES) would be economically efficient
for remote and mountainous settlements at a certain distance from central grid and
supplied by diesel and gasoline generators, or sometimes even plain firewood for heating.
Same holds true for highland pastures, farmer households, livestock farms, water-pumping
stations, touristic and seasonal work spots, and forestries. Furthermore, wind power and
other renewable energies could be deployed in locations where the traditional power plants
construction leads to undesired environmental pollution and deterioration of soil, i.e. in
resort areas and national parks.

In order to stimulate the development of wind power and other renewable energy
sources in Kyrgyzstan, apart from the political will, a number of other prerequisites are
needed. First of all, it is necessary to work towards eliminating the lack of technical
information on wind turbines potential utilisation, to stimulate the governmental and civil
society institutions involvement in an in-depth exploration  of  the  country’s  wind  potential.  
Secondly, renewable energy should receive decent governmental support, both in terms of
proper legislative base and solid functioning regulations, and financial backing – direct, i.e.
financing of renewable energy projects, and indirect, i.e. tax privileges and exemptions. And
lastly, the measures should be taken to inform the local population and potential residential
and commercial consumers about the opportunities and advantages of RES and wind power,
to raise awareness and to incentivise the education of local specialists in this prospective
field.

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References:

 Asian Development Bank (2008): Assessment of Regional Cooperation Opportunities in


Renewable Energy Sources Use in the Central Asian Countries. The Case of the Kyrgyz Republic.
Prof. Alaibek Obozov. Bishkek.

 Carnegie Endowment (2009): Basic Aspects of Renewable Energy Development in Kyrgyzstan.

 Carnegie Endowment (2009): Legislative Base on Renewable Energy Sources in Kyrgyzstan. Prof.
Alaibek Obozov, Ruslan Botpaev.

 Deutsche Gesellschaft für Internationale Zusammenarbeit (2009): Renewable Energies in Central


Asia. Country Chapter: Kyrgyz Republic.

 ETC4CA (2011): Wind Power Opportunities in Kyrgyzstan. Tony Nelson.

 European Bank for Reconstruction and Development (2009): Renewable Development Initiative.
Country profile: Kyrgyzstan.

 Ministry of Energy of the Kyrgyz Republic (2010): Development of the Renewable Energy Sector
in the Kyrgyz Republic. Almaz Stamaliev.

 Ministry of Energy of the Kyrgyz Republic (2010): Development of the Renewable Energy Sector
in the Kyrgyz Republic. Effective Deployment of Small Wind Systems in Asian Rural Areas. The
2nd Meeting of the Energy for All Partnership Working Group on Wind Power. Kubanychbek
Djusupov.

 Ministry of Energy of the Kyrgyz Republic (2011): Legislative Base for Development of the
Renewable Energy Sector in the Kyrgyz Republic. Azamat Omorov.

 Renewable Energy & Energy Efficiency Partnership (2009): Policy Database Details: Kyrgyzstan.

 United Nations Development Programme (2010): Perspectives of Renewable Energy Use in


Kyrgyzstan. Development and Transition. Edil Bogombaev and Ularbek Mateev.

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Contacts:

State&Government
Ahunbaev Str. 119

720055, Bishkek

Kyrgyzstan

Ministry of Energy Tel: +996-312-56-18-22

Fax: +996-312-56-20-28

E-mail: mpe@ktnet.kg

Web: www.energo.gov.kg
NGOs
Elebaeva Str. 7

720031, Bishkek

Kyrgyzstan
Center of Issues of Utilization of
Renewable  Energy  Sources  “Kun”
Tel: +996-312-443-201

+996-312-443-204

E-mail: kun@elcat.kg
Business
E-mail: info@etc4ca.com
ETC4CA
Web: www.etc4ca.com

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Moldova
Country Data
Area: 33’851 km2
Population: 3’656’843
Energy Sector Overview Population density: 108 per km2
Wind Power Installed Capacity: 0 MW

The Republic of Moldova, with its population of 4,3 million, possesses vast and fertile
arable lands and enjoys a favourable climate, however, the country does not dispose of any
significant amounts of mineral or fossil energy resources. The Moldovan energy sector is
today highly dependent on imported energy supplies, with around 97% of its consumed oil,
gas and coal being purchased from abroad, mainly from the Russian Federation, Romania and
Ukraine. In the total Moldovan energy balance, the prevalent energy source is by far natural
gas, the share of which is estimated to be 45%, whereas the share of renewable energy
sources constitutes less than 5%, mostly represented by small hydro and biomass plants;
solar and wind energy are still inadequately explored.
Energy sector of Moldova was subject to major reform and restructurisation in the late
1990s: it was unbundled, and the National Energy Regulatory Agency (ANRE) was founded as
an independent public administration authority, not subordinated to the government. The
state monopoly was divided into separate entities dealing with generation, transmission and
distribution. Later, in 2010, the National Agency for Energy Efficiency was set up to monitor
energy efficiency indicators and to develop the use of renewable energy sources. Although
further privatisation process is underway, the Moldovan energy sector suffers from
inefficiency, insufficient bill collection, payment arrears and a crucial deficit of investments
into by and large worn-out and outdated infrastructure. Moldova lacks a developed and well-
connected power grid, which causes difficulties with providing electricity to remote rural
areas and lone-standing households.
Economic difficulties, coupled with the increase of world oil prices, led to an
accumulated   debt   towards   external   gas   suppliers   (e.g.   Moldova’s   debt   to   Gazprom   only   is  
above $2,5 billion). What is more, energy efficiency indicators in the country are remarkably
low, and the energy intensity of Moldova (energy use compared to GDP at purchasing power
parity (PPP)) is nearly three times higher than the EU-27 average. Also, some groups of
Moldovan population in remote rural areas experience problems with stable energy supply
and suffer from frequent blackouts. Thus, it becomes obvious that Moldova has all the factors
in place to stimulate the development of renewable energy sources and to investigate its
national RES power potential by conducting detailed studies and observations.
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Wind Energy Potential
According to the very conservative assessments of the European Bank of
Reconstruction and Development (EBRD), Moldova possesses a technical wind energy
potential (i.e. highest potential level of wind energy generation, based on overall resource
availability) of 1 GW, which would yield in 11 TWh per year. In total, the technical potential of
all renewable energy sources in Republic of Moldova is estimated at 3,65 million tons of oil
equivalent (TOE), which 1,3 times exceeds the annual energy consumption in the country.
Significant wind potential is revealed mainly in southern parts of Moldova, by some
estimations it was found comparable to the one of Minnesota, USA. Other areas with high
wind potential are situated in the North-East of the country - on the hills of Podolsk Upland
near the border with Ukraine; in the South-East - near the Dniester estuary, and in the West -
in the Carpathians piedmonts near the border with Romania. Moreover, the following regions
can  be  exploited  for  wind  energy  facilities  deployment:  the  Tigheci  heights,  the  Nistru  region’s  
heights, the Ciuluc hills, the central tableland of Moldova, a great part of the hills territory in
Cahul and Taraclia counties. In total, about 10% of the territory can be utilised for wind
power development. Favourable locations for wind turbines installations are marked with
black circles on Moldova wind map below.

Figure 8.1.

Although the basic information on Moldova wind potential is available, further research
(including feasibility studies) has still to be conducted. Additionally to insufficient wind
potential estimations, one of the obstacles to wind energy development in the country is a
wide-spread erroneous belief that the wind resources in Moldova are poorly distributed,

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stemming from studies performed at the beginning of the 1990s. The conclusion of this
research was that the Moldovan geography is not favourable for the use of wind installations,
however, many specialists in the field deny this finding, stating that the Chisinau
Meteorological Station location which gathered the data was improper to make such
judgements.

Political Conditions and Renewable Energy Legislation

Realising   the   country’s   high   level of dependency on imported energy, the Moldovan
government has recently been decisive in modernising the   country’s   energy   sector,   raising
the level of energy efficiency and developing the renewable energy sources.
The energy policy of the country is grounded upon long-term strategic documents being
issued   and   updated   starting   from   1997.   The   actual   one,   “Energy   Strategy   till   2020”,   was  
adopted in 2007; it contains basic provisions for energy security and main guidelines for the
future development of the energy sector. Moreover, the Energy Strategy sets an ambitious
goal of increasing the share of  renewable  energy  in  Moldova’s  energy  mix  up  to  6%  in  2010  
and 20% in 2020. Regarding wind energy, the Strategy 2020 envisages only 30 MW of
installed wind capacity  by  2015,  which  will  require  a  total  investment  of  approximately  €40  
million.
A considerable step on the way to establish a solid legislative base on alternative energy
in Moldova was   the   adoption   in   2007   of   the   law   “On   Renewable   Energy”,   regulating   the
production and distribution of energy and fuels produced by renewable energy suppliers. The
law settles a mandatory purchase of renewable energy, obliges the national regulator
(National Energy Regulation Agency) to approve tariffs for a period up to 15 years to
stimulate investments and establishes the National Fund for Renewable Energy, which is
supposed to supply funds to alternative energy projects. The law “On  Renewable  Energy” also
sets tax and credit incentives and local privileges for persons or entities engaged in
manufacturing or trading equipment for energy production from renewable sources. Further
on, in order to adjust the national normative framework to the European Union and
international standards, National Energy Regulatory Agency (ANRE) drafted a regulation “On
Guarantees of Origin for Electricity Produced from Renewable Energy Sources” in 2008.
The current Moldovan government actively promotes the course of convergence to the
European Union and in the light of this to consolidate its internal actions and policies. Thus,
for example, since May 2010 the Republic of Moldova has been a member of the European
Energy Community, in this manner approaching closer to the European energy market and
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pledging to develop its energy strategy in compliance with the Energy Community Treaty and
core principles of EU energy legislation, including the efforts of reducing its energy imports
dependence and sectoral diversification of current energy mix. Lastly, Moldova has
demonstrated its commitment to the deployment of renewable energy by signing and
ratifying the Statute of International Renewable Energy Agency (IRENA), thus becoming one
of its more than 100 members.

Operating and Planned Wind Energy Projects


As of today, Moldova does not dispose of any significant wind power installations, only
low capacity generators (up to 2-3 kW) are being utilized sporadically by certain individuals,
mostly in order to supply own, individual households with electricity.
However, in compliance with  the  government’s  plans  to  spread  the  usage  of  renewable  
energy sources in the country, an initiative was undertaken by the Turkish conglomerate
Summa to construct a wind farm in Moldova by the end of December 2011. The location of the
farm will be chosen according to the wind speed assessment study results, conducted by
Summa and conveyed to the Moldavian government for further wind energy projects
development.
Generally, Moldova has promising perspectives in renewable energy projects
emergence and development. The basic wind maps of the country are available, and pre-
feasibility studies were conducted, resulting in estimations that small wind farms of 5-15
MW would be most suitable for Moldova and profitable in terms of economic efficiency,
taking into account its disperse farmers households and poor power grid coverage.
Nevertheless, further assessments are still needed before elaborating large-scale projects.
Financially, all renewable energy plans in Moldova are eligible for funding support
from the Central European Initiative, European Investment Bank, within the framework of
European Neighbourhood and Partnership Instrument and a credit line from the European
Bank for Reconstruction and Development.

Prospects for the Future


Moldova has a long way ahead in regard to renewable energy sources development, and
wind energy in particular. Considering   the   country’s   dependency   on   imported   energy,  
development of renewable energy sources appears a reasonable perspective within the
planned diversification of energy supply in the country. Construction of wind farms in the
windy areas would increase the domestic generation capacity and reduce the spendings on

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the more and more expensive fossil fuels, whereas the utilization of stand-alone small wind
turbines (or hybrid wind and solar systems) would improve the situation with the energy
supply in rural areas.
In order to develop a viable and sustainable energy policy, incorporating a wide use of
renewable energy, such obstacles should be overcome as lack of domestic funds, dismal
investment climate and consequently insufficient level of investments in the energy sector;
incomplete database on renewable energy potential and lack of local specific renewable
energy equipment production. Besides, although it can be stated that the legislative and
regulatory framework for the energy sector has been already well developed, it still needs
further modification and improvement in conformity with the Energy Community Treaty and
Acquis  Communautaire  in  the  area  of  energy  and  world’s  best  practices.  
Concluding the Moldovan chapter, it is necessary to point out that under the above
described circumstances, the Republic of Moldova appears as a new emerging market for
renewable energy, and wind energy specifically. On the political level, the EU-targeted
government of the country realises the potential economic benefits of renewable energy
sources utilisation and acknowledges the need to undertake steps in this direction. The
population – both individual consumers and research institutions – is also demonstrating a
modest interest in renewable technologies. It is expected that wind energy could gain a high
level of social acceptance in the country, once the inhabitants (especially those in remote
areas) acknowledge the benefits of energy independence by using alternative energy sources.
Further on, the expansion of the renewable and wind energy sectors could not only provide
electricity for remote rural areas and disperse households, but also create hundreds of new
jobs for the Moldovan population.
Taken altogether, the absence of domestic energy sources, strong dependence on
imported energy, high external debt towards energy suppliers from abroad and low energy
efficiency provide an intense impetus for the country to develop the sector of renewable
energy. The given direction should become an intrinsic and a high-priority part of a national
energy policy, targeted at guaranteeing a higher level of energy security for the country.

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References:

 European Bank for Reconstruction and Development (2009): Renewable Development Initiative.
Country profile: Moldova.

 Consult Group (2010): Renewable Energy in Republic of Moldova. Tatiana Doloscanu.

 International Conference on Renewable Energy for Developing Countries (2006): Unconventional


Energy Sources and Research in Moldova. Greg Mowry.

 United Nations Economic Commission for Europe (2009): An Analysis of the Policy Reform Impact
on Renewable Energy Projects Implementation in Republic of Moldova.

 United Nations Economic Commission for Europe (2008): Republic of Moldova: National Energy
Policy Information for Regional Analysis. Financing Energy Efficiency Investments for Climate
Change Mitigation.

 Ministry of Environment of Moldova (2011): Moldova: Energy Efficiency and Renewable Energy
Potential, Barriers and Policies. Climate Change Office. Dr. Vasile Scorpan.

Contacts:
State&Government
V. Alecsandri Str. 78
2012, Chisinau
Moldova
Ministry of Energy
Tel: +373-22-253-100
Fax: +373-22-253-342
E-mail: minen@mtc.md
Columna Str. 90,
2012, Chisinau
Moldova
National Energy Regulatory Agency of Tel: +373-22-54-13-84
Moldova (ANRE) +373-22-85-29-01
Fax: +373-22-85-29-00
E-mail: anre@anre.md
Web: www.anre.md
NGOs
MWEA Head Office
Dimitrova Str. 39
Moldovan Wind Energy Association
3805, Comrat
Moldova

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Russian Federation
Country Data

Area: 17’098’242 km2

Energy Sector Overview Population: 143’056’383

The Russian Federation is the largest country in the Population


world, situated
density:in
8,4Northern
per km2 Asia
and spanning from Eastern Europe to the Pacific Ocean. Covering more than one eighth of the
Wind Power Installed Capacity:
Earth's land surface, the territory of Russia includes 16,65
nine MW
time zones and embraces a wide
range of landscapes and natural resources – the country possesses the world's largest forest
and fresh water reserves.

Russia is often referred to as an energy superpower, being a world leader in natural gas
reserves – 30-35% of total explored natural gas deposits are bedded in Russia; second in coal
reserves, 8th in oil (12% of world stock) and 3rd in uranium deposits. Russia is the second
largest oil producer in the world (after Saudi Arabia), and second largest natural gas producer
(after the United States), and the third largest energy consumer. The Russian Federation is
also a world leading energy and natural resources exporter: in fact oil, natural gas, metals and
timber account for more than 80% of the country’s  exports.

The total installed capacity of the Russian electricity sector constitutes 228 GW with
annual production of over 1’000 TWh. The power generating sector in Russia comprises over
440 thermal plants and hydropower stations, as well as 31 nuclear reactors. Around 80
thermal power plants are fired by coal. In percent, roughly 68% of   Russia’s   generation  
capacity derives from thermal plants, 21% from hydropower, 10% from nuclear energy, and
less than 1% from renewable energy sources.

Renewable Energy: The current level of renewable energy sources utilisation


(excluding large HPP over 25 MW) amounts to less than 1%, even despite the recent evidence
of local small-scale renewable energy start-ups and projects emergence during the last years.
The technical potential of RES in Russia (except for large rivers) is currently assessed at
around 24 billion TOE per year, which exceeds the primary energy consumption in the
country by 20 times. Russia, due to its favourable geographic position and climatic,
topographic and resource diversity, has the highest total wind power potential in the world, it
possesses over 20% of the world’s forest resources and has an immense potential for

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geothermal energy and hydropower utilisation. Nevertheless, no significant growth is


observed in the renewable energy sector, and the investments do not exceed 10 million EUR
annually. Subsidies granted to conventional energies, low electricity prices and the lack of
state support create a challenging environment for the development of renewables in the
country.

Energy and Population: In   spite   of   Russia’s   richness   of   domestic   fossil fuel reserves,
energy supply and access to electricity in remote regions remain unstable. On average,
around 10 million people (i.e. 7% of the population) do not have connection to the grid and
have to rely on diesel and gasoline electricity generators, delivering fuel from other regions,
thus paying a much higher price. Apart from that, 70% of the Russian territories, including
Siberia, Far East and the utmost North, lie within a decentralised energy supply area, with
over 20 million people suffering from constant electricity shortages. Such remotely located
regions are thus the most prospective spots for off-grid renewable energy utilisation, as their
exploitation appears to be more reliable and economically efficient than conventional energy
use even in the short term and under current political conditions.

Energy Sector and Energy Market: The energy sector of Russia is of stupendous
importance for the country: not only does it provide more than 150 million people with
necessary living conditions, but it also enhances the economic and industrial development,
representing 30% of the GDP. Recently, Russia has initiated a major reform of its electricity
market and dissolved its major energy   generation   and   distribution   monopoly,   “RAO   UES”  
(Russian Joint Stock Company Unified Energy Systems) in 2008, with its functions having
been transferred to numerous private enterprises. Further on, seven wholesale thermal
power-generating companies (OGKs) and 14 territorial generating companies (TGKs) were
created. Generating   companies,   except   for   “RusHydro”   and   “EnergoAtom”,   were   privatised.
The state-owned  “RusHydro”  controls  and  manages  the  majority  of the Russian hydropower
plants,   and   “EnergoAtom”   is   in   charge   of   nuclear   power   country-wide. Transmission,
distribution and dispatch functions remained under the state control. In order to control the
proper functioning of the wholesale and retail electricity markets, a non-commercial
organisation, the Market Council, was established in 2007. The Market Council also performs
supervision over the interaction of all energy market actors, including small and renewable
energy producers. In general, the given split paved the way to breaking the vertical monopoly,
to privatisation of the power industry and to the unbundling of the Russian energy market.

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Despite the particular attention of the Russian leadership, the energy sector of the
country still suffers from major deficiencies, such as decaying infrastructure, aging power
plants, inefficient tariff structures and non-payment of the consumers. Governmental
subsidies to conventional energy remain extremely high: approximately $40 billion annually.
Consumer prices, set artificially low, are a result of these subsidies. Also, the power sector of
Russia faces the challenges of improving its financial situation, upgrading the technological
level, increasing energy efficiency and establishing wholesale energy market competition.

Wind Power Potential

Quite an obvious fact is that Russia possesses a colossal potential for wind power
generation - actually, the largest in the world - both due to its spacious territories and various
climatic zones yielding in ranging wind speeds and directions. According to the currently
available estimations, the wind potential of the Russian Federation amounts to 90 GW of
capacity, although in reality the number must be much higher. Considering the vast territory
of the country and when comparing it with countries that have already installed wind farms
such as Germany or Denmark, the Russian wind potential must be thousands of GW.

The highest wind energy potential is concentrated along the seacoasts, where, due to
the temperature difference, the winds are strong and stable; and also in the vast territories of
the steppes and in the mountainous areas. Around 30% of the wind power potential is
allocated in the Far East of Russia, 14% in North Siberia and in the Far North, and 16% in the
West and the East Siberian lands. Usually, the peak wind speeds are reached in the late
autumn and winter period, when the need for higher heat and electricity increases among the
population. Unfortunately, the windiest spots are often located in sparsely inhabitant
territories with population density of 1 person per square kilometre or less, where the
deployment of large wind power plants appears economically inefficient, due to long
distances to the power grids and load centers. However, small wind power plants could be a
reasonable solution for isolated consumers and households on these territories.

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Figure 9.1.

In Russia, the best regions and locations for large scale wind farm deployment are:

- North coast of the Arctic Ocean, Gulf of Ob, Kola Peninsula and the East Coast of Pacific
Ocean and adjacent numerous islands. The annual average wind speed in these places
reaches 11-12 m/s at 50 to 80 meters altitude.
- Mountainous areas of Caucasus, Ural, Altai and Sayan mountains and the nearby
territories.
- In the South European part of Russia, the areas near Volga and Don river (Volgograd
region, Rostov region, Krasnodar region) are considered suitable by the local experts
for large wind farm development.
- Murmansk region and Karelia are especially interesting in terms of large wind
development due to extremely high wind speeds and at the same time a high degree of
concentration of population as well as industrial production capacities. Also, some
areas in Northern Siberia and Far East with dense inhabited population centres,
industrial facilities and factories are especially attractive for wind power
development, as, apart from their high wind potential, these places are located
remotely from core generating capacities and thus require high expenditures for
conventional energy transportation and supply, whereas wind energy utilisation could
be a good solution for cheaper and more sustainable energy production.

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Offshore potential: Due to spacious and extensive coastal zones (the length of Russian
shoreline equals 37’653 km), numerous areas of Russia are well suitable for offshore wind
farm development, especially taking into account high wind speeds along the shorelines. The
shoreline and the islands of the Arctic Ocean, from Kola Peninsula to Kamchatka Peninsula,
and the coasts of Caspian, Baltic, Black, Azov and Barents Seas as well as the Sea of Okhotsk
have many windy sites with high potential for wind power development.

Political Conditions and Renewable Energy Legislation

Political support of renewable energy in Russia, or rather its absence, remains a sore
point of discussion during the last decades. Not only the ruling elite of the country keeps it out
of the political agenda (except for sporadic statements and initiatives of regional authorities),
but also the existing legislative base has not yet been completed sufficiently to satisfy the
modern requirements for renewable energy development. The core laws and legislative acts
are rather focused on regulation of conventional energy issues, leaving almost no space for
small-scale and renewable energy producers to enter the Russian energy market.

Federal Legislation: The basic laws regulating the energy sector of Russia are
presented in the table below: out of them, only a few legislative acts refer to renewable
energy generation. A separate law on renewable energy has not been adopted in Russia up to
date, neither are there any kind of comprehensive plans or programmes on wind power
development.

Table 9.1. Energy Sector Legislation of the Russian Federation


Date Document Title
13 October 1995 Energy Strategy of the Russian Federation
3 April 1996 Federal  Law  №28  “On  Energy  Saving”
21 February 2003 Federal Law №35  “On  Electrical  Power”
28 August 2003 Energy Strategy of the Russian Federation Until 2020
Federal  Law  №250 “On  Introducing  Amendments  to  Certain  Legislative  Acts  of  the  
4 November 2007 Russian Federation Due to Implementation of Measures on Unified Energy System
Reforms”
Government Decree №426  “On  Qualifications  of  the  Generating  Object  Based  on  
3 June 2008
Renewable Energy Sources”
President   Decree   №899   “On   Measures   for   Increasing   Energy   and   Environmental  
4 June 2008
Efficiency  of  Russian  Economy”
Directive  of  Ministry  of  Energy  №187  “On Certification Procedure of Renewable
17 November 2008
Energy Generating Capacities for Asserting the Volume of Produced Electrical Power”
Government  Decree  №1-p  “Main Directions of State Policy until 2020 on Increasing
8 January 2009
Energy Efficiency Based on Renewable Energy Sources Utilisation”
13 November 2009 Energy Strategy of the Russian Federation Until 2030
23 November 2009 Federal  Law  №261  “On  Energy  Saving  and  Promotion  of  Energy  Efficiency”
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Government Regulation №850  “On  Criteria  of  Federal  Budget  Subsidies  for  
20 October 2010 Compensation of Grid Connection Costs for Renewable Energy Producers with
Capacity  Lower  Than  25  MW”
Source: composed by the author.
The first reference to RES is found in Federal Law №28   “On   Energy   Saving”   of   1996,  
which defines which types of energy qualify as renewable on the territory of Russia5 and
declares the right of RES-producers for price privileges in order to reimburse the costs of
RES-based electricity production.

The cornerstone of Russian legislation concerning RES sector is considered to be the


Federal   Law  №250   “On   Introducing   Amendments   to   Certain   Legislative Acts of the Russian
Federation Due   to   Implementation   of   Measures   on   Unified   Energy   System   Reforms”   of   4
November 2007. The provisions of the given law lay the foundation of a legal framework for
renewable energy, and in particular introduce guarantees of providing material support to
small-scale generators up to 25 MW, to cover the grid connection expenses; obligations to
purchase RES-generated energy by the wholesale energy market buyer; and impose a special
tariff for energy produced from renewable sources. However, the rate of the given tariff is not
determined precisely.

Further on, two consecutive legal acts expand the regulatory norms for renewable
energy sources: Government Resolution №426 of 3 June 2008   “On   Qualifications   of   the  
Generating Object Based on Renewable Energy Sources”  defines  the  type  of  RES-based energy
producers that qualify for governmental support; and the Directive of Ministry of Energy
№187  “On  Certification  Procedure  of  Renewable  Energy  Generating  Capacities  for  Asserting  
the  Volume  of  Produced  Electrical  Power” establishes a system of certificates for renewable
energy producers. However, neither the type and extent of governmental support, nor the
type and value of certificates have been specified further by the given laws.

An important document, and almost the only one so far fully devoted to renewable
energy, is the Government Decree №1-p   “Main   Directions   of   State   Policy   until   2020   on  
Increasing Energy Efficiency Based on Renewable Energy   Sources   Utilisation”   adopted   on   8
January 2009.

5 The list of energy sources qualified as renewable was further amended by the Federal  Law  №250

“On  Introducing  Amendments  to  Certain  Legislative  Acts  of  the  Russian  Federation  Due  to   Implementation
of   Measures   on   Unified   Energy   System   Reforms”, and up to date includes wind, solar, hydro, geothermal,
biomass and biogas energy.

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The Decree defines the national target of RES-based electricity production: 2,5% by
2015, and 4,5% until 2020.

Currently, the most comprehensive document determining the guidelines of the energy
sector development for the nearest future is the  “Energy Strategy of the Russian Federation
Until 2030”, approved by decree of the president on 13 November 2009. Regarding
renewable energy, the provisions of the given Strategy highlight them as one of the key
elements of the development of   Russia’s energy future, but, on the other hand, their
mentioning in the document is somewhat humble and subtle. The energy strategy duplicates
the  target  of  4,5%  renewable  energy  by  2020  previously  set  by  the  Government  Decree  №1-p.

Regional Legislation: As stated above, a separate federal law regulating renewable


energy sector has not been adopted in Russia yet. Although an attempt was undertaken to
pass such a legislative act in 1999, it was declined by the president. However, a number of
such laws were adopted on the regional level, including:

 Law  “On  Unconventional  Renewable  Energy Sources Development in Amur Region”  of  
15 March 2005;
 Law  “On Renewable Energy Use in Krasnodar Region” of 7 June 2004;
 Law   “On   Local   Unconventional   Renewable   Energy   Use   in   Tomsk   Region”   of   1
December 2000; and others.
Also, local programmes on renewable energy development were elaborated in several
regions of Russia, such as Murmansk region, Republic of Kalmykia etc.

Institutional Base: In Russia, the regulatory functions over the energy sector are
granted to several authorities. The Ministry of Energy plays a leading role, being a federal
agency responsible for drafting and implementing national energy policy and legal regulation
in the energy sector, including renewable energy and energy efficiency policy. Further specific
functions are shared by the Ministry of Economic Development, the Federal Tariff Service and
the Federal Anti-Monopoly Service. A Federal state unit, the Russian Energy Agency provides
informational and technical help to the Ministry of Energy and implements the adopted
decisions and programmes. The Market Council, a non-commercial organisation, retains the
functions of regulation, certification and control over renewable energy production and
supply, apart from its main role of supervising the wholesale and retail energy market. Lastly,
in 2011, a Commission on Alternative Energy was created within the Public Council of the
Ministry of Agriculture of the Russian Federation. The role of the Commission is to advance
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the renewable energy use by the agricultural producers and farmers. In Russia, there are
several industry associations active in the field of RES promotion, such as the Russian Wind
Industry Association (RAWI), the Russian Association of Solar Energy (RASE), etc.

Generally speaking, the Russian Federation clearly lacks a defined and targeted policy
for development of its renewable energy sector. The state stresses the necessity of renewable
energy utilisation and defines national targets for renewable energy share in the total mix,
but it does not provide the essential mechanisms and support for turning these goals into
reality. Most of the crucial fields within renewable energy generation remain excluded from
the normative regulation, such as renewable energy sources exploration and potential
assessment, RES-based generators construction, exploitation, production reimbursement
schemes, forms of state support etc. Almost all existing legal acts that concern renewable
energy are of a declarative type, thus, the aim for the nearest future has to be both to modify
and particularise the existing legislation, and to impose new, more precise and
comprehensive laws and support mechanisms.

Operating and Planned Wind Energy Projects

In the past several years, the development of the wind power sector has been
progressing slowly, if at all; the dynamics of the Russian wind power market has been be
barely observable. Rated by installed wind power capacity, the Russian Federation, in spite of
its huge territory, occupies only the 56th place in the world, according to WWEA rankings,
with an average added capacity growth rate of 8%. As of today, the country-wide installed
wind power capacity generates over 20 million kWh, which equals to a tiny share of 0,007%
of country-wide electricity generation. The Russian industrial wind power sector today
stands for 16,9 MW of total installed wind power capacity (16,65 MW in operation),
comprising seven operating wind farms over 1 MW, and a number of wind farms and lone-
standing wind turbines with smaller capacity. The table below provides detailed information
on each of the Russian wind farms:

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Table 9.2. Existing Wind Farms in the Russian Federation


Quantity, capacity
Name of wind Capacity, and models of Year of
# Location
farm MW installed wind construction
turbines
1 Kulikovskaya Baltiysk, 5,1 21: 1 x 0,6 MW 1998-2002
Kaliningrad Region “WindWorld  A/C”;
20 x 0,225 MW
“Vestas  V27”
2 Anadyrskaya Chukotka 2,5 10 x 0,25 MW 2001-2003
(Chukotskaya) Autonomous Region “AVE-250SM”
3 Elista Republic of 2,4 2x1,2 MW 2007
Kalmykia “Vensys-62”
4 Tyupkildi Baskortostan 2,2 4 x 0,55 MW
Republic, Tyupkildi “Euroturbine
village ET550/41”
5 Zapolyarnaya Republic of Komi, 1,5 6 x 0,25 MW 1993
(Vorkutinskaya) near the city of “AVE-250”
Vorkuta
6 Nikolskaya Kamchatka region, 1,2 2x600 kW 1995
(Bering) Nikolskoye, Bering “NEG  Micon  NM43”
Island
7 Kalmytskaya Republic of 1,0 1 x 1 MW 1994
Kalmykia, 20 km “Raduga-1”
from the city of
Elista
8 Markinskaya Rostov region 0,3 1996

9 Tiksi Sakha republic 0,25 2007

10 Marposadskaya Republic of 0,25 2 x 107,5 kW 1997


(not operating) Chuvashiya, near “USW56-100”
Mariinskiy Posad
11 Murmanskaya Murmansk region, 0,2 1x200 kW 2000
near the city of “NEG  Micon  M570”
Murmansk
TOTAL: 16,9 MW (16,65 MW operating)
Source: composed by the author.

Planned Wind Power Projects: Despite the insignificant number of installed capacity
in Russia, plenty of various wind power projects are planned to be constructed. Currently, the
combined capacity of all announced projects amounts to 10 GW, out of which 3 GW are at the
stage of feasibility studies and siting6. Mostly, the planned project sites are located in the
south regions of Russia: Krasnodar, Stavropol, Rostov region, Karachaevo-Cirkassian
Republic, Republic of Kalmykia and others. A significant part of the projects is under

6 Data of Russian Wind Industry Association (RAWI), 2012.

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development in the European part of Russia and in Far East regions as well. Table 2 below
indicates some major planned projects in the Russian Federation.

Table 9.3. Major Designed and Planned Wind Farms in the Russian Federation

Wind turbines
Name of wind Designed quantity and
# Location Status
farm capacity capacity (if
available)
1 Yeyskaya Yeysk District of 72 MW (24 MW 36 x 2 MW Wind monitoring,
Krasnodar Region in Shirochanka, siting
24MW in Mirny
and 24 MW in
Oktiabrsky)
2 Temryuk Krasnodar Region 24 MW Wind monitoring
3 Baltiyskaya Kaliningrad region 50 MW 25 x 2 MW Feasibility studies
(offshore) (Baltic Sea)
4 Leningradskaya Leningrad region 75 MW Feasibility studies
5 Kurganskaya Kurgan region 50 MW Project
development,
wind
measurements
6 Morskaya Republic of Karelia, 8 MW (together 8 x 1 MW Postponed
near  Kem’  city with HPP – “Raduga-1”
29MW)
Source: composed by the author.

The map below depicts the approximate location of existing and planned wind power
plants in Russia:

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Figure 9.2.

Small Wind: Small wind turbines represent a significant share of wind capacity in
Russia: nowadays, there are up to 1’500 small wind turbines installed in the country, ranging
from 0,1 to 30 kW. The given assessment is preliminary, as no official or precise registry of
small wind sector exists at the moment.

Local Production: Although the wind power sector in Russia is far from being
developed, there is a whole range of local manufacturers, mostly operating in the European
part of Russia, producing small wind turbines and other relevant equipment. As of 2012, more
than 15 companies are present on the wind turbine market, with more than 30 models of
small wind turbines and with a rated capacity of 100 kW or less. Large-scale, commercial
mass wind turbine production has not been established up to date.

Prospects for the Future

Nowadays Russia lags behind other developed countries in terms of renewable energy
utilisation with a gap of approximately 20 years. Even among the countries of the region – the

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CIS member states – Russia is significantly outstripped by Ukraine in the wind power sector.
Although having made its first steps in wind power plants installation, in the last several
years Russia is being slow in progressing with the development of the wind power industry,
due to numerous obstacles described here.

Barriers to Renewable Energy Development: The explanation why the renewable


energy sector has been evolving so slowly up to now is quite complex and tangled. In order to
simplify the overview of the main obstacles to RES development, a brief scheme was
composed – see the figure below.
Figure 9.3.

The first group – legislative barriers – represents the most serious obstacle: the
absence of proper legislation and a lack of protection by legal frameworks and mechanisms
hinder the very emergence of new renewable energy projects. Practically, the renewable
energy sector in Russia remains unregulated by the state. Existing energy legislation does not
even provide equal grounds for RES and conventional energies, but on the contrary, it favours
the latter. Generally, like many other CIS states, Russia lacks a comprehensive national policy
to promote clean energy, starting from a law on renewables and ending with targeted federal
and regional programmes. Unfortunately, without an established legal basis, further
significant progress in the field of RES seems impossible.

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Another significant group of obstacles are those related to economic and financial
support of renewables, and to be more precise, to its absence. The Russian state budget for
the previous years, as well as for upcoming year, does not have any room for financial support
of renewable energy projects. The feed-in tariff is not imposed up to date, and the custom
duties and VAT for machinery and equipment imports remain high. The field of renewables in
Russia is also characterised by low investment rates and activity, as private enterprises do
not wish to risk, having no legal grounds for protection of their investments.
The remaining three groups of barriers – technical, historical and informational –
although also being significant ones, are however easier to overcome than legislative and
economic obstacles. From the technical perspective, Russia lacks proper energy and grid
infrastructure, and qualified engineers and technicians with specialisation in renewable
energy technologies. Local wind turbine production is limited to small capacity generators.
Historically, the renewable energy sector was always disregarded by the rulers of the
country as compared to conventional energy, due to rich fossil fuel resources. The oil and gas
sector has been traditionally of an immense importance for the country, and the lobby of the
conventional energy industry has always been known as strong and influential. During the
Soviet times, extensive electrification programmes and building of country-wide transmission
grid led to customisation of the Russian population to a steady and seemingly limitless supply
of relatively cheap energy, and thus to indifference and unawareness about energy efficiency
and energy sustainability issues. Information barriers are mainly constituted by the absence
of precise data and assessments on the potential of renewable energy in Russia, and by the
lack of information channels to popularise the utilisation of alternative energy sources.
However, once the push is given from the side of the state, technical, historical and
information barriers will keep dissolving themselves in parallel to the incremental RES sector
development.
All these hindrances combined create an unfavourable environment for the growth of
the Russian renewable energy branch. However, now that the whole complex of problems is
identified, it is necessary to pass to the next stage – their elimination – on all levels
simultaneously, from population and entrepreneurs to government and political decision-
makers.
Application of Wind Power: In Russia, the utilisation of large and smaller capacity
wind power is economically and ecologically reasonable in many spheres and areas, and
especially in:
- zones of decentralised energy supply with low population density, such as North
Siberia and Far East (including Kamchatka Peninsula and the Kuril Islands);
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- highly populated and industrial areas with insufficient local energy production
capacities, including large cities of Astrakhan, Volgograd, Novosibirsk, Rostov and
Krasnodar;
- cities and country-side areas with significant environmental and ecological pollution
from coal fire plants, industrial and communal boiler installations working on coal
combustion etc.;
- areas with distantly located farmer houses, households, seasonal work spots,
countryside houses and rural area small settlements.
Utilisation of wind energy (possibly combined with other types of RES) in the above listed
areas would allow for a more stable and sustainable energy supply, cut expenditures for fossil
fuels and diesel transportation and create new jobs.
Future of RES in Russia: Facing the future, Russia has to acknowledge the importance
of renewable energy as of an intrinsic part of its energy sector, and at least to equalise its
position with currently strongly predominant fossil fuels. In order to do so, the Russian
government has to demonstrate (and put into action) more willingness to diversify
domestic energy production by incorporating a higher RES share into the energy balance
of  Russia.  The  advantages  of  that  are  quite  obvious:  introducing  “green”  energy  into  the  
market  will  help  to  overcome  the  country’s  “oil  needle  syndrome”,  electrify  rural  remote  
areas, and stimulate advanced technology and innovation transfer, facilitated by
international cooperation. The whole world is seeking for new strategies for future
sustainable energy supply, and Russia should not miss the chance to become a part of this
movement, and to contribute to global shift to renewable energy by enjoying and
efficiently consuming its enormous RES resource potential.

References:
 Abercade Consulting (2010): Investment Attraction to Wind Power Sector of Russia.

 British Petroleum (2012): BP Statistical Review of World Energy. June 2012.

 Cleandex (2010): Wind Power in North West Regions of Russia.

 Emerging Markets Investment Network (2011): Renewable Energy in Russia - A Giant Yet To Be
Awakened. Petko Karamotchev.

 European Bank for Reconstruction and Development (2009): Renewable Energy Development
Initiative. Country profile: Russian Federation.

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 European Bank for Reconstruction and Development (2009): Sustainable energy development in
the  EBRD’s  countries  of  operations:  Group  “C”  Countries.  Country  profile:  Russian  Federation.

 Friends of the Baltic (2009): Wind Power Utilisation in the North-West of Russia. Viktor
Elistratov, Saint Petersburg State Polytechnical University.

 International Finance Corporation (2011): Renewable Energy in Russia: Waking the Green Giant.
IFC Russia Renewable Energy Program in Partnership with the Global Environment Facility
(GEF).

 Ministry of Energy of the Russian Federation (2012): Renewable Energy Sources: Policy and
Legislative Basis.

 Regulación Eólica con Vehículos Eléctricos (20011): Renewable energy in Russia

 RusHydro (2011): Current Status, Potential and Perspectives of Wind Power Sector Development
in Russia. Ponkratyev Pavel, 21 June 2011. Moscow.

 Russia   in   Global   Affairs   (2008):   Renewable   Energy   in   Russia’s   Future.   Toby   T.   Gati.   3,   July   –
September 2008.

 Russian Association of Wind Industry (2011): Renewable Energy Support in Russia: Next Steps.
Anatoliy Kopylov.

 World Wind Energy Association (2011): Wind Energy International 2011/2012. Ed. Dr. Anil
Kane, Stefan Gsänger. Country Report: Russian Federation. Viktor Elistratov.

Contacts:
State&Government
Schepkina Str. 43

107996 Moscow

Russian Federation

Ministry of Energy of the Russian


Tel: +7495- 631-98-58
Federation
Fax: +7495-631-83-64

E-mail: minenergo@minenergo.gov.ru

Web: www.minenergo.gov.ru
Arkhitektor Vlasov Str. 51

117393 Moscow

Russian Federation
RusHydro
Tel: +7495-225-32-32

E-mail: rushydro@rrost.ru

Web: www.rushydro.ru

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Nikitskiy Per. 5, Building 6


125009 Moscow

Russian Federation

Tel: +7495-789-92-92
Russian Energy Agency
Fax: +7495-789-92-91

E-mail: info@rosenergo.gov.ru

Web: http://rosenergo.gov.ru
NGOs
Shcipok Str. 5/7

115054 Moscow

Russian Federation

Russian Association of Wind Industry


Tel: +7812-324-31-62
(RAWI)
Fax: +7812-324-48-84

E-mail: admin@rawi.ru

Web: www.rawi.ru
Krasnopresnenskaya Emb. 12, Office Building 2

123610Moscow

Russian Federation
Market Council for Organising
Efficient System of Trading at Wholesale and
Tel: +7495-967-05-25
Retail Electricity and Capacity Market
(Market Council)
Fax: +7495-967-00-22

E-mail: mailbox@np-sr.ru

Web: www.en.np-sr.ru
Research&Scientific
Polytechnicheskaya Str., 29

195251 Saint-Petersburg

Tel: +7812-297-16-16
Saint Petersburg State
Polytechnical University
Fax: + 7812-552-60-80

E-mail: postbox@stu.neva.ru

Web: www.spbstu.ru
Yauzskiy Boulevard 13, Building 3, Off. 10

Institute of Energy Strategy 09028, Moscow

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Russian Federation

Tel/Fax: +7495-698-52-34

Е-mail: ies2@umail.ru, guies@guies.ru

Web: www.energystrategy.ru
Izhorskaya Str. 13/19, Office 813

127411 Moscow

Russian Federation
Centre for Energy Policy
Tel: +7495-485-93-72

E-mail: cep@energy.ru

Web: www.energy.ru
Nagornaya Str. 31, Building 2

117186 Moscow

Russian Federation
Energy Research Institute of the Russian
Academy of Sciences (ERIRAS)
Tel: +7499-127-48-34

E-mail: info@eriras.ru

Web: www.eriras.ru
Wind Turbine Manufacturers
Polustrovskiy Pr. 60

195197 Saint Petersburg

Russian Federation

BreezeX Tel: +7812-324-48-88

Fax: +7812-324-48-84

E-mail: wind@electrosfera.ru

Web: www.breezex.ru
Stasovoy Str. 2B

119071 Moscow

Russian Federation
Enecsis Windrotor
Tel: +7495-955-12-18

E-mail: info@enecsis.ru

Web: www.enecsis.ru
Selskohozyaystvennaya Str. 32
EvroStandartService LLC

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129323 Moscow

Russian Fedration

Tel: +7963-962-78-78

E-mail: info@ess-ltd.ru

Web: www.ess-ltd.ru
Kulakova Str. 20

123592 Moscow

Russian Fedration
Iskra Wind LLC
Tel: +7495-757-65-10

E-mail: iskrawind@iskrawind.ru

Web: www.iskrawind.ru
Dmitrovskoye Sh. 110

127411 Moscow

Russian Federation

Lianozovo Electromechanical Plant


Tel: +7495-484-60-10
(LEMZ)
Fax: +7495-485-03-88

E-mail: lemz@tsr.ru

Web: www.lemz.ru
Pavlovicha Str. 26

680030 Khabarovsk

Russian Fedration

LMV Vetroenergetika Tel: +74212-21-73-52

Fax: +74212-22-13-84

E-mail: levovis@gmail.com

Web: www.ovis.khv.ru
Azovskaya Str. 15A

117452 Moscow

Russian Fedration
RKraft
Tel: +7495-979-30-00

Fax: +7495-921-41-44

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E-mail: info@rkraft.ru

Web: www.alt.rkraft.ru
1st Veshnyakovskiy Pr. 2

109456 Moscow

Russian Fedration
Russian Scientific Research Institute of
Agricultural Electrification (VIESH)
Tel: +7499-171-19-20

Fax: +7499-170-51-01

E-mail: viesh@dol.ru,

Web: www.viesh.ru
Serova Pr. 89

152907 Rybinsk

Russian Federation

Rybinsk Instrument Making Plant Tel: +7485-559-26-07

Fax: +7485-555-45-24

E-mail: pribor@rzp.su

Web: www.rzp.su
Leningrad Road 36km

124489 Moscow Oblast

Russian Fedration
Sapsan Energiya LLC
Tel: +7495-507-91-04

E-mail: sapsan@sev.ru

Web: www.sev.ru
Ostrovityanova Str. 43

117321 Moscow

Russian Federation

Scienmet Group Tel: +7495-335-41-15

Fax: +7495-425-90-88

E-mail: info@scienmet.com

Web: www.scienmet.ru
Leningradskoe Sh. 5-A, building 24
SKB Atic Avia: Aviation Technology and
Composite Materials 125993 Moscow

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Russian Fedration

Tel: +7495-786-89-75

Fax: +7495-786-89-76

E-mail: info@atic-avia.ru

Web: www.atic-avia.ru
Kommunny Str. 69

454000 Chelyabinsk

SRC Vertikal LLC Russian Fedration

E-mail: grc-vertikal@mail.ru

Web: www.src-vertical.com
Zhukovskogo Str. 2a

141980 Dubna

Russian Federation

Tel: +7496-212-46-47
State  Machinery  Design  Office  “Raduga”
+7495-777-07-20

Fax: +7495-777-07-36

E-mail: raduga@dubna.ru

Web: www.raduga.dubn.ru
Vvedenskaya Str. 2, office 6

152901 Rybinsk

Stroyingservis LLC Russian Federation

Tel: +7855-24-76-74

Web: www.wind-energy.hut.ru
Promyshlennaya Str. 13

62010 Tulgan

Orenburg region

Tulganskiy Electromechanical Factory


Russian Federation

Tel: +7353-239-93-87

E-mail: kolesnikov.temz@yandex.ru
Web: www.ooo-temz.ru
Gzhatskaya Str. 21
Vetro-Svet LLC

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195220 Saint Petersburg

Russian Federation

Tel: +7911-702-63-93

Fax: +7812-535-67-20

E-mail: vetro-svet@rambler.ru

Web: www.vetro-svet.spb.ru
Kazakhskaya Str. 43

400002 Volgograd

Tel: +7844-241–81–19
Vetrotechnika
Fax: +7844-241–81–19

E-mail: info@vetrotehnika.ru

Web: www.vetrotehnika.ru
Industrial Zone 3a

Samara Region, Krasnoyarsk District

Russian Federation

WindElectricOst Tel: +7927-740-88-58

+7927-744-44-17

E-mail: info@windelectricost.ru

Web: www.windelectricost.ru
Business
Makarenko Per. 12

190068 Saint Petersburg

Russian Federation
ENARGO – Alternative Energy Systems
Tel: +7812-971-01-73

Е-mail: office@enargo.ru

Web: www.enargo.ru
Varshavskoe Sh. 35, Building 1

117105 Moscow

Vetrogeneriruyushaya Kompaniya Russian Federation


(Wind Generating Company)
Tel: +7499-517-91-86

E-mail: mail@wind-pgc.com

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Web: www.wind-pgc.com
Polustrovskiy Pr. 60

195197 Saint Petersburg

Russian Federation
WindPark Engineering
Tel: +7812-324-31-63

Fax: +7812-324-48-84

Web: www.windpark.ru

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Tajikistan
Country Data

Area: 143’100 km2

Population: 7’768’385
Energy Sector Overview
Population density: 54,3 per km2

The Republic of Tajikistan is a landlocked country


Wind located in the middle
Power Installed Capacity:of Central
5,3 kW
Asia, bordering with China, Afghanistan, Uzbekistan and Kyrgyzstan. Half of   Tajikistan’s  
143’100 km2 territory lies 3’000m above sea level, with the mountains covering about 93%
of its area. The mountainous terrain includes the ranges of Pamir and Alay and the foothills
of the Himalayas, the Fergana Valley spreads in the western part of the country, and
Kofarnihon and Vakhsh Valleys are situated in the southwest. Tajikistan is located in an
active seismic zone prone to frequent earthquakes. The rugged landscape with large
amplitudes of high mountains brings about a diversity of climates and temperatures.

Unlike its resource-rich Central Asian neighbours, Tajikistan possesses only negligible
amounts of commercially exploitable fossil fuels, being fully dependent on natural gas
imports from Uzbekistan and oil from Russia, Turkmenistan and Kazakhstan. The key
resource of Tajikistan is its immensely abundant hydro potential (40’000 MW, which is 4 %
of the world hydropower resources) of 511 rivers flowing through its territory. Although
over 90% of Tajikistan’s   power   generation   capacity   is  based  on   large   hydro   power   plants,  
only 10% of the available water resources are utilized. The rest of the vast hydro potential
remains unexploited, mostly due to the lack of funds for its further development, uncertain
investment environment and the protracted structural reform process in the country. The
electricity supply is vulnerable to seasonal water fluctuations, being more stable in the
summer months and resulting in reduced electrical power availability and regular blackouts
from October to April.

Tajikistan with its 7,6 million inhabitants retains the highest rate of rural population
on the whole space of the Commonwealth of Independent States: 73,6% of Tajik people
reside in rural area, consuming only 8,58%   of   the   country’s   total   electricity demand.
Tajikistan is also the poorest Central Asia state: 53% of its population lives below the
poverty line, which intrinsically implies energy poverty: large groups of the population

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(around 1 million) experience irregular and low-quality energy supply or are to some extent
affected by a lack of adequate access to electricity.

The architecture of Tajikistan’s energy sector is of a monopolistic nature: The


vertically integrated and fully state-owned joint stock company Barki Tojik manages all
energy assets in the electricity sector (all electric power plants (mainly hydro power plants),
transmission grids and three regional distribution companies). The national power grid
consists of three separate systems: the northern, the southern, and the Gorno-Badakshan
electrical system. While the northern grid has a shortage of electricity and relies on imports
from Uzbekistan, the southern part enjoys a surplus and is able to export electricity during
summer months. Electricity prices for consumers are extremely low, as a result of the
extremely low production costs for large hydro power plants. Overreliance on hydropower
has also been one of the reasons why other renewable energy sources have been
underdeveloped.

Wind Power Potential

In Tajikistan, the complex alpine landscape of the country predefines the diversity of
wind speeds and regimes. Wind direction and speed greatly depend on the atmospheric
circulation and certain local features of the land spot. The strongest winds blow in highland
regions, such as Fedchenko and Anzob, and in the areas where convergence of air flows
occurs, such as Khujand or Faizobod. The annual average wind speed in these regions
reaches 5-6 m/s; in open lowlands and wide valleys 3-4 m/s. Country-wide, the annual wind
speeds range from 0,8 to 6,0 m/s due to the variety of the landscape, with the strongest
winds observed high in the mountains (peaks and passes) and glaciers, and the weakest in
the southern bottomlands (such as Qurgonteppa) and locked basins (Dushanbe).

Judging from the country wind map and sporadic existing data, the most favourable
locations for wind power utilization are the Pamirs northward the Sarez Lake in the Gorno-
Badakshan region, the Vakhsh ridge down from Faizobod, Murghab, Khujand, Zeravshan
river ridge and the mountain passes of Khaburabad, Anzob and Shakhristan (see the wind
map below for locations).

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Figure 10.1.

Numerical assessments of the countrywide wind potential vary significantly, but still
appear very moderate: UNDP provides very conservative figures of 3’853 MW (technical
potential) and 1’926 MW (economically efficient potential), whereas EBRD gives an even
lower number of only 1000 MW. According to the existing studies, only 10 to 15% of
Tajikistan’s territory is suitable for wind power utilization, due to the complications caused
by complex topography of the country (the windiest areas are usually peaks and slopes of
mountains). The most efficient capacity range for wind installations is considered by some
experts to be 1-50 kW, as such turbines could be used in remote separate households as
both autonomous and complementary power sources.

In general, the wind potential, as well as the most suitable areas for its application,
remain under-investigated in Tajikistan due to the absent systematic network of
meteorological stations and lack of targeted studies and observations. Although the wind
maps for Tajikistan exist, they only indicate approximate windy locations and do not take
into account the accessibility or the population density and demands. The use of such
averaged and imprecise data, as it has been already demonstrated by some projects in the
country, can lead to undesirable miscalculations. Therefore, further measurements are
needed, followed by feasibility studies and pilot projects demonstrating the viability of wind
power application in different regions. One of such undertakings has been already initiated
by   International   Science   &   Technology   Centre   (ISTC)   as   a   part   of   “Monitoring   and  
Assessment of Mutual Supplementary Wind and Hydropower Resources for Management of
Water  Resources  of  Tajikistan”  project  which  is  currently  in  its  early  stage.  

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Political Conditions and Renewable Energy Legislation

The legislation framework regulating the issues of energy production, transmission


and consumption is only constituted   by   the   law   “On   Energy”   (adopted   on   29 November
2000), and “On  Energy  Saving” (adopted on 10 May 2002). As one can notice, the basic laws
on energy sector managemenet were adopted relatively late in comparison to other ex-
Soviet republics, most of which elaborated similar legislation soon after gaining
independence in the early 1990s.   Same   holds   true   for   the   law   “On   Renewable   Energy  
Sources  Use” which was only passed on 12 January 2010.

Several national programmes define the key strategies for RES, such as government
regulation "On the Small Scale Renewable   Energy   Development”   (1997),   “Conception   of  
Development of Fuel and Energy Complex Branches of Tajikistan for the Period of 2003–
2015”  (2002)  and “Target Complex Programme on Wide Use of Renewable Energy Sources
such as Energy of Small Rivers, Sun, Wind, Biomass and Geothermal Energy for the Period of
2007–2015”   adopted in 2007. In   2006   the   “Long-Term Programme for Construction of
Small-scale Power Plants in 2007 – 2020”   was   approved, envisaging the installation of 71
small-scale HPPs with an approximate capacity of 80 MW. To further build upon the existing
legislation in the above-mentioned fields, in his Decree on 24 April 2009 the President of
Tajikistan commissioned a plan which included measures for large-scale use of non-
conventional   and   renewable   energy   and   the   “Energy   Saving   Programme   for   2010-2015”.  
The implementation of Tajikistan’s official energy policy lies within a direct responsibility of
the Ministry of Energy and Industry, re-established in December 2006.

Obviously, the legislation of Tajikistan on energy and RES is far from being complete;
the country has a long way ahead in order to adjust it to modern realities and demands. The
whole range of important issues such as special tariffs for RES, ownership matters, licensing,
financial incentives and others aspects, are not sufficiently covered by the existing
legislation. During the past decade, Tajik authorities have clearly proclaimed a focus on
hydro power development, seeking to attract investment for domestic HPP projects and
boost hydroelectricity exports, which   is   fully   reasonable,   taking   into   account   Tajikistan’s  
enormous water resources. Nevertheless, such targeted policy would only benefit if it would
be more comprehensive and consider the proliferation of other types of renewable energy.

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On the international level, Tajikistan is subject to the UNDP  project  on  “Promotion  of  
Renewable and Sustainable Energy Use for Development of Rural Communities in
Tajikistan“. This project, scheduled for the timeframe of 2010 to 2013, has a key goal of
reducing poverty by enhancing socio-economic development through the promotion of
renewable sources of energy in areas with unreliable or poor power supply. However, the
main focus of the project is hydro power plants, with only limited attention to other RES
sources (solar, wind, biomass etc.).

Operating and Planned Wind Energy Projects

The information on existing wind power generating facilities in Tajikistan is rather


controversial. On one hand there are some undertakings in the field of wind energy in the
country. As early as 2006, a 5 kW wind turbine "Breeze-leader" was installed on the
Zarevshanski ridge, at height  of  3’700 m above sea level, in order to supply electricity to the
GSM power station Poymazor of the Tajik communication company "Somonkom" (see the
illustration below).

Another case of wind power utilization


was revealed when in December 2009,
according to the data of ETC4CA, two 300 W
wind turbines were installed in Alichur town
(previously severely suffering from the lack of
energy supply), Murghab region. The
installation was conducted by the joint efforts
and funding of Mountain Societies
Development Support Programme
(MSDSP) Pamir Allied Land Management and
the local village organisation at a cost of approximately $3-4’000 per wind turbine. Also,
some more small wind turbines are used by local private households around the country.

On the other hand, some projects were halted because of lack of funding or they were
implemented improperly. For example, ten wind turbines, deployed in the Baljuvon,
Parkhar, and Shuroobod in southern Tajikistan on the initiative of the Tajik government in
2009, turned out to produce much less electricity than expected. The reason is a lack of
fundamental preliminary research on the wind currents in the area, which led to low
capacity coefficiency of installed turbines and poor energy production results.

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In Tajikistan currently there is no local production of equipment for alternative energy


generation spotted, most of the parts and details are imported from the neighbouring China.
Often concerns and complaints are expressed about the low quality of the purchased
production.

Prospects for the Future

Tajikistan with its abundant hydro power potential, which prevails in electricity
generation countrywide, tends to devote much less attention to the development of other
types of renewable energy sources. Nevertheless, a considerable wind potential still exists in
the country and its utilization (especially as a supplementary source of energy) is possible
and feasible in certain regions.

In rural mountainous areas of Tajikistan, with significant levels of poverty among the
population, a sharp fuel shortage is constantly observed, as low incomes do not allow the
inhabitants to purchase expensive imported fossil fuels. Given the absence of connection to
the central grid, the countryside dwellers massively use firewood, exhausting the  country’s  
scarce forest areas. Exactly in such areas, wind power could find its most suitable
application in Tajikistan, being used for electricity generation, heating, water pumping, grain
grinding either stand-alone or together with solar or biomass power. Emergence of power
supply in poor regions would allow for better living conditions and significantly improve the
living standards, furthermore, the proliferation of wind power and other RES can be a
rational solution for fighting poverty itself, starting with tackling energy poverty.

In Tajikistan the development of wind power and other renewable energy sources is
hindered by low tariffs for electric power, underdeveloped legislation, absent privileges for
RES producers and equipment importers and lack of financing for new projects, research
and technologies. The unstable political situation and shaky economy of the country do not
stimulate any significant foreign investments either. Another specific barrier to RES
development is the lack of awareness about the advantages of alternative energy among the
rural population and the inability to purchase expensive installations without external
financial support. Limited local technical expertise, lack of skilled technicians and know-how
also hinder operation and maintenance of renewable energy systems.

However, this situation can be improved in mid- to long term by increasing public
awareness on applications of renewable energy and on issues of energy efficiency and

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conservation, compiling and disseminating data on successful experiences and best


practices with RES and educating and equipping the local people. From the side of
authorities, more support and initiatives are expected to modernise the legislation base and
to provide financial support to RES. All these measures, if implemented in a diligent and
timely manner, would lead to a more sustainable energy usage and more reliable power
supply in Tajikistan in the future.

References:

 Asian Development Bank (2006): Promotion of Renewable Energy, Energy Efficiency and
Greenhouse Gas Abatement (PREGA): Tajikistan: Country Energy Situation and Prospects.

 Carnegie Endowment (2009): Renewable Energy in Tajikistan: Current Situation and Prospects
for the Future. Dr. Umarkhon Madvaliev, Dushanbe, Tajikistan.

 Center of Climate Change and Academy of Sciences of the Republic of Tajikistan (2007): Socio-
Economic Assessment of the Production and Consumption of Renewable Energy Sources in
Tajikistan. Prof. Abdulkhamid Kayumov, Kurbonjon Kabutov.

 Deutsche Gesellschaft für Internationale Zusammenarbeit (2009): Renewable Energies in Central


Asia. Country Chapter: Republic of Tajikistan.

 ETC4CA (2010): Report on the Opportunities for Renewable Energy Provision for Communities in
the Pamir Mountains, Tajikistan. Tony Nelson.

 ETC4CA (2011): Report on the Opportunities for Wind Power as a source of Renewable Energy in
Sughd province, Northern Tajikistan. Tony Nelson.

 European Bank for Reconstruction and Development (2009): Renewable Development Initiative.
Country profile: Tajikistan.

 United Nations Development Programme (2011): Renewable Energy as a Driver for Poverty
Reduction in Tajikistan. Ahad Mahmoudov, Dushanbe, Tajikistan.

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Contacts:

State&Government
Rudaki Ave. 22

734012, Dushanbe

Tajikistan
Ministry of Energy and Industry
(MoEI) of the Republic of Tajikistan
Tel: +992-37-221-6997

Fax: +992-37-221-8281

E-mail: minprom@netrt.org

Web: www.minenergoprom.tj
Scientific&Research
Ayni Str. 299/1

734063, Dushanbe

Tajikistan
Center for Research and Exploitation
Tel: +992-918-737-437
of Renewable Energy Sources
Fax: +992-37-225-7916

E-mail: rcre@mail.ru

Web: www.rcre.tj
Rudaki Ave. 33

734025, Dushanbe

Academy of Sciences of Tajikistan Tajikistan

Tel: +992-37-221-5017

E-mail: academy@science.tajik.net
Business
E-mail: info@etc4ca.com
ETC4CA
Web: www.etc4ca.com

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Turkmenistan
Country Data

Area: 488’100 km2

Population: 5’054’828
Energy Sector Overview
Population density: 10,4 per km2

Turkmenistan, or Turkmenia, is located in the Wind Power


South of Installed
CentralCapacity: 0
Asia bordering
MW
Afghanistan, Iran, Uzbekistan and Kazakhstan, and surrounded by the Caspian Sea in the
West. The country has a population of almost 5 million people, barely half of which live in the
cities and urban areas.

The landscape of Turkmenistan is mostly flat, with the exception of some elevations in
the Southern parts of the countries, near the borders with Iran and Afghanistan. The major
territory of the country is covered with vast desert lands (Karakum desert), occupying up to
86% of Turkmenistan’s ground, with intensive agriculture in irrigated oases. Apart from the
mainland, in its territorial waters Turkmenistan disposes of 23 (out of nearly 50) islands in
the Caspian Sea.

Turkmenistan possesses abundant reserves of oil and the world's fourth-largest


natural gas reserves (after Russia, Iran and Qatar), being a major energy net exporter of
the region, with the energy sector accounting for up  to  70%  of  the  country’s  GDP.  Alongside
with rich oil and gas deposits, Turkmenistan has inexhaustible reserves of natural
renewable energy, being the country with one of the highest renewable energy potential in
the whole region. The annual potential of all renewable energy sources taken altogether
constitutes 110 billion tons of oil equivalent, according to current estimations. Out of all
known renewable energy types, solar and wind power are considered to have the most far-
going   perspectives   for   development:   Turkmenistan’s   climatic conditions provide an ideal
ground for both solar and wind power. The progress in the RES exploration and proliferation
is hampered by the absent need for additional energy and extremely accessible power
generated from conventional sources.

In Turkmenistan, the population is not obliged to pay for natural gas, water, table salt,
gasoline and electricity, receiving a fixed amount of them monthly as a subsidy from the state.
Each citizen of the country is eligible for 35 kWh power consumption (next 1000 kWh above
this limit cost around $3,5), and 120 litres gasoline for car owners. Unfortunately, such a

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generous subsidy policy leads to inefficient and wasteful use of energy and unawareness of
the population about energy saving and the advantages of renewable energy usage.

Generally, the energy sector of Turkmenistan is characterized by a single vertically


integrated structure and dominated by state companies and controlled by the state, as energy
and electric power facilities are considered to be of a strategic significance for the country’s  
sustainable economic development. The share of foreign participants is low, repelled by the
poor investment climate and absent legislative support, but growing due to the increasing
interest of European states in Turkmen fossil fuels.

Wind Energy Resources and Potential

Turkmenistan is considered to have a high wind potential which can be utilized for
power generation on more than 40% of its territories. The theoretical wind energy potential
is believed to reach 500’000MW, of  which  10’000MW are technically feasible to be developed
in the mid- to long-term. The country-wide wind maps for Turkmenistan are availiable at
least in two versions: with wind speed measurements at the height of 30 m and 80 m.

The wind modes and speeds are determined by the landscape and topography of the
country: vast desert zone and the Caspian Sea pose an impact on weather and wind
conditions. The strongest winds are observed along the Caspian Sea coastal zone and further
towards south-eastern direction. Wind power can be also effectively used in the whole north-
east part of Turkmenistan. More precisely, the areas with the highest wind potential are
located within: Garabogazköl Bay coastal zone, the Turkmenbashi (Krasnovodsk) plateau, a
strip of the Caspian Sea coast near the border with Iran, some regions of the Karakum Desert
and headwaters of the Murghab river on the Kara Bil Hills near the Afghanistan border (see
map below for locations).

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Figure 11.1.

The stretched Caspian coastline and the massive central desert area provide strong and
stable winds, both in the 4–5 m/s category and in the 5–6 m/s category. Some regions near
the coastal city of Turkmenbashi (Krasnovodsk) have reliable speeds even higher than 6 m/s.

Some pre-feasibility studies propose that the economically reasonable and financially
profitable capacity of wind energy facilities to be used in Turkmenistan should be around 60
kW. Such turbines would be a perfect option for autonomous energy supply of remote hard-
to-reach areas and settlements (e.g. Darvaz, Gyzylgay, Gumdag, Ayim and Omurat and others).

The whole existing wind potential, however, is barely used or even taken into account
by the government and inhabitants of the country due to the abundance of conventional
energy resources: oil and gas. Even given the valuable fossil fuels, in Turkmenistan there are
areas where laying power transmission lines or gas pipelines is technically difficult or
economically inefficient. First and foremost, such places are the Turkmen islands in the
Caspian Sea, where the power is supplied by boat shipments of diesel or compressed gas.
Secondly, these are oil and gas fields and extracting facilities located distantly from major
population centres. And thirdly, such spots include low population density zones, remote
villages   and   settlements,   farmers’   villas,   pastures and outruns, areas with seasonal
occupation, resort and rehabilitation centres in the countryside. The lack of electricity and

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power cut-offs in such regions could be effectively addressed by local renewable energy
facilities, and especially wind turbines, especially taking into account the growing acceptance
and enthusiasm of the indigenous inhabitants.

Political Conditions and Renewable Energy Legislation

Despite the fact that Turkmenistan is rich in oil and gas, renewable energy has recently
attracted the attention of the president, government and institutions within the country.
Several times it was stated by the current Turkmen president Gurbanguly Berdymukhamedov
that the development and proliferation of renewable energy, especially solar and wind,
should be a priority within the course of energy sector modernization. An appropriate
support from the state was promised to be provided to Turkmen researches and scientists in
the sector of renewable energy and green power generation technologies.

The proclaimed support, however, has not led to any significant achievments in the area
of legislation: up to this moment, Turkmenistan has not adopted any specific regulations on
renewable energy, neither a feed-in tariff or tax priveleges are legally granted to RES
producers and consumers. The only dubious progress is observed in the elaboration of the
law “On Energy Saving”,  which  is  still  in  the  condition of preparation. When adopted, the law
will encompass the aspects of energy saving in both energy production and consumption
sectors and establish the framework for governing the energy saving policies at the national
level.

A  comprehensive  policy  or  a  programme  on  RES  development  in  Turkmenistan  doesn’t  
exist either: the initiatives of the authorities so far are only underpinned by sporadic
statements and actions. For example, demonstrating its interest in renewable energy, the
country hosted the International Conference on the Use of Alternative Energy Sources
in Turkmenistan in 2010 on the initiative and under the patronage of the current president
Gurbanguly Berdimuhamedov. The forum was organized by the Academy of Sciences
of Turkmenistan and brought together numerous participants from 27 countries worldwide.
More events of such a scale and kind are planned to be hosted in the future.

Turkmenistan officially pursues an  “open-door”  policy  in terms of foreign investments


attraction and attempts to create a favourable investment and business climate. In October
2007, the government adopted a revised version of the law   “On   Foreign   Investment”,  
struggling to stimulate the participation of international partners in its economy and to

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stimulate the influx of capital from abroad. The given law grants a number of taxes and other
fees privileges for foreign investment projects and simplifies multi-entry visa procedures for
business persons. Nevertheless, in order to be successful in reality in doing business in
Turkmenistan, it is considered to be useful to establish direct contacts with the authorities.

Operating and Planned Wind Energy Projects


Currently no large-scale wind energy generating facilities are installed or operating in
Turkmenistan, neither there is any information available about planned wind energy projects.
However, low-capacity (1 to 6 kW) wind mills and combined wind and solar energy systems
are used by the local rural population, especially in the areas out of reach of the central grid.
Solar and wind energy is exploited for heating, lighting, water desalination and pumping,
irrigation and other agricultural purposes.

A number of experimental innovative facilities utilizing solar and wind power are being
presently tested by the local scientists to be used for the industrial purposes in the nearest
future. In the course of scientific trials, a 5 kW wind installation was deployed to supply
electric power to a school in the Gyzylsu Island in the Caspian Sea. The turbine was designed
to generate electricity for sea-water desalination system including the pumps, reservoir-
distillate accumulator and UV water disinfection unit on the island as well.

Prospects for the Future

Turkmenistan is lavishly endowed by nature with oil and gas resources, sufficient to
satisfy the domestic energy demand in the next decades and to export them to other
countries. Simultaneously, the country has a significant potential for solar and wind
energy production, which, if developed and used efficiently, could cover a considerable
share of the indigenous population’s needs. The authorities of Turkmenistan do not
oppose the perspectives of RES sector augmentation, nevertheless, the renewable energy
development initiatives (and concurrent measures and actions) should be more actively
put forward both by the government and by the interested consumers.

Although the abundance of conventional energy sources hinders the development of


alternative energy, wind power could be a suitable solution for remote rural areas
electrification, especially for those having no access to the central electricity grid.
Moreover, launching bigger-scale wind energy projects could create more jobs for the

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local population, allow for innovative technologies transfer, and lastly, increasing the
share of renewable energy in domestic energy production could save some amounts of oil
and gas for exports. Taking into account high world raw energy materials prices, the latter
option would yield immense revenues for the country.

References:

 Academy Of Sciences of Turkmenistan (2009): Renewable Energy in Turkmenistan: Potential and


Prospects.

 Academy Of Sciences of Turkmenistan (2010): Alternative Energy in Focus of Scientists.

 Deutsche Gesellschaft für Internationale Zusammenarbeit/GIZ (2009): Renewable Energies in


Central Asia. Country Chapter: Republic of Turkmenistan.

 European Bank for Reconstruction and Development (2009): Renewable Development Initiative.
Country profile: Turkmenistan.

 INOGATE (2010): Turkmenistan: Energy Sector Review. Renewable Energy. Energy Portal.

 Renewable Energy & Energy Efficiency Partnership (2009): Policy Database Details: Turkmenistan.

Contacts:
State&Government
2008 (N.Pomma) Str., 6

744000, Ashgabat

Turkmenistan
Ministry of Energy and Industry
Tel: +993-12-21-03-03

Fax: +993-12-35-54-42

E-mail: kuwwat@online.tm
Research&Scientific
Bekrova Str., 60

Ashgabat

“Gyun”  Scientific  Association Turkmenistan

Tel: +993-12-370-348

E-mail: gun99@mail.ru

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Ukraine
Country Data
Area: 603’550 km2
Population: 44’854’065
Energy Sector Overview Population density: 74,3 per km2
Wind Power Installed Capacity: 151,1 MW

Ukraine is an Eastern European state bordering Russia to the east and northeast, Belarus
to the northwest, Poland, Slovakia and Hungary to the west, Romania and Moldova to the
southwest and bound by the Black Sea and the Sea of Azov to the south. The terrain of the
country is mostly constituted by plain steppes and plateaus, with the mountains located only in
the west (the Carpathians) and south of Crimean Peninsula.
Ukraine has moderate oil and natural gas reserves, but significant black and brown coal,
as well as uranium ore deposits. In order to meet three quarters of its annual oil and gas
demand, Ukraine has to rely on foreign energy resources, mostly imported from Russia. Such
dependence  makes  Ukraine’s  economy  vulnerable  to  bilateral  disputes  and  external  shocks.
The total installed electricity generation   capacity   of   Ukraine   amounts   to   53’000 MW,
whereas thermal power plants (oil, natural gas and coal) produce 43,7% of all electricity,
46,5% is generated by nuclear power plants, 5,6% by hydropower and 4,2% share belongs to
combined heat and power7. The level of energy intensity of Ukraine is rather high, exceeding
those of Austria or Germany by three to four times. Renewable energy sources are not
exploited to the full extent in Ukraine: Excluding hydropower, the contribution of RES to the
total energy mix is still negligible – less than 1%. However, the country has a great potential for
most types of renewable energy: solar, wind, hydropower, geothermal, biogas and biomass.
The energy sector of Ukraine is characterised by a high level of public share in it, with
most of the enterprises being controlled by the state. Structurally, the Ukrainian electricity
market represents a single-buyer model, with the leading role of the state-owned enterprise
“Energorynok”, which purchases electricity from the generating companies and delivers it to
regional suppliers. In its turn, supply and distribution is carried out by 27 regional distribution
companies,   so   called   “oblenergos”,   most   of   which   are   private.   Transmission is owned and
operated by a state company National Energy Company “Ukrenergo”  responsible  for   the high
voltage transmission grid. The role of a regulator in the energy sector, as well as tariff-setting
and licensing functions, belongs to the National Commission that Implements State Regulation
in Energy Sector in Ukraine.

7 According to the Ministry of Energy and Coal Industry of Ukraine, January 2012.
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The energy sector of Ukraine, as in other CIS member states, suffers from chronic
deficiencies such as systemic debts, artificially low tariffs for electricity, ageing and obsolete
power plants, pipelines and grids, hence high technical losses in transmission. Due to severe
lack of investment and funding over the past years, the Ukrainian electricity transmission
network requires substantial repair and rehabilitation. Additionally, country risks coupled with
lack of state guarantees have been creating barriers for influx of capital to the energy sector
and restraining potential investors from entering the market.

Wind Power Potential


Experts assume that the wind potential of Ukraine can be considered as high: the latest,
still very conservative estimation suggests that the countrywide potential equals 16’000 MW,
and that the annual power generation from the wind may reach 25-30 TWh per year. More
than 7000-9000 km2 of the land area is ideally suited for wind farm development.
The wind resources are spread over the territory of Ukraine unevenly: the wind
potential is much higher in the southern part of the country than in the north. The
average annual onshore wind speed in Ukraine is approximately 4,5-6,0 m/s, rising up to 7-8
m/s8 on the territories adjacent to the Black Sea and the Sea of Azov: on the Crimea Peninsula,
as well as in the Carpathian, Transcarpathian and Lower Carpathian areas. A whole range of
areas and regions of the country – predominantly in the southeast and southwest - are
favourable for wind installations (numbers correspond to the marks on wind map below):
Figure 12.1.

8 According to State Complex Programme for Wind Farm Construction in Ukraine.


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1) The Carpathian Mountains range and surrounding regions near Lviv, Ivano-
Frankivsk, Zakarpattia region, western part of Chernivtsi region;
2) Luganskaya Oblast (region in the very east of Ukraine): administrative districts
Zolochiv, Yavoriv, Mostyska and Skole (Skolivsky);
3) Sea coasts of the Black Sea: Odessa, Mykolaiv and Kherson regions;
4) Sea coasts of the Sea of Azov: Zaporizhzhya and Donetsk regions;
5) Crimean peninsula: the Kerch peninsula (eastern part of Crimea), Tuzla Island, the
Arabat Spit.

Apart from onshore wind farm construction, the geographical location of Ukraine is
ideally suited for installation of offshore generation capacities. The areas of the Black and the
Azov Sea have relatively high wind speeds throughout the whole year, reaching up to 8 m/s.
Shallow waters of Sivash lagoons (0,5 to 3m in depth) on the west coast of the Sea of Azov
represent an interesting location for offshore wind as well.
A wind atlas for Ukraine is available, it was composed locally by Ukrainian Interbranch
Scientific and Technical Center for Wind Power Engineering of the Institute of Renewable
Energy of Ukraine based on the measurements from local meteorological stations conducted at
10 m height. Konkord Group was the first local company to conduct certified wind
measurements in compliance with European standards. Nowadays, certified wind
measurements are being conducted on about 20 sites by various private companies involved in
the development of the Ukrainian wind power sector. However, more precise and detailed
assessments are still needed, especially in the regions with high wind potentials.

Political Conditions and Renewable Energy Legislation


The government of Ukraine has been showing its interest and willingness to promote
alternative energy since 1997, when the Complex Programme for Wind Power Plants
Construction was adopted in order to stimulate the development of the wind energy sector.
The programme was mainly focused on converting military and defence industries into wind
power manufacturing. The given document set a rather ambitious goals of reaching 1’990 MW
wind power installed capacity - unfortunately this has not been achieved due to a severe lack of
funding (only 20% of planned financial means were collected).
During the same year, another piece of legislation was passed in the Ukraine – the law
“On   Electrical   Power   Industry”   (of   16 October 1997), which stated that the electricity

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generated from renewable energy sources (incl. wind power) should be sold under the same
terms and conditions as electricity produced from conventional sources.
By now, Ukraine has also passed a separate law devoted to and focused on renewable
energy,   adopted   in   2003   and   titled   “On   Alternative   Energy   Sources”.   Although   its   existence  
already demonstrates a positive pace of incentives for RES development in the country, this
specific document rather contains general provisions and guidelines for the proliferation of
alternative energy. No financial stimuli or other support mechanisms for RES utilisation are
stated in the given document.
The energy laws of Ukraine are complemented by a number of other policy documents,
strategies and programmes. As early as 1996, the “National  Energy  Programme  of  Ukraine  until  
2010”   was   approved,   envisaging a 10% share of renewables and 180 MW of installed wind
power capacity by 2010. Ten years later, in 2006, a   farsighted   “Energy   Strategy   of   Ukraine  
Until  2030”  was  adopted  by  the  Cabinet  of  Ministers, emphasising the importance of reducing
dependence on imported fossil fuels and accelerating the development of renewable energy
resources. According to this document, the total share of RES in the energy mix of Ukraine
should reach 19% by 2030.
Within the government, the Ministry of Energy and Coal Industry of Ukraine is the key
administrative   body   for   Ukraine’s   energy   sector   and   holds the primary responsibility over it.
The key functions of the ministry include developing energy strategies, directives and
legislation, as well as controlling the enactment process. Apart from the Ministry, the Ukrainian
State Agency on Energy Efficiency and Energy Saving of Ukraine (NAER) ensures the
implementation of state policies in the sphere of efficient use of energy resources, energy-
saving and renewable energy. NAER is an executive authority with special status, the activities
of which are directed and coordinated by Cabinet of Ministers of Ukraine. Another influential
body in the energy sector is the National Commission that Implements State Regulation in
Energy Sector in Ukraine (NERC), established as a special independent state body reporting to
the President of Ukraine. After 2004, NERC became a central executive authority, separated
from the ministerial structure but appointed by the president, subordinated to the government
and financed from the national budget. NERC is responsible for tariffs and licensing, and
regulates the activities of natural monopolies in the electricity and gas sectors.
A positive sign is the involvement of the local institutions into research in the field of
renewable energy and promotion of the latter. The leading role in this regard belongs to the
Ukrainian Wind Energy Association (UWEA), an active NGO, whose primary goals include the
promotion of the interests of the wind energy sector on the national and on the international
level. Furthermore, organisations such as the Institute of Renewable Energy in the framework
of the National Academy of Sciences, the Renewable Energy Agency NGO, the Scientific and
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Technical   Center   “Biomass” are engaged in collecting and disseminating data concerning
renewable energy. A number of local programmes have also been launched,   such   as   “Green  
Energy   Initiative”   of   the Ukrainian International Chamber of Commerce, and numerous
workshops, seminars and conferences devoted to RES popularisation in the country. Ukraine
receives significant aid on the international level, too. The European Bank of Reconstruction
and Development (EBRD), for instance, is the largest financial investor in Ukraine: it has
committed   over   €6,7 billion (US$ 9 billion) for 281 projects. The European Union is
cooperating closely with Ukraine in order to spur progressive integration of the Ukrainian
energy market with that of the EU.
Ukraine is one of the few countries of the whole CIS community with an established and
functioning system of feed-in tariffs. In 2009, the   parliament   of   Ukraine   passed   a   law   “On  
Amendments to the Law of Ukraine ‘On   Electrical   Energy’ Regarding Stimulation of Usage of
Alternative Sources of Energy”   (№1220/VI, from 1 April 2009), setting up a feed-in tariff
scheme  (“green  tariff”  – as it is referred to in the legislation) for renewable energy producers.
The enacted tariff rates are differentiated according to the source of energy production,
and the following tariffs per kWh apply: biomass: UAH 1,3446 (= € 0,13), small hydro up to 10
MW:  UAH  0,8418  (=  €  0,08),  and  solar:  UAH  5,0509  (=  € 0,46). For wind power, the tariffs vary
depending on the size of the power generating unit: for wind installations of less than 600 kW
the  rate  is  UAH  0,702  (=  € 0,07), 600 to 2000 kW – UAH  0,818  (=  € 0,08), and for installations
of more than 2 MW the tariff is UAH 1,23 (= € 0,11). The feed-in tariff scheme applies for above
mentioned regenerative energy sources until 1 January 2030; moreover it is also applicable for
the power plants generating electricity both from renewable and conventional energy sources,
although the share of RES should exceed 50%. In case of significant fluctuations of the national
currency in relevance to Euro, the feed-in tariff should be adjusted to reflect the changes.
Currently, 61 company sell energy generated from renewable sources under the given feed-in
tariff scheme. The implementation of the feed-in tariff system has played a crucial role in the
development of the Ukrainian wind energy sector: the number of newly implemented and
planned projects boosted significantly in 2010-2011, moreover, the first commercial private
ventures have emerged, while before 2011, all existing wind capacities were financed from the
state budget.
Apart from financial incentives, the legislation of Ukraine contains provisions
guaranteeing equal access to the central grid for RES producers, obligation of the state to
purchase all energy produced from RES and timely financial payouts, as well as import tax and
VAT exemption for all the RES generating equipment, and a 75% land tax reduction for the land
purchase for clean energy projects.

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Important prerequisites set in addition to the tariffs are the regulations concerning local
content requirements: starting from 2012, the feed-in tariff scheme as described above does
only apply if not less than 15% of Ukrainian equipment, services and raw materials are utilised
during the power station construction; from 2013, this rate will be raised to 30% and to 50%
starting from 2014. In fact, some local experts assume that such high local content rates were
introduced too early, and may even hinder the emergence of new wind power projects instead
of spurring them.

Operating and Planned Wind Energy Projects


Among all countries of the Commonwealth of the Independent States, Ukraine is
currently taking a lead in the wind energy sector: it has the largest total installed wind power
capacity of 151,1 MW as of December 2011, as compared to 87,5 MW in 2010 (73% growth).
The total number of industrial-scale wind turbines operating in 2011, according to the
Ukrainian Wind Energy Association (UWEA), has reached 726 units. The majority of the
installed turbines (>700 units) are 107,5 kW “USW 56-100”  model, produced locally under the
license of the American company Kenetech Wind Power. Since 2003, 600 kW (T600-48) wind
turbines of the Belgian company Turbowinds are being assembled in Ukraine, with 21 units
installed in the country. The total output generated by wind energy in 2011 constituted 88’984
MWh, occupying a 0,05% share in the overall electricity production.

Detailed information on installed and planned wind power capacity in Ukraine is


presented in the table below. Nowadays there are eight fully operating wind farms in Ukraine.
All wind farms prior to 2011 were installed under the Complex Programme for Wind Power
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Plants Construction and financed from the state budget, whereas those launched in 2011 were
financed with 100% private capital.

Table 12.1. Installed Wind Power Capacity of Ukraine


Start of Planned
Geographical Installed
Name of the wind farm constructio capacity,
region capacity, MW
n works MW
Donuzlavskaya Crimea 1993 100 18,3
Vodenergoremnaladka
(Mirnovskaya and Crimea 1996 42 26
Presnovodnenskaya)
Novoazovskaya Donetsk region 1998 50 21,8
Tarkhankutskaya Crimea 2001 70 16,7
West-Crimean Crimea 2008 9,6 2,8
Novoazovskiy Wind Park Donetsk region 2011 107,5 37,5
Ochakovskiy Wind Park Mykolaiv region 2011 125 25
Novorossiyskaya Kherson region 2011 24 3
TOTAL: 528,1 151,1
Source: Ukrainian Wind Energy Association (UWEA), 2012.

The pace of the development of the small wind sector in Ukraine is much faster and more
progressive, compared to large scale wind power: currently, there are around 1’560 small
turbines up to 20 kW operating in the country, with a joint capacity of 12,5 MW (8,3% of total
installed capacity). Ukraine has established local production of small turbines represented by
companies such as  “Svit  Vitru”,  “Flamingo Aero”,  “WindElectric”,  “Karbon” etc., which produced
around half of all small wind turbines installed in the country, whereas the rest are mainly

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imported from China. The most popular size of small wind turbines is considered to be 1-2 kW,
and their frequent consumers are farmers and owners of private buildings (villas).

Apart from existing installation, an impressive number of projects are in teh planning
stage: By the end of 2010, there were 39 new planned projects in different regions, with Crimea
ranked first in planned capacity, followed by Zaporozhzhya, Mykolaiv and Donetsk regions.
Most of these projects are in pre- and feasibility study stage. Considering the current technical
condition of the electricity grid in Ukraine, it is possible to install additionally up to 8’000 MW
of wind power generating capacity, including up to 2’000 MW in the Autonomous Republic of
Crimea.

Prospects for the Future


Up to now Ukraine has been an absolute leader among all CIS countries in the
development of the wind power sector, showing its willingness to spur domestic generation
and to promote the exploitation of alternative energy already from late 1990s. Not without a
reason: Putting a clear accent on the development of a domestic renewable energy sector
would give Ukraine a higher level of independence from external and imported energy sources,
which, considering the recent negative developments and constant squabbling with Russia on
that matter, would be an obvious benefit for the country.
Apart from being generally a promising source of energy to opt for, wind power in
Ukraine could acquire a strong impetus for   development   due   to   the   country’s   vast   lands   and  
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fair wind potential. The foundation for that has been laid, and now it is the right moment to
investigate and to exploit the existing resource potential, as well as solid scientific and
industrial base, becoming a successful example for other countries of the region, a model to
learn from. Already now, the country is showing a significant progress in the wind sector: In
2011, Ukraine was listed by Ernst & Young on 32d place in the Renewable Energy Country
Attractiveness Index, composed for 40 countries worldwide. Experts of Ernst & Young
highlighted Ukraine as a country with a steady growth of projects in the field of renewable
energy since the introduction   of   the   “green”   tariff   in   2009. Apart from inland wind farms,
Ukraine has far-going perspectives for offshore wind installations in the Black and Azov Seas,
especially taking into account that the Crimea peninsula situated in between, being one of the
windiest regions of Ukraine, experiences problems with local electricity supply. Generally, the
wind sector development would create new jobs, spur the advancement of local production
and attract more modern technologies to the country.
Nevertheless, several significant obstacles to RES proliferation remain: subsidies
awarded to conventional energy sources, complex and lengthy permitting and licencing
procedures, corruption, and lack of capital. Political and economic instability coupled with
uncertain investment climate hinder the influx of foreign investments, which are essential to
maintain the fast pace of its wind sector development.
In order to grasp the opportunity and not to lose the pertaining leadership among the CIS
states, Ukraine has to undertake a number of appropriate measures to facilitate the local
renewable energy production. Whereas improvement of the legislative base, elimination of
bureaucratic obstacles and augmentation of the governmental support should be the focal
point of renewable energy policy of the country, a proper attention should be also paid to the
creation of adequate financial incentives and transparent and safe operational climate. Only in
case these barriers are acknowledged and timely actions are taken to eliminate them, Ukraine
can acquire a status as an attractive wind power market with great potential for trade and
investment.

References:
 Asset  Management  Company  “NIKO”  (2011):  Energy  Sector  of  Ukraine.  

 Austrian Energy Agency (2009): Energy Country Profiles: Ukraine.

 European Bank for Reconstruction and Development (2009): Renewable Development Initiative.
Country profile: Ukraine.

 European Bank for Reconstruction and Development (2009): Sustainable energy development in
the  EBRD’s  countries  of  operations:  Group  “B”  Countries.  Country  profile:  Ukraine.

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 Renewable Energy & Energy Efficiency Partnership (2009): Policy Database Details: Ukraine.

 Renewable Energy Agency of Ukraine (2004): Ukraine: Outlook to 2050. G. Geletukha, T.


Zhelyezna, M. Zhovmir, A. Konechenkov and Yu. Matveev.

 Ukrainian Wind Energy Association (2010): Wind Power in Ukraine: Mirages or Horizons? Weekly
Issue 2000. 12-18 November, 2010.

 Ukrainian Wind Energy Association (2011): Wind Power of Ukraine 2010. Annual report.

 Ukrainian Wind Energy Association (2012): Wind Power of Ukraine 2011. Annual report.

 Wind Power Database (2011): Wind Farms in Ukraine.

 World Wind Energy Association (2011): Wind Energy International 2011/2012. Ed. Dr. Anil Kane,
Stefan Gsänger. Country Report: Ukraine. Andriy Konechenkov.

Contacts:
State&Government
Kreschatik Str. 30
01601 Kiev
Ukraine
Ministry of Energy and Coal Industry of
Tel: +38-044-239-43-94
Ukraine
Fax: +38-044-239-44-30
E-mail: kanc@mintop.energy.gov.ua
Web: www.mpe.kmu.gov.ua/fuel/control/uk/index
Smolenska Str. 19
03680 Kiev
National Commission that Implements State Ukraine
Regulation in Energy Sector in Ukraine Tel: + 38-044-241-9001.
(NERC) Fax: + 38-044-241-9047.
E-mail: box@nerc.gov.ua
Web: www.nerc.gov.ua
Kiyevskaya Str. 1A
95053 Simferopol, Crimea
Ukraine
Republican Committee for Fuel, Energy and
Tel: +38-065-254-42-25
Innovation Policy of the AR Crimea
Fax: +38-065-254-42-14
E-mail: reskomtop@ukr.net
Web: www.minenergy.ark.gov.ua
Muzeiniy Lane 12
01601 Kiev
State Agency on Energy Saving and Energy Ukraine
Efficiency of Ukraine Tel: +38-044-590-59-60
Fax: +38-044-590-59-61
Web: www.naer.gov.ua
NGOs
Saksaganskogo Str. 68, office 1
01033 Kiev
Ukrainian Wind Energy Association Ukraine
(UWEA) Tel: +38-044-223-29-96
E-mail: info@uwea.com.ua
Web: www.uwea.com.ua
Research&Scientific
Institute for Renewable Energy at Chervonogvardijska Str. 20A
Ukrainian National Academy of Sciences 02094 Kiev

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Ukraine
Tel: +38-044-206-28-09
Fax: +38-044-537-26-57
E-mail: info@ive.org.ua
Web: www.ive.org.ua
Wind Turbine Manufacturers
Krivorozhskaya Str. 1
49047 Dnepropetrovsk
A.M. Makarov Yuzhniy Ukraine
Machinery-Building Plant Tel: +38-056-234-38-61
E-mail: market@yuzhmash.com
Web: www.yuzhmash.com
Ordjonikidze Str. 6
84306 Kramatorsk, Donetsk region
Ukraine
Fuhrlander Wind Technology LLC
Tel/ Fax: +38-062-646-62-11
E-mail: windenergy@rambler.ru
Web: www.fwt.com.ua
Smolnaaya Str. 1
03680 Kiev
Ukraine
Karbon LTD
Tel: +38-044-492-94-99
E-mail: moro@karbon.kiev.ua
Web: www. karbon.kiev.ua
Ordzhonikidze Str., 6
84306 Kramatorsk, Donetsk Region
Ukraine
Kramatorsk Heavy Machine
Tel: +38-062-646-86-39
Tool Building Works
Fax: +38-062-646-04-12
E-mail: mps@kzts.com
Web: www.kzts.com
61108 Kharkov
Ukraine
Tel: +38-057-756-07-65
Svit Vitru
+38-050-300-97-38
E-mail: svit_vitru@mail.ru
Web: www.mirvetra.com.ua
Sadovaya Str. 53A, 126
02132 Kiev
Ukraine
WindElectric
Tel: +38-044-467-77-88
E-mail: info@windelectric.kiev.ua
Web: www.windelectric.ua
Business
Kirova Pr. 82G
49061 Dnepropetrovsk
Ukraine
Concord Group Tel: +38-056-231-77-90
Technical Design Bureau Fax: +38-056-231-77-91
E-mail: office@wind.dp.ua
Web: www.concordgroup.com.ua
www.wind.dp.ua
Saksaganskogo Str. 68, of.1
01033 Kiev
Ukraine
Konkord Group LTD Tel: +38-044-289-26-16
Fax: +38-044-289-26-17
E-mail: konkord@voliacable.com
Web: www.konkord.org.ua

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Ordjonikidze Str. 2b
84306 Kramatorsk, Donetsk region
Managing Company
Ukraine
"Wind Parks of Ukraine" LLC
Tel: +38-050-422-74-99
E-mail: office.novo@gmail.com
Nezhinskaya Str. 29B
03058 Kiev
Ukraine
Gresa Group Tel: +38-044-457-12-87
Fax: +38-044-401-10-88
E-mail: info@ggc.com.ua
Web: www.ggc.com.ua
Shevchenko Str. 11
83001 Donetsk
Ukraine
Wind Power LTD (DTEK) Tel: +38-062-381-54-68
Fax: +38-062-341-46-55
E-mail: WindPower@dtek.com
Web: www.dtek.com
Bolshaya Okruzhnaya Str. 4
03180 Kiev
WindEnergo LTD Ukraine
Tel: +38-099-331-35-22
Web: www.3944.ua.all.biz
Chapaeva Str. 121
75700 Skadovsk, Kherson region
Ukraine
Vindkraft Ukraina LTD Tel: +38-050-442-20-33
Fax: +38-055-375-30-00
E-mail: vlanvlad@gmail.com
Web: www. 2er.eu

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Uzbekistan
Country Data

Area: 447’400 km2


Energy Sector Overview
Population: 28’394’180

The Republic of Uzbekistan is located in the Population


middle of density:
the Central Asian region,
63,5 per
km2
surrounded by Kazakhstan, Kyrgyzstan, Turkmenistan and Afghanistan. The landscape of
Wind Power Installed Capacity:
the country is diverse, ranging from the flat desert
0 MW
areas, comprising almost 80 % of
Uzbekistan’s territory, to mountain peaks in the eastern part reaching   4’500m above sea
level. The country stretches out on an  area  of  447’000 km2 with a population of 27,6 million,
out of which only 37% reside in cities, whereas 63% live in rural areas.

Uzbekistan possesses significant deposits of fossil fuels: it has the second largest oil
reserves in Central Asia after Kazakhstan and third largest reserves of natural gas after
Turkmenistan and Kazakhstan. Also, considerable brown coal deposits are mined in the
Angren Valley, in the South East of Tashkent. Due to this situation, Uzbekistan is one of the
few countries in the world which are fully self-sufficient in terms of internal fossil energy
supply, generating energy and electricity not only to satisfy the domestic demand but also to
vend the excess abroad (mainly to the neighbouring countries Tajikistan and Kyrgyzstan
during winter period, and Afghanistan all year round), and being one of the major net
energy exporters in Central Asia.

The potential for renewable energy use in Uzbekistan is also considerable: climatic
conditions of the country are favourable for solar energy, wind turbines can be also utilised
in the proper locations, as well as biomass and hydro power plants. Due to the abundant
fossil fuel reserves, the development of RES is not receiving the desirable attention from the
country’s  government.  The  share  of  renewable  energy  in  the  total  energy  mix  does  not  even  
reach 1%, with the exception of hydro power plants; however, only about 30% of the
technical potential for hydro power generation has been exploited to date.

The vertically integrated energy sector of Uzbekistan is highly centralized and


managed by the government which owns all energy enterprises: Uzbekneftegas controls the
entire hydrocarbon production and Uzbekenergo is in charge of the electricity sector (both
companies belong to the state). The energy infrastructure in the country was inherited from
the Soviet era and has not been modernised since then, hence, most of the plants (especially
in the power generation sector) and equipment are worn-out and technically obsolete.

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Energy generation, transmission and distribution are also prone to weak operational
performance, high losses and blackouts. The power supply to rural and remote areas is
mostly unreliable and of low quality, 1,5 million people are not connected to the central grid,
and around 1500 settlements within the country have no access to energy sources.

Cross-subsidies and low energy prices cause inefficient use and energy squandering
among the population and lead to excessive domestic oil and gas consumption. Also
problems like corruption and a lack of finance hinder the development and revitalization of
the energy sector, which is of strategic importance for the national economy.

Wind Energy Potential

According to existing and obviously deficient wind resource assessments, Uzbekistan


is characterized by rather weak winds with high variability: average annual wind speeds
have been described to be at many places at not more than 3 m/s, however, some territories
have already been identified where the wind velocity is 5 m/s and above. Hence, the
potential generating capacity is currently estimated at a very low level: around 4300 MW –
in reality, the wind potential must be much higher, considering  the  country’s  vast  territory.
Two tables below indicate available gross and technical wind potential respectively
allocated by regions in Uzbekistan:

Figure 13.1.

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Figure 13.2.

The most favourable areas for wind power generation are Bukhara and Navoy,
Khorezm Province, Karakalpakstan (plateau Ustyurt and the Aral Sea region), Kashkadarya,
steppe zones of Kyzylkums and near the cities of Bekabad, Yangiyer and Tashkent (see the
wind map below for locations).

Figure 13.3.

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The wind speeds are distributed very unevenly across the country, and even in the
abovementioned areas, the optimal wind speed is prone to seasonal fluctuations, causing the
need to thoroughly observe the correlation between the most windy days and local demand
balance. Wind resources in these regions allow for installation of wind parks with a capacity
over 10 MW, whereas the use of medium capacity wind turbines (100-500 kW) is seen by
some experts to yield the highest efficiency. The majority of studies also indicate that
combined use of wind and solar energy in hybrid power generating systems would be the
most economically feasible option.

Although the wind atlas of Uzbekistan is available in several versions, wind speed
measurements on the heights of up to 150m are required in the areas with the highest
potential. Also, a more detailed investigation of the Aral Sea region is needed to assess the
full wind potential and to inspect the possibility of offshore wind turbines installation.

Political Conditions and Renewable Energy Legislation

Up to the present moment, no specific legislation, national programmes or initiatives


on renewable energy sources development in Uzbekistan have been elaborated or adopted,
long-term goals on RES usage in the country have not been defined either. One exception is a
resolution No. 476 of the Uzbek Cabinet of Ministers “On  the  Development  of  Small  Hydro  
Power in the Republic of Uzbekistan”. The given resolution, however, encompasses only
hydropower plants under the maintenance of the Ministry of Agriculture and Water
Resources and does not apply to other renewable energy technologies.

The cornerstone of the Uzbek legislation on energy is the  law  “On  the  Rational  Use  of  
Energy” adopted in 1997. Alongside with other provisions, it guarantees subsidies from the
Intersectoral Energy Conservation Fund to projects aiming at reducing energy consumption
and to use alternative and renewable energy sources. A secondary document is the Order of
the   Republic   of   Uzbekistan   “On   Advancing   Economic   Reform   in   the   Energy   Sector   of  
Uzbekistan”   of   2001,   guaranteeing   the   competitiveness,   demonopolisation of the energy
sector and equal access of producers to the grid. Although late, the government of
Uzbekistan has recently started to develop a special National Program on Renewable Energy
Development, targeted at promotion of RES in Uzbekistan, which is expected to be issued by
the end of 2011.

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Obviously, the working process on energy and renewable energy legislation and
relevant programmes is proceeding slowly and lags far behind the schedule. Thus, for
example  in  December  2001  the  Government  of  Uzbekistan  approved  a  “Generating  Capacity  
Development  and  Rehabilitation  Programme  for  the  Energy    Sector  until  2010”, envisaging
an increase in the installed capacity of national power stations by 15% by 2010. Neither the
latter nor many other provisions of the Programme have been implemented by the
scheduled date.

Generally, the authorities of Uzbekistan have not being demonstrating a strong


political will to improve the situation with renewable energy in the country, mostly due to
sufficient oil and gas resources and respectively low tariffs for energy. Therefore, there were
few incentives to modify and improve the legislative base either. The legislative framework
can be assessed as vague, incomplete but at the same time cumbersome, and ineffective.
Many important documents and provisions are missing, including those on regulating
procedures, conditions and volume for subsidies, pricing and licensing etc. For the time
being, there has been no independent regulatory body within the energy sector. Hence,
updating the legislative base on renewable energy should become a primary focus of the
Uzbek government, among other measures aimed at proliferation of renewable energy in
the country.

Operating and Planned Wind Energy Projects

So far no operational wind energy generating installations are registered in


Uzbekistan, neither there are any manufacturing facilities for production of wind power
generation and transmission equipment in the country, although, looking ahead, there are
prospects for local production and performance of construction and installation works.

The only major project at the stage of planning is the construction of an experimental
750 kW wind turbine near the town of Charvak in Tashkent Province, anticipated for the
end of 2012, where the yearly average wind speed is 4,3 meters per second, reaching 6,6-7,1
meters per second during the winter period. The height of the turbine mast is projected to
be 65 m, with 56 m blade diameter. The total cost of the project is estimated at $2 million,
financed by the Uzbekistan state energy company Uzbekenergo, in cooperation with the
South Korean company Doojin Co. Previously a meteorological mast has been installed in
this area in order to conduct necessary studies of wind speed, density and direction
variations.

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Only this single project, as assessed by the local specialists, would allow to save
around 1,1 million cubic meters of natural gas annually. If the given installation is
implemented successfully, further investigations are planned to be started to perform the
detailed   mapping   of   the   country’s   wind   potential   and   to   reveal   the   opportunities   of   wind  
power application in the windiest areas in Uzbekistan.

Apart from that, there has been some evidence of wind power application, for example
at the poultry farm in Kazakhdarya District of Karakalpakstan and at teleradiotransmission
station near Charvak. Generally, the use of hybrid solar and wind power generation systems
is considered to be the best and the most reliable option for Uzbekistan. Even taking account
the high price of such installations, deploying them in some regions is 20-30 times cheaper
than laying the connection to the central grid.

Prospects for the Future

Nowadays, Uzbekistan’s   potential   for   renewable   energy   sources   usage   still remains
untapped, suffering from a lack of initiatives both from authorities and the population due to
rich fossil fuels deposits and low prices for energy.

Perhaps renewable energy sources in the mid-term perspective would not play a
major   role   in   the   country’s   energy   mix due to rich fossil fuels deposits, but they could be
crucially important for supplying energy to remote rural areas in the mountains and deserts
and seasonal work spots, as well as to agricultural households. In Uzbekistan, there are
around 4500 shepherd camps and 900 remote rural settlements (kishlaks), which are
extremely difficult to supply with electricity and potable water by connecting them to the
central grid or to water pipelines. Wind installations with low capacity ranging from
hundreds watts to several tens of kilowatts could be utilized by individual consumers in
such areas for various purposes (stand-alone power supply, water pumping, desalination,
irrigation etc.). Combination of wind power generating facilities with solar technologies
would be an equally good and feasible option. Securing energy supply for non-grid
connected rural population would raise the level of life and improve the living conditions
and   thus   enhance   Uzbekistan’s   social-economic development. Moreover, proliferation of
RES would also contribute to the energy sector diversification and increase the saving of
fossil fuels, either for export or for further domestic consumption by future generations.

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Renewable energy development in Uzbekistan initially has a serious obstacle in the
form of abundant and cheap fossil fuels. Thus, direct and solid support from the government
is required to incite the use of RES, especially in terms of strengthening legislative and
institutional framework and creating favourable economic conditions and incentives.
Separate legal document regulating issues of renewable energy production and distribution
should be elaborated in the nearest time. Attention should be also paid to proper research
and assessment of wind and other RES potential, as well as to investigating possibilities of
wind and solar energy generating equipment production at the local factories and education
and training of professionals within the country.

References:
 Asian Development Bank (2005): Republic of Uzbekistan: Off-Grid Renewable Energy
Development.   Technical   Assistance   Consultant’s   Report.   Prepared   by   International   Resources  
Group, Washington, USA.

 BISNIS (2008): Uzbekistan Power Generation Sector Overview. Jahangir Kakharov.

 Deutsche Gesellschaft für Internationale Zusammenarbeit/GIZ (2009): Renewable Energies in


Central Asia. Country Chapter: Republic of Uzbekistan.

 European Bank for Reconstruction and Development (2009): Renewable Development Initiative.
Country profile: Uzbekistan.

 Renewable Energy & Energy Efficiency Partnership (2009): Policy Database Details: Uzbekistan.

 Scientific Engineering and Marketing Research Center (2005): Resources of Solar Radiation and
Wind Energies in Uzbekistan and System of their Combined Utilization. D.A. Abdullaev and R.I.
Isaev. Tashkent, Uzbekistan.

 Technology Transfer Agency (2007): Renewable Energy Development in Uzbekistan for the
Conference   “Integration   of   Central   Asia   into   the   World   economy:   Role   of   Energy   and  
Infrastructure”.  

 United Nations Development Programme (2007): Promotion of Renewable Energy Sector


Development in Uzbekistan. Country Office for Uzbekistan.

 United Nations Development Programme (2007): The Outlook for Development of Renewable
Energy in Uzbekistan. Country Office for Uzbekistan.

 United Nations Educational, Scientific and Cultural Organization (2010): Renewable Energy Status
in Central Asia. Application Prospectives and Specialists Training. Overview 2010.

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Contacts:

State&Government
Khoremskaya Str. 6

100000, Tashkent

Uzbekistan
State Joint Stock Company of
Uzbekenergo
Tel: +998-71-233-9889

Fax: +998-71-233-2700

E-mail: sjsc@uzpak.uz
Scientific&Research
F. Khodjaev Str. 29

100125, Tashkent

Institute of Power Engineering and Uzbekistan


Automation of the Academy of Science of
the Republic of Uzbekistan Tel: +998-71-262-0522

Fax: +998-71-262-0919

E-mail: power@energy.uzsci.net

141
Analysis: Common
Trends, Shared
Problems
Wind Power Status in the CIS Countries
Analysis: Common Trends, Shared Problems
Even though the CIS countries cover a vast territory of the earth and present twelve
states with distinct political configuration, economic development pace and other national
peculiarities, they all share one common stratum of history within the borders of the Soviet
Union, with each country being a part of uniform centralised system. The given historical fact
left its imprint on the modern development progress in these states and endowed them with
similar configurations and problems. In this part of the report the trends and findings
common for all or for a majority of CIS countries are revealed, alongside with that shared
problematic concerns and barriers to RES and wind energy sector development are outlined.

Energy Sector. Very often it is the case in the given region that the organisation of the
energy sector is represented by vertical, highly integrated and monopolistic structure, fully or
to a high extent controlled by the state. Consequently, state owned enterprises receive
generous donations from state budget, in reality operating inefficiently and incurring losses.
Subsidies given to the conventional energy sector divert funds away from necessary
investments in renewable energy, energy efficient equipment, power grid modernisation etc.
The lobby of conventional energy representatives in the sector has traditionally been
powerful, pushing forward the interests of oil and gas industries. The existing infrastructure
is mostly the one left from Soviet times, and therefore often damaged, outdated or worn-out.
However, an interesting finding in our view was that the countries that are heavily dependent
on energy imports - Armenia, Georgia and Moldova - were actually the first to reform, partly
liberalise and privatise, and restructure their energy sectors, eliminating energy under-
pricing, cross-subsidization, tolerance for payment arrears and huge losses in the energy
transmission and distribution systems.

Political Environment. Most of the countries have passed through uneasy times after
the collapse of the Soviet Union, suffering from intra- and interstate ethnic conflicts, wars and
tensions (e.g. issues of Abkhazia and South Ossetia in Georgia, Transnistria in Moldova,
dispute over Nagorno Karabakh between Armenia and Azerbaijan etc.). Due to all these
events the political environment in most of the CIS states remains unstable, and the political
leadership is prone to constant changes. The investment climate in the region cannot be
described as attractive either.
Regarding the state support to renewable energy, in some countries (such as Moldova,
Georgia and Armenia) the officials at the highest political levels declare commitment to RES
development, whereas the leaders of other countries do not devote proper attention to this

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Wind Power Status in the CIS Countries
subject, especially those rich on fossil fuels (Russia, Turkmenistan, Uzbekistan). It should be
noted here also that Moldova represents a kind of special case with its pro-European
orientation and an ultimate goal to join the European Union. Within this course, Moldova is
attempting to adjust its policies and legislation to European standards, also in the energy
sphere, which is clearly visible from its legislation and statements of the political leaders
On the international level most of the countries are moderately active, although the
level of their involvement could be increased even more. A number of states receive support
from the international organisations and institutions, including UNDP, World Bank, USAID,
GIZ, etc. Besides, Armenia, Belarus, Georgia and Moldova have ratified the International
Renewable Energy Agency (IRENA) Statute and became its members, Kazakhstan, Kyrgyzstan,
Azerbaijan, Tajikistan and Uzbekistan submitted the application for membership, whereas
Russia, Turkmenistan and Ukraine remain inactive in this regard. Additionally, all twelve
countries except from Russia are participants to EU INOGATE Energy Partnership
Programme, which places the increase of energy efficiency and diffusion of RES as one of its
main foci.

Legislation. Underdeveloped legislative framework coupled with uncertain political


and regulatory environment remains a problem in virtually all twelve countries, reducing the
investment into local energy sectors. Far not all of the republics have a specific law regulating
the renewable energy sector, with other laws covering RES regulation being declarative and
fragmentary. In most of the countries Energy Strategies are adopted – comprehensive
declarative documents containing the guidelines for energy sector development and setting
(often ambitious) targets for the future, including a planned share or quantity of RES installed
capacity. A feed-in tariff system is only established in three countries out of twelve: Armenia,
Belarus and Ukraine; local content requirements were introduced and underpinned by
appropriate legal acts only in Ukraine. The issue of implementation of existing laws and
regulations in practical terms also remains problematic.

Funding. Inadequate financial support is one of the gravest stumbling blocks of


renewable energy sector development in each (with no exception) country of the
Commonwealth of the Independent States. The lack of funding is observed from both public
and private actors: in case of state funding, it is often an issue that the funds allocated from
the budget for renewable energy sector is insufficient to implement the targets of national
programmes, not even mentioning a severe lack of funds to repair or replace the worn-out
infrastructure. Among local risk-averse businesses and the private sector there is still too

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Wind Power Status in the CIS Countries
little initiatives to invest in renewable energy projects due to poor legislative regulation, long
payback periods and general uncertainty.

Electricity Prices. In most of the CIS republics the prices for electricity remain low,
often artificially low, due to heavy subsidies to conventional energy producers. As it can be
seen in the table below, the price varies from 1 to 10 Euro cents per kWh (compare with
prices per kWh in Europe: e.g. Spain 18 cents, Germany 24 cents and Denmark 26 cents).
Under such circumstances potential investors lose the incentive to enter the energy market,
as they may face low and unguaranteed paybacks. Renewable energy producers also act with
cautiousness, taking into account that a feed-in tariff system exists only in three out of twelve
countries: Armenia, Belarus and Ukraine, and only in the latter the feed-in tariff rate is high
enough to cover the associated costs and risks.

Table 1.3. Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh, EUR Feed-in Tariff

Armenia 0,04 0,07


Azerbaijan 0,06 ---
Belarus 0,02 x1,3 (first 10 years)
Georgia 0,10 ---
Kazakhstan 0,03 ---
0,04
Kyrgyzstan ---
(35 kWh for free)
Moldova 0,09 ---
Russia 0,06 ---
Tajikistan 0,01 ---
Turkmenistan 0,03 ---
Ukraine 0,05 0,12
Uzbekistan 0,03 ---
Source: composed by the author.

Public awareness. The situation in the analysed countries is often characterised by a


low level of public awareness and concerns regarding renewable energy, its advantages and
benefits, as well as by the poor public perception of energy saving issues. However,
considering the historical background of the countries and relying upon public opinion
surveys, the aesthetics of renewable energy power plants (solar panels, wind mills, etc.) do
not represent a problem in the given region. The prevalent majority of the informed
population would regard such installations as local attraction rather than claiming the
distortion of the landscape view.
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Wind Power Status in the CIS Countries
Local Specialists. Generally, the educational base in the countries of the CIS is fairly
decent, with low levels of illiteracy among the population and with high level school and
university education programmes. Nevertheless, there is a lack of engineers, technicians and
experts specialised in the field of renewable energy, including the areas of manufacturing and
production, installation, maintenance, and inspection services. Universities, which are mostly
funded from state budgets which that are often experiencing a general lack of funding, do not
manage to adjust the educational programmes to the needs of modern societal and economic
development.

Thus, one can observe that virtually all countries of the Commonwealth of Independent
States share similar problems and obstacles on their way to a sound renewable energy sector
development. Once these barriers are acknowledged and the first steps are made for their
elimination, it will signalise a huge leap towards establishing and maintaining sustainable
energy supplies and efficient economic development.

156
Recommendations:
Paving the Way to
Sustainable Energy
Supply
Wind Power Status in the CIS Countries
Recommendations: Paving the Way to Sustainable Energy
Supply
Certainly, each of the twelve countries under analysis has its national peculiarities in
the way its energy sector is organised and its own problematic issues within the sphere of
renewable energy development. However, just as well as there are common trends in the CIS
countries’ energy strategies, it is also possible to outline a list of general guidelines and
recommendations for all twelve countries which should be followed in order to successfully
proceed with RES proliferation. To a different extent, the CIS member states share the similar
need of:

 Further Research and Wind Potential Assessment: Accurate, comprehensive and up-
to-date information about renewable energy resources within a country and its
availability are the primary prerequisites for further progress. Scarce and incomplete
data on existing wind potential and the absence of wind maps and atlases represent a
major obstacle for the development of the wind sector. Therefore, for the CIS states it
should be of primary interest to conduct a precise assessment of their wind power
potential, to support and fund all research activities in this area and disseminate the
findings, approaching an ultimate goal of using all existing renewable energy sources.

 Support on Political Level: In order to exercise a successful renewable energy policy,


first and foremost it is necessary to officially declare a full commitment to it – starting
from the highest political levels. Unfortunately, the enthusiasm of local NGOs and experts
alone is not sufficient to give a strong impetus for prospering RES – it is the state and the
government institutions that should provide help and support for renewable energy.
Such support should be materialised in formulation of a clear, coherent and targeted
national energy strategy where renewable energy should occupy an important position,
elaboration of country-wide (quantitative) goals and national programmes provided with
sufficient funding, creation of a favourable legislative and institutional base.

 Improving the Legal and Institutional Framework: The importance of an adequate


dedicated policy and predictable and transparent legal and regulatory frameworks for
attracting investments in renewable energy and development of this sector can hardly be
overestimated. The legislative base should reflect clear and cohesive provisions
regulating the affairs in the sector of renewable energy; at best a separate legislative act
on renewable energy should be adopted where still absent. The existing laws and
regulations should be strictly and effectively implemented in practice, guaranteeing a

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Wind Power Status in the CIS Countries
secure and stable legal environment for investments. Respective institutions and/or
committees charged with renewable energy support and regulation should also be set up.

 Creating Fair Market Conditions: The overall situation on the national energy market
can strongly influence the proliferation of RES, especially if it does not encourage the
entrance of new participants; therefore, favourable market conditions are an inevitable
part of RES-friendly policies. The countries should work towards ensuring fair
competition in energy markets through opening the markets, guaranteeing a non-
discriminatory third party access to the grid, transparency, elimination of cross-subsidies
and gradual liberalisation. An independent energy sector regulator should undoubtedly
become a component of a fair energy market.

 Granting the Funds: Especially at the initial stage of their development, renewable
energy projects may require additional financial support, such as grants from the state,
donations from respectively organised renewable energy funds and all kinds of
investments, including local and foreign ones. Considering the unstable political situation
and controversial international image of some CIS countries, it is extremely important to
concentrate on repainting a negative portrait by means of improving investment climate.

 Providing Incentives: In order to attract investments to a country, a number of


necessary economic incentives should be considered. Speaking of power and renewable
energy sector these are: tax privileges and exemptions, custom duties relief, concessional
crediting with favourable rates, equitable or priority access to the grid, preferential tariff
schemes. Taken altogether, the whole complex of regulations, frameworks and
mechanism should assure legal certainty, transparency and accountability.

 Feed-in Tariffs: In the whole range of countries of the world feed-in tariffs have proven
to be one of the most successful mechanisms of stimulation of renewable energy
development, providing a necessary financial incentive and additional certainty for
investors and funders. CIS countries should  use  the  “best  experience”  pattern and adopt
the feed-in tariff schemes domestically.

 Launching Local Production: In order not to be dependent on imported renewable


energy generators and equipment, it seems reasonable to launch local production of wind
turbines, solar panels etc. and respective complimentary products, especially considering
the broad industrial base that was created during the Soviet times and retained up to
now. Thus, manufacturing of such products could be started using the existing machinery

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Wind Power Status in the CIS Countries
industries and factories. Setting up local fabrication could be also beneficial in the sense
of creating new jobs and attracting modern technologies and know-how to a country.

 Scale-up: After a number of experimental and demonstrational RES projects in a country


has proved to be successful and economically profitable, the best way forward is to
proceed with further installations and to scale-up the existing capacity, so that sporadic
RES power generators would turn into a growing energy subsector, imposing a
significant influence on the national and regional energy sources landscape.

 Expanding the Grid Capacity: The CIS countries should take into consideration that,
alongside with setting ambitious goals for RES, they should also pay heed to the existent
grid capacity within their states. For if all renewable energy projects planned for the
future are implemented, the grids may be not be capable of handling the newly added
capacity. Hence, expanding and modernising the national grid should be as much a
priority, as well as renewable energy proliferation itself.

 International and Regional Cooperation: Establishing intraregional and international


ties in order to create cooperation mechanisms and jointly coordinate and advance the
status of RES development should become a priority of the CIS countries. Political,
scientific and technical partnership including joint projects and programmes, academic
and professional exchange, common information database, specialised seminars and
conferences would contribute to RES development in the region. The countries should
both communicate with numerous existing international organisations dealing with
renewable energy exploiting best international practices and communicate within the
region, whereas the Energy Council of the CIS could play a vital role as a forum for
discussions and a coordination committee.

 Raising Awareness: The more wide-spread the knowledge about renewable energy and
its favourable impact on the environment is among political decision-makers, business
representatives, specialists and local population, the greater is the impetus for RES sector
development. Thus, the measures should be taken to develop a positive image and
augment the public awareness of renewable energy advantages and benefits among
different societal groups. Such proliferation of information would broaden the horizons
of the population and stimulate the demand for RES.

 Adjusting Educational System: preparing and training professional personnel and


specialists in the field of renewable energy is an intrinsic part of RES development
strategy. The authorities of the countries should pay attention to arrangement of relevant

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Wind Power Status in the CIS Countries
educational programmes with deep professional insights into the implications of RES
exploration and use.

161
Conclusion Wind Power Status in the CIS Countries
Conclusion
The advantages of renewable energy have already been recognized all over the world,
and increasing their percentage in the total energy mix alongside with moving towards a less
carbon-intensive economy has become a popular target per se. Nevertheless, in most of the
post-Soviet countries the development of RES sector and efforts to increase energy efficiency
still remain in the initial stage, especially in those countries that are generously endowed with
fossil fuel resources. Moreover, as one can conclude from the country chapters presented in
this report, the progress of the wind power sector is unequal in the CIS states, with Ukraine
being an absolute leader in this regard, and Georgia, Tajikistan, Kyrgyzstan, Moldova and
Turkmenistan having no installed industrial scale wind power capacity at all.
The vast territory occupied by the countries of the Commonwealth of Independent
States has immense potential of renewable energy of all kinds, including rich wind resources.
Nevertheless, it remains practically untapped, and the degree of their utilisation is negligibly
low – less than 5%. According to some assessments, the share of RES in total consumption on
the territory of the CIS may grow up to modest 15,6% by 2030 – or even much more, given
the right policies are in place. For reaching such targets, the countries will have to
demonstrate a strong political will and loyal commitment to the strategy of incremental
proliferation of renewable energy, to acknowledge their benefits and to finally overcome the
monopolism of conventional energy sources. Furthermore, the countries of the region should
grasp the opportunity to establish interregional cooperation on renewable energy promotion
and benefit from cross-country exchange of information and experience, they should use best
practices and implement joint projects. Besides, the Commonwealth of Independent States,
being a regional international organisation by itself, represents a fairly suitable platform for
such cooperation.
Summing it up, we should note that it is realistic to expect that it will take some time
until wind power will acquire a major share in many of the CIS countries, mainly due to
political challenges. However, it should become an intrinsic and a growing component of it in
the nearest future. Even more, it appears feasible if we take into account that there is also a
large area for wind energy applications. Namely the energy supply of the rural areas in each
of the twelve analysed countries represents a problematic issue for the national governments.
The installation of wind turbines (surely, apart from the general option of large-scale, grid-
connected wind farms) in remote population centres would eliminate this problem and
contribute to more general concerns of rural energy supply, reducing poverty, creating new
jobs, and advancing socio-economic development.

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Wind Power Status in the CIS Countries
All this said, we can claim with a firm assurance: There is a future for wind power in the
geographical region of the Commonwealth of Independent States, both for the countries with
poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas
reserves. It is in the countries’  own  responsibility  to  control  and  advance  the  pace of RES and
wind power sector development. And only in case that the so far sporadic wind power
installations and successful single wind projects become mainstream, the countries and their
population will be able to benefit from a large, diverse and untapped potential and make an
important step forward towards enhancing energy security and contributing to the global
protection of the environment.

163
Appendix Wind Power Status in the CIS Countries
List of Tables and Figures

Figures:
Figure 1.1. Map of the Commonwealth of Independent States
Figure 1.2. Annual Wind Speed Allocation in the CIS Countries at 100 m
Figure 2.1. Wind Map of Armenia at 80 m
Figure 2.2. Map of Areas with Highest Wind Potential in Armenia
Figure 2.3. Location  of  “Lori-1”  Wind  Farm  in  Armenia
Figure  2.4.  “Lori-1”  Wind  Farm
Figure 3.1. Wind Map of Azerbaijan at 8 0m
Figure 4.1. Average Annual Wind Speed in Belarus at 10 m, m/s
Figure 4.2. Wind Map of Belarus at 80 m
Figure 5.1. Wind Map of Georgia at 80 m
Figure 5.2. Potential Wind Farms in Georgia
Figure 6.1. Wind Speed in Selected Locations of Kazakhstan
Figure 6.2. Wind Map of Kazakhstan at 80 m
Figure 6.3. 30 kW Wind Turbines in Almaty Region. Kazakhstan
Figure 7.1. Wind Map of Kyrgyzstan at 80 m
Figure 8.1. Wind Map of Moldova at 80 m
Figure 9.1. Average Wind Speed at 50 m in the Russian Federation
Figure 9.2. Location of Existing and Planned Wind Power Plants in Russia
Figure 9.3. Barriers to RES Development in Russia
Figure 10.1. Wind Map of Tajikistan at 80 m
Figure 10.2. Wind Turbine at Poymazor Cellular Power Station, Tajikistan
Figure 11.1. Wind Map of Turkmenistan at 80 m
Figure 12.1. Wind Map of Ukraine at 80 m
Figure 12.2. Novoazovskaya Wind Farm, Donetsk Region, Ukraine
Figure 12.3. Ochakovskiy Wind Park, Mikolaiv Region, Ukraine
Figure 12.4. Small Wind Turbines at Tendrovskaya Kosa, Ukraine
Figure 12.5. Small Wind Turbine (0,75 kW) in Ukraine
Figure 13.1. Gross Potential of Wind Energy in the Regions of Uzbekistan
Figure 13.2. Technical Potential of Wind Energy in the Regions of Uzbekistan
Figure 13.3. Wind Map of Uzbekistan at 80 m

Tables:
Table 1.1. Country Data of the CIS Member States
Table 1.2. Wind Power and Total Installed Capacity in the CIS Countries
Table 1.3. Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries
Table 2.1. Energy Sector Legislation of Armenia
Table 4.1. Energy Sector Legislation of Belarus
Table 5.1. Wind Zone Types and Areas in Georgia
Table 6.1. Installed Small and Experimental Wind Turbines in Kazakhstan.
Table 9.1. Energy Sector Legislation of the Russian Federation
Table 9.2. Existing Wind Farms in the Russian Federation
Table 9.3. Major Designed and Planned Wind Farms in the Russian Federation
Table 12.1. Installed Wind Power Capacity of Ukraine
164
References Wind Power Status in the CIS Countries
References:

 Deutsche Gesellschaft für Internationale Zusammenarbeit/GIZ (2009): Renewable Energies in


Central Asia. Regional Report on Potentials and Markets – 8 Country Analyses.

 Renewable Energy and Energy Efficiency Partnership/REEEP (2007): Renewable Energy: From
Exotic to Common Practice. CIS Overview Brochure.

 United Nations Development Programme/UNDP (2011): Renewable Energy in Europe and CIS:
Results and Lessons Learnt from UNDP Portfolio. Marina Olshanskaya. Astana, Kazakhstan.

 Institute of Renewable Energy (2008): Renewable Energy in the CIS Countries. Stepan Kudrya. Kiev,
Ukraine.

 United Nations Economic Commission for Europe/ECE (2011): Renewable Energy Development in
the Russian Federation and the CIS countries. Secretariat Report. Geneva, Switzerland.

 Interstate Statistical Committee of the Commonwealth of Independent States (2011): Main


Macroeconomic Indicators of the CIS Countries.

 European Commission (2008): The Economic Aspects of the Energy Sector in CIS Countries. Centre
for Social and Economic Research. European Economy: Economic Papers.

 United Nations Economic Commission for Europe/ECE (2001): Energy Efficiency and Energy
Security in the Commonwealth of Independent States. ECE Energy Series No. 17. New York and
Geneva.

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