Hydropower facilities, with their high manoeuvrability and reserves of renewable energy resources, are one of the most important elements in the energy generation capacity of virtually any or all power systems. Having hydroelectric power plants and pumped-storage hydroelectric plants able to operate at daily load peak times, which also consume less energy during overnight dips (as is the case with pumped-storage hydroelectric plants), enable nuclear, thermal, solar, or wind power plants to operate most effectively and optimize the energy systems operation as a whole. The criteria needed for sustainable development in the electricity sector are predicated on maximum efficiency in the use of non renewable primary energy resources and minimizing the environmental impact along the entire energy production chain. However, where there are significant advantages in using hydropower generation in electricity production, there are factors in play within Russia that slow down the implementation of measures to increase production of this vital form of fuel-free electricity. Are there sufficient grounds to talk about the sustainable development of hydroelectric projects in Russia? What barriers do hydroelectric companies come up against when attempting to implement projects at all stages of the life cycle? What evaluation tools meeting the project criteria for sustainable development are currently best practice? Can the achievement of these sustainable development goals in the domestic energy mix provide an additional impetus for growth in the consumption of hydraulic energy?
Presentation of the Energy Efficiency Rating of Grid Companies
In collaboration with the expert community, the Ministry of Energy of the Russian Federation will submit for discussion the results of the annual energy efficiency rating of grid companies, based on results for 20162017. The rating evaluates efforts made by companies to reduce losses in the grid, implement modern technologies, and optimize the development of infrastructure. It does not only aim to measure a companys success, but also to identify and publicize best practices. Among those attending the discussion of the results will be representatives of regional and municipal ministries of energy, housing and utilities, energy companies, and experts.
Power Engineering: Providing Modernization Plans for the Electrical Energy Industry
At present, proposals aimed at introducing a mechanism for attracting investment for the modernization of the thermal power industry are being finalized. The mechanism is designed to attract investment of up to 2 trillion for the modernization of up to 41 GW of thermal generation in the period to 2035 in the pricing and non-pricing zones of the wholesale electricity and capacity market. Modernization projects will be chosen on a competitive basis. Projects that envisage the extensive modernization of equipment that is in very poor condition and highly sought after in the power system will be permitted to take part in the competition. It has been proposed that the ranking of the winners projects (selection) should be carried out according to the estimated unit cost of electricity for consumers after the implementation of modernization projects. This will enable the most effective implementation of investment and minimize the investment burden on consumers. For the first time, the proposals envisage the establishment of unprecedentedly high requirements for the localization of production of equipment that will be used in modernization projects. Violation of these requirements will mean investors will not be able to receive a full return on capital investments. These requirements will therefore play an important role in making investors commit to implementing modernization projects. This session will include discussions on key approaches to setting requirements for the localization of equipment production, while considering the production and technical capabilities of Russian ferrous metallurgy manufacturers and manufacturers of power and power engineering equipment. The session will be attended by representatives of leading engineering companies, the metals industry, generation companies, and government bodies, as well as industry experts.
Renewable Energy Sources in Russia: From the Wholesale Market to Supplying Energy to Isolated Regions
A foundation to develop distributed generation based on renewables has already been built in Russia. The ongoing renewable development programme has enabled new solar and wind generation facilities to be commissioned at a faster rate, and for a components industry to be built. Each year, installed capacity of renewable energy sources on the Russian wholesale market approximately doubles, and will continue to grow at a consistent rate. A Russian presidential decree entitled «On the Russian Federations national targets and strategic objectives for the period to 2024» also outlines new approaches to supplying renewable energy to isolated regions in the Arctic, Siberia, and the Far East. Whats more, in certain conditions, renewables could prove an effective option for small settlements in Central Russia, which are currently supplied through grid extensions. What solutions are required at the regional level to support new renewable projects, and what additional ways are there to attract investors? What risks should be considered when developing renewable energy sources in isolated regions and small settlements? Are renewable projects attractive to industrial companies and/or small and medium sized enterprises? Are there any barriers hindering the development of renewable energy sources which must first be removed? Which other countries offer experience in the development of renewable energy sources which could be applicable to Russia?
The Digitalization of Energy: from Local Solutions to Transforming the Industry
The development of the worlds energy industry is increasingly sensitive to new technological trends. The degree to which digital solutions are implemented in fuel and energy companies is becoming one of the core drivers of their competitiveness in the global arena. Today, all major Russian fuel and energy companies have actively joined the technological race and are already demonstrating the initial results of implementing pilot projects. However, current work only constitutes the first, local steps for the digital transformation of the Russian energy sector. The transition of the entire industry to the digital track requires a fundamentally new approach to the creation and implementation of intelligent solutions. What challenges and opportunities does the digitalization of energy present? How may we ensure that a systemic effect is achieved across the entire energy industry through the introduction of digital solutions by individual companies? Do we need a common digital space, and if so, who would be its key actors? What is the role of the state in the digitalization of energy? How may the concept of digitization be synchronized with different industry representatives?
Despite the comprehensive nature of a prior programme to construct energy-generating facilities under capacity-delivery contracts, the ageing of the Russian power grids thermal generation complex remains a critical issue. A plan to deploy electric power facilities over a period up to 2035 calls for decisions on investments to be made with regards the high capacity of current thermal generation (thermal power plants and regional power stations), and questions to be answered regarding their modernization, or decommissioning and replacement. The most crucial challenge is implementing a fully-fledged market mechanism for such modernization within the shortest possible timeframe. What would be the ideal date for the first modernization projects to be launched? How can a balance best be struck between providing support to Russian power engineering and ensuring reliable operation of the energy system when determining localization requirements for reinstalled equipment at thermal power plants? What is the optimal guaranteed rate of return for investors? Is it advisable to maintain the authority of the Government Commission for the Development of Electric Power with regards the selection of projects according to a separate quota? What are the selection criteria, and how can a balance be found between the interests of the regions and consumers? What is the best way of redistributing quotas for modernizing equipment which were not allocated during competitive selection on the wholesale market?
The Russian Energy Grid: A Dialogue with Suppliers
Russias electrical grid needs wide-scale modernization, especially to counter its highly deteriorated capital assets. Russian producers must take the lead on this issue, with the support of international holding partners experienced in power grid digitalization. A digital transformation in electrical energy will open up new opportunities for domestic businesses that must be seized and utilized. Are equipment producers ready to rebuild their business processes from the ground up and make competitive offers for new digital grid infrastructure? How can dependence on imports be reduced? What has already been done and what measures need to be taken to facilitate effective cooperation?
The Promotion of Energy Efficiency and Transparency in the Fuel and Energy Complex: Nationwide Meeting
Russias fuel and energy complex plays a crucial role in the countrys social and economic development, providing over 30% of GDP even amid the current high volatility on world markets. Reliable energy supplies to tens of millions of consumers, and the importance of energy for the federal budget determine public interest in the situation in the industry. In order to address large-scale investment and production goals, and legislative support, it has been vital to boost transparency in the fuel and energy complex. In 20132017, with the support of the Ministry of Energy of the Russian Federation, companies and regions launched a combined effort to promote energy efficiency, professions in the fuel and energy complex, and social and environmental activities. This meeting will be attended by representatives of energy companies, regional energy ministries, the housing and utility sector, and the media. Following the results of the meeting, it is planned that priority topics for coverage in 2018 will be identified, and that a plan of federal measures to promote energy efficiency and transparency in the fuel and energy complex will be approved.
Improving the Regulatory System in the Fuel and Energy Industry to Ensure Safe and Reliable Energy Supplies for the Consumer
The regulatory system governing the fuel and energy industry was drawn up over a period of more than 10 years. Despite the justifiably specific nature of legal regulation in the field, a great many aspects are more general, covering all sectors in the energy industry. This primarily concerns the legal framework supporting safe and reliable energy supplies for the consumer. What does the concept of safe and reliable energy supplies encompass? Is legislation governing the calculation and pricing of energy supplies effective? Does the existing regulatory system enable energy infrastructure investment projects to be implemented? Has a balance been struck on domestic energy markets between the interests of suppliers and consumers, extraction and generation companies, and transport and retail companies and the government? Does todays legal regulation in the fuel and energy industry successfully protect the rights of energy market participants? In the immediate future, what changes need to be made to legal models encountered in energy markets to ensure safe and reliable energy supplies for the consumer?
LNG for the Asia-Pacific: Potential for Cooperation and Sustainable Development
A booming population, GDP, and energy demand accompanied by an increasing focus on sustainability and environmental issues make natural gas both pipeline and liquefied the fastest growing fuel in the Asia-Pacific. Over 2 billion people nearly half of the regions population do not have clean cooking facilities and more than 400 million people do not have access to electricity. The social, economic, and environmental value of natural gas has made the Asia-Pacific region the fastest growing gas market in the world. A growing number of economies in Asia have expressed interest in developing LNG facilities to increase the share of gas in their energy mix or to serve as a shipment hub for neighbouring countries. On the supply side there is a big variety of new LNG projects in Australia, the USA, Russia, Qatar and East Africa coming on stream, so the preconditions are in place for the development of the Asia-Pacific LNG market. How could these issues be addressed, and how could the Asia-Pacific LNG market support socioeconomic development and environmental sustainability in the region?
Strengthening International Alliances for the Localization of Waste-to-Energy Solutions
By 2050 global amounts of municipal solid waste are estimated to reach 3 billion tonnes per year. Waste managers and decision-makers in developing and emerging countries have to respond to increasing health and environmental problems and the discontent of the population coupled with rapidly growing energy demands. In recent times waste-to-energy (WtE) has been increasingly viewed as a solution. The volume of MSW in the Russian Federation has been steadily increasing in recent years. It is expected that by 2025 MSW generation in Russia will reach between 70 and 80 million tons per year. The current amount of accumulated landfill waste in the Russian Federation is enough to load the Trans-Siberian railroad to full capacity for 2,400 years. Efforts are under way to identify projects and solutions. However, there are several challenges, such as adopting waste-to-energy solutions which are specific to each waste management culture, high CAPEX and OPEX, limited opportunities for technology localization, and establishing a value-added domestic manufacturing sector, to name but a few. At the session, practitioners and experts from Germany, Austria, Brazil, India, Russia, and China will discuss success factors and multilateral sustainable solutions to industrialize the waste-to-energy supply chain. They will also focus on ways international alliances can be forged to achieve sustainable solutions, such as through institutional agreements and articulation; innovative decentralized technological solutions and business models, regulatory and innovative financial instruments, and PPP mechanisms.
Meeting for Participants in the Wind Industry The Challenges of Localizing the Production of Wind Turbines in the Russian Federation
One of the main requirements of legislation to support renewable energy in Russia is compliance with a high degree of localization of production. And with any type of development of wind power in Russia, it is unambiguously assumed that an industry for producing wind turbines will be created in Russia, and that the requirements for component manufacturers will be stepped up. According to the vendors who are currently producing wind turbines or their components, Russian companies are, generally, prepared to produce almost all the components for wind turbines. But, nevertheless, growing pains cannot be ignored, and sometimes Russian companies that declare their readiness to produce components for wind turbines do not, in fact, always have high enough production standards, or equipment of a quality that vendors can accept. Today we already have the first signs of the production of components for wind turbines: blades in the Ulyanovsk region, nacelles in Nizhny Novgorod and St. Petersburg, towers in Taganrog, and assembly production in Volgodonsk. But the potential of the market is huge, and many opportunities are not being taken up. Market experts have compiled a localization map for component production for wind turbines, the active part of which includes a total of 15 enterprises, whereas the number of potential component manufacturers includes more than 200 factories and plants in various regions of the country. This is a powerful potential resource that could strengthen a new, emerging branch of power engineering in Russia. This new industry has a high export potential. The development of wind energy in neighbouring countries may be facilitated, and with the participation of Russian manufacturing firms. What experiences of setting up the wind industry in other countries should be taken into consideration? What production standards for component manufacturers are important specifically for the wind industry? What prevents the involvement of new participants in the localization process in Russia? Will the localization process facilitate the creation of a national line of wind turbines, and is this necessary for the industry?
Groundbreaking Technology and Human Capital in the Fuel and Energy Complex: Key Challenges
The development of the countrys fuel and energy complex cannot be achieved without accelerated growth and efficient use of human capital. Seeing human resources and human capital as assets that can play a key role in increasing competitiveness should become standard features of the corporate culture of companies in the fuel and energy complex. The challenge is to ensure that the best global and Russian corporate practices in terms of staff training and development are widely disseminated, and that Russian higher educational institutions join the ranks of the worlds best universities in the field. Which human resources management models are the most encouraging, and could become an additional driver for economic development, as well as influencing national security? Will knowledge, technology, and expertise become a competitive advantage in the modern world? Considering the globalization of educational services, is high-quality education and its accessibility a resource for the countrys development and for ensuring social justice? What innovative tools contribute to the comprehensive improvement of the educational system and the upgrading of specialists skills, in view of the challenges of the modern age? What kind of conditions may contribute to motivating young people to innovate, and to reveal their creative and scientific potential?
How May Utility Payments be Organized in a Way that is Convenient for the Public and Transparent for Suppliers?
This year was notable for the introduction of changes to the Housing Code, allowing for the transition to direct contracts between utility providers and consumers. Now, people can receive utility services from various suppliers: heat, gas, and power companies; water companies; and regional operators for handling household waste, which all have different charging schemes, seasonality of delivery, billing and payment standards, and systems of calculating and granting discounts. The volume of payments for utility services is huge, so a reliable, stable payment system for utilities, ensuring guaranteed delivery of payments from consumers to suppliers, is the key factor for the sustainable operation of all housing and utilities services. Against this background, the debate on the role of the Unified Information and Payment Centre in the system of settlements and interaction with consumers of housing and utilities services has once again become relevant. Should the Unified Information and Payment Centre become an obligatory part of the market for providing housing and utilities services? Which requirements/standards should they meet, and how may they guarantee protection against improper use of the funds paid by consumers and ensure transparency for consumers and service providers? Could the Unified Information and Payment Centre become an innovative driver in housing and utilities services and take the customer service system to a qualitatively new level, when digital technologies become part of our lives? Electronic services, digital management technologies, smart metering, blockchain, and smart contracts are these just pretty words, or the real future of housing and utilities services?
EAEU Country Policies in Promoting Energy Efficiency and Sustainable Development of the Energy Sector: Challenges and Shared Initiatives
Energy saving and transitioning to modern, green technologies form one of the key means of ensuring the sustainable development of the energy sector in Eastern Europe and Central Asia. Countries where the quality of life is improving are interested in reducing their dependency on energy resources and increasing efficiency of use. Several countries in the region have already managed to create effective mechanisms to reduce energy consumption and ensure the sustainable growth of the energy sector. Experience has shown that the state has played a key role in achieving these results, with state support among the measures applied. What are countries prioritizing in their efforts to save energy and transition to green energy sources? Where has progress been most apparent, and how was this achieved? What is the current and potential role of Eurasian integration? Will it be possible to agree uniform supranational priorities and timeframes by which to achieve them? What energy and energy efficiency projects could be supported by the RussiaUNDP Trust Fund and other international donors in partnership with the UNDP in countries in the region? Will regional projects, such as the UNDPs Regulatory Framework to Promote Energy Efficiency in Countries of the Eurasian Economic Union prove to be an effective tool to align approaches and harmonize regulation across the region?
This CEM seminar on the Sustainable Cities and Eco-Energy Town Initiative will bring together participants of the initiative and leading city experts to share their experience, further develop the initiative, and identify synergies with other related CEM workstreams focusing on transport, buildings, and smart grids. One of the main focuses of the CEM initiative in 2019 will be the transport sector. Representatives of the CEMs Electric Vehicle Initiative will participate in the meeting to discuss opportunities for collaboration and coordination between the two initiatives. The key topics of inter-fuel competition in the urban transport sector and harmonization of data in cities will also be on the agenda. The event will be attended by representatives of Russian and Korean ministries, representatives of countries participating in the CEM Sustainable Cities and Eco-Energy Towns Initiative, representatives of the CEM EV Initiative, and stakeholders from leading international organizations such as the IEA, CDP, DENA, and others.