Over the past few years, Belarus has made many updates to reduce energy consumption and increase energy effectiveness. These upgrades were possible partly from the country’s increase of collection rates, from 45 percent in 2002 to 92 percent in 2005. An investment of $431 million and $522 million was put into the energy sector in 2004 and 2005, respectively. With these investments, upgrades have been made on many of their current power stations (National Legal Portal, 2009).
Existing infrastructure and geographic proximity to Russia ensure that Russia will be Belarus’ primary source of energy for the foreseeable future. Due to Belarus’ past loyalties to Russia, Belarus enjoyed Russian gas import prices well below those charged to Eastern and Western Europe for many years. Western Europe was paying approximately $230 per thousand cubic meters (tcm), most eastern European countries were paying around $110-$120 per tcm, and Belarus was paying $47 per tcm. In 2006, Russia told Belarus to either sell half of their state-owned pipeline operator, or Russia would increase the price of gas from $47 per tcm to $200 per tcm. After discussions, the agreement was for Russian gas to be sold to Belarus at $100 per tcm and for Belarus to sell half of the pipeline operator, Beltransgaz, to Russia. This was a large change for Belarus as they consumed 21.7 billion cubic meters of natural gas in 2007.
Summary information about Belarus is located in the following table.
|
Demographical Information |
|
|
Population, millions (2009) |
9.65 |
|
Land area, thousand sq km (2009) |
207.6 |
|
Macroeconomic Information (2008) |
|
|
GDP, billion US$ |
114.1 |
|
Real GDP growth rate, percent |
9.2 |
|
Foreign direct investment (net), million US$ (2007) |
1,769 |
|
Electricity disposition, billion kWh (2006) |
|
|
Generation |
29.91 |
|
Consumption |
30.43 |
|
Exports |
5.79 |
|
Imports |
10.15 |
|
Generation capacity, GW (2005) |
|
|
Nuclear |
0.00 |
|
Thermal |
8.01 |
|
Hydro |
0.01 |
|
Other renewables |
0.00 |
|
|
8.02 |
|
Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on Trade and Development. |
Belarus Country Summary Table
Belarus is poorly endowed with hydrocarbon resources. In the past few years, the hydrocarbon supply only met approximately seven percent of the energy demand. However, Belarus does have significant wood stock and peat deposits as well as potential for small hydropower. In order to develop small biomass and hydropower, policies would need to be put in place such as subsidies, regulatory framework and legislation.
Privatization has slowly advanced since the split from the Former Soviet Union. According to the five-year economic development plan adopted in May 2002, the state will continue to play a dominant role in the economy. At the end of 2008, the economy minister of Belarus stated the plans to sell up to 600 companies within the next three years; however, the poor state of the economy in 2009 does not have private investors very interested in the risk.
The country's power grid is connected to the grids of Lithuania, Russia, and Ukraine. Most electricity imports come from Lithuania (the Ignalina Nuclear Power Plant) and Russia (the Smolensk Nuclear Power Plant). The first of the two reactors at Ignalina nuclear plan was closed in 2005, and the second reactor is set for closure in 2009. Once the second reactor is closed, imports from Lithuania will not be possible.
(return to top)
In February 2006,
Belarus approved an energy saving program for 2006-2010. The program promotes
· Centralized management of all stages of production and the transportation of energy carriers.
· State tariffs on electric and thermal energy.
· Renovation and development of generating sources.
· Development and control of energy conservation programs stimulating the application of energy efficient technologies and equipment to all branches of the economy.
· Cost reduction of supply, transportation and consumption of all types of fuels.
· Gradual diversification of suppliers of different types of fuel to Belarus.
· Involvement of an economic amount of local fuels and renewables.
By promoting the use of local, waste, and renewable energy resources, Belarus plans to displace 1.7 million equivalent tons of fuel. The objective to utilize modern energy saving technologies is planned to save at least 7.7 million equivalent tons of fuel.
In May 2009, the Deputy Chairman of the State Standardization Committee of Belarus – director of the energy efficiency department told mass media about Belarus’ plans to become more energy efficient. He claimed by 2012, at least 25 percent of electric and heat energy will be produced from local and alternative fuels. He also stated that by 2010, the energy consumption of the country’s GDP will be reduced by 31 percent. These goals, he said, are only to be achieved with foreign investment and support (National Legal Portal, 2009).
Additional energy policy, barriers and incentives include:
· All renewables – unwillingness of state companies to invest in new technologies.
· All renewables – Belarusian government has been known to finance projects on a gratuitous basis only.
· Wind - In 1994 Belarus introduced a standard feed-in tariff for renewable generated electricity in a law modeled on Germany's Electricity Feed Law, a fixed feed-in tariff of USD 0.08/kWh.
· Solar - The climate is not favorable for the application of any large scale plants.
(return to top)
3. Wind
In 2006, 1 million kWh of electricity was produced by Armenian wind farms. There are currently two wind farms in Belarus. The Drushnaja wind farm has a total installed power of 0.85 MW, and it produces approximately 1 GWh of power annually. The farm supplies an estimated 700 habitants, and it is located in the western portion of the country (Wind Power, 2009).
The Minsk wind farm has a capacity of 1,080 kW and an estimated yearly production of 2 GWh. Located in the central part of the state, this wind farm is able to provide 900 habitants with electricity (Wind Power, 2009).
The wind speed in the Dzerzhinsk region averages 8.6 m/s. Belarus has had several potential wind farm projects, yet none have started construction. A majority of the country, according to the map below, has wind velocities of about 5 m/s at a height of 80 m.
Belarus Wind Resource Map (Source: 3Tier)