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Eastern Partnership Prospects on Energy Efficiency and Renewable Energy DIRECTORATE-GENERAL FOR EXTERNAL POLICIES OF THE UNION DIRECTORATE B POLICY DEPARTMENT WORKSHOP EASTERN PARTNERSHIP PROSPECTS ON ENERGY EFFICIENCY AND RENEWABLE ENERGY Abstract The workshop ‘Eastern Partnership prospects on energy efficiency and renewable energy’ discussed the state of play and the prospects in the EU and in the Eastern European partner countries (Ukraine, Moldova, Georgia, Azerbaijan, Armenia and Belarus) concerning energy efficiency and renewable energy. The EU and Eastern partners share the objective of ensuring a sustainable, secure and affordable energy and developing energy efficiency and promoting renewable energy sources are key steps in this respect. The EU’s objectives and rules on energy efficiency and renewable sources provide a framework that can inspire policies in Eastern Partnership countries. These countries need to develop a long-term strategy and build a stable policy framework for developing renewables. They also need to strengthen their capacities and increase investments to foster energy efficiency. EXPO/B/AFET/FWC/2009-01/Lot1/48 December 2013 PE 433.708 EN Policy Department DG External Policies This workshop was requested by the European Parliament's Committee on Foreign Affairs and EURONEST Parliamentary Assembly. AUTHOR(S): Dr. Gulchohra ALIYEVA, Assistant Professor, Azerbaijani Diplomatic Academy, Baku Dr. Alexander GUSEV, Visiting Fellow, German Institute for International and Security Affairs, Berlin Mr Reinis ABOLTINS, Energy policy analyst, Centre for Public Policy PROVIDUS, Riga Mr Andriy CHUBYK, Executive Director, Centre for Global Studies Strategy XXI, Kyiv Mr Michael KRUG, Research Fellow, Environmental Policy Research Centre, Free University of Berlin This workshop was carried out within the framework agreement between IRIS and the European Parliament. Ref. EP/EXPO/B/AFET/FWC/2009-01/Lot1/48 ADMINISTRATOR RESPONSIBLE: Pasquale DE MICCO Directorate-General for External Policies of the Union Policy Department WIB 06 M 081 rue Wiertz 60 B-1047 Brussels Editorial Assistant: Simona IACOBLEV LINGUISTIC VERSION Original: EN ABOUT THE EDITOR Editorial closing date: 16 December 2013. © European Union, 2013 Printed in Belgium ISBN: 978-92-823-5046-1 Doi: 10.2861/26417 The Information Note is available on the Internet at http://www.europarl.europa.eu/activities/committees/studies.do?language=EN If you are unable to download the information you require, please request a paper copy by e-mail : [email protected] DISCLAIMER Any opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation, except for commercial purposes, are authorised, provided the source is acknowledged and provided the publisher is given prior notice and supplied with a copy of the publication. 2 Eastern Partnership prospects on energy efficiency and renewable energy 3 Policy Department DG External Policies TABLE OF CONTENTS PROGRAMME OF THE WORKSHOP 7 SUMMARY OF THE WORKSHOP 11 BRIEFING PAPERS 19 1. POLICIES AND CURRENT EFFORTS TO SUPPORT ENERGY EFFICIENCY PROGRAMMES AND ACTIVITY IN EASTERN EUROPEAN PARTNER COUNTRIES, Aliyeva GULCHOHRA, Caspian Center for Energy and Environment, Azerbaijan Diplomatic Academy 19 1.1 EXECUTIVE SUMMARY 19 1.2 INTRODUCTION 19 1.3 ENERGY EFFICIENCY PROGRAMMES AND ACTIVITIES IN EASTERN PARTNERSHIP COUNTRIES 20 1.3.1 Armenia 20 1.3.2 Georgia 21 1.3.3 Azerbaijan 23 1.3.4 Belarus 25 1.3.5 Ukraine 27 1.3.6 Moldova 28 1.4 MAJOR BARRIERS TO ENERGY EFFICIENCY POLICIES IN EASTERN PARTNERSHIP COUNTRIES 29 1.4.1 Legal, regulatory and policy framework 30 1.4.2 Local capacity and public awareness 30 1.4.3 Investment climate 31 1.5 CONCLUSION 31 1.6 REFERENCES 31 2. COMPARISON OF ENERGY EFFICIENCY MEASURES IN RUSSIA TO THOSE IMPLEMENTED BY DEVELOPED COUNTRIES (INCLUDING IEA MEASURES), Alexander GUSEV, German Institute for International and Security Affairs (SWP) 36 2.1 EXECUTIVE SUMMARY 36 2.2 INTRODUCTION 37 2.3 BUILDINGS 38 2.4 INDUSTRY 41 2.5 TRANSPORT 43 2.6 LIGHTING 46 4 Eastern Partnership prospects on energy efficiency and renewable energy 2.7 APPLIANCES AND EQUIPMENT 47 2.8 CONCLUSIONS 47 2.9 RECOMMENDATIONS 48 2.10 BIBLIOGRAPHY 49 3. PROMOTING RENEWABLE ENERGY CURRENT POLICIES AND DEVELOPMENT, Reinis ABOLTINS, Energy Policy analyst, Centre for Public Policy Providus, Riga 53 3.1 PHILOSOPHY BEHIND SUPPORTING RENEWABLE ENERGY 53 3.2 THE LOGIC OF SUPPORT 55 3.3 REVISITING RES SUPPORT 56 3.4 BARRIERS TO DEPLOYING RES 56 3.5 ENERGY MIX FACTOR 57 3.6 LEGAL AND BUSINESS ENVIRONMENT 59 3.7 PHYSICAL LIMITATIONS AND SOLUTIONS 60 4. INFRASTRUCTURE PRIORITY AND INVESTMENT NEEDS IN ORDER TO GIVE RENEWABLES ACCESS TO ENERGY MARKETS, Andriy CHUBYK, Executive Director, Centre for Global Studies Strategy XXI, Kyiv 62 4.1 EXECUTIVE SUMMARY 62 4.2 INTRODUCTION 63 4.3 INFRASTRUCTURE PRIORITY FOR RЕNEWABLE ENERGY 67 4.3.1 Hydro energy 69 4.3.2 Wind energy 69 4.3.3 Solar energy 70 4.3.4 Biomass 70 4.3.5 Nuclear energy as renewable resource? 71 4.4 INFRASTRUCTURE DEVELOPMENTS FOR RENEWABLE ENERGY IN EASTERN PARTNERSHIP COUNTRIES 71 4.4.1 Armenia 71 4.4.2 Azerbaijan 73 4.4.3 Belarus 73 4.4.4 Georgia 74 4.4.5 Moldova 75 4.4.6 Ukraine 75 4.5 INVESTMENT NEEDS FOR RENEWABLE ENERGY TO BE CONNECTED TO THE GRID IN EASTERN PARTNERSHIP COUNTRIES 76 4.5.1 Armenia 76 5 Policy Department DG External Policies 4.5.2 Azerbaijan 77 4.5.3 Belarus 77 4.5.4 Georgia 77 4.5.5 Moldova 78 4.5.6 Ukraine 78 4.6 INCENTIVES FOR INVESTORS 79 4.7 COOPERATION PERSPECTIVES IN RENEWABLE ENERGY BETWEEN THE EU AND EASTERN PARTNERSHIP COUNTRIES 79 4.8 CONCLUSIONS 80 4.9 BIBLIOGRAPHY 81 5. THE ROLE OF RENEWABLE ENERGY IN ACHIEVING A BALANCED ENERGY MIX, Michael KRUG, Research fellow, Environmental Policy Research Centre, Free University of Berlin 83 5.1 EXECUTIVE SUMMARY 83 5.2 INTRODUCTION 84 5.2.1 Background, purpose and design of the paper 84 5.2.2 Definitions of key terms 84 5.3 THE ROLE OF RENEWABLE ENERGY SOURCES IN THE EU ENERGY MIX 85 5.4 KEY OPPORTUNITIES AND CHALLENGES OF INCREASING THE SHARE OF RENEWABLE ENERGY SOURCES IN THE ENERGY MIX 89 5.5 MEETING TWO KEY CHALLENGES: INTERMITTENCY AND SUSTAINABILITY 92 5.5.1 Intermittency 92 5.5.2 Sustainability 94 5.6 KEY EU POLICIES PROMOTING THE SUSTAINABLE USE OF RENEWABLE ENERGY TO ACHIEVE A BALANCED ENERGY MIX 95 5.6.1 General energy and climate policies 95 5.6.2 Policies promoting the use of renewable energy sources 96 5.6.3 Policies addressing energy security of supply and affordability in the energy market 97 5.6.4 Policies ensuring a sustainable use of renewable energy sources 98 5.7 CONCLUSIONS 99 5.8 REFERENCES 100 6 Eastern Partnership prospects on energy efficiency and renewable energy PROGRAMME OF THE WORKSHOP Euronest Parliamentary Assembly Assemblée parlementaire Euronest Parlamentarische Versammlung Euronest Парламентская Aссамблея Евронест Euronest Committee on Energy Security WORKSHOP “Eastern Partnership prospects on energy efficiency and renewable energy" Programme Friday 20 September 2013 Seimas of the Republic of Lithuania Constitution Hall Vilnius 7 Policy Department DG External Policies 9:00-9:30 Registration 9:30-9:55 Opening session 9:30-9:40 Welcome address Ms Irena DEGUTIENĖ, Deputy Speaker of the Seimas of the Republic of Lithuania Mr Borys TARASYUK, Member of the Parliament of Ukraine, Co-President of the EURONEST Parliamentary Assembly 9:40-9:45 Opening address Mr Kęstutis DAUKŠYS, Chair of the Energy Commission, Seimas of the Republic of Lithuania 9:40-9:55 Introductory remarks Mr Algirdas SAUDARGAS, MEP, Member of the EURONEST Committee on Energy Security Mr Fuad MURADOV, Member of the Parliament of Azerbaijan, Co-Chair of the EURONEST Committee on Energy Security * * * Under the Co-Chairmanship of Mr Miloslav RANSDORF, MEP and Mr Fuad MURADOV, Member of the Parliament of Azerbaijan, Co- Chairs of the EURONEST Committee on Energy Security 9:55-11:20 Energy efficiency - Current policies and development 9:55 Energy efficiency policy: the case of Lithuania Mr Tadas NORVYDAS, Head of the Division for Sustainable Energy Development, State Enterprise Energy Agency, Vilnius 10:10 Policies and current efforts to support energy efficiency programmes and activity in Eastern European partner countries Dr. Gulchohra ALIYEVA, Assistant Professor, Azerbaijani Diplomatic Academy, Baku 8 Eastern Partnership prospects on energy efficiency and renewable energy 10:25 Comparisons of and lessons learned among global players on energy efficiency programmes - Policy options for future development Dr. Alexander GUSEV, Visiting Fellow, German Institute for International and Security Affairs, Berlin 10:40-11:20 Questions & answers session 11:20-11:40 Coffee/tea break 11:40-13:00 Promoting renewable energy - Current policies and development 11:40 Potential of emerging renewables, market and barriers in EU and Eastern European partner countries / Regional dimension of renewable energy markets - The Baltic case Mr Reinis ABOLTINS, Energy policy analyst, Centre for Public Policy PROVIDUS, Riga 11:55 Infrastructure priority and investment needs in order to give renewables access to energy markets Mr Andriy CHUBYK, Executive Director, Centre for Global Studies Strategy XXI, Kyiv 12:10 The role of renewable energy in achieving a balanced energy mix Mr Michael KRUG, Research Fellow, Environmental Policy Research Centre, Free University of Berlin 12:25-13:00 Questions & answers session * * * 13:00 Press point 13:00 - 14:15 Lunch break * * * 14:15-15:25 State
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