© OECD/IEA 2014

© OECD/IEA 2014

Countries with a shared history

© OECD/IEA 2014

Regional trends

Implementation Challenges

Lack of Well-elaborated Policies and Regulations

Varied Trends in Market Designs

Significant Energy Resources

© OECD/IEA 2014

TPES in producing countries and Belarus

0

20

40

60

80

100

120

140

Ukraine Kazakhstan Uzbekistan Belarus Turkmenistan Azerbaijan

Mtoe

Coal Peat Oil Natural gas Nuclear Hydro Biofuels and waste Solar, wind and geothermal*

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Kyrgyzstan Georgia Moldova Armenia Tajikistan

Mtoe

* Negligible.

Total primary energy supply

TPES in non-producing countries

© OECD/IEA 2014

Electricity generation

Generation: Larger producers

* Negligible.

0

50

100

150

200

250

Ukraine Kazakhstan Uzbekistan Belarus

TWh

Coal Oil Natural gas Nuclear Hydro Biofuels and waste Solar, wind and geothermal*

0

5

10

15

20

25

Azerbaijan Turkmenistan Tajikistan Kyrgyzstan Georgia Armenia Moldova

TWh

Smaller producers

© OECD/IEA 2014

0

0.2

0.4

0.6

0.8

1

1.2

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

toe/

1000 U

SD G

DP P

PP

Turkmenistan

Uzbekistan

Ukraine

Kyrgyzstan

Moldova

Kazakhstan

Belarus

Armenia

Georgia

Tajikistan

Azerbaijan

Energy intensity (TPES/GDP) in all countries, 1990-2012

Energy intensity

© OECD/IEA 2014

Planning for the future

AMBITIOUS TARGETS ALIGNED WITH GOALS

Kazakhstan Moldova

PLANNED DEVELOPMENTS AIMED AT RELIABILITY

Belarus Turkmenistan

Uzbekistan

REQUIRE ELABORATION Armenia

Kyrgyzstan REQUIRE NEW STRATEGIES

Azerbaijan Georgia

Tajikistan REQUIRE REVISION Ukraine

NEED FOR POLICY BASED ON ENERGY STATISTICS

© OECD/IEA 2014

Considerable potential

Potential for an energy transition

Energy pricing

Secondary legislation elaborating on rules for

grid integration

Vague policy

Energy efficiency Renewable Energy

© OECD/IEA 2014

Challenges and opportunities

Strategies based on data

Emergency preparedness

Strong demand

Aging infrastructure

Energy efficiency potential

Renewable energy potential

Energy markets

© OECD/IEA 2014

Recommendations – energy policy

Long term policies and comprehensive strategies

Focus on sustainability

Introduction of secondary legislation

Timely implementation of agreed policies and measures

Independence of regulators

Improved data collection and use

© OECD/IEA 2014

Recommendations – energy security

Diversify supply and export options

Decrease energy intensity

Maximise energy efficiency gains

Utilise renewable energy potential

Phase out energy related subsidies

Develop emergency response mechanisms

Promote energy technology related R&D

© OECD/IEA 2014

Recommendations - markets

Promote an open market

Enable market-driven investment

Encourage regional market developments

© OECD/IEA 2014

Recommendations – sustainable development

Upgrade or replace aging infrastructure

Establish robust energy efficiency measures and governance

Promote funding and incentive mechanisms

Ensure sound grid integration of renewables

© OECD/IEA 2014

Recommendations - investment

Maintain clear, predictable and transparent investment framework

Ensure smart investment policies and measures

Support investments into long-term sustainable development

Encourage public participation in key energy investment decisions

Promote investment in state of the art energy efficiency technology

© OECD/IEA 2014

Thank you for your attention

© OECD/IEA 2014

Reserve Slides

Regional Highlights

© OECD/IEA 2014

Regional highlights: Eastern Europe

Belarus • Publicly owned integrated system • Energy sector restructuring instigated • Stable development • Improved investment climate • Good regional integration Moldova • EU Association Agreement • Progress in harmonizing legislation under the ECT • Enhanced regulatory framework • District heating sector restructuring • Renewable energy developments

© OECD/IEA 2014

Regional highlights: Eastern Europe

Ukraine • EU Association Agreement • Energy sector challenges and opportunities

• Coal, gas, electricity and heat sectors and infrastructures • Implications to domestic, regional and international

markets • Crises management group; Demand restraint procedures

• Reshaping energy policies, attuning to new realities • Developments in regulatory structures, adjustments

to tariffs • Enhanced legal framework, large body of legislation

in place

© OECD/IEA 2014

Regional highlights: Central Asia

Kazakhstan • Clear policy directions • Ambitious goals for green economy and energy • Progress in designing functional energy market

fundamentals • Weak demand side management for efficiency gains • Ample renewables potential, slow development

Kyrgyzstan • Developments in renewables, large hydro power

remains in focus • Politicized energy pricing • Weak implementation of energy sector reforms

© OECD/IEA 2014

Regional highlights: Central Asia

Tajikistan • Focus on large hydro power developments • Improved legal framework; weak implementation • Slow progress in energy sector reforms Turkmenistan • Developments towards sustainable energy use • Focus on diversifying export markets • Downstream petroleum developments Uzbekistan • High domestic consumption • Weak demand side management for EE gains • Fertilizer and petrochemical industry developments

© OECD/IEA 2014

Regional highlights: Caucasus

Armenia • New interconnections, redesign of energy markets • Positive trends in renewable energy developments • Need for functional energy efficiency policies Azerbaijan • Focus on renewable energy developments • Need for transparent regulatory regime Georgia • EU Association Agreement; Energy Community

Treaty • Energy policies and measures remain hydro centered • Weak demand side management

© OECD/IEA 2014

Reserve Slides

Country Highlights

© OECD/IEA 2014

Country highlights: Armenia

Armenia... • relies on gas and oil imports for 75% of its total

energy supply Armenia could... • actively discuss the set-up of a regional market with

Georgia • boost implementation of its energy efficiency plan • strengthen initiatives at local and city levels on

energy savings and use of renewable energy

© OECD/IEA 2014

Country highlights: Azerbaijan

Azerbaijan... • is a net exporter of oil and gas Azerbaijan could... • expedite structural energy policy reforms toward

opening the market • introduce energy efficiency governance structure,

policies, and measures • encourage larger scale deployment of energy

efficiency and renewable technologies • develop an energy efficiency strategy

© OECD/IEA 2014

Country highlights: Belarus

Belarus... • has a fully state-owned energy sector Belarus could... • enhance the predictability of the investment climate • promote grid integration of renewable energy and

ensure the attractiveness of green tariffs • gradually phase out subsidies on energy • implement plans for energy sector restructuring

© OECD/IEA 2014

Country highlights: Georgia

Georgia... • is a stable transit country with enhanced regional

interconnections • has potential for opening of the electricity market Georgia could... • focus on large hydropower development • develop an energy strategy based on evidence • establish energy efficiency governance structure and

policies • encourage energy research, develop investments,

and promote efficiency and renewable technology deployment

© OECD/IEA 2014

Country highlights: Kazakhstan

Kazakhstan... • is the world’s leading oil producer • has clear economic and energy policy directions and

ambitious goals for a low-carbon economy Kazakhstan could... • make progress on designing functional energy

market fundamentals • maximise energy efficiency gains by co-ordinating

demand side policies • ensure stable, predictable and transparent

investment procedures • enhance energy data management and use

© OECD/IEA 2014

Country highlights: Kyrgyzstan

Kyrgyzstan... • has plentiful water resources and significant

deposits of coal Kyrgyzstan could... • reassess electricity, gas and district heating tariffs

resulting from the necessary investment in aging infrastructure

• consider incentive schemes for energy efficiency improvements

• raise public awareness on energy savings, energy efficiency gains and the real cost of electricity

© OECD/IEA 2014

Country highlights: Moldova

Moldova... • lacks energy resources and is almost entirely

dependent on imports of fossil fuels and electricity Moldova could... • enhance investment measures by encouraging a

stable and predictable regime for renewable energy • improve governance of energy efficiency policies

and measures • develop a system to collect accurate demand side

data

© OECD/IEA 2014

Country highlights: Tajikistan

Tajikistan... • is endowed with abundant water potential and is

almost exclusively reliant on hydro for electricity generation

Tajikistan could... • develop a methodology for electricity and gas tariffs • ensure coherence with key legislation, including tax,

customs and land codes • establish a government entity in charge of energy

efficiency

© OECD/IEA 2014

Country highlights: Turkmenistan

Turkmenistan... • is one of the largest gas resources holders in the

Caspian region and holds significant volumes of recoverable oil

Turkmenistan could... • develop robust policies to curb domestic demand

growth and allow for increased exports • encourage the deployment of advanced energy-

efficient technologies • develop clear, transparent and reliable mechanisms

for encouraging upstream petroleum and renewable energy investments

© OECD/IEA 2014

Country highlights: Ukraine

Ukraine... • sits at the crossroads of the European Union,

Russian Federation and Black Sea and Caspian regions

Ukraine could... • rethink short, medium, and long-term energy

strategies to account for new realities • undertake energy market reform • enhance domestic gas production • develop social protection for vulnerable customers • boost measures for energy efficiency and

development of renewable energy • develop emergency response mechanisms

© OECD/IEA 2014

Country highlights: Uzbekistan

Uzbekistan... • is rich in natural gas resources and has an economy

that has grown without recession since the 1990’s Uzbekistan could... • take aggressive action on removing energy subsidies • encourage the deployment of advanced energy

efficiency and renewable energy technologies • encourage smart investments in the country’s

conventional and alternative energy developments