State Comprehensive Program of Energy System Upgrading

The state comprehensive program of upgrading basic production assets of the Belarusian energy system, energy conservation and broader usage of the Republic’s indigenous fuel and energy resources in 2006-2010.

Intensive development of the fuel and energy complex in the Republic in the 1960s and 1970s (power plants, electric power and thermal networks, gas and oil pipelines) contributed to establishing a powerful energy foundation of the country’s economy. Thereafter, renovation of the basic assets in the power industry was proceeding at a lower rate in comparison with the aging of previously founded facilities. As a result, by 2005 the rate of wearing had reached 60.7%.

Such situation didn’t contribute to the state’s energy security. Failure to take urgent measures to change the dynamics of the basic assets aging could lead to a considerable damage to the economy due to disruptions in energy supply of the economy and population.

Due to high capital intensity of new facilities and a relatively lengthy period of their formation, a long payback period of the projects, special social importance of energy carriers in provision of the population with comfortable conditions and welfare, proportional and interrelated development of all links of this process should be planned in advance.

Because of insufficient indigenous energy resources, dominating role of one type of fuel – natural gas – in the energy balance, fuel imports mainly from one country, energy security of the country has been considerable weakened. Growth of GDP with relatively high energy intensity as well as reduction of extraction and utilization of local energy resources had been contributing to growing dependence of the Republican on fuel imports. More extensive use of local energy resources will neutralize to a certain extent the above mentioned factors.

Implementation of the state, industrial and regional programs of energy conservation, an economic-organizing mechanism stimulating the application of energy efficient technologies and equipment to all branches of economy and social sphere should play an important role in procuring energy security of the country as well as reduction of energy carriers imports and their diversification.

On August 25, 2005 the President of the Republic of Belarus has adopted by Decree № 399 the state comprehensive program of upgrading basic production assets of the Belarusian energy system, energy conservation and broader usage of the Republic’s indigenous fuel and energy resources in 2006-2010 (hereinafter – the State program). The basic tartget of the Program is the determination of the concrete measures, terms of their implementation and required investments that would ensure positive dynamics of basic assets renovation, reliable, efficient and environment friendly supply of the economy and population with energy resources, and, finally, maintenance of energy security of the Republic of Belarus.

Gaining of the above target is based on implementation of a range of measures, including:

- centralized management of all stages of production, transportation and utilization of energy carriers;

- state regulation of tariffs on electric and thermal energy and prices of fuel;

- balanced renovation and development of generating sources, electric and thermal networks of the Belarusian energy system;

- changing dynamics of aging of the Belarusian energy system’s basic assets: from stabilization at the first stage till permanent renovation at the second;

- development and strict control over implementation of the state, industrial and regional programs of energy conservation, an economic-organizing mechanism stimulating the application of energy efficient technologies and equipment to all branches of economy and social sphere;

- cost reduction for supply (extraction, preparation), transportation and consumption of all types of fuel, thermal and electric power energy;

- gradual diversification of suppliers of different types of fuel to the Republic;

- ultimate involvement of economically viable amount of local fuels and renewables.

The period of the State program implementation: 2006-2010.

The Ministry of Energy and its subordinate organizations had been actively upgrading basic production assets of the Belarusian energy system before. For example, the following objects were constructed and put into operation in 2004 and 2005:

Power units № 3 and № 4 of Bereza power plant with application of advanced steam and gas technologies.

The steam co-generation turbine (output 40 MW) has been installed at the Vitebsk combined heat and power plant (hereinafter CHP plant) and two steam turbines (6 MW each) have been installed at Polotsk CHP plant and Mogilev CHP plant-1.

Lida CHP plant has been redesigned with the installation of the 12 MW turbine.

The first stage of Kolyadichi power substation (330 kV).

The turbine expander (5 MW) at the Minsk combined heat and power plant (CHP-4).

In accordance with the State program the following is scheduled within the system of Belenergo:

- upgrading of power equipment at actually all large power plants of Belarus: Lukolm and Bereza power plant, Minsk CHP-2, CHP-3, and CHP-5, Novopolotsk CHP plant, Mogilev CHP-2 plant, Grodno CHP-2 plant and others;

- putting into operation mini CHP plants at district boiler houses in the cities of Molodechno, Mogilev, Borisov, Gomel, Zhlobin, at the Vostochnaya boiler-house in Vitebsk, Severnaya at Grodno and others.

A number of large energy efficient projects will be accomplished in the Republic at the enterprises belonging to concern Belneftechim, the Ministry of construction and architecture, Ministry of industry, Ministry of agriculture, Ministry of housing and communal services and others.

In order to expand the usage of local fuels, the Program envisages putting into operation mini- CHP plants and separate units working on biomass (wood, wooden wastes, peat) at boiler-houses Osipovichi, Vileika, in the cities of Vitebsk, Rogachev, Luninets, at Pinsk, Zhodino and Bobruisk CHP plants and others.

Usage of hydropower resources is one of the ways to solve the problem of import dependence. Small hydroelectric power stations are planned to be built including Grodno (17MW), Dnepro (5 MW), Zel’va (0,2 MW), Braslav (0,3 MW), Pogost (0,27 MW) and others.

Turbine expanders will be constructed at Lukoml and Gomel CHP plants.

Thermal and electric power networks are planed to be reequipped and developed. This will enable to reduce energy losses and wear out of the power networks from 54.7 % in 2005 to 42.4 % in 2010, and thermal network from 78.2 % to 60,3 %.

In accordance with the State Program, the energy intensity of the gross domestic product will be decreasing, and the efficiency of using fuel and energy resources will be increasing due to accomplishment of the power efficient actions.

The implementation of the State Program will enable to enhance

in the sphere of power industry:

- energy security of the Republic of Belarus at the cost of renovation of the basic assets of the Belarusian energy system, efficient utilization of fuel and energy resources, and more extensive use of indigenous, alternative and renewable sources of energy, biomass;

- reliability of the Belarusian energy system in general due to renovation of the basic assets;

in the social sphere:

- quantity of jobs at new enterprises, all stages of extraction, supply, transportation, and consumption of indigenous fuels and alternative sources of energy;

- tax allocations to the Republic and local budgets;

in the production sphere

- demand for the equipment and technologies concerning usage of indigenous fuels;

- production and consumption of biomass to the amount of 6.17 million tons of reference fuel (1 trf = 7000 kcal), including:

- wood and wood wastes - 2.24 mln trf

- peat and lignin - 1.18 mln trf

- associated gas and products of the indigenous oil refining - 1.26 mln trf

- secondary thermal energy resources - 0.78 mln trf

- municipal wastes and wind plants - 0.02 mln trf

- other fuel and energy resources, including hydropower energy resources - 0.69 mln trf.

The Program forecasts the following results by 2010:

- an at least 25 % reduction of the GDP energy intensity in comparison with 2005;

- an aggregate annual substitution of the imported fuel by the local one to the amount of 6.17 mln trf in 2010;

- 4.6 mln rft of fuel saving in the Republic, and 0.9 mln trf in energy system in 2006 - 2010;

- renovation of basic production assets in the energy system in general with wear out rate to be reduced from 60.75 % to 45.8 %;

- the installed capacity in the energy system will reach 8840 MW including new facilities - 1413.9 MW, and dismantling of obsolete facilities – 461.6 MW.

An estimated total amount of financial resources for implementation of all measures of the program in 2006-2010 will make up 5167.5 million US dollars including:

- the upgrading of basic production assets – 2567.5 million US dollars;

- energy conservation – 1852.2 million US dollars (Belenergo enterprises not included);

- local types of fuel – 747.8 million US dollars (Belenergo enterprises not included);

The information was submitted by the Ministry of Energy.

The information was submitted by the Ministry of Energy