SEMISE Support to Energy Market Integration and Sustainable Energy in the NIS

1. SEMISESupport to Energy Market Integration and Sustainable Energyin the NIS How the SEMISE project supports the ‘Baku Initiative’ processINOGATE Information Event in MinskBelarus, December 2009

2. SEMISE Project Overview Project Overview: • Timescale: 3 years - January 2009 - January 2012 • Budget € 5.7 million • 11 INOGATE Partner Countries: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. • Project team based in Kiev. • Technical Assistance to facilitate implementation of Baku Initiative’s Energy Road Map adopted by Energy Ministers on 30 November 2006

3. Project Objectives & Main Activities Project Objectives: • Promote regional energy market convergence and market integration. • Promote and assist in development of sustainable energy policies and their implementation. • Support investments in sustainable energy projects (i.e. energy efficiency and renewable energy). Three main activities to meet objectives: • Capacity Building • Expert Support Facility • Project Preparation Facility in cooperation with financial institutions

4. Potential areas of SEMISE support for Partner Countries Activities: Expert Facility (Consultant Pool) on demand from the Partner Countries, through: Small-scale technical assistance, mobilisation of expert support at short notice Capacity Building Programme on demand from the Partner Countries, through: training courses study visits

5. Energy Market Convergence Development/improvement of Legislative Frameworks. Development/review of tariff methodologies. Competition promotion and Third Party Access. Establishment of independent regulators. Energy companies’ performance improvement. Energy market mechanisms. Potential areas of SEMISE support for Partner Countries

6. Sustainable Energy Development/improvement of Legislative Frameworks Development of Energy Auditing in the Industrial Sector Development of Economic Instruments Development of Sustainable Energy Policies and Strategies Establishment of Energy Agencies Establish potential for energy efficiency/renewable energy Potential areas of SEMISEsupport for Partner Countries

7. Investment Facilitation Project Preparation Facility: to facilitate investments in energy efficiency and renewable energy projects through International Financial Institutions. technical assistance to energy projects which financial institutions are already planning expert support to existing financing facilities and credit lines established by financial institutionsin the Partner Countries Potential areas of SEMISEsupport for Partner Countries

8. SEMISE’s understanding of the current situation in Belarus’ energy sector- Energy Market Convergence Current needs Gradual introduction of competitive electricity market at a national level Improvement of data collection (energy sector) Tariff reforms: Unbundling of capacity, reserves and balancing components Gas Storage Heat and DHW Heat pump special electricity tariff New network connection rules in electricity and gas Improvement of utilities operational efficiency (billing, losses, etc) Proposals for AHEF (until 30/11/2009) 1. Energy Efficiency Department of the State Committee for Standardization: “Analysis and optimisation of energy generation sources within Belarussian energy system and power units which do not belong to "Belenergo"

9. Understanding current situation in Belarus Sustainable Energy Current needs Secondary Legislation on RES Incentives on energy efficiency and GHG emissions reduction Development of standards for biomass boilers emissions and fuel/ash contamination standards including waste utilisation Green certification for renewable energies in accordance with an EU legal context Assistance on the development of projects in the municipal sector, especially heat from waste (technologies) Identification of wind potential Requests for Expert Support (as at 30/11/2009)) 1. UE "MinskCommunTeploSet“: Evaluation of the potential for Energy Efficiency and RES of the enterprise’s heating sources 2. Ministry of Natural Resources and Environmental Protection: GHG emission projections for 2009-2020 and up to 2050 and potential climate change mitigation options in the energy sector 3. Energy Efficiency Department of the State Committee for Standardization: Analysis and review of international experience on development of secondary legislation on RES in Belarus

10. Identifying areas for support to stakeholders in Belarus • What can you do to get help from SEMISE? Eligible Organisations…… For actions targeting Energy Market Convergence: • Ministries with competence in the energy sector, including any parts thereof; • Energy regulatory authorities; • Companies in charge of transmission (natural gas, and electricity), including network and dispatch operators;

11. Identifying areas for support to stakeholders in Belarus • For actions targeting Sustainable Energy: • Ministries with competence in natural resources, environmental issues, energy saving and energy efficiency; • Energy saving agencies and authorities; • Energy regulatory authorities; • Electricity companies; • Relevant local or regional authorities; • Any other relevant authority. Send request for support to SEMISE team for expert support & capacity building Quick link to Russian guidelines: http://tiny.cc/semise • Financial institutions are responsible for submitting requests for support under the Project Preparation Facility

12. Thank you for your attention! • “Support to the Energy Market Integration and Sustainable Energy in the NIS” (SEMISE) • For more information, please contact our English/Russian help desk: • Mr. Dmitry Strokon, Kiev, Tel: +380 44 2302754, Fax: +380 44 2302753, e-mail: d.strokon@inogate.org. • Ms. Alla Lytvynenko, Kiev, Tel: +380 44 2302754, Fax: +380 44 2302753, e-mail: a.lytvynenko@inogate.org;