PARTNERSHIPS FOR ENERGY SECURITY

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1 EU-Eastern European Partners Cooperation in Energy Security: Achievements, Barriers and Prospects The INOGATE Programme: Achievements and Current Developments BUILDING PARTNERSHIPS FOR ENERGY SECURITY

2 The challenge To secure adequate, clean and reliable energy resources, at affordable prices, for citizens in both the INOGATE Partner Countries and the EU

3 Targeted energy sectors Energy Statistics

4 INOGATE Policy Framework INOGATE

5 Focus of the Project Creation of favourable investment climate for energy infrastructure and sustainable energy; Achieving tangible progress in the key areas set out in the Astana Roadmap: Energy market convergence, safety & security, sustainable energy and investment attraction. Delivering tangible and measurable results to the PCs

6 INOGATE Project: Inception Visits Summary Low tariffs is major issue in many countries and significant barrier to increased energy efficiency and development of RES. Investment in energy sector is key issue for PCs. But: Lack of proper legislation Lack of capacity (investment attraction, SE development, energy interconnection and trade) Low tariffs compounded by inadequate subsidisation and significant losses. Varying degrees of political commitment

7 AM Needs & Interests Huge appetite for capacity building System of standardisation in harmony with EU Cross-border trade SHPP and nuclear. Energy statistics

8 AZ Needs & Interests Legislative and regulatory aspects Creating more favorable climate for developing RES sector Particular interest in wind (main RES direction) Begin developing biogas

9 GE Needs & Interests Energy links with EU Maximizing RES use CDM Profitable economic model of energy sector Electricity interconnection with Turkey (EnC implications). Diversification of energy imports.

10 BE Needs & Interests President: BE to be a green economy. Contradiction of interests: Green: Attracting investment to SE sphere But: very low energy tariffs (gas) reduce SE incentives and investment attraction. Reducing energy intensity/ GDP to level of developed countries GHG trading (including inventory & monitoring) International RES legislation & norms

11 MD Needs & Interests Energy statistics in policy and decision making Unbundling Market convergence Bank training Corporate governance structures Tariffs reform to advance domestic energy production

12 UA Needs & Interests Priority: Develop UA biomass potential (400 MW electric, 9000 MW thermal capacity Mutual trade with EU Awareness raising to show public EU practices in energy saving

13 INOGATE in numbers

14 Thank you

15 INOGATE Project Impacts Commended by Stakeholders Project number Azerbaijan Belarus Title Recommendations based on the best practices of the EU countries with respect to rules and procedures for connection to the grid and connection tariffs GHG projections for the Republic of Belarus to 2020 and 2050 and energy sector mitigation options Impact (if stated) Project contributed to primary legislation under consideration of Council of Ministers in March Ministry of Nature Protection uses report data for further analysis. Supported BY climate change talks

16 INOGATE Project Impacts Commended by Stakeholders Project number Georgia Georgia Title Capacity Building: Development ESCO business Opportunity Study for renewable energy cross-border trade with EU countries Impact (if stated) Training led to development of an EE financing Operations Manual prepared by local staff (AM). Implementation of the recommendations of the Project Report recommendations is continuing

17 INOGATE Project Impacts Commended Project number by Stakeholders Title Impact (if stated) Moldova Tariff for gas transport and transit Project outputs considered helpful in developing transit tariff structure Moldova Increasing payment collection rate Recommendations followed and considered instrumental in improving energy revenue collection Ukraine Capacity Building Capacity building in development of EE and RES projects 3 Study tours on energy markets convergence Strengthened the participating banks position in SE financing Focused sessions, good handout materials, effective training delivered

18 INOGATE Project Impacts Commended by Stakeholders Project number Kazakhstan Belarus Title Harmonisation of Gas Technical Standards and Practices in Central Asia Audit analysis for Bankable Projects Enhancement of Environmental Protection Measures in the Oil/Gas Industries of Central Asia (EPMOGI) Impact (if stated) 32 oil and gas standards harmonised with those of EU (KG) 5 standards in gas are adopted (KZ) Training was considered extremely useful. However, no objective use: low tariffs and/or runaway inflation reveal no more feasible projects (BY) Movable gas laboratories helped to decrease in gas losses from pipeline network by 200%

19 INOGATE Project Impacts Commended by Stakeholders Project number Uzbekistan Title Reduction of non-technical natural gas losses in transmission gas pipelines system and gas distribution networks Impact (if stated) Prevention of the loss of 50 mln m 3 of gas from the pipeline system (amounts to a saving of nearly 9 million and the prevention of harmful methane leakages into the atmosphere)