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Project: “Enhancing Synergies in Commonwealth of Independent States (CIS) National Programmes on Energy Efficiency and Energy Saving for Greater Energy Security”

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Project: “Enhancing Synergies in Commonwealth of Independent States (CIS) National Programmes on Energy Efficiency and Energy Saving for Greater Energy Security” Project: “Enhancing Synergies in Commonwealth of Independent States (CIS) National Programmes on Energy Efficiency and Energy Saving for Greater Energy Security” Regional study “Analysis of policies of CIS countries on improving energy efficiency and potential for developing cooperation and enhancing synergies in the CIS region” List of abbreviations: AC Agricultural complex GDP Gross Domestic Product CES The Common Economic Space CHP Central Heat and Power/Thermal Power Station CIS Commonwealth of Independent States CIS UEM CIS Unified Electricity Market COP Coefficient of Performance EU European Union EE Energy Efficiency EM Energy Mix ES Energy Saving ESCO Energy Service Company FERs Fuel and Energy Resources HCS Housing and Community Services LTF Local types of fuel (non-imported) MW Megawatt PES Primary Energy Sources PPP Purchasing Power Parity R&D Research and Development RES Renewable Energy Sources SCO The Shanghai Cooperation Organization t.o.e. tons of oil equivalent t.f.e. tons of fuel equivalent TWh Terawatt-hour IMF International Monetary Fund JSC Joint Stock Company kWh kilowatt-hour UN United Nations Organization UNDP United Nations Development Programme UN ECE United Nations Economic Commission for Europe The United Nations Economic and Social Commission UN ESCAP for Asia and the Pacific 2 3 Project: “Scaling upthe synergetic effect of the CIS member-states` national programs on energy efficiency and energy saving for energy security” ............................................................................... 1 Regional study “Analysis of the CIS member-states` policies on increasing energy efficiency and potential for development of cooperation in the CIS region to achieve the synergy effect” .................. 1 List of abbreviations: ......................................................................................................................... 2 Introduction ...................................................................................................................................... 6 Chapter I. Comparative analysis of the national programs and measures undertaken to improve energy efficiency and energy saving in CIS countries. .......................................................................... 8 1.1. Economic situation ............................................................................................................................. 8 1.2. Energy market, balance of energy consumption ............................................................................. 11 1.3 Analysis of the CIS countries policies in the energy saving area ....................................................... 18 1.4. Main institutions and organizations responsible for policy and programs in the area of energy efficiency and energy saving ................................................................................................................... 39 1.5. Existing programs in the field of energy efficiency and energy saving. Planned programs in the field of energy efficiency and energy saving. .......................................................................................... 42 Chapter II. Potentialandfeasibilityforenergysavingandenergyefficiencyin CIS countries. .................... 49 2.1 Energy supply saving potential.......................................................................................................... 49 2.2 Energy consumption saving potential ............................................................................................... 51 2.3. The most effective approaches, tools and incentives for energy efficiency in the CIS countries.... 58 Chapter III. International cooperation of CIS members in the field of energy efficiency and energy saving .............................................................................................................................................. 65 3.1. Analysis of status-quo of international cooperation of CIS members in the field of energy efficiency and energy saving ................................................................................................................... 65 3.2. Analysis of national energy saving and energy efficiency programs in the context of opportunities of deepening cooperation between the CIS countries ........................................................................... 70 3.3. Implication of cooperation between the CIS member states .......................................................... 73 3.4. Prospective directions of cooperation within the CIS. The most efficient approaches to developing cooperation between the CIS countries in the field of energy saving. ................................................... 76 3.5. Opportunities of deepening cooperation between the CIS countries within the UN, other international organizations and initiatives for the purposes of achievement of priority goals in the field of energy security, energy efficiency and renewable energy ......................................................... 80 Conclusions ..................................................................................................................................... 83 ANNEXES ................................................................................................. Error! Bookmark not defined. Brief Overview on the CIS Countries ................................................................................................. 89 Annex 1. Republic of Azerbaijan ............................................................................................................. 89 Annex 2. Republic of Armenia ................................................................................................................. 93 Annex 3. Republic of Belarus ................................................................................................................... 96 Annex 4. Republic of Kazakhstan .......................................................................................................... 100 4 Annex 5. Kyrgyz Republic. ..................................................................................................................... 104 Annex 6. Republic of Moldova. ............................................................................................................. 108 Annex 7. Russian Federation. ................................................................................................................ 110 Annex 8. Republic of Tajikistan. ............................................................................................................ 113 Annex 9. Turkmenistan ......................................................................................................................... 116 Annex 10. Republic of Uzbekistan. ........................................................................................................ 119 Annex 11. Ukraine ................................................................................................................................. 121 5 Introduction The present study analyses and summarizes the information stated in the reports by the national experts regarding goals and objectives, approaches, priorities and mechanisms of increasing the energy efficiency in the CIS member- states. Nowadays, most CIS countries have been concerned over high energy intensity of GDP, which exceeds 2-3 times the GDP energy intensity of the advanced countries. Presently, almost all Commonwealth countries recognize the capacities of energy saving and design therefore national policies to improve the energy efficiency in a way that the realization of energy efficiency potential promotes the priority tasks solution of national economic and social development. The national programs became an efficient instrument for implementation of the national policy in energy efficiency. First chapter of the survey briefly describes the status of economy and of energy market in the CIS countries, provides an assessment of energy saving potential and an in-depth analysis of the national policies on energy efficiency improvement in the CIS countries. It also examines main objectives that are being solved in the framework of policy implementation on energy efficiency improvement. Furthermore, it outlines the existing political, legal, institutional and financial factors that lead to the improvement in energy efficiency and energy saving. Second chapter examines the potential of improved energy efficiency and energy saving in the field of energy production and consumption, including industry sector, transport, housing and community services, and agriculture. Given that CIS countries differ substantially in terms of the national economies’ structure and availability of energy resources, their policy priorities on improvement of energy efficiency and use of renewable energy sources, as well as the approaches to the implementation of policies are also different. 6 Upon the results of the analysis there had been revealed the common factors affecting the effectiveness of the current policy, there had been identified effective approaches for the policy design on legislative, institutional, application (program) and management levels. Third chapter is dedicated to the generalization and comprehension of the accumulated experience of international cooperation in energy efficiency improvement. It analysis the national programs on energy efficiency and energy saving in terms of the expansion of international cooperation, as well
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