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Wind Power Status in Russia and the CIS Countries Armenia Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian federation Tajikistan Turkmenistan Ukraine Uzbekistan Regional Wind Power Market and Potential ISBN 978-3-940683-05-2 SUMMARY

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Page 1: Summary - Rusia and CIS report

Wind Power Status in Russia and the CIS Countries

Armenia Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan

MoldovaRussian federationTajikistanTurkmenistanUkraineUzbekistan

Regional Wind Power Market and Potential

ISBN 978-3-940683-05-2

SUMM

ARY

Regional FocusISSUE 2 June 2012

WWEA Quarterly Bulletin19

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Wind Power Status in the CIS Countries

3

Published by

Editor Stefan Gsaumlnger

Author Alina Prokopenko

Cover Jean-Daniel Pitteloud

Valuable inputs of the following experts are acknowledged and appreciated

Andriy Konechenkov (Ukraine) Georgiy Doroshin (Kazakstan) Pavel Bezrukih (Russian Federation) Sergey Nikitin (Belarus) Temur Pkhovelishvili (Georgia) Tony Nelson (KyrgyzstanTajikistanUnited Kingdom) Viktor Elistratov (Russian Federation)

Acknowledgements by the author The author of this report expresses her deepest gratitude to

all contributors of the given publication the Secretary General of the World Wind Energy

Association and the personnel of the organisation for overall support during the working process

local experts and NGOs from the CIS countries who kindly shared their knowledge valuable

insights and experiences Special thanks to Andriy Konechenkov Athanasios Papazoglou Peter

Zhang and Stefan Gsaumlnger for their assistance in reviewing and editing the texts

copy WWEA 2012

Duplication reproduction translation or distribution of the whole report or its parts requires a

prior consent of WWEA

World Wind Energy Association WWEA Head Office

Charles-de-Gaulle-Str 5 53113 Bonn

Germany Tel +49-228-369-4080 Fax +49-228-369-4084

E-mail secretariatwwindeaorg wwwwwindeaorg

ForewordImprint

Wind Power Status in the CIS Countries

5

Dear Readers of the CIS Report

The CIS countries are representing a world region with huge wind potentials but where

so far wind energy plays only a marginal role The total wind installations have only reached

178 MW a tiny share of the global wind capacity of 254rsquo000 MW (as of June 2012)

The reason for this minor share is certainly not a lack of wind potentials although

existing estimations are still very conservative The main reason lies rather in the current

political and economic structures Only few countries do have comprehensive policies for

renewable energy in place And some countries do have major fossil resources such as coal

oil or gas ndash which may create the illusion that there is no need to look for alternative options

However the global debate on climate change environmental pollution and simple economic

considerations are recently leading to an increasing interest in wind power in most of the CIS

countries

Ukraine without doubt is currently in the pole position representing by far the largest

share of wind power installations with 151 MW installed The country has also started to

establish a domestic wind turbine industry in cooperation with international companies Also

without doubt many more countries in the region do not only have big wind resources but at

the same time the basic industrial capacities that are necessary for manufacturing and hence

to make full use of the benefits of wind power utilisation

WWEA has decided to publish this book in order to highlight the huge economic and

social potentials and to provide a comprehensive overview of the situation in the CIS

countries We want to contribute with this report to kick-start the deployment of wind

technology in the region by providing information and by raising awareness amongst

decision-makers from within and outside the region amongst governments industry as well

as academia ndash and civil society

May this report contribute to this important objective ndash and may it be useful for your work

Stefan Gsaumlnger Secretary General World Wind Energy Association

Foreword

Wind Power Status in the CIS Countries

6

Dear Friends

ldquoEnergy independence is a lsquolifelinersquo of any nation The

development of renewable energy is an urgent need only renewable

energy sources can ensure a sustainable developmentrdquo said the 11th

President of India Dr Abdul Kalam Renewable energy development

is an irreversible process based on environment-friendly sources of

production reliability and cost effectiveness of ldquogreenrdquo technologies

Intensity of the process depends primarily on the politiciansrsquo will to

make a decision in favor of creating a secure future independent from

fossil fuels

Unfortunately today it is still too early to speak about large-

scale deployment of renewable technologies in the economies of the CIS countries whose

governments have so far built their economic prospects on the basis of conventional energies

Meanwhile itrsquos worth noting that over the past three years the situation has started to change for

better although very slowly Many legislative acts aimed at promoting energy-saving technologies

and production of electricity and heat from renewable energy sources have already been adopted

on the territories of the former USSR At the same time the majority of the adopted laws are more

declarative in their nature creating numerous barriers for attracting investments

What can force the political decision-makers to reconsider their approach in favor of local

renewable energy resources In any case continuously rising natural gas and oil prices will lead

to economic turmoil in the countries whose governments do not invest in renewable energy

Legislative support for renewable energy plays a major role in securing not only reliable power

supply but also in preventing the crisis of the economy as a whole

Naturally changes of the existing situation and general acceptance of the ldquogreenrdquo technologies by

the population involve first of all a national large-scale public awareness campaign the

involvement of business in the development of local renewable energies

Today renewable energy and wind energy in particular stimulates the growth of economic

well-being of a nation increases its energy independence lowers energy-related expenses

reduces risks associated with the prices for energy carriers increases competitiveness facilitates

the export of technologies and creates new jobs Nowadays globally there are more than 5 million

jobs in renewable energy

The book on the current status of wind energy sectors in CIS countries by the World Wind

Energy Association presents a comprehensive overview of the existing policy and legislative

frameworks in the wind energy sectors of these countries I believe that the publication of this

book is very important and timely it will draw international attention to the new markets with

enormous potential for the wind industry Itrsquos time to take action A lot of work is waiting for us

Best wishes

Andriy Konechenkov

Board Member of WWEA and Representative for CIS Countries

Chairman of the Board of Directors Ukrainian Wind Energy Association (UWEA)

Kyiv November 2012

Foreword

Wind Power Status in the CIS Countries

7

Index

Foreword5

Table of Contents7

I Introduction9

II The Commonwealth of Independent States An Overview13

III Assessment of Regional Wind Potential17

IV Country Reports

- Armenia

- Azerbaijan

- Belarus

- Georgia

- Kazakhstan

- Kyrgyzstan

- Moldova

- Russia

- Tajikistan

- Turkmenistan

- Ukraine

- Uzbekistan

V Analysis Common Trends Shared Problems21

VI Recommendations Paving the Way to Sustainable Energy

Supply26

VII Conclusion31

VIII References35

Contents

Wind Power Status in the CIS Countries

8

Acronyms and Abbreviations

ADB ndash Asian Development Bank

BWE ndash Bundesverband WindEnergie (German Wind Energy Associaion)

CHP ndash Combined Heat and Power (Power Plant)

CIS ndash Community of the Independent States

EBRD ndash European Bank for Reconstruction and Development

EU ndash European Union

FIT ndash feed-in tariff

GW ndash gigawatt (1 GW = 1000 MW)

HPP ndash Hydropower Plant

IEA ndash International Energy Agency

IRENA ndash International Renewable Energy Agency

kW ndash kilowatt (1 kW = 1000 W)

kWh ndash kilowatt hour

MW ndash megawatt (1 MW = 1000 kW)

OSCE ndash Organisation for Security and Cooperation in Europe

REEEP - Renewale Energy and Energy Efficiency Partnership

REN21 ndash Renewable Energy Policy Network for the 21st Century

RES ndash renewable energy sources

UN ndash United Nations

UNDP - United Nations Development Programme

VAT ndash value added tax

W ndash watt

Acronyms

Wind Power Status in the CIS Countries

9

Introduction

After the dissolution of the Soviet Union the history has witnessed a radical change of

the political world map and the emergence of a number of newly sovereign states In the wake

of their newfound independence these countries have been facing an earnest challenge of

overcoming an uneasy phase of transition from state planned to market economy

Simultaneously the conversion of their energy sectors previously incorporated into a single

centralised system has also become a critical task for the former USSR republics Whereas the

Soviet Union was energy self-sufficient supplied by its resource-rich regions the independent

countries that appeared after its downfall are now confronted with the situation that they

have to secure the domestic energy supply on their own ndash whether with local energy

resources or via imported ones Considering that the distribution of fossil energy reserves

among the ex-Soviet republics is uneven some of them encountered a severe need to cover

the domestic demand purchasing fossil fuels from elsewhere allocating large expenses for

this purpose and accumulating increasing debts

At the same time the vast regional potential of renewable energy sources (hereinafter ndash

RES) which could be utilised in order to substitute the share of imported hydrocarbons still

remains untapped Indeed bearing in mind that energy security of a country is an intrinsic

element of statehood integrity and stability and that it includes vital elements such as

independence invulnerability and sustainability of state energy system renewable energy

could (and should) become an intrinsic strategic component for the countriesrsquo diversification

of their national energy supply

Out of the whole scope of available renewable energy sources wind power deserves a

special attention due to its comparative advantages firstly it is available everywhere on the

planet secondly it is relatively cheap and thus commercially competitive and thirdly the

equipment for wind power generation is easily deployable in almost any location Of course

the wind resource varies across the countries and regions but in the light of the regional

specific characteristics (geographical location type of landscapes level of economic

development etc) it obviously appears as one of the most reasonable options for the analysed

states Moreover exploiting renewable and wind energy is actually beneficial for both fossil

resource-poor and energy self-sufficient countries the former should opt for it in order to

enhance their energy supply security and decrease the dependence on imported fossil fuels

and the latter could save more hydrocarbon reserves eg for export

Introduction

Wind Power Status in the CIS Countries

10

This publication is a unique comprehensive overview of the renewable energy and wind

power sector in twelve countries of the former Soviet Union (see the map below) Armenia

Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian Federation

Tajikistan Turkmenistan Ukraine and Uzbekistan The report is comprised by separate

country chapters and a general analysis of renewable and more precisely wind energy status

on the territory of the CIS

Figure 11

Each country chapter encompasses socio-economic geographical and political

background of a state as well as the actual data on national energy sector structure and

management provides an assessment of wind power potential reviews current and planned

wind power projects analyses existing political and legislative environment and the degree of

governmental support of RES and outlines perspectives for the RES and wind power

development Alongside with that the report contains a general insight into the

Commonwealth of the Independent States analysis of common trends and barriers to wind

power development and recommendations for future policies and actions Furthermore after

each country chapter a listing of useful contacts in the fields of state and governmental

agencies local non-governmental organisations and non-profit associations research and

scientific institutions business and investment partners can be found In such a way a

Introduction

Wind Power Status in the CIS Countries

11

multifaceted review with selective and country-specific data on 12 analysed countries

presented in this report can assist the RES industry professionals investors and prospective

developers to shape an understanding of the local and regional markets and project possible

business opportunities

The geographical scope of this publication as follows from the heading encompasses a

vast land area of the Commonwealth of the Independent States (CIS) members stretching

from Eastern Europe to Russiarsquos borders with Alaska and from the Arctic Ocean to Central

Asia1 The data used in this report is based on publicly accessible sources as well as on non-

public papers and partly on personal expert interviews and assessments Although the

information presented in this report was thoroughly collected and analysed by the author and

appeared as the best available at the time some minor inaccuracies may remain due to the

information scarcity and senescence

The given publication is intended to be of a specific significance to a broad group of

readers including renewable energy manufacturers technology providers wholesalers

suppliers project developers operators services companies planning offices consultancy

firms financing institutions The report is meant to be also useful for politicians and decision-

makers as well as for academia scientists researches students different actors from the

public and private sector NGOs and civil groups The report might be valuable for both those

who are already active in the region or its markets and for those exploring new possibilities

for their business activities

1 Please note that the term ldquoCommonwealth of Independent Statesrdquo (CIS) is used in this report in reference to the geographic area and does not claim to reflect the peculiarities of the membership of each of 12 countries encompassed by the report (ie Turkmenistan is unofficially an associate member Ukraine is a de facto participant and Georgia after possessing a full-fledged membership for over a decade has withdrawn itself in 2008)

Introduction

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 2: Summary - Rusia and CIS report

Regional FocusISSUE 2 June 2012

WWEA Quarterly Bulletin19

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Tel +49-228-369 40-80Fax +49-228-369 40-84secretariatwwindeaorg

wwwwwindeaorg

All shipping and handling costs included 719 VAT included within the EUSpecial rebates provided upon request for bulk orders low-income countries etc

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CompanyOrganisation

Street

Postal Code CITY

Country

TelFax

E-Mail

WWEA Membership Nr

Date and Signature ___________ ____________________

Please fill out form IN PRINT and send by fax E-Mail or post

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Small Wind World Report 2012 NEW 60 euro 45 euro

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Wind Power Status in the CIS Countries

3

Published by

Editor Stefan Gsaumlnger

Author Alina Prokopenko

Cover Jean-Daniel Pitteloud

Valuable inputs of the following experts are acknowledged and appreciated

Andriy Konechenkov (Ukraine) Georgiy Doroshin (Kazakstan) Pavel Bezrukih (Russian Federation) Sergey Nikitin (Belarus) Temur Pkhovelishvili (Georgia) Tony Nelson (KyrgyzstanTajikistanUnited Kingdom) Viktor Elistratov (Russian Federation)

Acknowledgements by the author The author of this report expresses her deepest gratitude to

all contributors of the given publication the Secretary General of the World Wind Energy

Association and the personnel of the organisation for overall support during the working process

local experts and NGOs from the CIS countries who kindly shared their knowledge valuable

insights and experiences Special thanks to Andriy Konechenkov Athanasios Papazoglou Peter

Zhang and Stefan Gsaumlnger for their assistance in reviewing and editing the texts

copy WWEA 2012

Duplication reproduction translation or distribution of the whole report or its parts requires a

prior consent of WWEA

World Wind Energy Association WWEA Head Office

Charles-de-Gaulle-Str 5 53113 Bonn

Germany Tel +49-228-369-4080 Fax +49-228-369-4084

E-mail secretariatwwindeaorg wwwwwindeaorg

ForewordImprint

Wind Power Status in the CIS Countries

5

Dear Readers of the CIS Report

The CIS countries are representing a world region with huge wind potentials but where

so far wind energy plays only a marginal role The total wind installations have only reached

178 MW a tiny share of the global wind capacity of 254rsquo000 MW (as of June 2012)

The reason for this minor share is certainly not a lack of wind potentials although

existing estimations are still very conservative The main reason lies rather in the current

political and economic structures Only few countries do have comprehensive policies for

renewable energy in place And some countries do have major fossil resources such as coal

oil or gas ndash which may create the illusion that there is no need to look for alternative options

However the global debate on climate change environmental pollution and simple economic

considerations are recently leading to an increasing interest in wind power in most of the CIS

countries

Ukraine without doubt is currently in the pole position representing by far the largest

share of wind power installations with 151 MW installed The country has also started to

establish a domestic wind turbine industry in cooperation with international companies Also

without doubt many more countries in the region do not only have big wind resources but at

the same time the basic industrial capacities that are necessary for manufacturing and hence

to make full use of the benefits of wind power utilisation

WWEA has decided to publish this book in order to highlight the huge economic and

social potentials and to provide a comprehensive overview of the situation in the CIS

countries We want to contribute with this report to kick-start the deployment of wind

technology in the region by providing information and by raising awareness amongst

decision-makers from within and outside the region amongst governments industry as well

as academia ndash and civil society

May this report contribute to this important objective ndash and may it be useful for your work

Stefan Gsaumlnger Secretary General World Wind Energy Association

Foreword

Wind Power Status in the CIS Countries

6

Dear Friends

ldquoEnergy independence is a lsquolifelinersquo of any nation The

development of renewable energy is an urgent need only renewable

energy sources can ensure a sustainable developmentrdquo said the 11th

President of India Dr Abdul Kalam Renewable energy development

is an irreversible process based on environment-friendly sources of

production reliability and cost effectiveness of ldquogreenrdquo technologies

Intensity of the process depends primarily on the politiciansrsquo will to

make a decision in favor of creating a secure future independent from

fossil fuels

Unfortunately today it is still too early to speak about large-

scale deployment of renewable technologies in the economies of the CIS countries whose

governments have so far built their economic prospects on the basis of conventional energies

Meanwhile itrsquos worth noting that over the past three years the situation has started to change for

better although very slowly Many legislative acts aimed at promoting energy-saving technologies

and production of electricity and heat from renewable energy sources have already been adopted

on the territories of the former USSR At the same time the majority of the adopted laws are more

declarative in their nature creating numerous barriers for attracting investments

What can force the political decision-makers to reconsider their approach in favor of local

renewable energy resources In any case continuously rising natural gas and oil prices will lead

to economic turmoil in the countries whose governments do not invest in renewable energy

Legislative support for renewable energy plays a major role in securing not only reliable power

supply but also in preventing the crisis of the economy as a whole

Naturally changes of the existing situation and general acceptance of the ldquogreenrdquo technologies by

the population involve first of all a national large-scale public awareness campaign the

involvement of business in the development of local renewable energies

Today renewable energy and wind energy in particular stimulates the growth of economic

well-being of a nation increases its energy independence lowers energy-related expenses

reduces risks associated with the prices for energy carriers increases competitiveness facilitates

the export of technologies and creates new jobs Nowadays globally there are more than 5 million

jobs in renewable energy

The book on the current status of wind energy sectors in CIS countries by the World Wind

Energy Association presents a comprehensive overview of the existing policy and legislative

frameworks in the wind energy sectors of these countries I believe that the publication of this

book is very important and timely it will draw international attention to the new markets with

enormous potential for the wind industry Itrsquos time to take action A lot of work is waiting for us

Best wishes

Andriy Konechenkov

Board Member of WWEA and Representative for CIS Countries

Chairman of the Board of Directors Ukrainian Wind Energy Association (UWEA)

Kyiv November 2012

Foreword

Wind Power Status in the CIS Countries

7

Index

Foreword5

Table of Contents7

I Introduction9

II The Commonwealth of Independent States An Overview13

III Assessment of Regional Wind Potential17

IV Country Reports

- Armenia

- Azerbaijan

- Belarus

- Georgia

- Kazakhstan

- Kyrgyzstan

- Moldova

- Russia

- Tajikistan

- Turkmenistan

- Ukraine

- Uzbekistan

V Analysis Common Trends Shared Problems21

VI Recommendations Paving the Way to Sustainable Energy

Supply26

VII Conclusion31

VIII References35

Contents

Wind Power Status in the CIS Countries

8

Acronyms and Abbreviations

ADB ndash Asian Development Bank

BWE ndash Bundesverband WindEnergie (German Wind Energy Associaion)

CHP ndash Combined Heat and Power (Power Plant)

CIS ndash Community of the Independent States

EBRD ndash European Bank for Reconstruction and Development

EU ndash European Union

FIT ndash feed-in tariff

GW ndash gigawatt (1 GW = 1000 MW)

HPP ndash Hydropower Plant

IEA ndash International Energy Agency

IRENA ndash International Renewable Energy Agency

kW ndash kilowatt (1 kW = 1000 W)

kWh ndash kilowatt hour

MW ndash megawatt (1 MW = 1000 kW)

OSCE ndash Organisation for Security and Cooperation in Europe

REEEP - Renewale Energy and Energy Efficiency Partnership

REN21 ndash Renewable Energy Policy Network for the 21st Century

RES ndash renewable energy sources

UN ndash United Nations

UNDP - United Nations Development Programme

VAT ndash value added tax

W ndash watt

Acronyms

Wind Power Status in the CIS Countries

9

Introduction

After the dissolution of the Soviet Union the history has witnessed a radical change of

the political world map and the emergence of a number of newly sovereign states In the wake

of their newfound independence these countries have been facing an earnest challenge of

overcoming an uneasy phase of transition from state planned to market economy

Simultaneously the conversion of their energy sectors previously incorporated into a single

centralised system has also become a critical task for the former USSR republics Whereas the

Soviet Union was energy self-sufficient supplied by its resource-rich regions the independent

countries that appeared after its downfall are now confronted with the situation that they

have to secure the domestic energy supply on their own ndash whether with local energy

resources or via imported ones Considering that the distribution of fossil energy reserves

among the ex-Soviet republics is uneven some of them encountered a severe need to cover

the domestic demand purchasing fossil fuels from elsewhere allocating large expenses for

this purpose and accumulating increasing debts

At the same time the vast regional potential of renewable energy sources (hereinafter ndash

RES) which could be utilised in order to substitute the share of imported hydrocarbons still

remains untapped Indeed bearing in mind that energy security of a country is an intrinsic

element of statehood integrity and stability and that it includes vital elements such as

independence invulnerability and sustainability of state energy system renewable energy

could (and should) become an intrinsic strategic component for the countriesrsquo diversification

of their national energy supply

Out of the whole scope of available renewable energy sources wind power deserves a

special attention due to its comparative advantages firstly it is available everywhere on the

planet secondly it is relatively cheap and thus commercially competitive and thirdly the

equipment for wind power generation is easily deployable in almost any location Of course

the wind resource varies across the countries and regions but in the light of the regional

specific characteristics (geographical location type of landscapes level of economic

development etc) it obviously appears as one of the most reasonable options for the analysed

states Moreover exploiting renewable and wind energy is actually beneficial for both fossil

resource-poor and energy self-sufficient countries the former should opt for it in order to

enhance their energy supply security and decrease the dependence on imported fossil fuels

and the latter could save more hydrocarbon reserves eg for export

Introduction

Wind Power Status in the CIS Countries

10

This publication is a unique comprehensive overview of the renewable energy and wind

power sector in twelve countries of the former Soviet Union (see the map below) Armenia

Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian Federation

Tajikistan Turkmenistan Ukraine and Uzbekistan The report is comprised by separate

country chapters and a general analysis of renewable and more precisely wind energy status

on the territory of the CIS

Figure 11

Each country chapter encompasses socio-economic geographical and political

background of a state as well as the actual data on national energy sector structure and

management provides an assessment of wind power potential reviews current and planned

wind power projects analyses existing political and legislative environment and the degree of

governmental support of RES and outlines perspectives for the RES and wind power

development Alongside with that the report contains a general insight into the

Commonwealth of the Independent States analysis of common trends and barriers to wind

power development and recommendations for future policies and actions Furthermore after

each country chapter a listing of useful contacts in the fields of state and governmental

agencies local non-governmental organisations and non-profit associations research and

scientific institutions business and investment partners can be found In such a way a

Introduction

Wind Power Status in the CIS Countries

11

multifaceted review with selective and country-specific data on 12 analysed countries

presented in this report can assist the RES industry professionals investors and prospective

developers to shape an understanding of the local and regional markets and project possible

business opportunities

The geographical scope of this publication as follows from the heading encompasses a

vast land area of the Commonwealth of the Independent States (CIS) members stretching

from Eastern Europe to Russiarsquos borders with Alaska and from the Arctic Ocean to Central

Asia1 The data used in this report is based on publicly accessible sources as well as on non-

public papers and partly on personal expert interviews and assessments Although the

information presented in this report was thoroughly collected and analysed by the author and

appeared as the best available at the time some minor inaccuracies may remain due to the

information scarcity and senescence

The given publication is intended to be of a specific significance to a broad group of

readers including renewable energy manufacturers technology providers wholesalers

suppliers project developers operators services companies planning offices consultancy

firms financing institutions The report is meant to be also useful for politicians and decision-

makers as well as for academia scientists researches students different actors from the

public and private sector NGOs and civil groups The report might be valuable for both those

who are already active in the region or its markets and for those exploring new possibilities

for their business activities

1 Please note that the term ldquoCommonwealth of Independent Statesrdquo (CIS) is used in this report in reference to the geographic area and does not claim to reflect the peculiarities of the membership of each of 12 countries encompassed by the report (ie Turkmenistan is unofficially an associate member Ukraine is a de facto participant and Georgia after possessing a full-fledged membership for over a decade has withdrawn itself in 2008)

Introduction

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 3: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

3

Published by

Editor Stefan Gsaumlnger

Author Alina Prokopenko

Cover Jean-Daniel Pitteloud

Valuable inputs of the following experts are acknowledged and appreciated

Andriy Konechenkov (Ukraine) Georgiy Doroshin (Kazakstan) Pavel Bezrukih (Russian Federation) Sergey Nikitin (Belarus) Temur Pkhovelishvili (Georgia) Tony Nelson (KyrgyzstanTajikistanUnited Kingdom) Viktor Elistratov (Russian Federation)

Acknowledgements by the author The author of this report expresses her deepest gratitude to

all contributors of the given publication the Secretary General of the World Wind Energy

Association and the personnel of the organisation for overall support during the working process

local experts and NGOs from the CIS countries who kindly shared their knowledge valuable

insights and experiences Special thanks to Andriy Konechenkov Athanasios Papazoglou Peter

Zhang and Stefan Gsaumlnger for their assistance in reviewing and editing the texts

copy WWEA 2012

Duplication reproduction translation or distribution of the whole report or its parts requires a

prior consent of WWEA

World Wind Energy Association WWEA Head Office

Charles-de-Gaulle-Str 5 53113 Bonn

Germany Tel +49-228-369-4080 Fax +49-228-369-4084

E-mail secretariatwwindeaorg wwwwwindeaorg

ForewordImprint

Wind Power Status in the CIS Countries

5

Dear Readers of the CIS Report

The CIS countries are representing a world region with huge wind potentials but where

so far wind energy plays only a marginal role The total wind installations have only reached

178 MW a tiny share of the global wind capacity of 254rsquo000 MW (as of June 2012)

The reason for this minor share is certainly not a lack of wind potentials although

existing estimations are still very conservative The main reason lies rather in the current

political and economic structures Only few countries do have comprehensive policies for

renewable energy in place And some countries do have major fossil resources such as coal

oil or gas ndash which may create the illusion that there is no need to look for alternative options

However the global debate on climate change environmental pollution and simple economic

considerations are recently leading to an increasing interest in wind power in most of the CIS

countries

Ukraine without doubt is currently in the pole position representing by far the largest

share of wind power installations with 151 MW installed The country has also started to

establish a domestic wind turbine industry in cooperation with international companies Also

without doubt many more countries in the region do not only have big wind resources but at

the same time the basic industrial capacities that are necessary for manufacturing and hence

to make full use of the benefits of wind power utilisation

WWEA has decided to publish this book in order to highlight the huge economic and

social potentials and to provide a comprehensive overview of the situation in the CIS

countries We want to contribute with this report to kick-start the deployment of wind

technology in the region by providing information and by raising awareness amongst

decision-makers from within and outside the region amongst governments industry as well

as academia ndash and civil society

May this report contribute to this important objective ndash and may it be useful for your work

Stefan Gsaumlnger Secretary General World Wind Energy Association

Foreword

Wind Power Status in the CIS Countries

6

Dear Friends

ldquoEnergy independence is a lsquolifelinersquo of any nation The

development of renewable energy is an urgent need only renewable

energy sources can ensure a sustainable developmentrdquo said the 11th

President of India Dr Abdul Kalam Renewable energy development

is an irreversible process based on environment-friendly sources of

production reliability and cost effectiveness of ldquogreenrdquo technologies

Intensity of the process depends primarily on the politiciansrsquo will to

make a decision in favor of creating a secure future independent from

fossil fuels

Unfortunately today it is still too early to speak about large-

scale deployment of renewable technologies in the economies of the CIS countries whose

governments have so far built their economic prospects on the basis of conventional energies

Meanwhile itrsquos worth noting that over the past three years the situation has started to change for

better although very slowly Many legislative acts aimed at promoting energy-saving technologies

and production of electricity and heat from renewable energy sources have already been adopted

on the territories of the former USSR At the same time the majority of the adopted laws are more

declarative in their nature creating numerous barriers for attracting investments

What can force the political decision-makers to reconsider their approach in favor of local

renewable energy resources In any case continuously rising natural gas and oil prices will lead

to economic turmoil in the countries whose governments do not invest in renewable energy

Legislative support for renewable energy plays a major role in securing not only reliable power

supply but also in preventing the crisis of the economy as a whole

Naturally changes of the existing situation and general acceptance of the ldquogreenrdquo technologies by

the population involve first of all a national large-scale public awareness campaign the

involvement of business in the development of local renewable energies

Today renewable energy and wind energy in particular stimulates the growth of economic

well-being of a nation increases its energy independence lowers energy-related expenses

reduces risks associated with the prices for energy carriers increases competitiveness facilitates

the export of technologies and creates new jobs Nowadays globally there are more than 5 million

jobs in renewable energy

The book on the current status of wind energy sectors in CIS countries by the World Wind

Energy Association presents a comprehensive overview of the existing policy and legislative

frameworks in the wind energy sectors of these countries I believe that the publication of this

book is very important and timely it will draw international attention to the new markets with

enormous potential for the wind industry Itrsquos time to take action A lot of work is waiting for us

Best wishes

Andriy Konechenkov

Board Member of WWEA and Representative for CIS Countries

Chairman of the Board of Directors Ukrainian Wind Energy Association (UWEA)

Kyiv November 2012

Foreword

Wind Power Status in the CIS Countries

7

Index

Foreword5

Table of Contents7

I Introduction9

II The Commonwealth of Independent States An Overview13

III Assessment of Regional Wind Potential17

IV Country Reports

- Armenia

- Azerbaijan

- Belarus

- Georgia

- Kazakhstan

- Kyrgyzstan

- Moldova

- Russia

- Tajikistan

- Turkmenistan

- Ukraine

- Uzbekistan

V Analysis Common Trends Shared Problems21

VI Recommendations Paving the Way to Sustainable Energy

Supply26

VII Conclusion31

VIII References35

Contents

Wind Power Status in the CIS Countries

8

Acronyms and Abbreviations

ADB ndash Asian Development Bank

BWE ndash Bundesverband WindEnergie (German Wind Energy Associaion)

CHP ndash Combined Heat and Power (Power Plant)

CIS ndash Community of the Independent States

EBRD ndash European Bank for Reconstruction and Development

EU ndash European Union

FIT ndash feed-in tariff

GW ndash gigawatt (1 GW = 1000 MW)

HPP ndash Hydropower Plant

IEA ndash International Energy Agency

IRENA ndash International Renewable Energy Agency

kW ndash kilowatt (1 kW = 1000 W)

kWh ndash kilowatt hour

MW ndash megawatt (1 MW = 1000 kW)

OSCE ndash Organisation for Security and Cooperation in Europe

REEEP - Renewale Energy and Energy Efficiency Partnership

REN21 ndash Renewable Energy Policy Network for the 21st Century

RES ndash renewable energy sources

UN ndash United Nations

UNDP - United Nations Development Programme

VAT ndash value added tax

W ndash watt

Acronyms

Wind Power Status in the CIS Countries

9

Introduction

After the dissolution of the Soviet Union the history has witnessed a radical change of

the political world map and the emergence of a number of newly sovereign states In the wake

of their newfound independence these countries have been facing an earnest challenge of

overcoming an uneasy phase of transition from state planned to market economy

Simultaneously the conversion of their energy sectors previously incorporated into a single

centralised system has also become a critical task for the former USSR republics Whereas the

Soviet Union was energy self-sufficient supplied by its resource-rich regions the independent

countries that appeared after its downfall are now confronted with the situation that they

have to secure the domestic energy supply on their own ndash whether with local energy

resources or via imported ones Considering that the distribution of fossil energy reserves

among the ex-Soviet republics is uneven some of them encountered a severe need to cover

the domestic demand purchasing fossil fuels from elsewhere allocating large expenses for

this purpose and accumulating increasing debts

At the same time the vast regional potential of renewable energy sources (hereinafter ndash

RES) which could be utilised in order to substitute the share of imported hydrocarbons still

remains untapped Indeed bearing in mind that energy security of a country is an intrinsic

element of statehood integrity and stability and that it includes vital elements such as

independence invulnerability and sustainability of state energy system renewable energy

could (and should) become an intrinsic strategic component for the countriesrsquo diversification

of their national energy supply

Out of the whole scope of available renewable energy sources wind power deserves a

special attention due to its comparative advantages firstly it is available everywhere on the

planet secondly it is relatively cheap and thus commercially competitive and thirdly the

equipment for wind power generation is easily deployable in almost any location Of course

the wind resource varies across the countries and regions but in the light of the regional

specific characteristics (geographical location type of landscapes level of economic

development etc) it obviously appears as one of the most reasonable options for the analysed

states Moreover exploiting renewable and wind energy is actually beneficial for both fossil

resource-poor and energy self-sufficient countries the former should opt for it in order to

enhance their energy supply security and decrease the dependence on imported fossil fuels

and the latter could save more hydrocarbon reserves eg for export

Introduction

Wind Power Status in the CIS Countries

10

This publication is a unique comprehensive overview of the renewable energy and wind

power sector in twelve countries of the former Soviet Union (see the map below) Armenia

Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian Federation

Tajikistan Turkmenistan Ukraine and Uzbekistan The report is comprised by separate

country chapters and a general analysis of renewable and more precisely wind energy status

on the territory of the CIS

Figure 11

Each country chapter encompasses socio-economic geographical and political

background of a state as well as the actual data on national energy sector structure and

management provides an assessment of wind power potential reviews current and planned

wind power projects analyses existing political and legislative environment and the degree of

governmental support of RES and outlines perspectives for the RES and wind power

development Alongside with that the report contains a general insight into the

Commonwealth of the Independent States analysis of common trends and barriers to wind

power development and recommendations for future policies and actions Furthermore after

each country chapter a listing of useful contacts in the fields of state and governmental

agencies local non-governmental organisations and non-profit associations research and

scientific institutions business and investment partners can be found In such a way a

Introduction

Wind Power Status in the CIS Countries

11

multifaceted review with selective and country-specific data on 12 analysed countries

presented in this report can assist the RES industry professionals investors and prospective

developers to shape an understanding of the local and regional markets and project possible

business opportunities

The geographical scope of this publication as follows from the heading encompasses a

vast land area of the Commonwealth of the Independent States (CIS) members stretching

from Eastern Europe to Russiarsquos borders with Alaska and from the Arctic Ocean to Central

Asia1 The data used in this report is based on publicly accessible sources as well as on non-

public papers and partly on personal expert interviews and assessments Although the

information presented in this report was thoroughly collected and analysed by the author and

appeared as the best available at the time some minor inaccuracies may remain due to the

information scarcity and senescence

The given publication is intended to be of a specific significance to a broad group of

readers including renewable energy manufacturers technology providers wholesalers

suppliers project developers operators services companies planning offices consultancy

firms financing institutions The report is meant to be also useful for politicians and decision-

makers as well as for academia scientists researches students different actors from the

public and private sector NGOs and civil groups The report might be valuable for both those

who are already active in the region or its markets and for those exploring new possibilities

for their business activities

1 Please note that the term ldquoCommonwealth of Independent Statesrdquo (CIS) is used in this report in reference to the geographic area and does not claim to reflect the peculiarities of the membership of each of 12 countries encompassed by the report (ie Turkmenistan is unofficially an associate member Ukraine is a de facto participant and Georgia after possessing a full-fledged membership for over a decade has withdrawn itself in 2008)

Introduction

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 4: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

5

Dear Readers of the CIS Report

The CIS countries are representing a world region with huge wind potentials but where

so far wind energy plays only a marginal role The total wind installations have only reached

178 MW a tiny share of the global wind capacity of 254rsquo000 MW (as of June 2012)

The reason for this minor share is certainly not a lack of wind potentials although

existing estimations are still very conservative The main reason lies rather in the current

political and economic structures Only few countries do have comprehensive policies for

renewable energy in place And some countries do have major fossil resources such as coal

oil or gas ndash which may create the illusion that there is no need to look for alternative options

However the global debate on climate change environmental pollution and simple economic

considerations are recently leading to an increasing interest in wind power in most of the CIS

countries

Ukraine without doubt is currently in the pole position representing by far the largest

share of wind power installations with 151 MW installed The country has also started to

establish a domestic wind turbine industry in cooperation with international companies Also

without doubt many more countries in the region do not only have big wind resources but at

the same time the basic industrial capacities that are necessary for manufacturing and hence

to make full use of the benefits of wind power utilisation

WWEA has decided to publish this book in order to highlight the huge economic and

social potentials and to provide a comprehensive overview of the situation in the CIS

countries We want to contribute with this report to kick-start the deployment of wind

technology in the region by providing information and by raising awareness amongst

decision-makers from within and outside the region amongst governments industry as well

as academia ndash and civil society

May this report contribute to this important objective ndash and may it be useful for your work

Stefan Gsaumlnger Secretary General World Wind Energy Association

Foreword

Wind Power Status in the CIS Countries

6

Dear Friends

ldquoEnergy independence is a lsquolifelinersquo of any nation The

development of renewable energy is an urgent need only renewable

energy sources can ensure a sustainable developmentrdquo said the 11th

President of India Dr Abdul Kalam Renewable energy development

is an irreversible process based on environment-friendly sources of

production reliability and cost effectiveness of ldquogreenrdquo technologies

Intensity of the process depends primarily on the politiciansrsquo will to

make a decision in favor of creating a secure future independent from

fossil fuels

Unfortunately today it is still too early to speak about large-

scale deployment of renewable technologies in the economies of the CIS countries whose

governments have so far built their economic prospects on the basis of conventional energies

Meanwhile itrsquos worth noting that over the past three years the situation has started to change for

better although very slowly Many legislative acts aimed at promoting energy-saving technologies

and production of electricity and heat from renewable energy sources have already been adopted

on the territories of the former USSR At the same time the majority of the adopted laws are more

declarative in their nature creating numerous barriers for attracting investments

What can force the political decision-makers to reconsider their approach in favor of local

renewable energy resources In any case continuously rising natural gas and oil prices will lead

to economic turmoil in the countries whose governments do not invest in renewable energy

Legislative support for renewable energy plays a major role in securing not only reliable power

supply but also in preventing the crisis of the economy as a whole

Naturally changes of the existing situation and general acceptance of the ldquogreenrdquo technologies by

the population involve first of all a national large-scale public awareness campaign the

involvement of business in the development of local renewable energies

Today renewable energy and wind energy in particular stimulates the growth of economic

well-being of a nation increases its energy independence lowers energy-related expenses

reduces risks associated with the prices for energy carriers increases competitiveness facilitates

the export of technologies and creates new jobs Nowadays globally there are more than 5 million

jobs in renewable energy

The book on the current status of wind energy sectors in CIS countries by the World Wind

Energy Association presents a comprehensive overview of the existing policy and legislative

frameworks in the wind energy sectors of these countries I believe that the publication of this

book is very important and timely it will draw international attention to the new markets with

enormous potential for the wind industry Itrsquos time to take action A lot of work is waiting for us

Best wishes

Andriy Konechenkov

Board Member of WWEA and Representative for CIS Countries

Chairman of the Board of Directors Ukrainian Wind Energy Association (UWEA)

Kyiv November 2012

Foreword

Wind Power Status in the CIS Countries

7

Index

Foreword5

Table of Contents7

I Introduction9

II The Commonwealth of Independent States An Overview13

III Assessment of Regional Wind Potential17

IV Country Reports

- Armenia

- Azerbaijan

- Belarus

- Georgia

- Kazakhstan

- Kyrgyzstan

- Moldova

- Russia

- Tajikistan

- Turkmenistan

- Ukraine

- Uzbekistan

V Analysis Common Trends Shared Problems21

VI Recommendations Paving the Way to Sustainable Energy

Supply26

VII Conclusion31

VIII References35

Contents

Wind Power Status in the CIS Countries

8

Acronyms and Abbreviations

ADB ndash Asian Development Bank

BWE ndash Bundesverband WindEnergie (German Wind Energy Associaion)

CHP ndash Combined Heat and Power (Power Plant)

CIS ndash Community of the Independent States

EBRD ndash European Bank for Reconstruction and Development

EU ndash European Union

FIT ndash feed-in tariff

GW ndash gigawatt (1 GW = 1000 MW)

HPP ndash Hydropower Plant

IEA ndash International Energy Agency

IRENA ndash International Renewable Energy Agency

kW ndash kilowatt (1 kW = 1000 W)

kWh ndash kilowatt hour

MW ndash megawatt (1 MW = 1000 kW)

OSCE ndash Organisation for Security and Cooperation in Europe

REEEP - Renewale Energy and Energy Efficiency Partnership

REN21 ndash Renewable Energy Policy Network for the 21st Century

RES ndash renewable energy sources

UN ndash United Nations

UNDP - United Nations Development Programme

VAT ndash value added tax

W ndash watt

Acronyms

Wind Power Status in the CIS Countries

9

Introduction

After the dissolution of the Soviet Union the history has witnessed a radical change of

the political world map and the emergence of a number of newly sovereign states In the wake

of their newfound independence these countries have been facing an earnest challenge of

overcoming an uneasy phase of transition from state planned to market economy

Simultaneously the conversion of their energy sectors previously incorporated into a single

centralised system has also become a critical task for the former USSR republics Whereas the

Soviet Union was energy self-sufficient supplied by its resource-rich regions the independent

countries that appeared after its downfall are now confronted with the situation that they

have to secure the domestic energy supply on their own ndash whether with local energy

resources or via imported ones Considering that the distribution of fossil energy reserves

among the ex-Soviet republics is uneven some of them encountered a severe need to cover

the domestic demand purchasing fossil fuels from elsewhere allocating large expenses for

this purpose and accumulating increasing debts

At the same time the vast regional potential of renewable energy sources (hereinafter ndash

RES) which could be utilised in order to substitute the share of imported hydrocarbons still

remains untapped Indeed bearing in mind that energy security of a country is an intrinsic

element of statehood integrity and stability and that it includes vital elements such as

independence invulnerability and sustainability of state energy system renewable energy

could (and should) become an intrinsic strategic component for the countriesrsquo diversification

of their national energy supply

Out of the whole scope of available renewable energy sources wind power deserves a

special attention due to its comparative advantages firstly it is available everywhere on the

planet secondly it is relatively cheap and thus commercially competitive and thirdly the

equipment for wind power generation is easily deployable in almost any location Of course

the wind resource varies across the countries and regions but in the light of the regional

specific characteristics (geographical location type of landscapes level of economic

development etc) it obviously appears as one of the most reasonable options for the analysed

states Moreover exploiting renewable and wind energy is actually beneficial for both fossil

resource-poor and energy self-sufficient countries the former should opt for it in order to

enhance their energy supply security and decrease the dependence on imported fossil fuels

and the latter could save more hydrocarbon reserves eg for export

Introduction

Wind Power Status in the CIS Countries

10

This publication is a unique comprehensive overview of the renewable energy and wind

power sector in twelve countries of the former Soviet Union (see the map below) Armenia

Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian Federation

Tajikistan Turkmenistan Ukraine and Uzbekistan The report is comprised by separate

country chapters and a general analysis of renewable and more precisely wind energy status

on the territory of the CIS

Figure 11

Each country chapter encompasses socio-economic geographical and political

background of a state as well as the actual data on national energy sector structure and

management provides an assessment of wind power potential reviews current and planned

wind power projects analyses existing political and legislative environment and the degree of

governmental support of RES and outlines perspectives for the RES and wind power

development Alongside with that the report contains a general insight into the

Commonwealth of the Independent States analysis of common trends and barriers to wind

power development and recommendations for future policies and actions Furthermore after

each country chapter a listing of useful contacts in the fields of state and governmental

agencies local non-governmental organisations and non-profit associations research and

scientific institutions business and investment partners can be found In such a way a

Introduction

Wind Power Status in the CIS Countries

11

multifaceted review with selective and country-specific data on 12 analysed countries

presented in this report can assist the RES industry professionals investors and prospective

developers to shape an understanding of the local and regional markets and project possible

business opportunities

The geographical scope of this publication as follows from the heading encompasses a

vast land area of the Commonwealth of the Independent States (CIS) members stretching

from Eastern Europe to Russiarsquos borders with Alaska and from the Arctic Ocean to Central

Asia1 The data used in this report is based on publicly accessible sources as well as on non-

public papers and partly on personal expert interviews and assessments Although the

information presented in this report was thoroughly collected and analysed by the author and

appeared as the best available at the time some minor inaccuracies may remain due to the

information scarcity and senescence

The given publication is intended to be of a specific significance to a broad group of

readers including renewable energy manufacturers technology providers wholesalers

suppliers project developers operators services companies planning offices consultancy

firms financing institutions The report is meant to be also useful for politicians and decision-

makers as well as for academia scientists researches students different actors from the

public and private sector NGOs and civil groups The report might be valuable for both those

who are already active in the region or its markets and for those exploring new possibilities

for their business activities

1 Please note that the term ldquoCommonwealth of Independent Statesrdquo (CIS) is used in this report in reference to the geographic area and does not claim to reflect the peculiarities of the membership of each of 12 countries encompassed by the report (ie Turkmenistan is unofficially an associate member Ukraine is a de facto participant and Georgia after possessing a full-fledged membership for over a decade has withdrawn itself in 2008)

Introduction

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 5: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

6

Dear Friends

ldquoEnergy independence is a lsquolifelinersquo of any nation The

development of renewable energy is an urgent need only renewable

energy sources can ensure a sustainable developmentrdquo said the 11th

President of India Dr Abdul Kalam Renewable energy development

is an irreversible process based on environment-friendly sources of

production reliability and cost effectiveness of ldquogreenrdquo technologies

Intensity of the process depends primarily on the politiciansrsquo will to

make a decision in favor of creating a secure future independent from

fossil fuels

Unfortunately today it is still too early to speak about large-

scale deployment of renewable technologies in the economies of the CIS countries whose

governments have so far built their economic prospects on the basis of conventional energies

Meanwhile itrsquos worth noting that over the past three years the situation has started to change for

better although very slowly Many legislative acts aimed at promoting energy-saving technologies

and production of electricity and heat from renewable energy sources have already been adopted

on the territories of the former USSR At the same time the majority of the adopted laws are more

declarative in their nature creating numerous barriers for attracting investments

What can force the political decision-makers to reconsider their approach in favor of local

renewable energy resources In any case continuously rising natural gas and oil prices will lead

to economic turmoil in the countries whose governments do not invest in renewable energy

Legislative support for renewable energy plays a major role in securing not only reliable power

supply but also in preventing the crisis of the economy as a whole

Naturally changes of the existing situation and general acceptance of the ldquogreenrdquo technologies by

the population involve first of all a national large-scale public awareness campaign the

involvement of business in the development of local renewable energies

Today renewable energy and wind energy in particular stimulates the growth of economic

well-being of a nation increases its energy independence lowers energy-related expenses

reduces risks associated with the prices for energy carriers increases competitiveness facilitates

the export of technologies and creates new jobs Nowadays globally there are more than 5 million

jobs in renewable energy

The book on the current status of wind energy sectors in CIS countries by the World Wind

Energy Association presents a comprehensive overview of the existing policy and legislative

frameworks in the wind energy sectors of these countries I believe that the publication of this

book is very important and timely it will draw international attention to the new markets with

enormous potential for the wind industry Itrsquos time to take action A lot of work is waiting for us

Best wishes

Andriy Konechenkov

Board Member of WWEA and Representative for CIS Countries

Chairman of the Board of Directors Ukrainian Wind Energy Association (UWEA)

Kyiv November 2012

Foreword

Wind Power Status in the CIS Countries

7

Index

Foreword5

Table of Contents7

I Introduction9

II The Commonwealth of Independent States An Overview13

III Assessment of Regional Wind Potential17

IV Country Reports

- Armenia

- Azerbaijan

- Belarus

- Georgia

- Kazakhstan

- Kyrgyzstan

- Moldova

- Russia

- Tajikistan

- Turkmenistan

- Ukraine

- Uzbekistan

V Analysis Common Trends Shared Problems21

VI Recommendations Paving the Way to Sustainable Energy

Supply26

VII Conclusion31

VIII References35

Contents

Wind Power Status in the CIS Countries

8

Acronyms and Abbreviations

ADB ndash Asian Development Bank

BWE ndash Bundesverband WindEnergie (German Wind Energy Associaion)

CHP ndash Combined Heat and Power (Power Plant)

CIS ndash Community of the Independent States

EBRD ndash European Bank for Reconstruction and Development

EU ndash European Union

FIT ndash feed-in tariff

GW ndash gigawatt (1 GW = 1000 MW)

HPP ndash Hydropower Plant

IEA ndash International Energy Agency

IRENA ndash International Renewable Energy Agency

kW ndash kilowatt (1 kW = 1000 W)

kWh ndash kilowatt hour

MW ndash megawatt (1 MW = 1000 kW)

OSCE ndash Organisation for Security and Cooperation in Europe

REEEP - Renewale Energy and Energy Efficiency Partnership

REN21 ndash Renewable Energy Policy Network for the 21st Century

RES ndash renewable energy sources

UN ndash United Nations

UNDP - United Nations Development Programme

VAT ndash value added tax

W ndash watt

Acronyms

Wind Power Status in the CIS Countries

9

Introduction

After the dissolution of the Soviet Union the history has witnessed a radical change of

the political world map and the emergence of a number of newly sovereign states In the wake

of their newfound independence these countries have been facing an earnest challenge of

overcoming an uneasy phase of transition from state planned to market economy

Simultaneously the conversion of their energy sectors previously incorporated into a single

centralised system has also become a critical task for the former USSR republics Whereas the

Soviet Union was energy self-sufficient supplied by its resource-rich regions the independent

countries that appeared after its downfall are now confronted with the situation that they

have to secure the domestic energy supply on their own ndash whether with local energy

resources or via imported ones Considering that the distribution of fossil energy reserves

among the ex-Soviet republics is uneven some of them encountered a severe need to cover

the domestic demand purchasing fossil fuels from elsewhere allocating large expenses for

this purpose and accumulating increasing debts

At the same time the vast regional potential of renewable energy sources (hereinafter ndash

RES) which could be utilised in order to substitute the share of imported hydrocarbons still

remains untapped Indeed bearing in mind that energy security of a country is an intrinsic

element of statehood integrity and stability and that it includes vital elements such as

independence invulnerability and sustainability of state energy system renewable energy

could (and should) become an intrinsic strategic component for the countriesrsquo diversification

of their national energy supply

Out of the whole scope of available renewable energy sources wind power deserves a

special attention due to its comparative advantages firstly it is available everywhere on the

planet secondly it is relatively cheap and thus commercially competitive and thirdly the

equipment for wind power generation is easily deployable in almost any location Of course

the wind resource varies across the countries and regions but in the light of the regional

specific characteristics (geographical location type of landscapes level of economic

development etc) it obviously appears as one of the most reasonable options for the analysed

states Moreover exploiting renewable and wind energy is actually beneficial for both fossil

resource-poor and energy self-sufficient countries the former should opt for it in order to

enhance their energy supply security and decrease the dependence on imported fossil fuels

and the latter could save more hydrocarbon reserves eg for export

Introduction

Wind Power Status in the CIS Countries

10

This publication is a unique comprehensive overview of the renewable energy and wind

power sector in twelve countries of the former Soviet Union (see the map below) Armenia

Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian Federation

Tajikistan Turkmenistan Ukraine and Uzbekistan The report is comprised by separate

country chapters and a general analysis of renewable and more precisely wind energy status

on the territory of the CIS

Figure 11

Each country chapter encompasses socio-economic geographical and political

background of a state as well as the actual data on national energy sector structure and

management provides an assessment of wind power potential reviews current and planned

wind power projects analyses existing political and legislative environment and the degree of

governmental support of RES and outlines perspectives for the RES and wind power

development Alongside with that the report contains a general insight into the

Commonwealth of the Independent States analysis of common trends and barriers to wind

power development and recommendations for future policies and actions Furthermore after

each country chapter a listing of useful contacts in the fields of state and governmental

agencies local non-governmental organisations and non-profit associations research and

scientific institutions business and investment partners can be found In such a way a

Introduction

Wind Power Status in the CIS Countries

11

multifaceted review with selective and country-specific data on 12 analysed countries

presented in this report can assist the RES industry professionals investors and prospective

developers to shape an understanding of the local and regional markets and project possible

business opportunities

The geographical scope of this publication as follows from the heading encompasses a

vast land area of the Commonwealth of the Independent States (CIS) members stretching

from Eastern Europe to Russiarsquos borders with Alaska and from the Arctic Ocean to Central

Asia1 The data used in this report is based on publicly accessible sources as well as on non-

public papers and partly on personal expert interviews and assessments Although the

information presented in this report was thoroughly collected and analysed by the author and

appeared as the best available at the time some minor inaccuracies may remain due to the

information scarcity and senescence

The given publication is intended to be of a specific significance to a broad group of

readers including renewable energy manufacturers technology providers wholesalers

suppliers project developers operators services companies planning offices consultancy

firms financing institutions The report is meant to be also useful for politicians and decision-

makers as well as for academia scientists researches students different actors from the

public and private sector NGOs and civil groups The report might be valuable for both those

who are already active in the region or its markets and for those exploring new possibilities

for their business activities

1 Please note that the term ldquoCommonwealth of Independent Statesrdquo (CIS) is used in this report in reference to the geographic area and does not claim to reflect the peculiarities of the membership of each of 12 countries encompassed by the report (ie Turkmenistan is unofficially an associate member Ukraine is a de facto participant and Georgia after possessing a full-fledged membership for over a decade has withdrawn itself in 2008)

Introduction

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 6: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

7

Index

Foreword5

Table of Contents7

I Introduction9

II The Commonwealth of Independent States An Overview13

III Assessment of Regional Wind Potential17

IV Country Reports

- Armenia

- Azerbaijan

- Belarus

- Georgia

- Kazakhstan

- Kyrgyzstan

- Moldova

- Russia

- Tajikistan

- Turkmenistan

- Ukraine

- Uzbekistan

V Analysis Common Trends Shared Problems21

VI Recommendations Paving the Way to Sustainable Energy

Supply26

VII Conclusion31

VIII References35

Contents

Wind Power Status in the CIS Countries

8

Acronyms and Abbreviations

ADB ndash Asian Development Bank

BWE ndash Bundesverband WindEnergie (German Wind Energy Associaion)

CHP ndash Combined Heat and Power (Power Plant)

CIS ndash Community of the Independent States

EBRD ndash European Bank for Reconstruction and Development

EU ndash European Union

FIT ndash feed-in tariff

GW ndash gigawatt (1 GW = 1000 MW)

HPP ndash Hydropower Plant

IEA ndash International Energy Agency

IRENA ndash International Renewable Energy Agency

kW ndash kilowatt (1 kW = 1000 W)

kWh ndash kilowatt hour

MW ndash megawatt (1 MW = 1000 kW)

OSCE ndash Organisation for Security and Cooperation in Europe

REEEP - Renewale Energy and Energy Efficiency Partnership

REN21 ndash Renewable Energy Policy Network for the 21st Century

RES ndash renewable energy sources

UN ndash United Nations

UNDP - United Nations Development Programme

VAT ndash value added tax

W ndash watt

Acronyms

Wind Power Status in the CIS Countries

9

Introduction

After the dissolution of the Soviet Union the history has witnessed a radical change of

the political world map and the emergence of a number of newly sovereign states In the wake

of their newfound independence these countries have been facing an earnest challenge of

overcoming an uneasy phase of transition from state planned to market economy

Simultaneously the conversion of their energy sectors previously incorporated into a single

centralised system has also become a critical task for the former USSR republics Whereas the

Soviet Union was energy self-sufficient supplied by its resource-rich regions the independent

countries that appeared after its downfall are now confronted with the situation that they

have to secure the domestic energy supply on their own ndash whether with local energy

resources or via imported ones Considering that the distribution of fossil energy reserves

among the ex-Soviet republics is uneven some of them encountered a severe need to cover

the domestic demand purchasing fossil fuels from elsewhere allocating large expenses for

this purpose and accumulating increasing debts

At the same time the vast regional potential of renewable energy sources (hereinafter ndash

RES) which could be utilised in order to substitute the share of imported hydrocarbons still

remains untapped Indeed bearing in mind that energy security of a country is an intrinsic

element of statehood integrity and stability and that it includes vital elements such as

independence invulnerability and sustainability of state energy system renewable energy

could (and should) become an intrinsic strategic component for the countriesrsquo diversification

of their national energy supply

Out of the whole scope of available renewable energy sources wind power deserves a

special attention due to its comparative advantages firstly it is available everywhere on the

planet secondly it is relatively cheap and thus commercially competitive and thirdly the

equipment for wind power generation is easily deployable in almost any location Of course

the wind resource varies across the countries and regions but in the light of the regional

specific characteristics (geographical location type of landscapes level of economic

development etc) it obviously appears as one of the most reasonable options for the analysed

states Moreover exploiting renewable and wind energy is actually beneficial for both fossil

resource-poor and energy self-sufficient countries the former should opt for it in order to

enhance their energy supply security and decrease the dependence on imported fossil fuels

and the latter could save more hydrocarbon reserves eg for export

Introduction

Wind Power Status in the CIS Countries

10

This publication is a unique comprehensive overview of the renewable energy and wind

power sector in twelve countries of the former Soviet Union (see the map below) Armenia

Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian Federation

Tajikistan Turkmenistan Ukraine and Uzbekistan The report is comprised by separate

country chapters and a general analysis of renewable and more precisely wind energy status

on the territory of the CIS

Figure 11

Each country chapter encompasses socio-economic geographical and political

background of a state as well as the actual data on national energy sector structure and

management provides an assessment of wind power potential reviews current and planned

wind power projects analyses existing political and legislative environment and the degree of

governmental support of RES and outlines perspectives for the RES and wind power

development Alongside with that the report contains a general insight into the

Commonwealth of the Independent States analysis of common trends and barriers to wind

power development and recommendations for future policies and actions Furthermore after

each country chapter a listing of useful contacts in the fields of state and governmental

agencies local non-governmental organisations and non-profit associations research and

scientific institutions business and investment partners can be found In such a way a

Introduction

Wind Power Status in the CIS Countries

11

multifaceted review with selective and country-specific data on 12 analysed countries

presented in this report can assist the RES industry professionals investors and prospective

developers to shape an understanding of the local and regional markets and project possible

business opportunities

The geographical scope of this publication as follows from the heading encompasses a

vast land area of the Commonwealth of the Independent States (CIS) members stretching

from Eastern Europe to Russiarsquos borders with Alaska and from the Arctic Ocean to Central

Asia1 The data used in this report is based on publicly accessible sources as well as on non-

public papers and partly on personal expert interviews and assessments Although the

information presented in this report was thoroughly collected and analysed by the author and

appeared as the best available at the time some minor inaccuracies may remain due to the

information scarcity and senescence

The given publication is intended to be of a specific significance to a broad group of

readers including renewable energy manufacturers technology providers wholesalers

suppliers project developers operators services companies planning offices consultancy

firms financing institutions The report is meant to be also useful for politicians and decision-

makers as well as for academia scientists researches students different actors from the

public and private sector NGOs and civil groups The report might be valuable for both those

who are already active in the region or its markets and for those exploring new possibilities

for their business activities

1 Please note that the term ldquoCommonwealth of Independent Statesrdquo (CIS) is used in this report in reference to the geographic area and does not claim to reflect the peculiarities of the membership of each of 12 countries encompassed by the report (ie Turkmenistan is unofficially an associate member Ukraine is a de facto participant and Georgia after possessing a full-fledged membership for over a decade has withdrawn itself in 2008)

Introduction

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 7: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

8

Acronyms and Abbreviations

ADB ndash Asian Development Bank

BWE ndash Bundesverband WindEnergie (German Wind Energy Associaion)

CHP ndash Combined Heat and Power (Power Plant)

CIS ndash Community of the Independent States

EBRD ndash European Bank for Reconstruction and Development

EU ndash European Union

FIT ndash feed-in tariff

GW ndash gigawatt (1 GW = 1000 MW)

HPP ndash Hydropower Plant

IEA ndash International Energy Agency

IRENA ndash International Renewable Energy Agency

kW ndash kilowatt (1 kW = 1000 W)

kWh ndash kilowatt hour

MW ndash megawatt (1 MW = 1000 kW)

OSCE ndash Organisation for Security and Cooperation in Europe

REEEP - Renewale Energy and Energy Efficiency Partnership

REN21 ndash Renewable Energy Policy Network for the 21st Century

RES ndash renewable energy sources

UN ndash United Nations

UNDP - United Nations Development Programme

VAT ndash value added tax

W ndash watt

Acronyms

Wind Power Status in the CIS Countries

9

Introduction

After the dissolution of the Soviet Union the history has witnessed a radical change of

the political world map and the emergence of a number of newly sovereign states In the wake

of their newfound independence these countries have been facing an earnest challenge of

overcoming an uneasy phase of transition from state planned to market economy

Simultaneously the conversion of their energy sectors previously incorporated into a single

centralised system has also become a critical task for the former USSR republics Whereas the

Soviet Union was energy self-sufficient supplied by its resource-rich regions the independent

countries that appeared after its downfall are now confronted with the situation that they

have to secure the domestic energy supply on their own ndash whether with local energy

resources or via imported ones Considering that the distribution of fossil energy reserves

among the ex-Soviet republics is uneven some of them encountered a severe need to cover

the domestic demand purchasing fossil fuels from elsewhere allocating large expenses for

this purpose and accumulating increasing debts

At the same time the vast regional potential of renewable energy sources (hereinafter ndash

RES) which could be utilised in order to substitute the share of imported hydrocarbons still

remains untapped Indeed bearing in mind that energy security of a country is an intrinsic

element of statehood integrity and stability and that it includes vital elements such as

independence invulnerability and sustainability of state energy system renewable energy

could (and should) become an intrinsic strategic component for the countriesrsquo diversification

of their national energy supply

Out of the whole scope of available renewable energy sources wind power deserves a

special attention due to its comparative advantages firstly it is available everywhere on the

planet secondly it is relatively cheap and thus commercially competitive and thirdly the

equipment for wind power generation is easily deployable in almost any location Of course

the wind resource varies across the countries and regions but in the light of the regional

specific characteristics (geographical location type of landscapes level of economic

development etc) it obviously appears as one of the most reasonable options for the analysed

states Moreover exploiting renewable and wind energy is actually beneficial for both fossil

resource-poor and energy self-sufficient countries the former should opt for it in order to

enhance their energy supply security and decrease the dependence on imported fossil fuels

and the latter could save more hydrocarbon reserves eg for export

Introduction

Wind Power Status in the CIS Countries

10

This publication is a unique comprehensive overview of the renewable energy and wind

power sector in twelve countries of the former Soviet Union (see the map below) Armenia

Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian Federation

Tajikistan Turkmenistan Ukraine and Uzbekistan The report is comprised by separate

country chapters and a general analysis of renewable and more precisely wind energy status

on the territory of the CIS

Figure 11

Each country chapter encompasses socio-economic geographical and political

background of a state as well as the actual data on national energy sector structure and

management provides an assessment of wind power potential reviews current and planned

wind power projects analyses existing political and legislative environment and the degree of

governmental support of RES and outlines perspectives for the RES and wind power

development Alongside with that the report contains a general insight into the

Commonwealth of the Independent States analysis of common trends and barriers to wind

power development and recommendations for future policies and actions Furthermore after

each country chapter a listing of useful contacts in the fields of state and governmental

agencies local non-governmental organisations and non-profit associations research and

scientific institutions business and investment partners can be found In such a way a

Introduction

Wind Power Status in the CIS Countries

11

multifaceted review with selective and country-specific data on 12 analysed countries

presented in this report can assist the RES industry professionals investors and prospective

developers to shape an understanding of the local and regional markets and project possible

business opportunities

The geographical scope of this publication as follows from the heading encompasses a

vast land area of the Commonwealth of the Independent States (CIS) members stretching

from Eastern Europe to Russiarsquos borders with Alaska and from the Arctic Ocean to Central

Asia1 The data used in this report is based on publicly accessible sources as well as on non-

public papers and partly on personal expert interviews and assessments Although the

information presented in this report was thoroughly collected and analysed by the author and

appeared as the best available at the time some minor inaccuracies may remain due to the

information scarcity and senescence

The given publication is intended to be of a specific significance to a broad group of

readers including renewable energy manufacturers technology providers wholesalers

suppliers project developers operators services companies planning offices consultancy

firms financing institutions The report is meant to be also useful for politicians and decision-

makers as well as for academia scientists researches students different actors from the

public and private sector NGOs and civil groups The report might be valuable for both those

who are already active in the region or its markets and for those exploring new possibilities

for their business activities

1 Please note that the term ldquoCommonwealth of Independent Statesrdquo (CIS) is used in this report in reference to the geographic area and does not claim to reflect the peculiarities of the membership of each of 12 countries encompassed by the report (ie Turkmenistan is unofficially an associate member Ukraine is a de facto participant and Georgia after possessing a full-fledged membership for over a decade has withdrawn itself in 2008)

Introduction

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 8: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

9

Introduction

After the dissolution of the Soviet Union the history has witnessed a radical change of

the political world map and the emergence of a number of newly sovereign states In the wake

of their newfound independence these countries have been facing an earnest challenge of

overcoming an uneasy phase of transition from state planned to market economy

Simultaneously the conversion of their energy sectors previously incorporated into a single

centralised system has also become a critical task for the former USSR republics Whereas the

Soviet Union was energy self-sufficient supplied by its resource-rich regions the independent

countries that appeared after its downfall are now confronted with the situation that they

have to secure the domestic energy supply on their own ndash whether with local energy

resources or via imported ones Considering that the distribution of fossil energy reserves

among the ex-Soviet republics is uneven some of them encountered a severe need to cover

the domestic demand purchasing fossil fuels from elsewhere allocating large expenses for

this purpose and accumulating increasing debts

At the same time the vast regional potential of renewable energy sources (hereinafter ndash

RES) which could be utilised in order to substitute the share of imported hydrocarbons still

remains untapped Indeed bearing in mind that energy security of a country is an intrinsic

element of statehood integrity and stability and that it includes vital elements such as

independence invulnerability and sustainability of state energy system renewable energy

could (and should) become an intrinsic strategic component for the countriesrsquo diversification

of their national energy supply

Out of the whole scope of available renewable energy sources wind power deserves a

special attention due to its comparative advantages firstly it is available everywhere on the

planet secondly it is relatively cheap and thus commercially competitive and thirdly the

equipment for wind power generation is easily deployable in almost any location Of course

the wind resource varies across the countries and regions but in the light of the regional

specific characteristics (geographical location type of landscapes level of economic

development etc) it obviously appears as one of the most reasonable options for the analysed

states Moreover exploiting renewable and wind energy is actually beneficial for both fossil

resource-poor and energy self-sufficient countries the former should opt for it in order to

enhance their energy supply security and decrease the dependence on imported fossil fuels

and the latter could save more hydrocarbon reserves eg for export

Introduction

Wind Power Status in the CIS Countries

10

This publication is a unique comprehensive overview of the renewable energy and wind

power sector in twelve countries of the former Soviet Union (see the map below) Armenia

Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian Federation

Tajikistan Turkmenistan Ukraine and Uzbekistan The report is comprised by separate

country chapters and a general analysis of renewable and more precisely wind energy status

on the territory of the CIS

Figure 11

Each country chapter encompasses socio-economic geographical and political

background of a state as well as the actual data on national energy sector structure and

management provides an assessment of wind power potential reviews current and planned

wind power projects analyses existing political and legislative environment and the degree of

governmental support of RES and outlines perspectives for the RES and wind power

development Alongside with that the report contains a general insight into the

Commonwealth of the Independent States analysis of common trends and barriers to wind

power development and recommendations for future policies and actions Furthermore after

each country chapter a listing of useful contacts in the fields of state and governmental

agencies local non-governmental organisations and non-profit associations research and

scientific institutions business and investment partners can be found In such a way a

Introduction

Wind Power Status in the CIS Countries

11

multifaceted review with selective and country-specific data on 12 analysed countries

presented in this report can assist the RES industry professionals investors and prospective

developers to shape an understanding of the local and regional markets and project possible

business opportunities

The geographical scope of this publication as follows from the heading encompasses a

vast land area of the Commonwealth of the Independent States (CIS) members stretching

from Eastern Europe to Russiarsquos borders with Alaska and from the Arctic Ocean to Central

Asia1 The data used in this report is based on publicly accessible sources as well as on non-

public papers and partly on personal expert interviews and assessments Although the

information presented in this report was thoroughly collected and analysed by the author and

appeared as the best available at the time some minor inaccuracies may remain due to the

information scarcity and senescence

The given publication is intended to be of a specific significance to a broad group of

readers including renewable energy manufacturers technology providers wholesalers

suppliers project developers operators services companies planning offices consultancy

firms financing institutions The report is meant to be also useful for politicians and decision-

makers as well as for academia scientists researches students different actors from the

public and private sector NGOs and civil groups The report might be valuable for both those

who are already active in the region or its markets and for those exploring new possibilities

for their business activities

1 Please note that the term ldquoCommonwealth of Independent Statesrdquo (CIS) is used in this report in reference to the geographic area and does not claim to reflect the peculiarities of the membership of each of 12 countries encompassed by the report (ie Turkmenistan is unofficially an associate member Ukraine is a de facto participant and Georgia after possessing a full-fledged membership for over a decade has withdrawn itself in 2008)

Introduction

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 9: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

10

This publication is a unique comprehensive overview of the renewable energy and wind

power sector in twelve countries of the former Soviet Union (see the map below) Armenia

Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian Federation

Tajikistan Turkmenistan Ukraine and Uzbekistan The report is comprised by separate

country chapters and a general analysis of renewable and more precisely wind energy status

on the territory of the CIS

Figure 11

Each country chapter encompasses socio-economic geographical and political

background of a state as well as the actual data on national energy sector structure and

management provides an assessment of wind power potential reviews current and planned

wind power projects analyses existing political and legislative environment and the degree of

governmental support of RES and outlines perspectives for the RES and wind power

development Alongside with that the report contains a general insight into the

Commonwealth of the Independent States analysis of common trends and barriers to wind

power development and recommendations for future policies and actions Furthermore after

each country chapter a listing of useful contacts in the fields of state and governmental

agencies local non-governmental organisations and non-profit associations research and

scientific institutions business and investment partners can be found In such a way a

Introduction

Wind Power Status in the CIS Countries

11

multifaceted review with selective and country-specific data on 12 analysed countries

presented in this report can assist the RES industry professionals investors and prospective

developers to shape an understanding of the local and regional markets and project possible

business opportunities

The geographical scope of this publication as follows from the heading encompasses a

vast land area of the Commonwealth of the Independent States (CIS) members stretching

from Eastern Europe to Russiarsquos borders with Alaska and from the Arctic Ocean to Central

Asia1 The data used in this report is based on publicly accessible sources as well as on non-

public papers and partly on personal expert interviews and assessments Although the

information presented in this report was thoroughly collected and analysed by the author and

appeared as the best available at the time some minor inaccuracies may remain due to the

information scarcity and senescence

The given publication is intended to be of a specific significance to a broad group of

readers including renewable energy manufacturers technology providers wholesalers

suppliers project developers operators services companies planning offices consultancy

firms financing institutions The report is meant to be also useful for politicians and decision-

makers as well as for academia scientists researches students different actors from the

public and private sector NGOs and civil groups The report might be valuable for both those

who are already active in the region or its markets and for those exploring new possibilities

for their business activities

1 Please note that the term ldquoCommonwealth of Independent Statesrdquo (CIS) is used in this report in reference to the geographic area and does not claim to reflect the peculiarities of the membership of each of 12 countries encompassed by the report (ie Turkmenistan is unofficially an associate member Ukraine is a de facto participant and Georgia after possessing a full-fledged membership for over a decade has withdrawn itself in 2008)

Introduction

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 10: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

11

multifaceted review with selective and country-specific data on 12 analysed countries

presented in this report can assist the RES industry professionals investors and prospective

developers to shape an understanding of the local and regional markets and project possible

business opportunities

The geographical scope of this publication as follows from the heading encompasses a

vast land area of the Commonwealth of the Independent States (CIS) members stretching

from Eastern Europe to Russiarsquos borders with Alaska and from the Arctic Ocean to Central

Asia1 The data used in this report is based on publicly accessible sources as well as on non-

public papers and partly on personal expert interviews and assessments Although the

information presented in this report was thoroughly collected and analysed by the author and

appeared as the best available at the time some minor inaccuracies may remain due to the

information scarcity and senescence

The given publication is intended to be of a specific significance to a broad group of

readers including renewable energy manufacturers technology providers wholesalers

suppliers project developers operators services companies planning offices consultancy

firms financing institutions The report is meant to be also useful for politicians and decision-

makers as well as for academia scientists researches students different actors from the

public and private sector NGOs and civil groups The report might be valuable for both those

who are already active in the region or its markets and for those exploring new possibilities

for their business activities

1 Please note that the term ldquoCommonwealth of Independent Statesrdquo (CIS) is used in this report in reference to the geographic area and does not claim to reflect the peculiarities of the membership of each of 12 countries encompassed by the report (ie Turkmenistan is unofficially an associate member Ukraine is a de facto participant and Georgia after possessing a full-fledged membership for over a decade has withdrawn itself in 2008)

Introduction

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 11: Summary - Rusia and CIS report

11

News AnalysisISSUE 3 September 2012

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 12: Summary - Rusia and CIS report

The Commonwealth of

Independent States

An Overview

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 13: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

14

The Commonwealth of Independent States An Overview

The territory of the Commonwealth of Independent States spans over 21 million km2

covering 164 of the Earth surface with various climatic zones and distinct geomorphic

structure The member countries of the CIS are homelands for 44 of world population -

2725 million people of wide range of nationalities and ethnicities

The soil occupied by the CIS countries is immensely rich in natural resources and

minerals of all kinds including energy and renewable energy resources As much as 20 of

world oil deposits 40 natural gas deposits and 25 of coal reserves are located within the

borders of the CIS states with the latter generating 10 of world electricity At the same time

more than 10 million people in the region are not connected to power grids and suffer from

unstable electricity supply provided by the use of expensive and unreliable small gasoline or

diesel generators In comparison with the international standards the levels of energy use

intensity in the CIS remain extremely high remarkably not only in the energy exporter

countries but also in those deprived of fossil fuels such as Belarus and Ukraine

Renewable energy potential is also large and diverse including massive solar tide

biomass hydro geothermal and wind resources which remain almost untapped at the

moment Even though the level of technically achievable economic potential of renewable

energy varies among CIS states virtually in all CIS countries this RES potential by far exceeds

the current energy consumption The current contribution of RES to total primary energy

consumption only comprises 5 in the whole region out of which 85 is represented by

hydropower and biomass The wind power capacity installed in the whole region represents

only less than 01 of the world share

The diversity of natural resources in the Commonwealth of the Independent States also

applies to their allocation the member states of the CIS can clearly be divided into fossil fuels

rich countries and energy importers Practically among the CIS states only Azerbaijan

Kazakhstan Russia (which have large reserves of both oil and gas) and Turkmenistan (rich in

gas) possess ndash or rather produce - sufficient amount of energy locally to satisfy domestic

energy needs and even to export the excess abroad Uzbekistan has significant gas reserves

too but still imports oil from its neighbours Besides Russia and Kazakhstan possess

substantial uranium reserves Out of 12 countries 4 have nuclear power plants with a joint

capacity of around 35 GW All other states except for those listed above to a higher or lower

extent depend on primary energy imports especially grave is the situation in energy-poor

countries such as Armenia Georgia and Moldova

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 14: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

15

All countries with the exception of Moldova Armenia and Georgia cover vast land areas

(as seen in the table above) thus theoretically having enough land and resources for

renewable energy power plants deployment The prevalent majority of the CIS countries are

landlocked except for Georgia Russia and Ukraine (Azerbaijan and Kazakhstan only have the

access to the Caspian and Aral Sea both of which are landlocked) In practical terms that

means that for Ukraine and Georgia there is a possibility to consider offshore wind farm

development on the Black Sea and Russia could deploy offshore wind farms on many sea

spots that it has direct access to

Generally speaking the countries of the Commonwealth of Independent States

represent an enormous territory with diverse nature landscapes and resources Practically

all kinds of renewable energy can be introduced and utilised in the given region moreover

the countries themselves would undoubtedly benefit from RES development The wide-

spread exploitation of renewable energy thus becomes a mere question of time and political

will of the countriesrsquo authorities who should holding in their hands such a huge potential

direct all their efforts to make a proper use out of it

Table 11 Country Data of the CIS Member States

Country Territory

km2 Population

Population Density per

km2

Geographical Position

Armenia 29rsquo743 2rsquo970rsquo495 108 landlocked

Azerbaijan 86rsquo600 9rsquo493rsquo600 1096 landlocked

Belarus 207rsquo600 9rsquo542rsquo883 46 landlocked

Georgia 69rsquo700 4rsquo570rsquo934 656 access to sea

Kazakhstan 2rsquo724rsquo900 15rsquo522rsquo373 64 landlocked

Kyrgyzstan 199rsquo951 5rsquo587rsquo443 275 landlocked

Moldova 33rsquo851 3rsquo656rsquo843 108 landlocked

Russia 17rsquo098rsquo242 138rsquo739rsquo892 84 access to sea

Tajikistan 143rsquo100 7rsquo768rsquo385 543 landlocked

Turkmenistan 488rsquo100 5rsquo054rsquo828 104 landlocked

Ukraine 603rsquo550 44rsquo854rsquo065 743 access to sea

Uzbekistan 447rsquo400 28rsquo394rsquo180 635 landlocked

Source composed by the author

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 15: Summary - Rusia and CIS report

Assessment of

Regional Wind

Potential

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 16: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

18

Assessment of Regional Wind Potential

As stated previously the CIS countries are endowed with significant renewable energy

potentials including rich wind power potential The wind resources on the post-Soviet space

are allocated unequally (see the distribution on the map below) however each country has

enough suitable spots for wind farm deployment Giants such as Russia and Kazakhstan

possess the highest ndash total and per capita respectively ndash wind power potential in the world As

seen on the map below the highest wind speeds are observed on the coastlines of the Arctic

and Pacific Oceans fast winds are also present around the Caucasus and in the mountainous

areas

Figure 12

In order to obtain a comprehensive overview of the regional wind power status it is

necessary to look at such important indicators like the installed wind power capacity The

table below summarises the findings of the country chapters and provides an insight into the

statesrsquo wind power sector and potential (as assessed for the current moment)

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 17: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

19

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Country Wind Power

Installed Capacity Assessed Wind Power

Potential2 Total Installed

Capacity

Ukraine 1511 MW 16rsquo000 MW 53rsquo549 MW

Russia 1665 MW 90rsquo000 MW 223rsquo971 MW

Belarus 35 MW 1rsquo600 MW 8rsquo025 MW

Armenia 264 MW 4rsquo900 MW 3rsquo203 MW

Azerbaijan 22 MW 3rsquo000 MW 5rsquo798 MW

Kazakhstan 22 MW 350rsquo000 MW 19rsquo128 MW

Georgia 10 kW 2rsquo000 MW 4rsquo538 MW

Tajikistan 53 kW 1rsquo900 MW 4rsquo426 MW

Kyrgyzstan 2 kW 1rsquo500 MW 3rsquo720 MW

Moldova 0 MW 1rsquo000 MW 1rsquo029 MW

Turkmenistan 0 MW 10rsquo000 MW 3rsquo106 MW

Uzbekistan 0 MW 4rsquo300 MW 12rsquo551 MW

TOTAL 17831 MW 4862 GW 343rsquo044 MW

Source composed by the author

The total wind power potential2 of the region according to the figures above is

estimated at 4862 GW whereas only 17831 MW of wind power capacity is installed ndash in

practical terms that means that only 0037 of the explored wind potential is exploited

Unfortunately half of the CIS states have only negligible number of wind turbines in

operation and those generators are prevalently small capacity stand-alone turbines Another

notable peculiarity following from the table above is that the countries with the highest wind

potential ndash such as Kazakhstan Russia and Turkmenistan ndash have also large oil and gas

reserves which for a long time have been a significant disincentive to any kind of renewable

energy development

Guided by pure logic one would suppose that among the CIS states the Russian

Federation should possess the greatest wind potential just because of the size of its territory

however according to existing evaluations by local experts Kazakhstan claims to have richer

wind resources The given fact clearly indicates that the exploration of wind potential within

2 Please note that this data represents the availiable wind potential in a country as estimated by the local experts and studies The value of real (unassessed) potential shall appear much higher

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 18: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

20

the countries progresses with a different pace and those states lagging behind in this regard

should continue their scrutiny of available wind potential

Taking a look at the installed wind power capacity it is easy to single out an absolute

leader ndash Ukraine Not only it has the largest wind power installed capacity but the whole

process of RES and especially wind power development is progressing faster in this country

than in the other eleven countries Ukraine indeed can be considered a front-runner in this

regard which can and should stimulate its neighbouring countriesrsquo activities on advancing in

the field of renewable energy fostering healthy competition and inciting a positive

breakthrough

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 19: Summary - Rusia and CIS report

Analysis Common

Trends Shared

Problems

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 20: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

22

Analysis Common Trends Shared Problems

Even though the CIS countries cover a vast territory of the earth and present twelve

states with distinct political configuration economic development pace and other national

peculiarities they all share one common stratum of history within the borders of the Soviet

Union with each country being a part of uniform centralised system The given historical fact

left its imprint on the modern development progress in these states and endowed them with

similar configurations and problems In this part of the report the trends and findings

common for all or for a majority of CIS countries are revealed alongside with that shared

problematic concerns and barriers to RES and wind energy sector development are outlined

Energy Sector Very often it is the case in the given region that the organisation of the

energy sector is represented by vertical highly integrated and monopolistic structure fully or

to a high extent controlled by the state Consequently state owned enterprises receive

generous donations from state budget in reality operating inefficiently and incurring losses

Subsidies given to the conventional energy sector divert funds away from necessary

investments in renewable energy energy efficient equipment power grid modernisation etc

The lobby of conventional energy representatives in the sector has traditionally been

powerful pushing forward the interests of oil and gas industries The existing infrastructure

is mostly the one left from Soviet times and therefore often damaged outdated or worn-out

However an interesting finding in our view was that the countries that are heavily dependent

on energy imports - Armenia Georgia and Moldova - were actually the first to reform partly

liberalise and privatise and restructure their energy sectors eliminating energy under-

pricing cross-subsidization tolerance for payment arrears and huge losses in the energy

transmission and distribution systems

Political Environment Most of the countries have passed through uneasy times after

the collapse of the Soviet Union suffering from intra- and interstate ethnic conflicts wars and

tensions (eg issues of Abkhazia and South Ossetia in Georgia Transnistria in Moldova

dispute over Nagorno Karabakh between Armenia and Azerbaijan etc) Due to all these

events the political environment in most of the CIS states remains unstable and the political

leadership is prone to constant changes The investment climate in the region cannot be

described as attractive either

Regarding the state support to renewable energy in some countries (such as Moldova

Georgia and Armenia) the officials at the highest political levels declare commitment to RES

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 21: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

23

development whereas the leaders of other countries do not devote proper attention to this

subject especially those rich on fossil fuels (Russia Turkmenistan Uzbekistan) It should be

noted here also that Moldova represents a kind of special case with its pro-European

orientation and an ultimate goal to join the European Union Within this course Moldova is

attempting to adjust its policies and legislation to European standards also in the energy

sphere which is clearly visible from its legislation and statements of the political leaders

On the international level most of the countries are moderately active although the

level of their involvement could be increased even more A number of states receive support

from the international organisations and institutions including UNDP World Bank USAID

GIZ etc Besides Armenia Belarus Georgia and Moldova have ratified the International

Renewable Energy Agency (IRENA) Statute and became its members Kazakhstan Kyrgyzstan

Azerbaijan Tajikistan and Uzbekistan submitted the application for membership whereas

Russia Turkmenistan and Ukraine remain inactive in this regard Additionally all twelve

countries except from Russia are participants to EU INOGATE Energy Partnership

Programme which places the increase of energy efficiency and diffusion of RES as one of its

main foci

Legislation Underdeveloped legislative framework coupled with uncertain political

and regulatory environment remains a problem in virtually all twelve countries reducing the

investment into local energy sectors Far not all of the republics have a specific law regulating

the renewable energy sector with other laws covering RES regulation being declarative and

fragmentary In most of the countries Energy Strategies are adopted ndash comprehensive

declarative documents containing the guidelines for energy sector development and setting

(often ambitious) targets for the future including a planned share or quantity of RES installed

capacity A feed-in tariff system is only established in three countries out of twelve Armenia

Belarus and Ukraine local content requirements were introduced and underpinned by

appropriate legal acts only in Ukraine The issue of implementation of existing laws and

regulations in practical terms also remains problematic

Funding Inadequate financial support is one of the gravest stumbling blocks of

renewable energy sector development in each (with no exception) country of the

Commonwealth of the Independent States The lack of funding is observed from both public

and private actors in case of state funding it is often an issue that the funds allocated from

the budget for renewable energy sector is insufficient to implement the targets of national

programmes not even mentioning a severe lack of funds to repair or replace the worn-out

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 22: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

24

infrastructure Among local risk-averse businesses and the private sector there is still too

little initiatives to invest in renewable energy projects due to poor legislative regulation long

payback periods and general uncertainty

Electricity Prices In most of the CIS republics the prices for electricity remain low

often artificially low due to heavy subsidies to conventional energy producers As it can be

seen in the table below the price varies from 1 to 10 Euro cents per kWh (compare with

prices per kWh in Europe eg Spain 18 cents Germany 24 cents and Denmark 26 cents)

Under such circumstances potential investors lose the incentive to enter the energy market

as they may face low and unguaranteed paybacks Renewable energy producers also act with

cautiousness taking into account that a feed-in tariff system exists only in three out of twelve

countries Armenia Belarus and Ukraine and only in the latter the feed-in tariff rate is high

enough to cover the associated costs and risks

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Country Price per kWh EUR Feed-in Tariff

Armenia 004 007

Azerbaijan 006 ---

Belarus 002 x13 (first 10 years)

Georgia 010 ---

Kazakhstan 003 ---

Kyrgyzstan 004

(35 kWh for free) ---

Moldova 009 ---

Russia 006 ---

Tajikistan 001 ---

Turkmenistan 003 ---

Ukraine 005 012

Uzbekistan 003 ---

Source composed by the author

Public awareness The situation in the analysed countries is often characterised by a

low level of public awareness and concerns regarding renewable energy its advantages and

benefits as well as by the poor public perception of energy saving issues However

considering the historical background of the countries and relying upon public opinion

surveys the aesthetics of renewable energy power plants (solar panels wind mills etc) do

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 23: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

25

not represent a problem in the given region The prevalent majority of the informed

population would regard such installations as local attraction rather than claiming the

distortion of the landscape view

Local Specialists Generally the educational base in the countries of the CIS is fairly

decent with low levels of illiteracy among the population and with high level school and

university education programmes Nevertheless there is a lack of engineers technicians and

experts specialised in the field of renewable energy including the areas of manufacturing and

production installation maintenance and inspection services Universities which are mostly

funded from state budgets which that are often experiencing a general lack of funding do not

manage to adjust the educational programmes to the needs of modern societal and economic

development

Thus one can observe that virtually all countries of the Commonwealth of Independent

States share similar problems and obstacles on their way to a sound renewable energy sector

development Once these barriers are acknowledged and the first steps are made for their

elimination it will signalise a huge leap towards establishing and maintaining sustainable

energy supplies and efficient economic development

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 24: Summary - Rusia and CIS report

Recommendations

Paving the Way to

Sustainable Energy

Supply

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 25: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

27

Recommendations Paving the Way to Sustainable Energy

Supply

Certainly each of the twelve countries under analysis has its national peculiarities in

the way its energy sector is organised and its own problematic issues within the sphere of

renewable energy development However just as well as there are common trends in the CIS

countriesrsquo energy strategies it is also possible to outline a list of general guidelines and

recommendations for all twelve countries which should be followed in order to successfully

proceed with RES proliferation To a different extent the CIS member states share the similar

need of

Further Research and Wind Potential Assessment Accurate comprehensive and up-

to-date information about renewable energy resources within a country and its

availability are the primary prerequisites for further progress Scarce and incomplete

data on existing wind potential and the absence of wind maps and atlases represent a

major obstacle for the development of the wind sector Therefore for the CIS states it

should be of primary interest to conduct a precise assessment of their wind power

potential to support and fund all research activities in this area and disseminate the

findings approaching an ultimate goal of using all existing renewable energy sources

Support on Political Level In order to exercise a successful renewable energy policy

first and foremost it is necessary to officially declare a full commitment to it ndash starting

from the highest political levels Unfortunately the enthusiasm of local NGOs and experts

alone is not sufficient to give a strong impetus for prospering RES ndash it is the state and the

government institutions that should provide help and support for renewable energy

Such support should be materialised in formulation of a clear coherent and targeted

national energy strategy where renewable energy should occupy an important position

elaboration of country-wide (quantitative) goals and national programmes provided with

sufficient funding creation of a favourable legislative and institutional base

Improving the Legal and Institutional Framework The importance of an adequate

dedicated policy and predictable and transparent legal and regulatory frameworks for

attracting investments in renewable energy and development of this sector can hardly be

overestimated The legislative base should reflect clear and cohesive provisions

regulating the affairs in the sector of renewable energy at best a separate legislative act

on renewable energy should be adopted where still absent The existing laws and

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 26: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

28

regulations should be strictly and effectively implemented in practice guaranteeing a

secure and stable legal environment for investments Respective institutions andor

committees charged with renewable energy support and regulation should also be set up

Creating Fair Market Conditions The overall situation on the national energy market

can strongly influence the proliferation of RES especially if it does not encourage the

entrance of new participants therefore favourable market conditions are an inevitable

part of RES-friendly policies The countries should work towards ensuring fair

competition in energy markets through opening the markets guaranteeing a non-

discriminatory third party access to the grid transparency elimination of cross-subsidies

and gradual liberalisation An independent energy sector regulator should undoubtedly

become a component of a fair energy market

Granting the Funds Especially at the initial stage of their development renewable

energy projects may require additional financial support such as grants from the state

donations from respectively organised renewable energy funds and all kinds of

investments including local and foreign ones Considering the unstable political situation

and controversial international image of some CIS countries it is extremely important to

concentrate on repainting a negative portrait by means of improving investment climate

Providing Incentives In order to attract investments to a country a number of

necessary economic incentives should be considered Speaking of power and renewable

energy sector these are tax privileges and exemptions custom duties relief concessional

crediting with favourable rates equitable or priority access to the grid preferential tariff

schemes Taken altogether the whole complex of regulations frameworks and

mechanism should assure legal certainty transparency and accountability

Feed-in Tariffs In the whole range of countries of the world feed-in tariffs have proven

to be one of the most successful mechanisms of stimulation of renewable energy

development providing a necessary financial incentive and additional certainty for

investors and funders CIS countries should use the ldquobest experiencerdquo pattern and adopt

the feed-in tariff schemes domestically

Launching Local Production In order not to be dependent on imported renewable

energy generators and equipment it seems reasonable to launch local production of wind

turbines solar panels etc and respective complimentary products especially considering

the broad industrial base that was created during the Soviet times and retained up to

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 27: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

29

now Thus manufacturing of such products could be started using the existing machinery

industries and factories Setting up local fabrication could be also beneficial in the sense

of creating new jobs and attracting modern technologies and know-how to a country

Scale-up After a number of experimental and demonstrational RES projects in a country

has proved to be successful and economically profitable the best way forward is to

proceed with further installations and to scale-up the existing capacity so that sporadic

RES power generators would turn into a growing energy subsector imposing a

significant influence on the national and regional energy sources landscape

Expanding the Grid Capacity The CIS countries should take into consideration that

alongside with setting ambitious goals for RES they should also pay heed to the existent

grid capacity within their states For if all renewable energy projects planned for the

future are implemented the grids may be not be capable of handling the newly added

capacity Hence expanding and modernising the national grid should be as much a

priority as well as renewable energy proliferation itself

International and Regional Cooperation Establishing intraregional and international

ties in order to create cooperation mechanisms and jointly coordinate and advance the

status of RES development should become a priority of the CIS countries Political

scientific and technical partnership including joint projects and programmes academic

and professional exchange common information database specialised seminars and

conferences would contribute to RES development in the region The countries should

both communicate with numerous existing international organisations dealing with

renewable energy exploiting best international practices and communicate within the

region whereas the Energy Council of the CIS could play a vital role as a forum for

discussions and a coordination committee

Raising Awareness The more wide-spread the knowledge about renewable energy and

its favourable impact on the environment is among political decision-makers business

representatives specialists and local population the greater is the impetus for RES sector

development Thus the measures should be taken to develop a positive image and

augment the public awareness of renewable energy advantages and benefits among

different societal groups Such proliferation of information would broaden the horizons

of the population and stimulate the demand for RES

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 28: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

30

Adjusting Educational System preparing and training professional personnel and

specialists in the field of renewable energy is an intrinsic part of RES development

strategy The authorities of the countries should pay attention to arrangement of relevant

educational programmes with deep professional insights into the implications of RES

exploration and use

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 29: Summary - Rusia and CIS report

Conclusion

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 30: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

32

Conclusion

The advantages of renewable energy have already been recognized all over the world

and increasing their percentage in the total energy mix alongside with moving towards a less

carbon-intensive economy has become a popular target per se Nevertheless in most of the

post-Soviet countries the development of RES sector and efforts to increase energy efficiency

still remain in the initial stage especially in those countries that are generously endowed with

fossil fuel resources Moreover as one can conclude from the country chapters presented in

this report the progress of the wind power sector is unequal in the CIS states with Ukraine

being an absolute leader in this regard and Georgia Tajikistan Kyrgyzstan Moldova and

Turkmenistan having no installed industrial scale wind power capacity at all

The vast territory occupied by the countries of the Commonwealth of Independent

States has immense potential of renewable energy of all kinds including rich wind resources

Nevertheless it remains practically untapped and the degree of their utilisation is negligibly

low ndash less than 5 According to some assessments the share of RES in total consumption on

the territory of the CIS may grow up to modest 156 by 2030 ndash or even much more given

the right policies are in place For reaching such targets the countries will have to

demonstrate a strong political will and loyal commitment to the strategy of incremental

proliferation of renewable energy to acknowledge their benefits and to finally overcome the

monopolism of conventional energy sources Furthermore the countries of the region should

grasp the opportunity to establish interregional cooperation on renewable energy promotion

and benefit from cross-country exchange of information and experience they should use best

practices and implement joint projects Besides the Commonwealth of Independent States

being a regional international organisation by itself represents a fairly suitable platform for

such cooperation

Summing it up we should note that it is realistic to expect that it will take some time

until wind power will acquire a major share in many of the CIS countries mainly due to

political challenges However it should become an intrinsic and a growing component of it in

the nearest future Even more it appears feasible if we take into account that there is also a

large area for wind energy applications Namely the energy supply of the rural areas in each

of the twelve analysed countries represents a problematic issue for the national governments

The installation of wind turbines (surely apart from the general option of large-scale grid-

connected wind farms) in remote population centres would eliminate this problem and

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 31: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

33

contribute to more general concerns of rural energy supply reducing poverty creating new

jobs and advancing socio-economic development

All this said we can claim with a firm assurance There is a future for wind power in the

geographical region of the Commonwealth of Independent States both for the countries with

poor hydrocarbon deposits as well as for the republics endowed with rich oil and gas

reserves It is in the countriesrsquo own responsibility to control and advance the pace of RES and

wind power sector development And only in case that the so far sporadic wind power

installations and successful single wind projects become mainstream the countries and their

population will be able to benefit from a large diverse and untapped potential and make an

important step forward towards enhancing energy security and contributing to the global

protection of the environment

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 32: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

34

List of Tables and Figures

Figures

Figure 11 Map of the Commonwealth of Independent States

Figure 12 Annual Wind Speed Allocation in the CIS Countries at 100 m

Figure 21 Wind Map of Armenia at 80 m

Figure 22 Map of Areas with Highest Wind Potential in Armenia

Figure 23 Location of ldquoLori-1rdquo Wind Farm in Armenia

Figure 24 ldquoLori-1rdquo Wind Farm

Figure 31 Wind Map of Azerbaijan at 8 0m

Figure 41 Average Annual Wind Speed in Belarus at 10 m ms

Figure 42 Wind Map of Belarus at 80 m

Figure 51 Wind Map of Georgia at 80 m

Figure 52 Potential Wind Farms in Georgia

Figure 61 Wind Speed in Selected Locations of Kazakhstan

Figure 62 Wind Map of Kazakhstan at 80 m

Figure 63 30 kW Wind Turbines in Almaty Region Kazakhstan

Figure 71 Wind Map of Kyrgyzstan at 80 m

Figure 81 Wind Map of Moldova at 80 m

Figure 91 Average Wind Speed at 50 m in the Russian Federation

Figure 92 Location of Existing and Planned Wind Power Plants in Russia

Figure 93 Barriers to RES Development in Russia

Figure 101 Wind Map of Tajikistan at 80 m

Figure 102 Wind Turbine at Poymazor Cellular Power Station Tajikistan

Figure 111 Wind Map of Turkmenistan at 80 m

Figure 121 Wind Map of Ukraine at 80 m

Figure 122 Novoazovskaya Wind Farm Donetsk Region Ukraine

Figure 123 Ochakovskiy Wind Park Mikolaiv Region Ukraine

Figure 124 Small Wind Turbines at Tendrovskaya Kosa Ukraine

Figure 125 Small Wind Turbine (075 kW) in Ukraine

Figure 131 Gross Potential of Wind Energy in the Regions of Uzbekistan

Figure 132 Technical Potential of Wind Energy in the Regions of Uzbekistan

Figure 133 Wind Map of Uzbekistan at 80 m

Tables

Table 11 Country Data of the CIS Member States

Table 12 Wind Power and Total Installed Capacity in the CIS Countries

Table 13 Consumer Electricity Prices and Feed-In Tariff Rates in the CIS Countries

Table 21 Energy Sector Legislation of Armenia

Table 41 Energy Sector Legislation of Belarus

Table 51 Wind Zone Types and Areas in Georgia

Table 61 Installed Small and Experimental Wind Turbines in Kazakhstan

Table 91 Energy Sector Legislation of the Russian Federation

Table 92 Existing Wind Farms in the Russian Federation

Appendix

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 33: Summary - Rusia and CIS report

Wind Power Status in the CIS Countries

35

Table 93 Major Designed and Planned Wind Farms in the Russian Federation

Table 121 Installed Wind Power Capacity of Ukraine

References

Deutsche Gesellschaft fuumlr Internationale ZusammenarbeitGIZ (2009) Renewable Energies in Central Asia Regional Report on Potentials and Markets ndash 8 Country Analyses

Renewable Energy and Energy Efficiency PartnershipREEEP (2007) Renewable Energy From Exotic to Common Practice CIS Overview Brochure

United Nations Development ProgrammeUNDP (2011) Renewable Energy in Europe and CIS Results and Lessons Learnt from UNDP Portfolio Marina Olshanskaya Astana Kazakhstan

Institute of Renewable Energy (2008) Renewable Energy in the CIS Countries Stepan Kudrya Kiev Ukraine

United Nations Economic Commission for EuropeECE (2011) Renewable Energy Development in the Russian Federation and the CIS countries Secretariat Report Geneva Switzerland

Interstate Statistical Committee of the Commonwealth of Independent States (2011) Main Macroeconomic Indicators of the CIS Countries

European Commission (2008) The Economic Aspects of the Energy Sector in CIS Countries Centre for Social and Economic Research European Economy Economic Papers

United Nations Economic Commission for EuropeECE (2001) Energy Efficiency and Energy Security in the Commonwealth of Independent States ECE Energy Series No 17 New York and Geneva

References

Page 34: Summary - Rusia and CIS report