3. The energy aspects that are most related to the SDGs, poverty reduction and the achievement of environmental goals. In particular, particular attention should be paid to a) the gender issue, as it relates to the development of the energy sector and the role of sustainable energy in achieving SDG 5 in relation to achieving gender equality; b) the relationship between water supply and energy (in relation to SDG 6); c) the role of sustainable energy in achieving the Nationally Determined Contribution within the framework of the obligations under the Paris Agreement (SDG 13) ...... 27

3.1. Gender as it relates to the development of the energy sector and the role of sustainable energy in achieving SDG 5 with regard to achieving gender equality

3.2. Intercconections between water and energy (in relation to SDG 6) .. 28

3.3. The role of sustainable energy in achieving the Nationally Determined

Contribution as part of the Paris Agreement commitments (SDG 13) ...... 33

4. National targets for achieving SDG7 ...... 38

4.1. Ensuring universal access to affordable, reliable and modern energy sources (including promoting the economical and social productive use of energy and ensuring the availability of affordable energy resources) ...... 38

4.2. A significant increase in the share of renewable energy in the energy structure 45

4.3. Promotion of a significant increase in energy efficiency ...... 47

4.3.1. National goals ...... 47

4.3.2. Short term goals for industries ...... 49

4.3.3. Additional indicator ...... 50

4.4. Provide access to research and technology in the field of clean energy, including renewable energy, energy efficiency and advanced and cleaner fossil fuel technologies, promotion of investment in energy infrastructure and clean energy technologies; ...... 51

5. Impact modalities for implementing actions to achieve SDG7 ...... 57

5.1. Mobilizing funding to significantly increase financial resources and provide more support for private sector financing by adapting new commercial tools and expanding private sector support programs ...... 57

5.1.1. ESCO ...... 57

5.1.2. Schemes of interaction between public - private partnerships in the development of charging infrastructure ...... 60

5.2. Specific policy and regulatory elements for achieving SDG 7 ...... 62

5.2.1. Priority areas ...... 62

5.2.2. Economic and energy efficiency of energy generation and transmission 63

5.2.3. Energy independence ...... 64

5.2.4. Diversification of suppliers and types of energy resources. Reliability of supplies, reservation, processing and distribution of fuel and energy resources 65

5.2.5. Improving the Energy Management System of fuel and energy complex and its organizational structure ...... 66

5.2.6. The energy efficiency of final consumption of energy resources 67

5.2.7. Economic availability of energy resources to consumers ...... 68

5.2.8. Renewable Energy Development ...... 69

5.3. Expansion of international cooperation ...... 72

5.4. Strengthening knowledge and analytical capacity ...... 73

5.4.1. Knowledge enhancement system ...... 74

5.4.2. Industry and buildings...... 74

5.4.3. Energy Managers ...... 75

5.5. Potential impact, costs and benefits of proposed actions ...... 75

5.5.1. Energy efficiency ...... 75

5.5.2. A comprehensive development plan for the electricity sector until 2025, taking into account the commissioning of the Belarusian Nuclear Power

Plant 80

5.5.3. The list of investment projects for the construction of peak-reserve

energy sources and the installation of electric boilers ...... 82

6. Cross-sectoral issues of energy efficiency, renewable energy and access to energy supply ...... 83

6.1. Priority measures ...... 83

6.2. Energy audit ...... 85

6.3. Accounting and Payment ...... 86

6.3.1. Electric Energy ...... 86

6.3.2. Heat energy ...... 87

6.3.3. Natural gas ...... 88

7. Draft of National Sustainable Energy Action Plan for the Republic of Belarus ...... 89

8. Conclusions and recommendations ...... 104

1. Current situation of energy production, distribution and consumption

Energy is the most important structural component of the economy of the Republic of Belarus. The fuel and energy complex (hereinafter - FEC) ensures the functioning of all its sectors and the sustainable social and economic development of the country. The FEC of the republic includes systems for the production, transport, storage, generation and distribution of the main types of energy carriers: natural gas, oil and its products, solid fuels, electric and thermal energy. Its development is determined by state policy and a number of state and industry programs that ensure the consistent achievement of established priorities with support and guarantees at the state level. The FEC of Belarus distinguishes: − fuel industry (oil, gas, peat); − electric power industry. The structure of the combined fuel and energy balance of the republic is presented in Table. 1.

Table. 1 - The structure of the combined fuel and energy balance, thousand tons of fuel equivalent; in coal equivalent

2010 2011 2012 2013 2014 2015 2016 2017 Primary energy production (production) 5 766 5 926 5 906 5 729 5 312 5 143 5 270 5 665 (+) Import (+) 48 707 59 314 65 454 55 612 56 985 57 345 51 036 51 750 Export (-) 16 564 24 879 27 668 22 183 22 460 26 713 21 396 20 456 Change in inventories 378 755 -139 -405 -323 495 895 -108 (+, -) Gross consumption of primary energy and its 39 198 40 205 43 553 38 753 39 514 36 270 35 805 36 851 equivalents (=) Transformation sector 6 364 5 702 5 315 5 424 5 399 4 909 4 745 4 866 Non-energy sector 4 361 5 879 8 480 3 895 5 525 4 695 4 151 4 477 Distribution losses 1 901 1 840 1 860 1 789 1 786 1 648 1 532 1 516 Final consumption 26 572 26 784 27 898 27 645 26 804 25 018 25 377 25 992 5

1.1. Power Sector

1.1.1. Current situation of the electric power industry

The electric power industry generates, transfers and distributes electric and thermal energy. The modern electric power industry of Belarus is a constantly developing highly automated complex, combined by a common operating mode and a one centralized dispatch control. The development of the Belarusian energy system is determined by the need to provide consumers of the republic with thermal and electric energy in conditions of self-balancing. The production potential of the Belarusian energy system includes (1) 42 thermal power plants, including 12 high-pressure thermal power plants, 25 district boiler houses, as well as system-forming power transmission lines of 270-750 kV, power distribution lines, transformer substations, and heating networks. The installed capacity of the generating energy sources of the Republic of Belarus is 10,068.68 MW (as of 1/1/2019). Information on installed capacity by types of generating sources is presented in Table 2.

Table 2 - Information about the installed capacity of the integrated power system of Belarus as of 1/1/2019, MW Name Value Total, including 10 068,68 BelNPP - Thermal Power Plants 8 841,08 Block stations on non-renewable energy sources 826,4 Power plants using local fuel and energy resources, including RES: 401,20 Hydroelectric power stations 95,30 Photovoltaic Power Plants 156,60 Wind Power Plants 100,95 Power plants using wood fuel and other types of biomass 15,50 Biogas Power Plants 32,90

The power industry of the republic is based on thermal power plants; they generate more than 99.8% of all electricity. Among thermal power plants, condensation 6

(state district power plants) and combined heat and power production plants (CHPP) are distinguished. Their share in the total installed capacity of thermal power plants is 48.8% and 51.2%, respectively. In the electric power industry, SPA "Belenergo" dominates, being a monopolist in the generation, transmission and distribution of electric and thermal energy, and their supply in large cities. Housing and utilities dominate in the provision of heat supply services mainly in small cities. In 2017, the generation of electricity by the generating facilities of SPA "Belenergo" amounted to 89.0% of the total generation of all generating sources of the republic, while the state district power plants generated 38.9%, and the CHPP - 50.1%. The share of CHPPs and mini CHPPs of other organizations amounted to 10.7%. The contribution of own generators of other organizations to the total output amounted to 0.7%. Belarus is characterized by a high level of development of centralized heart supply and district heating. Almost half of all the required thermal energy is produced at the CHPP, the rest is produced by boiler houses. In 2017, 50% of the heat energy was generated by the SPA "Belenergo", and by the regional boiler houses of the SPA "Belenergo" - 21.1%. The share of boiler houses organizations (primarily housing and communal services) amounted to 16.6%, the share of combined heat and power plants and mini-combined heat and power plants of other organizations - 12.0% of the total heat production in the republic. Natural gas is used as the main fuel; in addition, fuel oil, biomass and secondary heat resources are used in boiler houses. The dynamics of the production of electric and thermal energy are given in Table 3. Information on the production of electric energy by categories of energy producers according to (2) is presented in Fig.Fig. 1, and on the production of thermal energy by categories of producers - in FigFig. 2. Data on the conversion of fuel into electric and thermal energy are shown in FigFig. 3.

Table 3 – Dynamics of the production of electric and thermal energy

Name Units 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Electric energy production million kWh 30 961 31 811 31 829 35 054 30 405 34 890 32 203 30 794 31 495 34 737 34 232 33 572 34 515 в том числе: in thermal power plants million kWh 30 924 31 775 31 793 35 014 30 359 34 844 32 157 30 716 31 349 34 605 34 073 33 331 33 924 at hydropower plants million kWh 36 35 35 39 45 45 42 72 138 121 111 142 405 wind turbines million kWh 1 1 1 1 1 1 4 6 8 9 39 73 97 Thermal energy production thousand excluding thermal secondary 69 021 69 588 64 694 62 024 62 300 66 716 63 237 65 220 63 148 60 890 57 954 59 767 60 693 Gcal energy resources including: thousand 334 336 308 295 224 247 217 223 224 203 179 187 181 public power plants Gcal thousand 28 642 29 385 27 823 26 848 27 632 30 851 29 116 30 610 30 737 29 782 28 660 29 776 30 340 CHPP Gcal CHPP and mini-CHP thousand 3 372 3 215 4 852 4 869 5 213 5 769 5 796 5 792 6 030 6 078 6 348 6 285 7 304 organizations Gcal thousand 17 434 17 761 15 433 14 960 14 943 15 516 14 566 15 354 14 433 13 870 13 002 13 396 12 777 district boiler houses Gcal thousand 19 239 18 891 16 278 15 052 14 288 14 333 13 542 13 241 11 724 10 957 9 765 10 123 10 091 boiler houses Gcal

Fig. 1 - Electricity production by categories of energy producers, million kilowatt hours

Fig. 2 - Thermal energy production by producer categories, thousand gigacalories

Fig. 3 - Conversion of fuel into electrical and thermal energy

As of 01.01.2019, the electric power network of the Belarusian Energy System included 1,354 transformer substations with a voltage of 35 - 750 kV with a total installed capacity and 74 579 transformer substations with a voltage of 6 - 10/04 kV, which are connected to each other and consumers in a single network by voltage transmission lines 0.38 - 750 kV with a total length of 279.3 thousand km (3). The main indicators of the electric networks of the energy system of Belarus are presented in Table 4.

Table 4 – Key indicators of electric grids of the energy system of Belarus Name Number Units The length of power lines on 1/1/2019

Name Number Units 279,278 thousand Total km 36,846 thousand 35-750 kV overhead power transmission lines, including: km 7,694 thousand 220–750 kV power transmission line km 17,315 thousand 110 kV transmission line km 11,837 thousand 35 kV transmission line km 202,509 thousand 0.4-10 kV overhead power lines km 39,923 thousand Cable power lines km 7,425 thousand The length of heating networks in single-pipe terms km Number of transformer substations 35-750 kV / Number of

transformers Total 1 354/2 393 units 750 kV substation 1/11 units 330 kV substation 32/90 units 220 kV substation 11/38 units 110 kV substation 730/1 292 units 35 kV substation 580/962 units Number of transformer substations TP 6-10 / 0.4 kV 74 579 units

Substations and power lines with a voltage of 220 - 330 - 750 kV are the backbone for the integrated power system of the Republic of Belarus, as well as provide intersystem communications for stable synchronous operation with energy systems of neighboring states - Russia, Ukraine, the Baltic countries. The scheme of the main radial-ring structure of the 220 - 330 kV network provides reliable power supply to consumers in all regions of the republic, however, some large industrial and residential areas, which are supplied via the 220 kV network, need to be improved in accordance with modern requirements. This primarily refers to the Brest and Grodno energy centers. The scheme of the main grid of the integrated power system of Belarus is presented in FigFig. 4.

Fig. 4 – The scheme of the main grid of the integrated power system of Belarus

1.1.2. Renewable energy

The development of renewable energy sources is carried out mainly in the sector of heat energy production through the use of firewood and biomass, which is caused by the least investment and the shortest payback periods in comparison with other types of renewable energy sources. The procedure for creating new, modernizing and reconstructing existing installations for the use of renewable energy sources is determined by Decree of the

President of the Republic of Belarus dated May 18, 2015 No. 209 “On the Use of Renewable Energy Sources” (National Legal Internet Portal of the Republic of Belarus, 05.20.2015, 1/15808) and Decree of the Council of Ministers of the Republic of Belarus dated August 6, 2015 No. 662 “On the establishment and distribution of quotas for the creation of installations for the use of renewable energy sources” (National Legal Internet Portal of the Republic of Belarus, 08/11/2015, 5/40894). According to the current legislation, as well as on the basis of law enforcement and judicial practice, there are the following mechanisms for creating RES electrical installations: − on the basis of investment agreements concluded before 5/20/2015; − within the framework of the mechanism for establishing and distributing quotas for the creation of installations with the subsequent supply of electricity to the energy system, including on an out-of-competition and competitive basis, including exclusively for the energy supply of their own business activities of legal entities, individual entrepreneurs with the release of excess electricity into the grid; − only for the energy supply of household needs of individuals without a surplus of electrical energy to the grid; − in the SPA "Belenergo" system on the basis of local regulatory acts and energy system development programs. As of 1/1/2019, 401.2 MW of installed electric capacity of renewable energy plants were operating in the Republic of Belarus, including: − 55 photovoltaic stations with a capacity of 156.6 MW, − 51 hydroelectric power stations with a capacity of 95.3 MW, − 96 wind power plants with a capacity of 100.95 MW, − 25 biogas complexes with a capacity of 32.9 MW, − 9 mini wood-fired CHP plants with an electric capacity of about 15.5 MW.

In 2017, all business entities from RES generated 903.2 million kWh, including: − organizations of SPA "Belenergo" 531.2 million kWh − other legal entities and individual entrepreneurs - 371 million kWh. In 2017, the share of renewable energy resources in the gross consumption of fuel and energy resources amounted to 6.16 percent, which exceeds the forecasted figures.

1.2. Fuel industry

The fuel industry of the republic includes the extraction of peat, wood, oil, associated gas, oil and gas processing, and the production of peat and peat-coal briquettes. Due to the relatively low provision of Belarus with its own energy resources, its needs for energy raw materials are provided by imports, mainly from Russia. The development of the country's fuel industry is based on imported resources and local fuels (peat, wood processing waste and wood). The bulk of the imported fuel is oil and natural gas. In Fig. 5 is a diagram of the fuel industry of Belarus.

Fig. 5 – The scheme of the fuel industry of Belarus

1.2.1. Oil industry

The oil industry includes the oil-producing and oil-refining industries. The oil-producing industry is specialized in oil production and its primary preparation for transportation and refining. The country is developing oil fields in the Pripyat oil-and-gas-bearing basin. The dischatge of well is small, the main method of production is pumping. Oil production in the republic is carried out by the "Rechitsaneft" oil and gas production department, a separate division of the "Belorusneft" enterprise. In 2017, crude oil production amounted to 2,360 toe (in coal equivalent) (2). The oil refining industry is represented by two plants - Novopolotsk (PA "Naftan") and Mozyrsky, and provides the country's needs for motor and boiler fuel, oils, products for petrochemical production. About 80% of petroleum products are exported.

The total capacity of two oil refineries - Novopolotsk and Mozyrsky - is about 40 million tons per year in terms of crude oil. The Novopolotsk Oil Refinery (PA "Naftan") is the largest in Europe, its production capacity reaches 25 million tons per year. Crude oil supplies to refineries are carried out from Russia using the "Druzhba" trunk pipeline system. Mozyr oil refinery also processes Belarusian oil. Pipeline transport is also used for pumping petroleum products (diesel fuel and gasoline) through the territory of Belarus and for export.

1.2.2. Gas and gas processing industry

The gas industry produces associated-dissolved gas, transports, processes natural gas and associated-dissolved gas, and uses it. Associated petroleum gas is produced along with oil from wells in the fields of the Gomel region. Natural gas is also produced at the only Krasnoselsky oil and gas condensate field in Belarus (near Rechitsa). In 2017, the republic produced natural associated gas of 338 toe (in coal equivalent)(2). Oil gas processing is carried out at the Belarusian gas processing plant in Rechitsa. The main product of the plant - dry gas - is used at the Svetlogorsk CHPP for consumption by the population of Rechitsa and Svetlogorsk. The main consumer of gas in the country is the transformation sector, whose share in the structure of gas consumption reaches up to 71%. 20.5% of gas is consumed in industry, another 8.1% is used as a petrochemical feedstock. Gas consumption by the housing sector accounts for 9.9% of gross gas consumption in Belarus. Up to 0.04% of gas is used as motor fuel. The share of agriculture in the structure of gas consumption is insignificant - 0.7%. Belarus is an important hub for the transit of Russian gas to Poland and Western European countries (about 70% of the transit volumes), Ukraine (Ukraine 16 has not purchased Russian gas since 2015), Lithuania and the Kaliningrad region of the Russian Federation. The transit of Russian natural gas through Belarus is provided through the following gas pipelines: − Yamal - Europe (diameter - 1420 mm); − Torzhok - Minsk - Ivatsevichi (3x1220 mm); − Kobrin - Brest - State border (1020 mm); − Minsk - Vilnius (1220 mm); − Ivatsevichi - Valley (2x1220 mm); − Torzhok - Valley (1420 mm); − Volkovysk - State border (273 mm). In 2018, transit of Russian gas amounted to 42.3 billion cubic meters. In Belarus there are 3 underground gas storages (UGS) with a total usable capacity of about 1.1 billion cubic meters: − Pribugskoye (0.4 billion cubic meters); − Osipovichskoye (0.4 billion cubic meters); − Mozyr (0.3 billion cubic meters).

1.2.3. Peat industry

The peat industry produces peat for fuel, agriculture, and chemical processing. The main products are peat briquettes, lump and sphagnum peat. The decrease in peat extraction in Belarus was caused by its relatively low efficiency, limited peat resources, the need to preserve peat for agricultural purposes, and the conversion of thermal power plants and boiler houses to gas and fuel oil. Now peat is used mainly in the form of peat briquettes only to provide the population, especially in rural areas, with household fuel. In 2017, the production of fuel peat amounted to 338 toe in coal equivalent.

1.3. Consumption

Consumers of fuel and energy resources can be divided into the following groups: − industry − construction, − agriculture, − transport, − service sector, − housing sector (population). The structure of the final consumption of fuel and energy resources in 2010 and 2017(4) is presented in FigFig. 6.

Fig. 6 - The structure of final consumption of fuel and energy resources by consumption sector in 2010 and 2017 (as a percentage of the total)

The main consumers of fuel and energy resources in the republic are industry - 32.4% of the total balance, transport - 22.2%, and the housing sector (population) - 28.1%. The dynamics of the final consumption of electric energy according to (4) is shown in FigFig. 7.

Fig. 7 - The dynamics of the final consumption of electric energy (million kilowatt hours)

The share of electric energy consumption by the population is 20.5% of the total electric energy consumption in the republic. As follows from data analysis FigFig. 7, the consumption of electric energy by the population for the period 2005- 2010 increased by 33%. Further consumption growth was observed until 2016 inclusive, but the growth rate decreased and amounted to 9.4% for the period 2011- 2016. Electricity consumption by organizations fluctuated slightly, the dynamics of fluctuations as a whole corresponds to the economic activity of the country. The share of consumption by organizations is 79.5% of total electricity consumption. The dynamics of the final heat energy consumption according to (4) is shown in FigFig. 8.

Fig. 8 - The dynamics of the final consumption of thermal energy, million gigacalories

The share of the population in the consumption of thermal energy in the republic is 41.6%, the share of organizations is 58.4%. Thermal energy is spent by the population on the needs of heating and hot water supply. For the period 2005- 2017, fluctuations in its consumption do not exceed 5% and correspond to the climatic factor (Fig. 9). The consumption of thermal energy by organizations decreased by 14.6% over the period under review, which was due, first of all, to large-scale and systematic work on energy conservation carried out in the republic, as well as to a decrease in production activity in the conditions of economic crises of 2011 and 2014.

Fig. 9 - Climate-specific heat consumption, million gigacalories

2. Generation growth goals for economic development

2.1. Electricity development forecast

Currently, the development of the Belarusian electric power industry is carried out in accordance with the Comprehensive Plan for the Development of the Electric Power Sphere until 2025, taking into account the commissioning of the Belarusian Nuclear Power Plant, approved by Decree of the Council of Ministers of the Republic of Belarus dated March 1, 2016 No. 169, and the Electric Power Industry Development Program developed on its basis 2016 - 2020, approved by Decree of the Ministry of Energy of the Republic of Belarus dated March 31, 2016 No. 8 (hereinafter referred to as the Sectoral Program). As a result of the implementation of the Sectoral Program, it is expected to achieve the following main results: − to commission the Belarusian NPP with an installed capacity of 2,388 MW;

− decommissioning 392 MW of inefficient and used-up capacities at the facilities of the SPA "Belenergo" and commissioning 393.3 MW of electric new capacities at the facilities of the SPA "Belenergo"; − save at least 850 thousand toe fuel and energy resources in the SPA "Belenergo"; − reduce the use of natural gas in 2020 by at least 3.4 million toe (2.5 billion cubic meters), including from nuclear fuel - 2.8 million toe, electric energy for the production of thermal energy - 0.35 million toe, local fuel and energy resources - 0.15 million toe, increase in efficiency - 0.1 million toe; − increase the use of local fuel and energy resources at energy facilities by introducing new energy sources - 151.1 thousand toe; − to generate electricity on the basis of renewable energy sources at the facilities of SPA "Belenergo" - about 380 million kWh; − reduce the share of the dominant resource (natural gas) in the production of heat and electricity to 70 percent; − to implement measures for operational integration of nuclear power plants regarding the construction of peak-reserve sources with an installed capacity of up to 800 MW and electric boilers with an installed capacity of up to 985 MW. As a result of the implementation of the Sectoral Program, by 2021, the total installed electric capacity of the Belarusian energy system may be about 13,300 MW. Issues of decommissioning unclaimed capacities will be considered after the commissioning of nuclear power plants.

2.2. Nuclear energy

At the stage of substantiating the need for the construction of a Belarusian nuclear power plant, according to the forecast of the socio-economic development of the republic, the GDP growth rate was estimated at 8-12% per year, and based on

22 these data, by 2020, electricity consumption in the republic was estimated at 47 billion kWh. Initially, an option was considered with the construction of a nuclear power plant consisting of two power units based on WWER-1000 reactors with an installed capacity of 1000 MW each. Subsequently, the plans changed, and at the moment the construction of two power units of the NPP-2006 type with an installed capacity of 1,170 MW each is nearing completion. For the Belarusian energy system, this means increasing the unit capacity of the unit from 450 MW installed at CHPP-5 to 1,170 MW, which exceeds 10% of the total installed capacity of the energy system. Nuclear power units have extremely low maneuverability. On the one hand, this is due to the economic features of the operation of nuclear power plants. In the cost of generating electricity at nuclear power plants, fuel costs are no more than 25%. Thus, to reduce the cost of electricity produced, the maximum load of installed capacities is required. This feature does not allow the operation of nuclear power plants at below-rated capacity for a long period. In addition to economic reasons, there are also security restrictions. Short- term load changes are also undesirable in nuclear power units. Nuclear reactors are poorly controlled in regimes of constant power change, while the likelihood of emergency situations increases, the integrity of fuel elements and other structural elements of the reactor is violated. Thus, both from the point of view of the economy and from the point of view of safety, the nuclear power plant should operate at rated power throughout the year, with the exception of the period of scheduled preventive repairs and refueling. In December 2015, the government approved a new Energy Security Concept, in which the forecast for energy consumption in 2020 was revised and is currently estimated at 39.9 billion kWh. With a forecast of electricity consumption in the amount of 39.9 billion kWh per year, the initial (without the implementation of measures for the regime integration of the Belarusian NPP), the imbalance of electric capacities during the 23 operation of two power units of the Belarusian NPP during minimum load hours will be: − during the heating season up to 1,445 MW; − in the non-heating season up to 1,235 MW. Predicted graphs of the power system load are presented in FigFig. 10 and Fig. 11.

Fig. 10 - Schedule of daily electricity consumption in 2020 with a planned annual consumption of 47 billion kWh

Fig. 11 - Schedule of daily electricity consumption in 2020 with a planned annual consumption of 39.9 billion kWh 24

At night (from 0:00 to 7:00), with the utmost reduction in the load on the power system, the most unfavorable operating conditions for equipment at power plants are created. Ensuring a balance of electric capacities of the Belarusian Integrated Power System at night during the heating season, taking into account the commissioning of the Belarusian NPP without the implementation of additional technical measures, will require shutting down all condensing power units, as well as partially heating, at night. Such a measure on the condition of reliability and safety of the power plants cannot be taken. To use excess electricity for heating and hot water supply, instead of natural gas, it is planned to install electric boilers at the SPA "Belenergo" facilities with a total capacity of 985 MW, including: − in boiler houses - 156 MW, − at the CHPP - 774 MW. In boiler houses at night (about 7 hours), thermal energy will be accumulated to provide consumers with heat and hot water for the next 17 hours.

2.3. Renewable energy

The share of renewable energy sources in the fuel and energy balance of the republic is steadily increasing. The Republican Interdepartmental Commission for the establishment and distribution of quotas for the creation of installations for the use of renewable energy sources established quotas for 2020–2022 with a total electric capacity of 191.8 MW, including: − using biogas energy - 12.0 MW, − using wind energy - 19.8 MW, − using the energy of the natural movement of water flows - 62.0 MW,

− using the energy of wood fuel, other types of biomass - 3.0 MW, − using the heat of the earth and other energy sources not related to non- renewable - 40.0 MW. Quotas for creating installations using solar energy have not been established. After the commissioning of the Belarusian NPP in 2021-2025, the development of renewable energy is expected in conjunction with increased energy efficiency with a focus on the introduction of IT technologies, digitalization in the national economy, the construction of “smart” energy grids (smart grids), which will achieve goal 7 of sustainable Development “Ensuring universal access to affordable, reliable, sustainable and modern energy sources for all” (hereinafter - SDG7). In the future, emphasis is expected on the large-scale production of electricity using renewable energy for the own needs of enterprises, the use of heat pumps to utilize the heat of the earth, waste water, etc., and to burn waste to produce electric and thermal energy.

3.1. Gender as it relates to the development of the energy sector and the role of sustainable energy in achieving SDG 5 with regard to achieving gender equality

SDG 5 is gender equality and the empowerment of all women and girls. Energy is important for the human environment. Identifying and addressing the needs of women and men is critical to the success of energy policies. Accordingly, the introduction of a gender approach in energy policies can help increase their effectiveness. A high level of economic development is associated with equal access of men and women to resources (including energy), reduction of gender inequality in relation to income, etc. Accordingly, the empowerment of women in various fields is becoming a decisive factor contributing to economic and social development. Energy is essential for domestic needs. Given that women / girls, especially in rural areas, are responsible for most of the work in the household, access to energy makes a significant difference in terms of quality of life, including health.

Access to modern energy services has a specific impact on reducing women's domestic responsibilities, giving them more time for other activities such as education, health, entrepreneurship, and others. On a larger scale, energy policies can catalyze national development and play a vital role in reducing poverty and the negative effects of climate change. Challenges in the energy sector regarding gender equality are: − vulnerable groups, such as poor women, especially older women, in rural areas often face energy-related barriers (harvesting wood, which takes time and labor; lack of fuel), as well as health problems due to collection and burning wood - because they are the primary producers and users of energy in the household; − the existence of non-traditionalist ideas, which, considering women only in the context of the role of a housewife, mother, limit their life opportunities, etc.; − lack of a gender approach in energy policy can undermine the effectiveness and sustainability of relevant projects / policies; − the lack of an assessment of the impact of gender factors on energy policy leads to an incomplete assessment of the situation and underestimation of risks, the impact of actions on women and men; − the education system contributes to the reproduction of traditional gender stereotypes through the vocational guidance of young people, limiting girls' access to the energy sector, etc. The energy sector should provide affordable, high-quality, modern energy supply services, reducing the harmful effects of traditional energy resources on the health of women and men.

3.2. Intercconections between water and energy (in relation to SDG 6)

SDG 6 is to ensure the availability and sustainable use of water and sanitation for all.

The water and energy spheres are closely interconnected, since energy production is usually characterized by high water consumption, and increased availability of water resources is associated with significant energy consumption. The integration of energy and water policies at global and national levels is seen as a tool for implementing the Sustainable Development Goals. Success in this direction will largely depend on whether it is possible to implement a number of prerequisites, including the provision of drinking water and the provision of reliable, environmentally friendly energy sources while neutralizing negative consequences, such as the impact of greenhouse gas emissions on biodiversity and climate change. The connection of the Sustainable Development Goals with integrated state water and energy policies is presented in Table 5.

Table 5 - Connection of Sustainable Development Goals with integrated state water and energy policy

SDG 2030 in the energy SDG 2030 in the field of Public policy goals sector water supply Affordable energy and water 7.1. Ensuring universal access 6.1. Ensuring universal and at affordable prices to affordable, reliable and equal access to safe drinking modern energy services water at affordable prices Energy and water quality 7.2. Significant increase in the 6.3. Improving water quality share of renewable sources in by reducing pollution, the global energy balance stopping discharges and minimizing emissions of harmful chemicals and materials, halving the proportion of untreated wastewater, significantly increasing global water reuse Efficient energy and water 7.3. Doubling global energy 6.4. Significant increase in consumption efficiency growth water consumption efficiency in all sectors, ensuring sustainable water withdrawal and water supply International cooperation and 7.a. Intensifying international 6.a. Intensified international technology transfer cooperation to expand access cooperation and support for to clean energy research and developing countries in the technology implementation of water supply and sanitation 29

SDG 2030 in the energy SDG 2030 in the field of Public policy goals sector water supply programs, including technology Source: [UN General Assembly, 2017].

In absolute terms, the stocks of clean energy and water cover current needs. Consequently, the challenge that needs to be addressed with regard to clean energy and water is not a shortage, but the global availability of these resources. Full coverage of the population with access to electric energy in the republic was achieved several decades ago. All applications for connection to the power supply system are satisfied. The proportion of the population stably provided with water at the place of residence due to the centralized water supply, in 2005–2017. increased by 15.8% to 94.7%. Another 5.3% have access to basic water supply (improved quality water from sources located near the house). Thus, ensuring universal access to basic water sources in Belarus has already been achieved.

Fig. 12 - Access of the population to water supply and sanitation (percent)

Fig. 13 - Water consumption in the Republic of Belarus

Nevertheless, the current pace of development does not allow counting on the simultaneous and universal availability of clean water and clean energy in 2030. In achieving their goals, one cannot rely only on the emergence of new technologies. In this regard, it is necessary to identify, simulate and quickly scale practical solutions that allow realizing tasks without harming global ecosystems. An integrated approach implies recognition of the interconnection of energy and water supply systems. Water is used in almost all types of energy production: for the extraction of coal, oil, natural gas and uranium, for thermal power - for the production of steam and / or cooling. In fossil fuel and / or nuclear power plants, the cooling infrastructure requires a huge amount of water. In turn, energy is required for groundwater abstraction, lifting and transfer, as well as desalination and wastewater treatment. Energy production is the largest industrial user of water, and increasing energy production requires expanding access to fresh water. Therefore, to ensure energy security in the region, a sufficient amount of water resources is required, which, in turn, depends on the growth of low-cost energy. Water and energy cannot be considered separately from each other. Typically, in the study of the relationship between water and energy, energy consumption is estimated during the abstraction, treatment, desalination, control of

31 water temperature and wastewater treatment [Kahrl, Roland-Holst, 2008; International Energy Agency, 2016; Copeland, Carter, 2017]. A number of researchers focus on linking these activities with climate change [Rothausen, Conway, 2011; Pittock et al., 2015], which can disrupt the historically formed water cycle. The global nature of the interconnection between water and energy necessitates the integration of goals in the field of energy and water use. Setting comprehensive guidelines for sustainable development in the energy, water and food sectors will increase economic efficiency, eliminate contradictions between these areas and ensure the rational use of resources [Weitz et al., 2014]. This is possible subject to coordinated action in related fields and at all levels of policy implementation and funding. [Yumkella, Yillia, 2015, p. 8]. The integration of energy and water policies will contribute to the implementation of other SDGs, in particular: − 6.5: by 2030, ensure integrated water resources management at all levels, including, if necessary, through transboundary cooperation; − 6.6: by 2020, ensure the conservation and restoration of water-related ecosystems, including mountains, forests, wetlands, rivers, aquifers and lakes; − 9.4: by 2030, modernize the infrastructure and re-equip industrial enterprises, making them sustainable by increasing the efficiency of resource use and the wider use of clean and environmentally friendly technologies and industrial processes, with the participation of all countries in accordance with their individual capabilities; − 12.2: by 2030, achieve rational development and efficient use of natural resources; − 12.5: by 2030, significantly reduce the amount of waste by taking measures to prevent its generation, reduce, process and reuse it; − 13.2: integrate climate change responses into national policies, strategies and planning;

− 15.9: By 2020, ensure that ecosystem values and biodiversity are taken into account in national and local planning and development processes, as well as in the development of poverty reduction strategies and plans. Existing studies do not explain how global approaches to energy and water supply should be combined with the development of political initiatives at the national, regional and local levels. However, they provide the basis for an analysis of how global goals for increasing the availability of energy and water could influence the formation of integrated water and energy policies by national governments. An integrated approach to the development of energy and water management covers the management of the energy intensity of production and delivery of clean water and, accordingly, the “clean water intensity” of energy generation and transportation (including water consumption and pollution). Its application implies the search for solutions that reveal the potential of the simultaneous development of both areas according to “win-win” scenarios. In the conditions of Belarus, the priority areas when using this integrated approach in the energy sector and energy consumption systems should be: - the use of closed water-cooling systems, - condensate return to heat sources, - reduction of costs for lifting, cleaning and transporting water.

3.3. The role of sustainable energy in achieving the Nationally Determined Contribution as part of the Paris Agreement commitments (SDG 13)

As part of the implementation of the Paris Climate Agreement, the Republic of Belarus committed itself to ensure by 2030 a reduction in greenhouse gas emissions of at least 28 percent of 1990 emissions, excluding greenhouse gas emissions and sinks in the Land Use, Land Use Change and Forestry sector ”(hereinafter - LULUCF) and without any additional conditions (the

33 obligation does not imply the use of mechanisms of the international carbon market and the attraction of foreign financial resources to introduce the best available technology). The commitments include information on greenhouse gas emissions by the following sectors: − power engineering; − industrial processes; − use of solvents; − agriculture; − waste. The commitments cover the following greenhouse gases: − carbon dioxide (CO2); − methane (CH4); − nitrous oxide (N2O); − hydrofluorocarbons (HFCs); − perfluorocarbons (PFCs); − sulfur hexafluoride (SF6). In Fig.Fig. 14 shows the dynamics of greenhouse gas emissions for the period 1990-2013 and the forecast until 2030, which is based on a scenario that takes into account the approved programs for the development of economic sectors, including the commissioning of the Belarusian Nuclear Power Plant in 2019, as well as additional policies and measures to reduce carbon intensity . According to the forecast, after 2030 there will be a further trend towards an increase in greenhouse gases with a peak in 2035.

Fig. 14 - Greenhouse gas emissions in 1990-2030, Gg CO2 equivalent The data on the dynamics of greenhouse gas emissions for 1990-2012 are given below.

Fig. 15 – The dynamics of greenhouse gas emissions in 1990-2012 by sector, Gg CO2 equivalent

For the time period under consideration, the largest amount of greenhouse gas emissions was observed in 1990 - 139 151.23 thousand tons in CO2 equivalent,

35 excluding the LULUCF sector. In 2012, emissions amounted to 89,283.33 thousand tons of CO2 equivalent, excluding the LULUCF sector, and decreased by 35.8 percent compared to 1990. This reduction in greenhouse gas emissions is primarily due to a sharp reduction in emissions during the period 1990-1995 due to the economic crisis in the country after the collapse of the Soviet Union, and, as a consequence, a decrease in fuel production and consumption. Since 1995, the period of economic growth has begun, during which, by 2012, per capita GDP increased by 4.5 times. Greenhouse gas emissions also began to grow due to increased production volumes, increased fuel consumption, and also due to an increase in waste generation. However, the rate of increase in emissions compared to GDP growth is much lower (Fig. 16). The average annual increase in GDP for the period 1995-2012 was 7.9 percent, and the average annual increase in greenhouse gas emissions for the same period was 0.4 percent. The carbon intensity of the economy for the period 1995-2012 decreased by 3.8 times - this is the highest rate of movement in Europe towards low-carbon development parameters in Europe.

Fig. 16 - Dynamics of greenhouse gas emissions and gross domestic product in 1995-2012 (data for 1995 are taken as 100 percent)

According to forecasts, taking into account all the approved programs of measures to further reduce the carbon intensity of the economy, including the

36 commissioning of the Belarusian NPP in 2019, in subsequent years there will be a further trend towards an increase in greenhouse gas emissions with an average annual growth of 0.7 percent with an average annual GDP growth of 3 percent. The level of greenhouse gas emissions in 2030 should be no more than

74 million tons in CO2 equivalent, incl. in the sector of conversion into electric and thermal energy - 30 million tons in CO2 equivalent, which is 40.5% of the maximum allowable level. The actual level of greenhouse gas emissions in 2016 amounted to

91.5 million tons of CO2 eq. (excluding land use, land use change and forestry), incl. in the energy sector - 56.0 million tons of CO2 eq.

4. National targets for achieving SDG7 4.1. Ensuring universal access to affordable, reliable and modern energy sources (including promoting the economical and social productive use of energy and ensuring the availability of affordable energy resources)

Goal 7.1 SDG7: By 2030, ensure universal access to affordable, reliable and modern energy supply. At global and national levels, the following indicators for achieving target 7.1 are identified: 7.1.1. Percentage of population with access to electricity; 7.1.2. The proportion of the population using mostly clean fuels and technology. Data sources for the actual determination of indicators 7.1.1 and 7.1.2 is the Multiple Indicator Cluster Survey for Assessing the Status of Children and Women (MICS 6), which was conducted in Belarus in the first half of 2019. The data generation period is August 2019. Units: for the purpose of 7.1.1 - the proportion of the population that has access to electricity in the total population; in percents; for the purpose of 7.1.2 - the proportion of the population that uses “clean” fuel and technology as the main ones for cooking, heating and lighting, in the total population; in percents. Tasks and key indicators of SDG 7 are schematically presented in Fig.Fig. 16.

Fig. 17 - Tasks and key indicators of SDG7

According to the SPA "Belenergo", 100% of the population of Belarus is currently provided with electricity. The main document defining the essence of activities to ensure the reliability of energy supply to sectors of the economy and the population and energy security of the Republic of Belarus (hereinafter - energy security) is the Concept of energy security. At the same time, energy security is understood as the state of protection of citizens, society, the state, and the economy from threats of deficiency in providing their energy needs with economically available energy resources of acceptable quality, from threats to disruption of uninterrupted energy supply. The state of security is a state that, under normal conditions, provides in full the justified needs (demand) for energy, in extreme conditions - the guaranteed provision of the minimum necessary volume of such needs. The main threats to energy security are: − in the extraction of fuel and energy resources: o low level of energy independence; o o depletion of the base of oil fields. − when mining abroad and importing the missing volumes of fuel and energy resources: 39

o low diversification of imports of fuel and energy resources; o o opposition to the participation of Belarusian companies in field development, acquisition or construction of energy facilities abroad; o o counteraction of foreign states (including through commercial companies controlled by these states) diversification of energy supplies to the Republic of Belarus; o o limiting the supply of imported energy from a dominant supplier for economic and other reasons; o o restriction of energy supplies by commercial companies (controlled by foreign countries) that control fuel and energy facilities in the Republic of Belarus; o o increase in prices of imported fuel and material resources; o o the occurrence in the territory of the Republic of Belarus or near its borders of large-scale emergency situations of natural and man-made nature, leading to a limitation of the supply of energy resources; o o limitation of energy supplies due to untimely conclusion of contracts with their suppliers, the formation of overdue debts for imported fuel and energy resources. − during transportation of imported fuel and energy resources (including transit volumes of fuel and energy resources) through the territory of the Republic of Belarus and neighboring states: o technogenic accidents at power equipment; o the development of transit corridors, alternative energy transportation systems available in the Republic of Belarus, the creation of an opportunity to limit the transit routes of the Republic of Belarus; − in the processing and distribution of fuel and energy resources: o a high share of natural gas in the production of heat and electricity;

o o insufficient volumes of strategic reserves of fuel and energy resources to ensure uninterrupted functioning of the fuel and energy complex in the context of a decrease in imported volumes of fuel and energy resources; o o operation of low-efficient equipment that reduces the competitiveness of manufactured products; o o excess wear and tear of process equipment; o o technogenic accidents at energy facilities; o o the termination of power supply to consumers due to the effects of natural disasters; o o insufficient level of automation of distribution network management processes; o o destabilization of the socio-political situation around existing and under construction energy facilities; o o a decrease in the competitiveness of Belarusian oil products due to an increase in the volume and depth of oil refining in neighboring countries. − when consuming fuel and energy resources within the country: o the use of obsolete technologies and fixed assets, which determines the high energy and material consumption of production; o o structural deformation of the economy, the predominance of material and energy-intensive industries, insufficient development of the service sector, a small proportion of high-tech science-intensive products and slow updating of products; o o high energy prices for individual organizations, reducing the competitiveness of their products in world markets; o o the lack of correlation between costs and energy prices for certain groups of consumers; o o low specific energy consumption per capita compared with developed countries with similar climatic conditions;

o o imbalance of electrical capacities at night, due to the uneven daily schedule of power consumption in the republic and the operation of nuclear power units in the basic mode with a constant load. − when exporting energy resources: o low export diversification;o discriminatory actions in foreign markets in relation to exported goods and services of the FEC; o o refusal of import or its restriction (including blocking the development of necessary infrastructure) by neighboring countries; o o the Baltic countries planned exit from parallel work with the energy systems of Belarus and Russia; o o disintegration of interstate ties of electric power systems. Common threats to energy security at all stages of the energy chain are: − sabotage and terrorist acts (including using information technology) at energy facilities; − decrease in the level of training of highly qualified personnel for the FEC; − low wages and, as a consequence, the lack of qualified personnel in energy production; − deficit of investments in the modernization of fixed assets of the FEC; − limited opportunities to attract financing by FEC, including external. The national interests of the Republic of Belarus in the fuel and energy sector for the implementation of SDG 7 are: − ensuring non-discriminatory access to world markets for goods and services, raw materials and energy resources; − ensuring wide participation and integration in the global fuel and energy complex from production to sale of fuel and energy resources to end consumers; − achieving a level of energy security sufficient to neutralize the external dependence on the receipt of energy carriers;

− intensive technological updating of the basic sectors of the economy and the introduction of advanced technologies in all spheres of society; − rational use of natural resource potential; − the creation of energy companies capable of competing with large transnational corporations; − development of its own energy resource base based on the economically sound use of local fuels, primarily renewable energy sources; − ensuring an acceptable level of diversification of the country's fuel and energy balance by types of consumed energy resources and by countries importing energy resources; − improving the reliability of energy supply to all consumer groups through the modernization of existing generating capacities and the development of network infrastructure; − introduction of modern energy technologies in the country's energy supply system; − increasing the efficiency of energy use at all stages of energy supply - from energy production to its final use; − an increase in the depth of oil refining at oil refineries in the country, aimed at increasing the production of light oil products with high added value; − phased reduction of cross subsidies in energy tariffs and gas prices, as well as improving the system of tariff setting for energy in order to stimulate consumers to make more efficient use of energy; − reducing the environmental load of the fuel and energy complex on the environment through the introduction of effective means of purifying exhaust gases from particulate matter and sulfur dioxide, modern means of reducing emissions of nitrogen oxides and carbon dioxide during the combustion of natural gas, fuel oil, wood and other fuels, as well as the construction of facilities for prevention of violations of the hydrological regime of natural ecological systems as a result of the extraction of combustible minerals.

Energy security indicators - parameters and indicators of the development and functioning of the FEC, its subsystems and facilities, as well as energy consumers, characterizing the composition, depth and territorial framework for the implementation of energy security threats, and its level, are: − the ratio of the volume of production (production) of primary energy to the gross consumption of fuel and energy resources, − the share of the dominant energy supplier in the total imports of fuel and energy resources, − the share of the dominant type of fuel in the gross consumption of fuel and energy resources, − the ratio of the average daily number of power outages of settlements for the year to the total number of settlements, − the volume of investments in fixed assets in the energy sector as a percentage of the total volume of investments in fixed assets. The values of these indicators until 2030, defined by the Energy Security Concept, are presented in Table 6.

Table 6 - Energy security indicators up to 2030 defined by the Energy Security Concept

Responsible for Threshold Indicator values by year achieving levels Indicator Name indicators N1 C2 2020 2025 2030 2035 Gosstandart, Ministry of Energy, 1. The ratio of the 30 16 16 17 18 20 concern volume of production "Belneftekhim" , (production) of primary regional executive energy to the gross committees and consumption of fuel and 3 PS PS PS PS Minsk City energy resources, percent Executive Committee

1 N – normal level 2 C – critical level 3 PS – pre severe level 44

Responsible for Threshold Indicator values by year achieving Indicator Name levels indicators N1 C2 2020 2025 2030 2035 2. The share of the Ministry of Energy, dominant energy supplier in 65 85 85 80 75 70 concern the total imports of fuel and "Belneftekhim" energy resources, percent К ПК ПК ПК 3. The share of the 50 70 57 55 52 50 dominant type of fuel in -”- gross consumption ПК ПК ПК Н 4. The ratio of investment in fixed assets invested in the development 6 4 7 6,5 6,5 6,5 of the FEC to the initial cost -”- of fixed assets of organizations of the FEC, Н Н Н Н percent 5. The share of the Ministry of Energy, dominant energy resource 50 80 70 60 50 < 50 Oblast Executive (gas) in the production of Committees, Minsk heat and electric energy, City Executive ПК ПК Н Н percent Committee 6. The ratio of the average number of violations of electricity 0,5 2 0,4 0,4 0,4 0,4 Ministry of Energy supply of settlements for the year to the total number of settlements, percent Н Н Н Н

4.2. A significant increase in the share of renewable energy in the energy structure

Goal 7.2 SDG 7: By 2030, significantly increase the share of renewable energy in the global energy mix. At the global level, an indicator of achievement of target 7.2 has been defined: the share of renewable energy sources in the total final energy consumption. The national indicator is the ratio of the volume of production (production) of primary energy from renewable energy sources to the volume of gross consumption of fuel and energy resources.

Legal support for the implementation of task 7.2 is carried out in accordance with the Concept of Energy Security of the Republic of Belarus and the Law “On Renewable Energy Sources”. The source of data in determining the national indicator is the fuel and energy balance of the Republic of Belarus. The indicator is calculated as the ratio of the volume of production (production) of primary energy from renewable energy sources to the volume of gross consumption of fuel and energy resources, percent. The energy security concept has established the achievement of a ratio of the volume of production (production) of primary energy from renewable energy sources to the gross consumption of fuel and energy resources in 2030 of 8 percent. An additional indicator characterizing the development of renewable energy sources is the share of renewable sources in the production of electric energy. The values of the indicators until 2030, defined by the Energy Security Concept, are presented in Table 7.

Table 7 - Indicators of the development of renewable energy sources until 2030, defined by the Energy Security Concept

Responsible for Threshold Indicator values by year achieving levels Indicator Name indicators N4 C5 2020 2025 2030 The ratio of the volume of production 14 5 6 7 8 Gosstandart, (production) of regional executive primary energy from committees, renewable energy Minsk city sources to the gross 6 executive consumption of fuel PS PS PS committee and energy resources, percent Electricity production - 39,9 41,6 42,1 - total: including: renewable energy 0,95 1,8 2,1 -

4 N – normal level 5 C – critical level 6 PS – pre severe level 46

4.3. Promotion of a significant increase in energy efficiency 4.3.1. National goals

According to the National Strategy for Sustainable Socio-Economic Development of the Republic of Belarus for the period until 2030 (hereinafter - NSDS-30), the main task to increase the efficiency of using FER is to bring Belarus closer to developed countries in terms of energy intensity of GDP as the main energy criterion for the development of the country's economy. At present, it is 1.5-2 times higher than the similar indicator of economically developed countries, 1.5 times higher than the countries of the Organization for Economic Cooperation and Development (OECD). NSDS-2030 determines the achievement of energy intensity of GDP by 2030 220 kg c.e./ million BYN. (in 2005 prices).

Table 8- Energy intensity of GDP according to NSDS-2030

Name 2020 2025 2030

Energy intensity of GDP, kg c.e./ million BYN (in 2005 285 245 220 prices)

To achieve the level of developed countries in terms of energy intensity of GDP, it is necessary to ensure the amount of savings in fuel and energy resources for the period under consideration at least 1 million toe annually. In EU countries, national energy efficiency goals are set in accordance with the Energy Efficiency Directive 2018/2002/ EU, which defines the goal of improving energy intensity per unit of GDP by at least 32.5% by 2030. The 32.5% goal is to reduce primary and final energy consumption compared to the baseline of the PRIMES scenario7 (Business as Usual - BAU), established in 2007.

7 The PRIMES energy system model (price-balanced market equilibrium system) was developed by the Laboratory for Modeling Energy, Economics and the Environment at the National Technical University of Athens based on a series of research programs funded by the European Commission 47

Since achieving a final energy reduction of 32.5% is more difficult than achieving primary energy, the goal for final energy is more important. The base PRIMES scenario for Belarus has not been established; the target of 32.5% is calculated in accordance with the Belarusian BAU scenario. The approximate target is reflected in the primary energy intensity, and should be comparable with the national goal of 317 kg c.e./ million BYN (in 2005 prices) by 2030, and this goal is also reflected in the final energy intensity. It is assumed that the primary energy intensity of gross domestic product (total primary electricity / GDP) will be 376 kg c.e./ million BYN (in 2005 prices) by 2030 according to the BAU scenario at the current level. The estimated target for Belarus is 254 kg c.e./ million BYN (in 2005 prices) by 2030, this will mean a decrease of 32.5%.

Table. 9 - Primary energy intensity of gross domestic product - national target and indicative target in accordance with Article 3 of Directive 2018/2002 / EC, kg c.e./ million BYN (at 2005 prices)

Name 2020 2025 2030

Gross Domestic Product Energy Intensity - BAU Scenario 376 376 376

Gross Domestic Product Energy Intensity - National Target 370 353 317

Energy intensity of gross domestic product - indicative target 376 316 254 under EU Directive

Thus, in order to achieve the goal of Article 3 of the Directive 2018/2002 / EU, it is necessary to save 16.4% more compared to the current national goal for 2030 (although this is not mandatory for Belarus as an observer in the Energy Community). The approximate target indicator of the final energy intensity of the gross domestic product for Belarus is 183 kg c.e./ million BYN (in 2005 prices) in accordance with Article 3 of Directive 2018/2002 / EC.

Table 10 - The final energy intensity of the gross domestic product is an indicative goal in accordance with Article 3 of Directive 2018/2002 / EC, kg c.e./ million BYN (in 2005 prices)

Name 2020 2025 2030

Final Energy Intensity of Gross Domestic Product - Baseline 272 272 272 Scenario

Final energy intensity of gross domestic product - indicative 272 228 183 indicator according to EU target

The concept of energy security in the field of energy efficiency of the final consumption of fuel and energy resources defines the goal of achieving energy intensity of GDP of 317 kg c.e. / million BYN (in 2005 prices) by 2030. Table. 11 – Goals in the field of energy efficiency of final energy consumption of fuel and energy resources established by the Energy Security Concept

Threshold levels Indicator values by year Responsible for

Indicator Name 8 9 achieving N C 2020 2025 2030 indicators Energy intensity of GDP 160 485 370 353 317 (in 2005 prices), kg c.e. / Gosstandart PS10 PS PS million BYN

4.3.2. Short term goals for industries 4.3.2.1. State Energy Saving Program 2016 - 2020

In addition to the national energy efficiency targets mentioned above, Belarus also set short-term energy efficiency targets for industries. The National Energy Saving Program for 2016–2020 provides for a 2% reduction in energy consumption by the industrial sector between 2015 and 2020. This indicator is lower than the potential for savings and implies that additional measures may be taken.

8 N – normal level 9 C – critical level 10 PS – pre severe level 49

The targets of the National Energy Saving Program for 2016–2020 are set at a saving level of 5,000 thousand tons c.e.

4.3.2.2. State Energy Saving Program 2021 - 2025

It is expected that the adoption of another state energy conservation program for 2021-2025, but its budget has not yet been determined. It is expected that total energy savings of 5,000 t c.e., and will consist of: − total final energy savings: 4000 thousand t c.e.; − cumulative primary energy savings: 875 thousand t c.e. (for example, installation of small cogeneration plants, reduction of heat losses in heat pipes); − total renewable energy sources: 125 thousand t c.e.

The expected cumulative reduction in CO2 emissions is 6,274 thousand tons.

4.3.2.3. State Energy Saving Program 2025 – 2030

Even after the three State Energy Saving Programs, it is likely that the potential savings will still be significant. During this period, total energy savings are estimated at 4,000 t c.e. and will consist of: − total final energy savings: 3300 thousand t c.e.; − cumulative primary energy savings: 575 thousand t c.e.; − total renewable energy sources: 125 thousand t c.e. The expected cumulative reduction in CO2 emissions is 2,817 thousand tons. The necessary investments will amount to about 9.84 billion rubles.

4.3.3. Additional indicator

As mentioned earlier, the main indicator in the field of efficient use of fuel and energy resources is the energy intensity of GDP.

An additional indicator in the field of energy efficiency is the ratio of the value of imports of energy goods to GDP. The indicator “the ratio of the value of energy imports to GDP” is defined by the Energy Security Concept at a rate of 17% by 2030 (see Table 12).

Table 12 – Energy Security Concept indicator “ratio of the value of energy imports to GDP” by years

Threshold Indicator values by year Responsible for Indicator Name levels achieving Н К 2020 2025 2030 indicators 15 30 19 18 17 Ministry of Economy, The ratio of the value of Ministry of energy imports to GDP, Energy, percent ПК ПК ПК Concern "Belneftekhim"

In the framework of achieving SDG7, effective scientific support is required, which provides for the implementation, within the framework of state programs and individual projects, of research, development, experimental and technological work and the subsequent implementation of their results in production. The tasks of developing scientific potential: − development and improvement of the effectiveness of scientific, scientific and technical activities, the formation of a market for scientific and technical products and services: energy-efficient technologies, energy innovations; − implementation of the closed chain “science - practical application in real sectors, solving social problems” in maintaining a favorable

environment, reducing the anthropogenic pressure on the environment, rational use of all types of natural resources; − achieving high energy standards of living for the population, promoting the development of innovative processes in order to transfer to a new technological structure in the economy; − implementation of state, international scientific projects and programs. The main directions of the development of the fuel and energy sector, with the participation of the National Academy of Sciences of Belarus, industry institutes, higher education institutions and other organizations performing research and development, are: − use of energy efficient technologies; − use of nuclear and radiation technologies for the safe operation of nuclear power plants at all stages of the fuel cycle; − use of local energy resources, primarily renewable energy sources; − research of technically feasible, economically feasible and environmentally acceptable potential for the use of local fuels; − control, accounting and intelligent management of consumption and production of fuel and energy resources; − energy efficient planning of cities, districts, sectors. In 2016-2020, scientific research is carried out as part of the State program of scientific research "Energy systems, processes and technologies." Total funding is amounted as $ 26.3 million. State customers of the program are: National Academy of Sciences of Belarus, Ministry of Education. The leading implementing organizations are the State Scientific Institution “Institute of Heat and Mass Transfer named after A.V. Lykov of the National Academy of Sciences of Belarus", Belarusian National Technical University. List of subprograms: 1. «Energy security and reliability of energy systems»,

2. «Effective Thermophysical Processes and Technologies», 3. «Nuclear Energy and Nuclear Technology». The goals and objectives of the program "Energy systems, processes and technologies" are: − scientific support of energy security, the creation of advanced science- intensive technologies and processes to reduce energy intensity and increase the technological competitiveness of the national economy and social sphere, the safe development of nuclear energy; − scientific support for the economic efficiency of the functioning of the fuel and energy complex and increase its competitiveness to meet the real energy needs of the Republic of Belarus, taking into account the country's material and financial resources; − development of the scientific and technical foundations of thermophysics, chemical physics, combustion and explosion processes, plasma physics, heat and mass transfer in complex objects, media and substances, new power plants and heat exchangers to create advanced science-intensive technologies and processes that reduce energy intensity and increase technological competitiveness of the national economy (energy, medicine, industry, vehicles) and the social sphere; − development of advanced nuclear energy systems and technologies aimed at use in various industries, nuclear power, medicine and ecology. State scientific and technical programs (SSTP) "Energy 2020" is formed for the scientific and technical support of functioning of the enterprises of the Ministry of Energy. The goal of SSTP: the development and implementation in the production of import-substituting equipment, technologies, systems in order to increase the efficiency of the energy sector (in the generation and distribution of electric and heat energy, gas, local fuels).

The following studies are planned within the framework of the SSTP “Energy 2020”: − development and organization of production of a series of hot-water electric boilers with a capacity of 1 MW to 20 MW - $ 700 thousand; − development of a gas pressure regulator, axial, direct-flow, with safety valve Dn 50 (РГП-50) - $ 47.7 thousand; − development and manufacture of a prototype gas control system for gas control systems and other hazardous industrial facilities - $ 36 thousand; − development of the production of small-sized reinforced concrete transformer substations - $ 15.4 thousand; − development and commercial production of reclosers for networks 6- 10 kV - 10.8 thousand $.. In order to ensure the accelerated development of scientific research in the field of sustainable energy and energy saving, planning measures for the efficient use of energy resources; development of high-tech innovative energy-efficient and resource-saving technologies; The priorities of research and development that reflect the global trends of scientific and technological progress and the use of information and communication achievements have identified the following main areas: − development and strengthening of scientific potential: o an increase in the number of students at the I and II levels of postgraduate education in open specialties and the provision of training for highly qualified scientific workers for their own needs and for the needs of other organizations of the Republic of Belarus; o the elimination of age-related imbalances among workers performing research and development; o the organization of joint training departments with educational institutions;

o hiring of young professionals with a certain experience of participation in the implementation of research and development; o ensuring the continuity of scientific knowledge and research methods by attracting leading scientists of the country and abroad as consultants, experts, scientific leaders of PhD studies; o internship of young employees performing research and development in the relevant foreign organizations; o the formation of all the components of the personified remuneration of workers performing research and development, depending on performance and qualifications, the development of a system of grant support for young scientists, payments for academic degrees and titles to retired employees, subject to their participation (including voluntary basis) in scientific (pedagogical) activity; o the creation in the subordinate organizations of the Ministry of Energy of structural units responsible for the implementation (development) of the results of scientific, scientific, technical and innovative activities; − participation in the development of the state ordering system for research and development in the field of energy and energy efficiency: o determination of priority areas of scientific and scientific- technical activity in the field of energy and energy efficiency, based on national interests and tasks; o participation in the formation and implementation of scientific and technical programs, research programs, sections of scientific support for the implementation of state programs, the state program of innovative development of the Republic of Belarus, Union State programs, other programs, plans for scientific research and development of national, sectoral purpose, aimed at scientific technical support for energy and energy efficiency; 55

o gradual transition to the financing of applied research and development at the expense of manufacturers and consumers of created scientific and technical products. Information support of scientific and technological activities should include: − market analysis of research and development services in the field of sustainable energy development and energy efficiency, the use of renewable energy; − issue of scientific journals, booklets and other media; − organization of subscription to online publications, access to electronic libraries; − extension of local networks and Internet access; − development and implementation of automated information systems for the collection, processing and operational transfer of various data; − carrying out research work aimed at developing a system of scientific and technical information; − keeping records of the results of scientific, scientific, technical and innovative activities; − participation in conferences, seminars and other scientific events. Within the framework of international cooperation is needed: − scientific support and ensuring compliance with the commitments of the Republic of Belarus in the field of energy and energy efficiency, the use of renewable energy adopted in accordance with international treaties; − conclusion of new agreements in the field of energy and energy efficiency, the use of renewable energy with relevant organizations of the Russian Federation, Ukraine, Kazakhstan, Poland, Lithuania, Serbia, Georgia, Spain, France, Italy and other countries; − internship of employees performing research and development in the relevant foreign organizations; − participation in the preparation of investment agreements and projects

of international technical assistance projects; − implementation of the programs of the Union State, the EAEU and the CIS; − development and implementation of joint projects.

5. Impact modalities for implementing actions to achieve SDG7: 5.1. Mobilizing funding to significantly increase financial resources and provide more support for private sector financing by adapting new commercial tools and expanding private sector support programs;

5.1.1. ESCO

The current procedure for financing energy-saving measures for the private sector is regulated by the Law on Energy Saving, the Regulation on the Procedure and Conditions for Compensating Partial Interest on Bank Loans to Legal Entities, approved by the Decree of the President of the Republic of Belarus dated March 28, 2006. No. 182. According to the reporting data, 1,129 million rubles were allocated for the implementation of the general complex of energy-saving measures of the State Energy Saving Program for 2016-2020 from all sources of financing in 2016, and in 2017 - 1,280 million rubles, which amounted to 62.5 percent 63.1 percent of the plan, respectively. The main resources for the implementation of measures were the own funds of enterprises. The potential of the energy services market of the Republic of Belarus is estimated at 700 million rubles per year. he main goal of implementing the mechanism of energy service contracts is to attract extrabudgetary sources of financing (investment) in the modernization of equipment and increase the energy efficiency of organizations through the 57 conclusion of such contracts without attracting additional costs from customers of energy service companies, as well as budget funds at all levels, which will allow to save on consumption energy resources. An energy service contract is a comprehensive contract that includes the provision of investment energy audit services, the development and implementation of energy-saving measures (equipment replacement, repair, modernization, etc.) due to investments from the contractor. The return of invested funds is carried out only due to the economic effect of the implementation of energy-saving measures. After equipment modernization, in the absence of savings, the contract is considered not executed, and payment under the contract is not made. In case of achieving savings on payments for energy resources, the saved funds are distributed between the energy service company and the customer. The share of the distribution of savings between the customer and the contractor is determined on the basis of the energy service contract. The key points in the implementation of energy service contracts include: − creation of a special legal regulation mechanism in the field of financing energy-saving measures; − the choice as a priority model of the energy service contract in which the main risks of default lie with the energy service company. At the end of the energy service contract, the customer receives tangible benefits: − implementation of energy saving technologies at the contracted facility; − updating of fixed assets for production and metering of energy resources of an object; − cost savings in energy and maintenance costs. In comparison with the traditional approach to modernization, the energy service contract has several advantages: − economic component: in contrast to the traditional approach to energy modernization, in this case there is an interest of the energy service

company itself in maximizing savings through a long-term contract, in conditions of limited investment; − lack of financial risks for the customer: the energy service company guarantees financial savings and assumes all project risks; − lack of financial investments on the part of the customer: the project is financed by a third party (as a rule, credit organizations), at the same time, remuneration is provided “guaranteed by savings”. As a result of the implementation of the energy service contract, savings in utility costs translate into investments in energy efficiency. Factors holding back the development of energy service contracts in Belarus are: − lack of confidence in the energy service contracts due to its lack of understanding of the mechanisms; − risks of choosing an incompetent energy service company; − lack of financial and insurance products designed specifically for the energy service contract itself. The adoption of a regulatory act regulating the activities of energy service companies will create financial and economic prerequisites for: − creating legal conditions for the development of energy services in the Republic of Belarus; − accelerate the implementation of new socially significant projects by attracting financial and other resources of business entities and the use of innovative technologies; − encouraging entrepreneurial initiative in socially significant sectors of the economy; − activation of small and medium-sized businesses, job creation and, as a result, improving the economy; − promoting investment in the country's economy; − promoting the efficient use of energy resources by organizations.

5.1.2. Schemes of interaction between public - private partnerships in the development of charging infrastructure

Public-private partnership (hereinafter - PPP, Engl. Public private partnership) is traditionally understood as mutually beneficial cooperation of state authorities (organizations) (state partners) and business entities (private partners) with respect to objects located in the field direct state interest and control, or services provided by the state, on the basis of a specially concluded agreement. PPP can be characterized: − PPP stakeholders are government and private business; − cooperation between the stakeholders is fixed on the official, the legal basis; − stakeholder engagement is equitable; − PPP has a clearly defined public social focus; − in the process of implementing projects on the basis of PPPs, the resources and contributions of stakeholders are consolidated; − financial risks and costs, as well as the results achieved, are distributed among stakeholders in predetermined proportions. PP mechanisms are quite numerous and involve a wide and diverse use of private capital in the interests of the state for the creation or modernization, management, financing, etc. its property. The sphere of PPP in Belarus is regulated by the Law of the Republic of Belarus “On Public-Private Partnership” No. 345-З (Law on PPP), adopted on December 30, 2015 and entered into force on July 2, 2016. The Law on PPP determines that public-private partnership - it is mutually beneficial cooperation of state and private partners legally executed for a certain period of time in order to pool resources and share risks, meeting the goals, objectives and principles defined by this Law, carried out in the form of an agreement on public-private partnership om partnership. 60

The state partner is the Republic of Belarus, on behalf of which are a state body authorized by the President of the Republic of Belarus or another state organization, authorized by the Council of Ministers of the Republic of Belarus, a republican government body or other state organization subordinate to the Council of Ministers of the Republic of Belarus, an administrative-territorial unit on behalf of which local executive and administrative body that concluded a PPP agreement. A private partner can be a legal entity (with the exception of state unitary enterprises, state institutions and state associations, as well as business companies, more than 50 percent of the shares (shares in the authorized capital) of which belong to the Republic of Belarus or its administrative-territorial unit), a foreign organization, not being a legal entity, individual entrepreneur, concluded an agreement on public-private partnership. The objectives of public-private partnerships are the concentration of material, financial, intellectual, scientific, technical and other resources, ensuring a balance of interests and risks, raising funds from extrabudgetary sources for the implementation of projects, plans and programs for the development of infrastructure. The main objectives of PPP are: − creation of conditions for ensuring sustainable socio-economic development and national security Belarus; − improving living standards; − improving the efficiency of use of property, including land owned by the state; − development of innovative activities, high-tech industries; − raising the technical level of production, improving technological processes; − development of infrastructure; − improvement of engineering and technical means of protection, means and security systems used to prevent and detect terrorist and other illegal activities;

− efficient use of budget funds; − improving the quality of goods (works, services) sold (performed, rendered) to the population; − ensuring employment growth. PPP can be implemented with respect to infrastructure in the following areas: − road and transport services; − utilities and municipal services; − healthcare; − social services; − education, culture; − physical culture, sports, tourism; − telecommunication; − energy; − oil refining, transportation, storage, supply; − transportation, storage, gas supply; − agro-industrial production; − defense, law enforcement; − scientific and technical activity; − other areas.

5.2. Specific policy and regulatory elements for achieving SDG 7;

5.2.1. Priority areas

The long-term goal of the development of the republic’s fuel and energy sector within the framework of achieving SDG7 is to satisfy the needs of the country's economy and population in energy resources on the basis of their most efficient use while reducing the environmental burden. Achievement of SDG7 through: 62

− economic and energy efficiency of energy production and distribution, modernization and development of generating sources of the power system, electric and heat networks through the introduction of highly efficient equipment, the use of modern advanced technologies with the decommissioning of less economical and obsolete equipment; − energy independence, including at the expense of the maximum possible, taking into account the economic and environmental feasibility of involving own fuel and energy resources in the fuel balance; − diversification of types and suppliers of fuel and energy resources (FER) in the formation of the country's fuel and energy balance with an increase in their storage volumes, ensuring the reliability of supplies, reservation, processing and distribution of FER, − improving energy management system and its organizational structure, the financial recovery of power supply companies; − energy efficiency of final energy consumption, − affordability of energy resources to consumers.

5.2.2. Economic and energy efficiency of energy generation and transmission

Improving the economic and energy efficiency of energy generation and transmission is possible by: − creating a favorable economic environment, including the formation of a rational system of domestic energy prices; − commissioning of generating capacities on fuel and energy resources alternative to gas, including nuclear fuel; − decommissioning inefficient generation capacity;

− the implementation of daily regulation of electricity consumption, taking into account the commissioning of nuclear power plants, the development of a set of measures to increase the regulatory range of the energy system, the mandatory involvement of all generating capacities in the regulation of the daily electricity consumption schedule, regardless of ownership and departmental subordination; − introduction storage technology of electrical and heat energy; − optimization of fuel backup systems at energy facilities; − the use of modern technologies in the production of electricity and heat in the construction of energy facilities and renewable energy sources; − development of power grids, using science-based regulatory framework, the use of modern equipment and automated control systems that reduce electrical energy losses during transportation, operating costs and increase the reliability of power supply; − reduction of specific fuel costs for the electric and heat energy generation due to the modernization of inefficient morally and physically obsolete fixed assets of the fuel and energy complex.

5.2.3. Energy independence

One of the most important factors in achieving TSUR7 is to increase the level of security of energy needs from its own energy resources. Increasing energy independence should be carried out taking into account the maximum possible involvement in the fuel and energy balance of local energy resources, especially renewable energy sources.

5.2.4. Diversification of suppliers and types of energy resources. Reliability of supplies, reservation, processing and distribution of fuel and energy resources

The long-term goal of diversifying imports of fuel and energy resources is to achieve a level that allows smooth operation while restricting supplies by the dominant supplier for each type of fuel. To complete this task, it’s necessary: − participate in the development of oil and gas resources of foreign countries, the organization of their supplies to the Republic of Belarus; − develop economically viable options for hydrocarbon supplies to Belarus; − carry out economically feasible import of fuel and energy resources from countries which are not dominant suppliers; − increase the amount of energy resources transit; − increase payment discipline, prevent the formation of overdue debts for imported fuel and energy resources; − ensure timely commissioning of energy facilities. Diversification of energy sources should be based on a decrease in the use of natural gas due to: − involvement in the fuel and energy balance of the country's local energy resources, especially renewable energy sources; − use of nuclear energy, participation in the work of the International Uranium Enrichment Center. To ensure the technical reliability of fuel and energy resources, it is necessary to prevent an increase in the level of depreciation of fixed assets of the fuel and energy complex (more than 45 percent), to modernize and commission new generating capacities.

The long-term goal of the reservation is to achieve the level of reserves, which allows uninterrupted operation of the energy sector organizations for a long period in case of restricting supplies from the dominant energy resources supplier. This requires the creation and maintenance of: − oil reserves in amounts sufficient for oil refineries within 10 days; − reserves of petroleum products in amounts sufficient to meet the organizations and needs of the population of the republic within 30 days (with the prospect of increasing up to 45 days by 2035), including organizations of the Belarusian State Oil and Chemistry Concern - within 15 days; − fuel supplies, including spare (oil, etc.), to power generation facilities, sufficient for them to operate for 30 days. In addition, to ensure energy security and regulate seasonal unevenness in gas demand, it is necessary to expand the volume of underground gas storages in the territory of Belarus.

5.2.5. Improving the Energy Management System of fuel and energy complex and its organizational structure

Improving Energy management system of fuel and energy complex and its organizational structure should be carried out by creating a wholesale electric energy market and its integration into the wholesale electricity market states - members of the EAEC. This will contribute to: − attracting private capital of domestic and foreign investors in the electric power industry; − diversification of electricity supplies as a result of the formation of market infrastructure and mechanisms for integration into the energy market of the countries of the European Union and the states -

participants of the EAEC and the Commonwealth of Independent States; − implementation of the commitments undertaken by the Republic of Belarus with regard to the formation of a common energy market of the Union State of Belarus and Russia, the EAEC, the Commonwealth of Independent States. In order to adapt to market conditions power grid management structure necessary it is necessary to carry out the following series of measures to improve the management system: − unbundling of energy production by type of activity for the generation, transmission, distribution and supply of electric and heat energy with the creation of appropriate business entities; − ensuring cost transparency at all stages of the generation, transmission, distribution and supply of electric and heat energy; − development of the draft Law of the Republic of Belarus “On Electricity” and sub-legal acts, the "road map" for the transition to a market economy.

5.2.6. The energy efficiency of final consumption of energy resources

The main task of increasing the efficiency of using fuel and energy resources is to get as close as possible to the developed countries in terms of energy intensity of GDP as the main criterion for energy development of the country. The main ways of saving energy resources: − structural restructuring of the economy, aimed at the development of less energy-intensive industries, a significant expansion of the service sector, the replacement of products with a large specific gravity of the energy component with a less energy-intensive, specialization and

cooperation in the use of production (thermal, galvanic, chemical- thermal, foundry) of the most modern energy-efficient technologies; − the introduction of modern energy efficient technologies, equipment and materials, including the organization of the production of energy efficient equipment, development of electric and hybrid vehicles; − increasing the level of energy efficiency and resource saving by standardization methods; − improvement of metering and control systems for energy resources and energy consumption, including the coverage of electric energy consumers with smart meters, door-installation of heat meters at the sites of new construction; − improvement of the economic and organizational mechanisms to stimulate energy saving; − phased transition to energy-efficient construction, thermal modernization of existing buildings; − improving the energy audit organizations, the development of energy service activities, expertise in terms of energy efficiency projects.

5.2.7. Economic availability of energy resources to consumers

The energy policy in the field of tariff setting for energy resources should be based on equal access of the population and other consumers to fuel and energy resources.. Elimination of cross subsidies (including the development of public support for the poorest part of the population) will ensure the affordability of energy resources for households with the lowest income. At the same time, tariffs for electric and heat energy, as well as prices for motor fuel, should stimulate the rational use of fuel and energy resources and provide profit to the fuel and energy

68 complex organizations necessary for their development and ensuring the reliability of energy supply.

5.2.8. Renewable Energy Development

The priority areas for the development of renewable energy sources and mitigation of the integration of generating sources of renewable energy sources to the grid should be: − the development of renewable energy use in the production of heat energy; − participation of renewable energy generation sources in the regulation of the power system load; − the use of market-based mechanisms in the pricing of electricity generated by renewable energy plants in order to achieve a balance between the efficiency of renewable energy investments and the competitiveness of prices for electricity generated by renewable energy sources; − optimization of electricity markets generated by renewable energy generating sources, including for export. Currently, the use of renewable energy sources in the country is developing occurs predominantly by way of heat energy generation from renewable. Further development of heat supply from renewable energy sources, including using heat pumps, is reasonable in all regions where there is no centralized heat supply from generating sources with combined production of electric and heat energy. In order to develop the production of electric energy from renewable energy sources, including variable renewable energy sources, and mitigate the negative impact of the integration of generating sources into the grid, it is necessary:

− to develop uniform methodological approaches to identify the technically and economically feasible amounts of RES introduction for the period after commissioning of nuclear power plant; − in the framework of the implementation of the Law “On Electricity” and the establishment of the wholesale and retail electricity markets to set rules for access to the wholesale and retail electricity markets for the generation of renewable energy sources, which should be set out, in particular in the following documents: − The rules of the wholesale electricity market of the Republic of Belarus, − The rules of the retail electricity market of the Republic of Belarus, − The rules of power facilities and connection of electrical power consumers to the electric grids; − to assess the feasibility of introducing a capacity market with the allocation of the renewable energy sector in it; − to develop a mechanism for the provision of system services by generating sources using renewable energy sources in the field of regulating the daily schedule for covering the electrical load of the energy system, including in the conditions of the functioning of the wholesale and retail electricity markets, and tariffs for this type of service; − perform RES generators generate electricity forecasting their generating sources on the next day and to provide predictive hourly daily schedule active power supply on the base, including weather forecasts, as well as timely adjustment of the forecast for the generation of electric energy and power supply in the event of a change in the weather forecast and (or) weather conditions; be responsible for non- compliance with such schedules; − explore the possibility of improving the mechanism of implicit demand management from the introduction of additional tariffs;

− conduct research, determining the technical and economic possibilities of regulation in electricity demand, as well as cost-effective levels of material incentives for consumers involved in the management of the explicit demand; − develop a mechanism for the sale of renewable electric energy under bilateral contracts at negotiated price between renewable energy producers and consumers in those cases when the owner of the distribution network through which the generated renewable energy is transmitted is either the buyer or the producer; in the mechanism - take into account the conclusion of an agreement between the buyer of electric energy from the renewable energy source of the manufacturer, and the energy supplying organization for reservation to ensure the uninterrupted operation of the electrical installations of the buyer and develop tariffs for this service; − choosing the construction site of power generators using renewable variables so as to avoid concentration in one place; − conduct complex type auctions, incl. within a quota allocation mechanism, which will be exposed plot indicating the range of possible power generation facility (quota) depending on the power source connection calculated value of payments in the local budgets, etc.; − expand the use of power generated from renewable energy generating sources, intended solely for the business activities of their owners, to supply those processes for which the electricity demand schedule coincides with the electricity generation schedule; − to develop a concept for the development of the market for energy storage systems, in which to determine the most promising directions (scenarios) for the development of the market for electricity storage systems, including to consider the possibility and expediency of using energy storage systems as part of distribution energy, large centralized

energy, in the hydrogen cycle for energy with high requirements for autonomy, mobility, environmental friendliness, and also take into account the development of our own industrial potential in the field of production of electric energy storage, transfer of the best available technologies and their integration with domestic components; − implement a number of pilot projects using electric storage systems, support the implementation of R&D support, remove regulatory barriers, develop measures to stimulate demand for electric storage systems and develop the market, and take measures to develop scientific and technological infrastructure; − create facilitated conditions of export of renewable electricity; renewable energy producers should be able to independently conclude contracts with foreign buyers; − determine the feasibility and expediency of trading (sale) "green" certificates on the international market; − conduct studies determining the feasibility of working in the electric power market of all renewable energy generating sources through a single aggregator; − conduct studies determining the technical feasibility and economic viability of creating virtual power plants.

5.3. Expansion of international cooperation;

The main objectives for expanding international cooperation, as defined by the Energy Security Concept, are: − integration to the global energy sector, − the development of cooperation with the main trade and economic partners, − export expansion.

Enhanced cooperation with foreign trade and economic partners is also necessary to increase the economic efficiency of the fuel and energy complex, ensure the implementation of SDG7, improve the energy security of our country, and also to use the geostrategic potential of the Republic of Belarus. This cooperation should be carried out in the following areas: − development and implementation of joint projects with partner countries to improve energy security, primarily within the framework of the Union State of Belarus and Russia and the Eurasian Economic Union (EAEU), providing for the creation of joint reserves of fuel and energy resources and material and technical resources, as well as the provision of other mutual assistance measures to eliminate the consequences of threats to energy security; − solving the issue of export of electric energy from the Republic of Belarus to the countries of the European Union taking into account the planned withdrawal of Lithuania, Latvia, Estonia from parallel work with energy systems of Belarus and Russia; − active participation in international projects related to the production, trade and transmission of energy resources, operation of transport corridors; − cooperation with the IEA. In the field of energy efficiency, it is necessary to continue and deepen cooperation with international organizations, financial institutions and foundations, such as the World Bank (WB), European Bank for Reconstruction and Development (EBRD), Global Environment Facility (GEF), United Nations Economic Commission for Europe (UNECE), United Nations Development Program (UNDP) and others.

5.4. Strengthening knowledge and analytical capacity;

5.4.1. Knowledge enhancement system

Belarus has created a multi-level system of education in the field of energy efficiency and energy saving, designed for all categories of the population and includes: − educational games in kindergartens, thematic classes, competitions and energy marathons in secondary school; − the basics of energy efficiency in the specialty in higher education; − introduction of the specialty “Energy Efficient Technologies and Energy Management” in four higher educational institutions; − numerous advanced training courses. Systematic awareness-raising measures implemented in the republic include: international and national exhibitions, forums and conferences, educational and educational seminars and training courses at the regional and industry levels, monthly and one-day energy and energy efficiency campaigns, thematic campaigns, media tours, press conferences, online conferences on the rational use of energy resources and best practices for the implementation of energy-efficient technologies. In a number of cities and schools are organized permanent exhibitions, as well as a museum dedicated to energy efficiency. There are a number of thematic publications, such as the research journal "Energy Efficiency" and tutorials on the rational use of energy resources for the children as well as teaching materials and reference manuals. In addition, several small information and educational centers for energy and resource efficiency were created in kindergartens and schools, although in some cases there is a lack of resources and equipment. Awareness-raising and educational initiatives are being implemented through the media and social advertising.

5.4.2. Industry and buildings

Reports on mandatory energy surveys (energy audits) of large and medium- sized industrial enterprises and buildings include specific information on improving energy efficiency for owners and tenants, including a list of measures aimed at reducing the consumption of fuel and energy resources with the main technical and economic indicators (economic effect, required investment , payback period) of their implementation. Energy managers in these enterprises are required to take a compulsory course on energy efficiency. Small enterprises and buildings are not required to conduct energy audits. So far, no education and awareness program, specifically designed for small businesses have been introduced. The introduction of voluntary support for this sector is a potential measure to achieve SDG7.

5.4.3. Energy Managers

Additional training courses for energy managers will assist in the implementation of the measures proposed in the energy audits as well as in energy management systems.

5.5. Potential impact, costs and benefits of proposed actions;

5.5.1. Energy efficiency 5.5.1.1. State Energy Efficiency Program for 2016-2020 years.

The cost of implementing the State Energy Efficiency Program for 2016-2020 for the whole period amounts to 11,040,000. BYN. at 2005 prices. According to the reporting data for 2017, 1.28 million rubles were spent on the implementation of the general complex of energy-saving measures of the State Energy Efficiency Program for 2016-2020 at the expense of all sources of financing,

75 with a plan of 2.03 million rubles. The use of funds by source of funding is presented in Table 13.

Table 13 – Financing of the State Energy Efficiency Program in 2017

Share of Share of Plan Fact the plan total Sources of financing 12 months 12 months thousand thousand % % BYN BYN Republican budget 73 720 90 544 122.8 7,1 including: funds for capital investments 59 996 77 716 129,5 6,1 funds allocated for financing of the 12 184 11 938 98,0 0,9 State Program repayable funds 1 540 890 57,8 0,1

Local budgets 304 500 164 946 54,2 12,9 including: funding for the construction of generating capacity at local energy 21 592 14 333 66,4 1,1 sources, including renewables Extrabudgetary funds (investment 16 745 12 190 72,8 0,9 funds)

Other sources: Own funds of organizations 911 725 829 879 91,0 64,8 Credit resources 571 170 153 454 26,9 12,0 Other sources (including IFIs) 152 440 29 262 19,2 2,3 Total 2 030 300 1 280 275 63,1 100,0 Источник: база данных Департамента Source: Department Database

The investments for individual measures in the energy efficiency program are shown in Table 14.

Table 14 – Investment efficiency of the implemented measures in the State Energy Program for 2016-2017

Share of total Measure BYN/ t c.e. energy savings Final energy saving measures 81.6% 876

Share of total Measure BYN/ t c.e. energy savings Replacement of electric boiler houses and electric water <0.1% 48 heaters with heat sources based on local fuel and energy resources Implementation of infrared heaters for local heating of <0.1% 341 workplaces and in technological processes Other measures to improve the use of fuel and energy 19.6% 377 resources Other measures to improve the efficiency of boiler and 2.2% 380 technological furnaces Replacing gas-burning devices with energy efficient 0.5% 482 Replacing pumping equipment with more energy efficient 2.3% 560 Implementation of group, individual metering and 1.2% 605 automatic control devices in heat, gas, and water supply systems Other measures to optimize heat supply 11.2% 612 Introduction of automatic lighting control systems 5.2% 624 Decentralization of air supply with the installation of local 0.2% 629 compressors Elimination of electrical heating with transfer of the <0.1% 770 process equipment in modern high-efficiency energy resources (natural gas, and other high temperature fluid) Decentralization of local cooling installing refrigeration <0.1% 827 systems Transfer of boilers and other fuel-consuming equipment <0.1% 838 to the use of local fuel and energy resources Introduction into production of modern energy-efficient 29.8% 1,104 and increasing energy efficiency of existing technologies, processes, equipment and materials in production Replacing inefficient boilers and furnaces with a low 1.8% 1,186 efficiency with more efficient Automation of technological processes, implementation 1.1% 1,260 of the automated management system "Energy Efficiency" Commissioning of new boilers and other fuel-powered 0.3% 1,362 equipment operating on local fuel and energy resources Implementation of individual heat points instead of <0.1% 1,450 central heat points Introduction of variable frequency drives on variable load 1.9% 1,563 mechanisms (network cogeneration pumping, sewage pumping stations, water supply systems, draft blower mechanisms of boilers and others) Increased thermal resistance of building envelopes of 4.1% 2,657 buildings, structures, housing stock Input power generation and process equipment operating <0.1% 2,764 by using production waste Conversion of boilers from liquid fuels to gas <0.1% 3,539 Key energy efficiency measures 16.7% 2,670

Share of total Measure BYN/ t c.e. energy savings Implementation of automation of fuel combustion <0.1% 993 processes in boilers and other fuel-using equipment Transfer of heat loads from departmental boiler houses to <0.1% 1,195 combined heat and power plants Decentralization of exhaust systems with the installation 1.3% 1,581 of local suction Commissioning of the power generation equipment based <0.1% 1,725 on steam and gas turbine, combined-cycle, turbo- expander and gas piston plants The introduction of scale prevention devices on the 7.4% 3,987 heating surfaces of boilers and other equipment (magnetic pulse and others) Final energy saving measures 1.7% 6,084 New measures for the 2021-2030 420 Installation of heat pumps 800 Installation of solar photovoltaic systems 1,000 Installation of solar thermal systems 420 Source: Department Database

The share of energy savings in the main areas of energy saving is presented in Table 15.

Table 15 – Energy savings achieved in 2016 and 2017 as part of the State Energy Efficiency Program

2016 2017 Measure thousand thousand t c.e. t c.e.. Introduction into production of modern energy-efficient and increasing energy efficiency of existing technologies, 289,8 276,9 processes, equipment and materials in production Optimization of heat supply 173,1 183,7 Input of generating equipment 92,6 47,8 Introduction of automatic lighting control systems and energy-efficient lighting devices, sectional separation of 44,3 53,7 lighting Improving the efficiency of boilers and process furnaces 42,4 50,7 Increased thermal resistance of building envelopes of building 42,7 35,0 and housing stock Increasing the use of local energy resources 208,9 94,7 Other11 277,7 291,1 Total 1 171,5 1 033,6 Planned 1 000,0 1 000,0 Source: Department Database

11 Includes about 30 categories of smaller measures 78

5.5.1.2. State Energy Efficiency Program for 2021-2025.

The budget funds for the State Energy Efficiency Program for 2021-2025 has not yet been determined. However, the Department of Energy Efficiency expects that it will be necessary to increase the budget by 10% compared with the State Energy Efficiency Program for 2016-2020 to implement energy conservation measures that will achieve savings of 5,000 t c.e. This is due to the fact that the most effective measures in terms of the costs have already been implemented in the previous programх. It is expected that total energy savings of 5,000 t c.e., and will consist of: − the total final energy savings: 4,000 thousand t c.e., − total primary energy savings:. 875 thousand t c.e. (e.g., a small cogeneration plant, reduced heat losses in heat pipes), − total renewable energy sources: 125 thousand t c.e.. The required investment will amount to approximately 12.15 billion BYN.

Expected total CO2 savings of 6,274 thousand tons.

5.5.1.3. State Energy Efficiency Program 2025 - 2030

Even after the implementation of the three state energy saving programs (2011-2015, 2016-2020, 2021-2025 years) it is likely that the potential savings would still be significant. For this period, total energy savings are estimated at 4,000 t с.e. and will consist of: − the total final energy savings: 3 300 thousand t c.e.., − total primary energy savings:. 575 thousand t c.e. − total renewable energy sources: 125 thousand t c.e..

Expected total CO2 savings of 2817 thousand tons. 79

The required investment will amount to approximately 9,84 billion BYN. Therefore, it is expected that the total energy savings (including renewable energy) through the expansion of existing programs will be 9050 thousand. t c.e., as shown in Figure 1.

12 000

10 000

8 000

6 000 kt c.e.kt

4 000

2 000

0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Existing measures Target 2030

Figure 1- Final energy savings between 2021-2030 - existing measures

5.5.2. A comprehensive development plan for the electricity sector until 2025, taking into account the commissioning of the Belarusian Nuclear Power Plant

A comprehensive development plan for the electricity sector until 2025, taking into account the commissioning of the Belarusian Nuclear Power Plant approved by the resolution of the Council of Ministers of the Republic of Belarus on 01.03.2016 No. 169 (hereinafter Comprehensive Plan), defines strategic directions in the electric power industry. The comprehensive plan provides for such technical measures as: − completion of the construction of the Belarusian Nuclear Power Plant in 2020,

− development and implementation of subprograms (subprograms sections) of state programs, the sectoral program for the development of the electric power industry, − integration of the Belarusian nuclear power plant into the integrated Energy System, − elimination of cross-subsidization in electricity tariffs, taking into account the planned growth of real incomes of the population and the system of targeted subsidies to certain categories of citizens, − development of regulatory legal acts governing the formation of electricity tariffs by type of activity (generation, transmission, distribution and supply) based on separate accounting and in accordance with the stages of reforming the energy system, − optimization of tariff levels for electricity used for heating and hot water supply, − the optimization of tariffs for electricity for consumers engaged in calculations for the electricity tariffs, differentiated by time periods, − extension of the list of categories of consumers, carry out calculations for the electricity tariffs, differentiated by time periods. In addition, measures are envisaged to improve the regulatory framework, to optimize the energy management system structure, and foreign economic cooperation. Decree of the Council of Ministers of the Republic of Belarus on August 6, 2018 No. 579 made amendments and additions to the decision of the Council of Ministers of the Republic of Belarus dated March 1, 2016 No. 169 “On approval of a comprehensive plan for the development of the electric power sector until 2025, taking into account the commissioning of the Belarusian Nuclear Power Plant”. In particular, the approved intersectoral complex of measures to increase the electricity consumption until 2025 (hereinafter - the intersectoral complex of measures). The intersectoral complex of measures was formed from investment projects

81 planned for implementation until 2025 in organizations of the Ministry of Industry, Ministry of Transport, Ministry of Construction Architecture, Ministry of Housing and Communal Services, Bellegprom, Belneftekhim, Bellesbumprom Concerns. It included such measures as: the construction of a factory for the production of special vehicles with the reconstruction of existing production, the construction of a factory for the production of special steels, the construction of a factory for the production of gearboxes, lighting of trunk roads, etc. Includes a total of over 60 measures. For the implementation of all approved measures of the intersectoral complex of measures 7725.6 million BYN are required (where: 335.02 million BYN - from the republican budget, 7,390,580,000 BYN - own funds and other sources not prohibited by the legislation.). As a result of the implementation of all measures, an increase in electricity consumption in 2026 is expected to reach 1.6 billion kWh per year, which will improve the technical and economic performance of the Belarusian energy system under the conditions of commissioning of the Belarusian nuclear power plant.

5.5.3. The list of investment projects for the construction of peak-reserve energy sources and the installation of electric boilers

The list of investment projects for the construction of peak-reserve energy sources and the installation of electric boilers developed in accordance with paragraph 1 of the Decree of the President of the Republic of Belarus dated December 22, 2018 No. 493 “On some measures to improve the reliability of the Belarusian energy system” and approved by the Decree of the Council of Ministers of the Republic of Belarus dated January 18, 2019 No. 32. This list includes investment projects for the construction of peak-reserve energy sources at heat power plants of organizations that are part of Belenergo, and the installation of electric boilers planned for sale at thermal power plants, mini- CHP plants, boiler organizations that are part of the SPA " Belenergo ", and at boiler houses of housing and communal services. 82

The specified list defines customers for the construction of energy sources, installation of electric boilers, general design and contracting organizations, as well as organizations that are planned to be involved in certain types of design, individual construction, installation, commissioning and other works. Amounts of financing are not established in the list.

6. Cross-sectoral issues of energy efficiency, renewable energy and access to energy supply

6.1. Priority measures

The main documents regulating cross-sectoral issues of energy efficiency, renewable energy and access to energy supply are: The State Energy Efficiency Program for 2016-2020, the Law “On Renewable Energy Sources”, the Concept of Energy Security, as well as a number of regulatory legal documents regulating the connection of consumers to the grid. Priority cross-sectoral measures are: − replacing pumping equipment with more energy efficient, − introduction of group, individual metering and automatic control devices in heat, gas, and water supply systems, − transition of boilers and other fuel-consuming equipment to the use of local fuel and energy resources, − replacing inefficient boilers and furnaces with more efficient, − commissioning of new boilers and other fuel-consuming equipment operating on local fuel and energy resources, − increase in thermal resistance of building envelopes of buildings and housing stock − transfer of heat loads from departmental boiler houses to combined heat and power plants,

− installation of heat pumps − installation of solar thermal systems − other measures to optimize heat supply, − introduction of modern energy-efficient and improving energy efficiency of existing technologies, processes, equipment and materials in production, − automation of technological processes, the introduction of an automated "Energy efficiency" management system, − implementation of automatic lighting control systems, − installation of solar photovoltaic systems, The above measures are a priority for the future State Programs, have been chosen by one or more of the following reasons: − they provide a relatively large share of savings with a good level of investment efficiency (for example, the installation of new energy- efficient technologies, optimization of heat supply, lighting and a number of “other measures”); − measures that have a lower level of energy savings, but make sense when they are implemented along with other measures (for example, building insulation as part of a broader renovation; cogeneration as part of district heating improvements); − they contribute to the achievement of energy security goals (for example, switching fuel to local sources). New measures in the field of renewable energy sources are also a priority as they lead to a decrease in dependence on imported fuel. In addition to expanding the State Energy Efficiency Program and increasing the number of renewable energy sources, several other measures are planned: − elimination of cross-subsidies in the household sector: it is expected that this will encourage consumers to change their behavior in order to save energy and to introduce measures with zero and low cost;

− development of ESCO, − insulation of buildings in the residential sector, − modernization of street lighting, − construction of a waste incineration plant in Minsk.

6.2. Energy audit

As an alternative strategic measure to achieve energy efficiency goals, a system of mandatory energy audits has been operating in Belarus since 1998, approved by the Law on Energy Saving in 2015. The obligation to perform energy audits has been established for all legal entities, depending on their total annual energy consumption. The law establishes mandatory energy audits every 5 years for legal entities with annual energy consumption of more than 1,500 t c.e. The purpose of the audit is to evaluate energy efficiency and energy saving potential, develop proposals for energy consumption goals, identify possible measures to improve energy efficiency and develop an energy passport for a legal entity. Until 2018, about 400 such inspections were conducted, and the program provides for about 100 audits per year. 12. The energy audit is carried out by an independent certified organization with knowledge and professional experience, provides information on potential energy savings and includes detailed and verified calculations for the proposed measures that are designed to improve energy efficiency, as well as measures to increase the use of local fuels and renewable energy sources. Energy audit of the enterprise should: − be based on the modern, traceable measured and data on energy consumption and (for electricity) load profiles;

12 http://energoeffekt.gov.by/downloads/supervision/inspection/2019_grafik_audit.xls

− include a detailed review of energy consumption profile of buildings or groups of buildings, industrial plants and transport; − propose energy efficiency measures based on life cycle cost analysis (LCCA), simple payback period (SPP) and discounted payback period (DPP) in order to take into account long-term savings, residual value of long-term investments and benefits. The law establishes mandatory progressive consumption rates of fuel and energy resources for legal entities. Progressive consumption rates are set in energy audits, as well as in five-year government energy efficiency programs. Each energy audit must be approved by the Department of Energy Efficiency, which maintains a register of audits and is responsible for the implementation of the annual plan. Measures included in the energy audit should be implemented in accordance with the 5-year plan specified in the audit.

6.3. Accounting and Payment

Since 2000, Belarus has consistently implemented the concept of automation of accounting for all types of energy. Improved accounting and payment for a particular group of consumers will lead to savings, since energy costs will be directly related to their own actions (as opposed, for example, from the behavior within the whole residential quarter). Therefore, consumers will be motivated by actions that correspond to their individual lifestyle and contribute to lower energy consumption and, therefore, its cost.

6.3.1. Electric Energy

According to the instruction on the procedure and conditions for equipping users and producers of electric energy with energy metering devices13 approved by

13 http://minenergo.gov.by/dfiles/000441_944900_69.doc

86 the Ministry of Energy on December 14, 2011 No. 69, all newly installed metering devices must have: − electronic board, allowing to display account and service information stored in the memory unit of accounting and necessary for the conduct of account of electric power; − optical port; − at least two passwords for access to settings and parameterization; − data log. It is planned that by 2023 all existing induction meters will be replaced by electronic meters with integration into automated metering and control systems. As of 01.01.2019, about 51% of single-phase meters and 36% of three-phase meters still needed to be replaced.

6.3.2. Heat energy

According to the approved Concept for the development of heat supply during the construction of new and major repairs of existing industrial, public and residential buildings, house heating systems and hot water supply systems must be equipped with heat energy consumption meters. In the design of residential houses is necessary to provide heating and hot water systems with instruments every apartment accounting and regulation of heat and the possibility of connecting these devices to a device for data collection and transmission. Integrated solutions for the automation of heat consumption systems and the organization of energy consumption metering should be applied with the prospect of creating a unified automated system for monitoring and accounting for energy consumption. According to the design standards in force since 2003, in apartment buildings, it is necessary to install devices for apartment-based regulation and metering of heat consumption (for heating, ventilation and hot water supply). In addition to apartment metering devices, heat meters should be installed for the whole building, providing

87 separate metering of the consumption of thermal energy for heating and hot water supply. In public premises located in residential buildings, heat control and metering devices should be installed individually for each enterprise. In one-story and blocked residential buildings, solutions should be provided that provide the possibility of installing control devices and metering heat consumption (for heating, ventilation and hot water supply). As of 01.01.2019, all residential buildings with 20 apartments or more were fully (100%) equipped with group metering devices. Individual consumer level equipment (door-) metering devices is about 20%.

6.3.3. Natural gas

All industrial consumers and legal entities are equipped with gas metering devices. All apartments and residential buildings where the equipment for heating and hot water supply is installed are 100% equipped with gas meters, while only 28% of the total number of apartments use gas for cooking.

7. Draft of National Sustainable Energy Action Plan for the Republic of Belarus

Period of Responsible No Measure Target performance authority Improving the safety, sustainability and economic efficiency of energy generation, transmission and distribution 1. Commissioning of the Belarusian nuclear power plant 2400 MW 2021 Ministry of Energy 2. Construction of electric boilers in the power system 916 MW 2019-2021 Ministry of Energy 3. Construction of peak standby power sources 800 MW 2021 Ministry of Energy 4. Modernization of electric grid with the introduction of Depreciation of 2019-2030 Ministry of modern automation systems electric networks no Energy more than 40% Losses not more than 9% 5. Modernization of heating networks with the introduction of Depreciation of 2019-2030 Ministry of modern automation systems heating networks no Energy, more than 40% Ministry of Losses not more than Housing and 10% Communal Services 6. Implementation of an intersectoral package of measures to 1191 MW 2019-2025 Department of increase electricity consumption until 2025 2 713 million kWh Energy Efficiency 89

Period of Responsible No Measure Target performance authority 6.1. - in industry sector 101 MW 2019-2025 Ministry of 248 million kWh Industry 6.2. - in transport 353 MW 2019-2025 Ministry of 168 million kWh Transport 6.3. - in chemistry and petrochemistry 269 MW 2019-2025 Belneftekhim 1 281 million kWh Concern 6.4. - in housing and communal services 24 MW 2019-2025 Regional 46 million kWh Executive Committees 6.5. - in other sectors 444 MW 2019-2025 970 million kWh Improving the energy efficiency of final consumption 7. Implementation of state, regional and sectoral energy Saving 2021-2025 Department of efficiency programs in 2021-2025 800 thousand t с.е. Energy per year Efficiency 8. Implementation of state, regional and sectoral energy Saving 2026-2030 Department of efficiency programs in 2026-2030 600 thousand t с.е. Energy per year Efficiency

Period of Responsible No Measure Target performance authority 9. Implementation of strategies for the reconstruction of 1 021 thousand t с.е. 2021-2030 Department of buildings with an increase of energy efficiency Energy Efficiency, Ministry of Housing and Communal Services, Ministry of Architecture and Construction 10. Development and implementation of sustainable urban 811 thousand t с.е. 2021-2030 Department of mobility plans Energy Efficiency, Ministry of Transport, Regional Executive Committees 11. Development and implementation of the “Model State” 66 thousand t с.е. 2021-2030 Government process in the field of energy efficiency bodies 12. Development and implementation of energy service 448 thousand t с.е. 2021-2030 Department of contracts for the implementation of energy efficiency Energy projects Efficiency 13. Integrated implementation of energy management systems 379 thousand t с.е. 2021-2030 Gosstandart 91

Period of Responsible No Measure Target performance authority Improving energy self-sufficiency by involving own fuel and energy resources and renewable energy sources in the fuel balance 14. Implementation of the project on the energy use of Utilization of 500 2020-2025 Minsk city municipal solid waste in Minsk thousand tons of solid executive waste per year committee 15. Construction of energy sources on local fuels, including: 235 346 t с.е. 2019-2025 Regional Executive Committees, Ministry of Housing and Communal Services 15.1. KUPP "Baranovichi communal heating network", 18 200 t с.е. Brest Executive 2024 Baranovichi, Entuziastov St., 30 Committee 15.2. KUPP “Baranavichy communal heating network”, 1 200 t с.е. Brest Executive 2025 Baranavichy, Northern microdistrict - 2 Committee 15.3. KUMPP housing and communal services "Brest housing 1 500 t с.е. Brest Executive 2024 and communal services", ag.Cherni Committee 15.4. KUMPP housing and communal services "Brest housing 2 300 t с.е. Brest Executive 2023 and communal services", ag. Kleiniki Committee 15.5. State Unitary Enterprise "Ivatsevichskoye Housing and 4 200 t с.е. Brest Executive 2022 Public Utilities", Kossovo Committee 15.6. GUPP "Ivatsevichskoe Housing and Public Utilities", 3 100 t с.е. Brest Executive 2025 Ivatsevichi Committee 15.7. Pruzhany KUPP “Kommunalnik” d. Zasimovichi 12 100 t с.е. Brest Executive 2023 Committee 92

Period of Responsible No Measure Target performance authority 15.8. KUPP Borovka, Borovka village, Central boiler house 1 145 t с.е. Vitebsk 2021 Executive Committee 15.9. Unitary enterprise of housing and communal services 588 t с.е. Vitebsk "Ushachsky district, town of Ushachi, Central boiler 2021 Executive house Committee 15.10. УП Unitary Enterprise Housing and Public Utilities of 280 t с.е. Vitebsk the Postavy District, Postavy, PTL Boiler House 2022 Executive Committee 15.11. SE "VPKiTS", Vitebsk, boiler house DSU-3 1 624 t с.е. Vitebsk 2022 Executive Committee 15.12. PMC Housing and communal services, Chashniki, boiler 1 190 t с.е. Vitebsk house RAPT 2022 Executive Committee 15.13. DKUP "PKiTS KUP" Housing and communal services of 718 t с.е. Vitebsk the city of Polotsk ", the town of Vetrino 2023 Executive Committee 15.14. UE Housing and communal services of the Postavy 210 t с.е. Vitebsk district, the village of Novoselki 2023 Executive Committee 15.15. UE Housing and communal services of Liozno district, 1 141 t с.е. Vitebsk Liozno town, Central boiler house 2024 Executive Committee

Period of Responsible No Measure Target performance authority 15.16. KUPP "Borovka", Lepel, boiler house LEMZ 503 t с.е. Vitebsk 2024 Executive Committee 15.17. UE Housing and communal services of the Postavy 880 t с.е. Vitebsk district, Rassvet boiler house 2025 Executive Committee 15.18. SE "VPKiTS", Vitebsk, boiler house "Novka" 1 250 t с.е. Vitebsk 2025 Executive Committee 15.19. UE Housing and communal services of Shumilinsky 101 t с.е. Vitebsk district, ag.Nikitikha 2021 Executive Committee 15.20. Senno district UP housing and communal services, Senno 1 550 t с.е. Vitebsk 2022 Executive Committee 15.21. DKUP "PKiTS KUP" Housing and communal services of 730 t с.е. Vitebsk the city of Polotsk ", ag.Zhernoseki 2023 Executive Committee 15.22. Dokshitsky RUE Housing and Public Utilities 205 t с.е. Vitebsk "Dokshitsy-communal", Begoml 2024 Executive Committee 15.23. DKUPKiTS "Orshateploseti", Bolbasovo 418 t с.е. Vitebsk 2025 Executive Committee

Period of Responsible No Measure Target performance authority 15.24. KZhUP "Gomel rayzhilkomkhoz", n. Korenevka, 350 t с.е. Gomel Zelenaya St. 2021 Executive Committee 15.25. KZhEUP "Yelskoye", the city of Yelsk, st. 50 years of 1 700 т у.т. Gomel the BSSR 2021 Executive Committee 15.26. CUE "Rechitsa rayzhilkomkhoz", Rechitsa, 6 000 t с.е. Gomel Molodezhnaya St. 2022 Executive Committee 15.27. KZhUP "Gomel rayzhilkomkhoz", Iput 259 t с.е. Gomel 2022 Executive Committee 15.28. KZhUP "Gomel rayzhilkomkhoz", n.p. Victory 260 t с.е. Gomel 2023 Executive Committee 15.29. KZhUP "Gomel rayzhilkomkhoz", n.a. Yubileiny 450 t с.е. Gomel 2023 Executive Committee 15.30. KZhEUP "Rogachev", n.p.Vikov 151 t с.е. Gomel 2024 Executive Committee 15.31. Communal Unitary Enterprise "Gomeloblteploset", 1 573 t с.е. Gomel Gomel, Dobrushskaya St. 2024 Executive Committee

Period of Responsible No Measure Target performance authority 15.32. Communal Unitary Enterprise "Gomeloblteploset", 769 t с.е. Gomel Gomel, Kalinin St. 2025 Executive Committee 15.33. Communal Unitary Enterprise "Gomeloblteploset", 366 t с.е. Gomel Gomel, Mogilevskaya St. 2025 Executive Committee 15.34. Communal Unitary Enterprise "Gomeloblteploset", 66 t с.е. Gomel Gomel, ul.Sportivnaya 2021 Executive Committee 15.35. Communal Unitary Enterprise "Gomeloblteploset", 188 t с.е. Gomel Gomel, Shosseynaya St. 2022 Executive Committee 15.36. Branch "Dobrush paper factory" Hero of Labor "UKH" 3 5000 t с.е. 2022 «Bellesbumpro Belarusian Wallpaper " m» Concern 15.37. Delcom 40 LLC, Gomel 7 697 t с.е. 2022 Gomel Executive Committee 15.38. PKUP “Volkovysk KH”, Volkovysk, Victory St. 548 t с.е. Grodno 2025 Executive Committee 15.39. Svisloch RUP housing and communal services, Svisloch 5 086 t с.е. Grodno 2025 Executive Committee

Period of Responsible No Measure Target performance authority 15.40. Korelichskoye RUE of housing and communal services, 534 t с.е. Grodno town of Korelichi, Gagarina 2024 Executive Committee 15.41. Slonim State Unitary Enterprise Housing and Public 950 t с.е. Grodno Utilities, Slonim, Pushkin St. 2021 Executive Committee 15.42. Slonim State Unitary Enterprise Housing and Public 3 347 t с.е. Grodno Utilities, Slonim, Kossovsky Tract 2025 Executive Committee 15.43. Dyatlovskoye RUE housing and communal services, 305 t с.е. Grodno Dyatlovo, Krasnoarmeyskaya St. 2022 Executive Committee 15.44. JSC "Lidahleboprodukt", Lida, Bulata St. 690 t с.е. 2022 Ministry of Agriculture 15.45. RUE "Grodnoenergo", CC "Neman", Lida, Zhukov St. 3 000 t с.е. 2024 Ministry of Energy 15.46. RUE "Grodnoenergo", CC "Smorgon", Smorgon, 3 000 t с.е. 2023 Ministry of Gagarin St. Energy 15.47. UE “Grodnooblgaz”, heat supply of the housing stock of 276 t с.е. 2021 Ministry of TP “Vertelishki” Energy 15.48. Mostovdrev OJSC, Mosty, Sovetskaya St. 15 858 t с.е. 2025 «Bellesbumpro m» Concern 15.49. Belagroterminal LLC, Smorgon, st. Logistic 34 003 t с.е. 2021 Grodno Executive Committee 97

Period of Responsible No Measure Target performance authority 15.50. Borisov Unitary Enterprise "Housing", village of 800 t с.е. Minsk Velyatichi 2021 Executive Committee 15.51. Borisov UE “Housing”, village of Ugly 1 067 t с.е. Minsk 2022 Executive Committee 15.52. UE "Dzerzhinsk Housing and Public Utilities", 1 067 t с.е. Minsk Dzerzhinsk, st. Oktyabrskaya, 72 2022 Executive Committee 15.53. CUE “Kletsk Housing and Public Utilities”, Kletsk, ul. 1 600 t с.е. Minsk Sovetskaya, 90 2023 Executive Committee 15.54. RUE “Logoisk farm”, Logoisk, st. Factory, 36 2 133 t с.е. Minsk 2024 Executive Committee 15.55. Unitary Enterprise “Zhilteploservis”, KH, Pukhovichsky 800 t с.е. Minsk District, Dubrovka 2024 Executive Committee 15.56. Municipal Unitary Enterprise "Smolevichi housing and 4 000 t с.е. Minsk communal services", p. Oktyabrsky 2025 Executive Committee 15.57. UKPP “Kommunalnik”, Gorky, Zaslonova St. 3 700 t с.е. Mogilev 2021 Executive Committee

Period of Responsible No Measure Target performance authority 15.58. Krasnopolsky UPKP "Zhilkommunkhoz", g. Krasnopole, 600 t с.е. Mogilev ul. Sovetskaya 2021 Executive Committee 15.59. Klimovichi UKP “Kommunalnik”, Klimovichi, st. Lenin 1 200 t с.е. Mogilev 2021 Executive Committee 15.60. Khotimskoe UKP "Zhilkomkhoz", town of Khotimsk, 150 t с.е. Mogilev cat. GPTU-215 2021 Executive Committee 15.61. Osipovichi UKP “Housing and Public Utilities”, village 170 t с.е. Mogilev of Lapichi (UMG) 2025 Executive Committee 15.62. Dribinsky UKP "Zhilkomkhoz", d. Dribin, st. 1 800 t с.е. Mogilev Anniversary 2021 Executive Committee 15.63. UKPP "Communal" Gorky, BSAA 1 950 t с.е. Mogilev 2022 Executive Committee 15.64. Kirov UKP "Zhilkomkhoz", p.Zhilichi 700 t с.е. Mogilev 2022 Executive Committee 15.65. Krichevskoye UKPP “Kommunalnik”, Krichev, CRH 200 t с.е. Mogilev 2022 Executive Committee

Period of Responsible No Measure Target performance authority 15.66. Hotimsk UKP "Zhilkomhoz" g.p.Hotimsk 1 350 t с.е. Mogilev 2022 Executive Committee 15.67. UKPP "Kostyukovichsky housing and communal 300 t с.е. Mogilev services", a / g Shareiki 2023 Executive Committee 15.68. Krichevskoye UKPP “Kommunalnik”, Krichev, FLC 121 t с.е. Mogilev 2023 Executive Committee 15.69. Osipovichskoye UKP "Housing and Public Utilities", 650 t с.е. Mogilev Osipovichi, st. Workers and Peasants 2023 Executive Committee 15.70. Shklovsk UKP "Zhilkomkhoz", Shklov 3 000 t с.е. Mogilev 2023 Executive Committee 15.71. Kruglyanskoye UKP Zhilkomkhoz, Krugloy, ul. Soviet 670 t с.е. Mogilev 2024 Executive Committee 15.72. Chausky UKP "Zhilkomkhoz", Chaussy, st. Lermontov 120 t с.е. Mogilev 2024 Executive Committee 15.73. Shklovsky UKP "Zhilkomkhoz", ag.Alexandria, boiler 150 t с.е. Mogilev house USK 2024 Executive Committee

100

Period of Responsible No Measure Target performance authority 15.74. Krichevskoye UKPP “Kommunalnik”, Krichev, DRSU- 155 t с.е. Mogilev 198 2024 Executive Committee 15.75. Khotimskoe UKP "Zhilkomkhoz", Khotimsk, cat. 150 t с.е. Mogilev Boarding House 2024 Executive Committee 15.76. Belynichsky UKP "Zhilkomkhoz", Belynichi, GPTU- 1 200 t с.е. Mogilev 217, st. Michurina, 7a 2025 Executive Committee 15.77. Mogilev UKP "Zhilkomkhoz", ag.Mezhisetki 750 t с.е. Mogilev 2024 Executive Committee 15.78. Slavgorod UKP "Zhilkomkhoz", Slavgorod, boiler house 1 300 t с.е. Mogilev "Central" st. Dzerzhinsky 2025 Executive Committee 15.79. Chausky UKP "Zhilkomkhoz", Chausy, Gagarin St. (Flax 380 t с.е. Mogilev factory) 2025 Executive Committee 15.80. Krichevskoye UKPP “Kommunalnik”, Krichev, 2 000 t с.е. Mogilev Komsomolskaya St. 2025 Executive Committee 15.81. Bykhovskoye UKP "Zhilkomkhoz", Bykhov, Aviation 1 000 t с.е. Mogilev Street 2025 Executive Committee

101

Period of Responsible No Measure Target performance authority 15.82. OJSC "Bobruisk KHP" 1 750 t с.е. 2023 Ministry of Agriculture 15.83. OJSC "Belarusian Cement Plant" 3 000 t с.е. Ministry of Architecture 2021 and Construction 15.84. OJSC "Construction Trust No. 17" branch of the 400 t с.е. Ministry of sanatorium "Chaika" Architecture 2025 and Construction 15.85. Unitary Enterprise "Minskkommunteploset", Minsk, st. 8 360 t с.е. Minsk city Scorins, 48 2022 executive committee 15.86. Unitary Enterprise "Minskkommunteploset", Minsk, st. 1 117 t с.е. Minsk city Pavlovsky, 66 2021 executive committee 15.87. Unitary Enterprise "Minskkommunteploset", Minsk, st. 7 738 t с.е. Minsk city Putilova, 3A 2021 executive committee 15.88. Recycling plant 190 t с.е. Minsk city 2022 executive committee

102

Period of Responsible No Measure Target performance authority 16. Construction of renewable energy generating plants renewable energy 2019-2030 Determined in generation accordance with 2.1 billion kWh in quotas 2030 Cross-sectoral and legislative measures 17. Implementation of the program of creating public charging 1034 electric charging 2018-2030 SPA network for charging electric vehicles stations by 2030 Belorusneft 18. Completion and submission for consideration of the draft of 2025 Ministry of

the Law " On Electricity" Energy 19. Development of the Rules for the wholesale and retail 2025 Ministry of electric energy markets of the Republic of Belarus and other Energy by-laws governing the economic, technical, informational and organizational relationships of participants in the domestic electric energy market 20. Development of a regulatory act regulating ESCO 2022 Department of Energy Efficiency

103

8. Conclusions and recommendations

The fuel and energy complex of the Republic of Belarus ensures the functioning of all sectors of the national economy and the sustainable socio- economic development of the country. The fuel and energy complex of the republic includes systems for the extraction, transport, storage, production and distribution of the main types of energy: natural gas, oil and its refined products, solid fuels, electricity and heat. Two types of industry are distinguished in the fuel and energy sector of Belarus: fuel (oil, gas, peat) and electricity sector. Electricity sector generates, transmit and distributes electrical and heat energy. The generation potential of the Belarusian energy system includes 42 thermal power plants (condensing (GRES) and heat and power plants (TPPs)), 25 district boiler houses, 7.7 thousand km of backbone transmission lines 270-750 kV, 271.6 thousand km power distribution lines, 1354 transformer substations, 7.5 thousand km of heating networks. As of 01.01.2019, the installed capacity of generating energy sources of the Republic of Belarus is 10,068.68 MW, including: thermal power plants – 8,841.08 MW, power station on non-renewable energy sources - 826.4 MW, power plants based on local fuel and energy resources, including renewable energy sources - 10.2 MW. Over 99.8% of all electric energy is generated by thermal power plants. In the electric power industry, Belenergo dominates, being a monopolist in the generation, transmission, distribution and supply of electric and heat energy in large cities. Housing and utilities dominate in the provision of heat supply services mainly in small towns. 104

Natural gas is used as the main fuel; in addition, fuel oil, biomass and secondary heat resources are used in boiler houses. The development of renewable energy sources is carried out mainly in the sector of heat energy generation through the use of firewood and biomass, which is caused by the least investment and the shortest payback period in comparison with other types of renewable energy sources. As of 1 January 2019, 401.2 MW of installed electric capacity of renewable energy sources operated in the Republic of Belarus. In 2017, all business entities from RES generated 903.2 million kWh. In 2017, the share of renewable energy resources in the gross consumption of fuel and energy resources amounted to 6.16 percent, which exceeds the planned targets. Due to the relatively low provision of Belarus with its own energy resources, its needs for energy raw materials are provided by imports, mainly from Russia. The bulk of the imported fuel is oil and natural gas. The fuel industry of the republic is based on imported resources and local fuels and includes the extraction of peat, wood, oil, associated gas, oil and gas processing, and the production of peat and peat-coal briquettes. In Belarus, the main consumers of energy resources are industry - 32.4% of the TPES, transport - 22.2%, and the housing sector (population) - 28.1%. The share of electric energy consumption by the population is 20.5% of the total electric energy consumption in the republic, heat - 41.6% of the total heat energy consumption. According to the SPA "Belenergo" electricity is currently supplied to 100% of the population of Belarus. The main document defining the essence of activities to ensure the reliability of energy supply to sectors of the economy and the population and energy security of the Republic of Belarus is the Concept of energy security. This document defines the following goals by 2030:

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the share of the amount of production (generation) of primary energy to the total consumption of fuel and energy resources is 18 percent, the share of the dominant energy supplier in total imports of fuel and energy resources - 75 percent, the share of the dominant fuel in the TPES - 52 percent the ratio of the average daily number of power outages in settlements for the year to the total number of settlements - 0.4 percent, amount of fixed capital investment in energy as a percentage of the total volume of fixed capital investment - 6.5 percent, achievement of the ratio of the volume of production (production) of primary energy from renewable energy sources to the TPES - 8 percent, GDP energy intensity - 317 kg c.e./ million BYR (in 2005 prices). According to the National Strategy for Sustainable Development-30 (NSSD- 30), the main objective of more efficient use of energy resources - the maximum approximation of the Republic of Belarus to the developed countries in terms of energy intensity of GDP as the main criterion for energy development of the country. NSSD-2030 determines the achievement of energy intensity of GDP 220 kg of equivalent fuel / million BYR (in 2005 prices) by 2030. An additional indicator in the field of energy efficiency “the ratio of the cost of imports of energy goods to GDP” is determined by the Concept of energy security in the amount of 17% by 2030. In addition to the national energy efficiency targets mentioned above, Belarus also set short-term energy efficiency targets for industries. The National Energy Saving Program for 2016–2020 provides for a 2% reduction in energy consumption by the industrial sector between 2015 and 2020; its target indicators are set at a saving level of 5,000 t c.e. The cost of implementing the State Energy Efficiency Program for 2016-2020 for the entire period are 11.04 million BYR (at 2005 prices). The adoption of another state energy conservation program for 2021-2025 is expected, but its budget has not yet been determined. is planned that investments

106 will amount to about 12.15 billion BYN, and the total energy savings - 5,000 tce, and will consist of: − the total final energy savings: 4,000 thousand t c.e., − total primary energy savings: 875 thousand t c.e. (e.g., a small cogeneration plant, reduced heat losses in heat pipes), − total renewable energy sources: 125 thousand t c.e.. Even after the implementation of the three state energy saving programs (2011-2015, 2016-2020, 2021-2025 years) it is likely that the potential savings would still be significant. For this period, total energy savings are estimated at 4,000 t с.e. and will consist of: − the total final energy savings: 3 300 thousand t c.e., − total primary energy savings: 575 thousand t c.e. − total renewable energy sources: 125 thousand t c.e. The required investment will amount to approximately 9.84 billion BYN. Therefore, it is expected that the total energy savings (including renewable energy) through the expansion of existing programs will be 9,050 thousand t c.e. Belarus has developed a complex system of subsidizing and cross-subsidizing energy tariffs. There is currently cross-subsidization of heat tariffs by electricity consumers and cross-subsidization of households by industrial consumers. Direct subsidization of energy tariffs by local and national budgets may also be possible. The current tariff base of this legislative act is established in Law No. 255-3 “On Pricing” (dated 10.05.1999) and Presidential Decree No. 72 “On issues of regulation of prices (tariffs) in the Republic of Belarus” (dated 25.02.2011). Reducing (cross) subsidies is regularly identified as a major structural problem in the Belarusian energy sector and is a government priority. A phased reduction of (cross) subsidies will be carried out by phasing out preferential electricity tariffs for certain legal entities and small enterprises, as well as by increasing investments to supply households through wage indexation. The calculation of total energy conservation suggests that by 2030, final energy savings

107 in the residential sector can be achieved 398 t c.e. Investment costs in the period 2021-2030: 0 (for the state). Equipping homeowners with electricity and gas meters provides direct access to information about their energy consumption and allows residents to control and manage consumption and control its savings. About 80% of residential buildings in Belarus are already equipped with heat meters and about 20% are equipped with apartment metering. It is assumed that by 2025 all buildings will be equipped with metering devices covering all types of energy sources. The implementation of this measure can lead to an annual energy savings of approximately 88 t c.e. Total energy savings in the period 2021-2030: 702 t c.e. Investment costs in the period 2021-2030: 150 million BYN. The current procedure for financing energy-saving measures for the private sector is regulated by the Law on Energy Saving, the Regulation on the Procedure and Conditions for Compensating Partial Interest on Bank Loans to Legal Entities, approved by the Decree of the President of the Republic of Belarus dated March 28, 2006. No. 182. The main resources for the implementation of measures currently are the own funds of enterprises. Other means of financing may be the use of energy service contracts and public-private partnerships. The potential of the ESCO market of the Republic of Belarus is estimated at 700 million BYN per year. The main goal of implementing the mechanism of energy service contracts is to attract extrabudgetary sources of financing (investment) in the modernization of equipment and increase the energy efficiency of organizations by concluding such contracts without attracting additional costs from customers of energy service companies, as well as budget funds at all levels, which will allow to achieve savings in consumption energy resources. The initial scheme of energy service contracts in Belarus will be aimed at the social sector (schools, hospitals, etc.). The calculation of total energy conservation suggests that only 20% of the economic potential will be realized by 2030. 108

Consequently, by 2030, it is possible to achieve 198 t c.e. with final energy saving in the social sector. Investment costs for the period 2021-2030: 360 million BYN. Thermal renovation of buildings in the residential sector can be financed by IFIs and the planned new Super ESCO approach in addition to the State Energy Efficiency Program. This approach provides an opportunity for the energy services market to control the project life cycle under the control of a state organization (for example, BelESCO). This approach can be implemented within one year and for this it is necessary to amend existing legislation. The initiative involves the creation prelpriyatiya "Super ESCO", under the guidance of the State Bank (Belarusian Bank of Development). By 2030, savings of 217 t c.e. can be achieved while saving final energy in the residential sector. Total energy savings in the period 2021-2030: 796 t c.e. Investment costs for the period 2021-2030: 2,058 million BYN. The modernization of street lighting is ideal for achieving SDG7, due to a very predictable level of savings. The introduction of LEDs for street lighting can lead to 40% energy savings. With the introduction of this measure in Belarus, an estimated 2.9 thousand t c.e. of annual final energy savings will be achieved. Total energy savings in the period 2021-2030: 162 t c.e. Investment costs for the period 2021- 2030: 1130 million BYN. Significant energy savings should be ensured by the construction of a waste incineration plant in Minsk. The creation of a waste incineration plant in Minsk capable of processing 500,000 tons of waste per year is reflected in the National Strategy for Solid Waste Management and Secondary Resources. Total energy savings in the period 2021- 2030: 398 t c.e. Investment costs for the period 2021-2030: 660 million BYN. The total expected final energy savings due to existing and new planned measures is 10 191 tce. The sphere of PPP in the republic is regulated by the Law of the Republic of Belarus “On Public-Private Partnership” No. 345-Z (Law on PPP), adopted on December 30, 2015 and entered into force on July 2, 2016. The Law on PPP stipulates that public-private partnership is a mutually beneficial cooperation of 109 public and private partners legally registered for a certain period of time in order to pool resources and share risks, meeting the goals, objectives and principles defined by this Law, implemented in the form of an agreement on public-private partnership. For scientific and technical support of the functioning of the enterprises of the Ministry of Energy, the State Scientific and Technical Program (SSTP) "Energy 2020" has been formed. The goal of SSTP: the development and implementation in the production of import-substituting equipment, technologies, systems in order to improve the efficiency of the energy sector (generation and distribution of electric and heat energy, gas and local fuels). In general, the implementation of the National Sustainable Energy Action Plan for the Republic of Belarus until 2030 will allow fulfilling international obligations to achieve sustainable energy goals.

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