INCREASING ENERGY EFFICIENCY

IN THE REPUBLIC OF BELARUS

Lev DubovikVice Chairman of State Committee for Standardization –Director of Department for Energy Efficiency

GenevaMay 30 – June 1, 2007

Dynamics of GDP, Gross Consumption of Fuel and Energy Resources (GCFER) and GDP Energy Intensity in 1997-2006 (%)

100,0 93,185,4

77,8 73,6 70,766,7 63,3 58,6 56,1

51,6*

120,8

138,3

124,9

111,4

132,1145,2

172,4

155,2

189,5

205,6*

103,8 103,1 97,1 97,3 97,8 96,9 98,3 101,0106,2 106,1*

40

60

80

100

120

140

160

180

200

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

GDP

GDP energy intensity

GCFER

* forecast

117,5

96,090,6

86,0

79,6

74,7

109,9

142,5

104,7

130,5

99,6101,1

103,9106,5100,5100,0

60

70

80

90

100

110

120

130

140

150

2000 2001 2002 2003 2004 2005

GDP

GCFER

GDP energy intensity

5,34,0

5,6 5,1

7,56,1

0,0

2,0

4,0

6,0

8,0

2000 2001 2002 2003 2004 2005

Decrease in GDP energy intensity (%)

Dynamics of GDP, Gross Consumption of Fuel and Energy Resources (GCFER) and GDP Energy Intensity in 2000-2005 (%)

Dynamics of GDP, generalized power inputs andGDP energy intensity in 2006 (%)

118,8

109,9109,9109,7109,6109,8110,1110,3110,3110,3110,9110,9

110,2

103,5105,1105,7106,3107,0107,2

108,5109,4

113,5

106,7 106,7

-4,3-2,8-1,9-1,7-1,5-1,5-1,3-0,9

+5,4+1,9

-1,6 -1,5

90

95

100

105

110

115

120

1 month 2 months 3 months 4 months 5 months 6 months 7 months 8 months 9 months 10 months 11 months 12 months

GDP power inputs GDP energy intensity

GDP energy intensity in 2004 (toe per thousand 2000 US$ PPP)

0,16 0,16

0,21 0,21

0,260,28

0,43

0,49 0,50

0

0,05

0,1

0,15

0,2

0,25

0,3

0,35

0,4

0,45

0,5Ja

pan

Ger

man

y

Swed

en

Pola

nd

Finl

and

Can

ada

Bel

arus

Rus

sia

Ukr

aine

toe/

thou

s. U

SD

Belarus 2005 -- 0,41 (forecast)

Belarus 2010 -- 0,28 (target)

Source: International Energy Agency "Key world energy statistics from the IEA", 2006 edition

92,5 91,3

438,9

599,95

205,7

360,1

2001 2002 2003 2004 2005 2006

mln. USD

Financing of energy conservation measures in 2001-2006

Total amount of financing in 2001-2006 is 1 788,45 mln. USD

30,9%

8,0%26,8%

8,2%

26,0%

Own Funds of Enterprises

Energy Efficiency InnovationFund

Innovation funds of StateEntities and other stateinstitutions Central budget and localbudget funds

Loans and other attractedmeans

The share of financing sources in 2006

791,0

1 025,01 212,2

599,9

932,5

2006 2007 2008 2009 2010

Targeted decrease in GDP energy intensity in 2006-2010 is 31%

mln. USD

Financing of energy conservation measures in 2006-2010

Total amount of financing in 2006-2010 is 4 658,7 mln. USD

1. Acceleration in the rates of energy conservation.

2. Development of small power engineering.

3. Increase in the use of domestic fuels.

4. Perfection of fuel balance.

5. Increase in financing.

6. Use of new technologies.

New trends and tendencies in the field of energy conservation in the Republic of Belarus

Reorganization of heat power engineering in the Reorganization of heat power engineering in the rural arearural area..Perfection and amendment of standard and technical Perfection and amendment of standard and technical documentsdocuments..Introduction of metering accounting and Introduction of metering accounting and settlement settlement of accounts according to the metering readingof accounts according to the metering reading..Establishment of Establishment of ESCOsESCOs, , procurement of loansprocurement of loans..Increasing the quality of Increasing the quality of design work according to design work according to the modern energy the modern energy efficiency demandsefficiency demands..Development of renewable energy sourcesDevelopment of renewable energy sources..Enhancing the role of science.

What should be done?

1. To decrease GDP energy intensity by 7-8 % compared to the level of 2006.

2. To increase the use of domestic fuels, secondary and renewable energy sources by 460 thousand tons of fuel equivalent compared to the level of 2006.

3. To put into operation power generation sources of total power capacity not less than 64.4 MW.

Main objectives in the field of increasing energy efficiency and enhancing energy security in Belarus in 2007

1. To decrease GDP energy intensity by at least 31% compared to the level of 2005.

2. To use domestic fuels, secondary and renewable energy sources at the level of 22.5% for heat and power energy production in 2010.

3. To put into operation power generation sources of total power capacity more than 350 MW.

Main objectives in the field of increasing energy efficiency and enhancing energy security in Belarus in 2006-2010

Perfection of implementation toolsfor state policy in the field

of energy efficiency

Republican energy conservation Republican energy conservation programmesprogrammes ((for 5 yearsfor 5 years));;Regional and Regional and sectoralsectoral energy conservation energy conservation programmesprogrammes (annual and for (annual and for 5 years)5 years);;ProgrammeProgramme of ensuring of 25 per cent of electric and heat power of ensuring of 25 per cent of electric and heat power production in Belarus by using domestic fuels and non alternativproduction in Belarus by using domestic fuels and non alternative e energy resources up to 2012;energy resources up to 2012;State complex State complex programmeprogramme of modernization of main production of modernization of main production facilities of Belarusian energy system, energy conservation and facilities of Belarusian energy system, energy conservation and increasing the use of domestic fuel and energy resources for thincreasing the use of domestic fuel and energy resources for the period e period of 2006of 2006--2010;2010;Special Special programmesprogrammes::-- Programme Programme of heat supply optimization of social objects in rural of heat supply optimization of social objects in rural areaarea;;-- Programme of transmission of heat loads from boiler houses to CHP.ProgrammeProgramme of energy efficient equipment productionof energy efficient equipment production..

Perfection of institutional and technical activities

1.1. Introduction of economical tools to facilitate energy Introduction of economical tools to facilitate energy conservation among conservation among ::organizations of a real sector of national economyorganizations of a real sector of national economy;;organizations of social and budget sectororganizations of social and budget sector..

2.2. State expertise of energy efficiency of design solutions. State expertise of energy efficiency of design solutions.

3.3. Law of the Republic of BelarusLaw of the Republic of Belarus on renewable energy on renewable energy sources sources

4.4. Energy audits of enterprises and organizations.Energy audits of enterprises and organizations.

5.5. Regulation and assessment of fuel and energy resources Regulation and assessment of fuel and energy resources consumptionconsumption..

6.6. Standardization in energy conservation field.Standardization in energy conservation field.

Perfection of legislative base in the field of energy efficiency

Priority (main) energy efficiency activities in the Republic of Belarus

1. Transmission of heat loads from boiler houses to CHPs.

2. Increase in the use of secondary energy resources and combustible production waste.

3. Increase in use of domestic fuels and renewable energy sources.

4. Putting into operation of power generation equipment.

5. Elimination of “bottlenecks”.6. Introduction of frequency converters for variable

speed drives.7. Ensuring efficient use of power production

equipment.

8. Optimization of heat supply systems.9. Use of infrared gas heaters.10. Implementation of modern industrial energy efficient

technologies.11. Implementation of energy efficient technical

solutions in agriculture.12. Elimination of excess pump capacity.13. Implementation of measures for rational use of cold

water.14. Decentralization of compressor stations and cooling

plants.15. Implementation of wide scale investment projects on

energy efficiency.

Priority (main) energy efficiency activities in the Republic of Belarus

Implementation of projects with participation of GEF, UNDP Implementation of projects with participation of GEF, UNDP and UN ECEand UN ECE::““Biomass energy for heating and hot water supply in BelarusBiomass energy for heating and hot water supply in Belarus””;;““Removal of barriers to energy efficiency improvements in the Removal of barriers to energy efficiency improvements in the state sector in Belarusstate sector in Belarus””;;

Implementation of the World Bank project Implementation of the World Bank project ““Social Social infrastructure retrofitting projectinfrastructure retrofitting project””..

Implementation of a new World Bank Implementation of a new World Bank ““Post Chernobyl recovery Post Chernobyl recovery projectproject””..

Implementation of the Implementation of the ““Social infrastructure retrofitting project Social infrastructure retrofitting project –– pilot project on climate change mitigationpilot project on climate change mitigation”” within a grant of within a grant of Japanese Government .Japanese Government .

Development of cooperationDevelopment of cooperationwith international financial institutionswith international financial institutions

Increasing energy efficiency and climate change mitigation

49,5 48 53,8

127

100

65

89

56 54,7 58

30

40

50

60

70

80

90

100

110

120

130

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

%

GHG emis s ions GDP GCFER

Dynamics of GDP, Gross Consumption of Fuel and Energy Resources (GCFER) and GHG emissions in 1990-2005 (%)

Belarus is an Annex I Party to the UN FCCC.

Belarus joined the Kyoto Protocol in 2005.

Belarus has undertaken GHG emission reduction commitment of 8% compared to the level of 1990.

To ensure a full scale participation of Belarus in flexibility mechanisms, the ratification of the corresponding amendment to Annex B of the Kyoto Protocol by 75% of the Parties is needed.

It is expected that the implementation of energy efficiency measures and increase in the use of renewable and secondary energy resources in 2007-2012 will help to prevent GHG emissions in the amount of at least 12 million tons of CO2 equivalent.

The largest reduction of emissions is expected to be achieved in industry and fuel and energy sectors

Thank youfor your attention!

Lev Dubovik

Vice Chairman of State Committee for Standardization –Director of Department for Energy Efficiency

GenevaMay 30 – June 1, 2007