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RESOLUTION No. 1180 OF THE COUNCIL OF MINISTERS OF THE REPUBLIC OF BELARUSdated August 9, 2010

On Approving the Strategy of the Development of Energy Potential of the Republic of Belarus

The Council of Ministers of the Republic of Belarus hereby RESOLVES:

  1. To approve the attached Strategy of the Development of Energy Potential of the Republic of Belarus * (hereinafter– the Strategy).

The Ministry of Energy shall bring the Strategy to the knowledge of all those concerned.

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*Shall not be sent out.

  1. The national state authorities and other state organisations subordinated to the Government of the Republic of Belarus, regional executive committees, Minsk City Executive Committee, the National Academy of Sciences of Belarus shall follow the Strategy during the elaboration of draft state forecastsand programs, as well as other decisions in the area of socio-economic development of the Republic of Belarus.
  2. Control over the implementation of this Strategy shall be entrusted to the Ministry of Energy.
  3. This Resolution shall enter into force on the date of its official publication.

Prime Minister of the Republic of Belarus / S.Sidorsky
APPROVED
bytheResolutionNo. 1180 of the Council of Ministers of the Republic of Belarus dated August 9, 2010

STRATEGY
oftheDevelopmentof Energy Potential of the Republic of Belarus

General Provisions

Energy sector of the Republic of Belarus is a key life supporting system and the basic element which guarantees the integrity and efficiency for all industries and objects of the economy. An energetic component influences greatly on production costs, incomes of a society, and its material prosperity. The energy potential of the economy and its efficiency in the modern world are important indicators of the level of state development.

For the states with deficits of their own energy resources, such as the Republic of Belarus, optimal development and functioning of the fuel and energy complex (hereinafter - FEC) is one of the priorities of legislative and executive authorities, for all producers and consumers of fuel and energy resources (hereinafter - FER) directed to ensure competitiveness on the global market.

Fixed assets of FEC industries constitute about 25 percent of industrial assets in industry, and the annual costs of energy supply considering the growth of energy prices are constantly increasing; in 2009 their share reached 24 percent of the gross domestic product.

It is necessary to make the best use of existing technical, technological and personnel potential of FEC in order to help the country's economy to overcome the consequences of the global financial crisis.

The Strategy of the Development of the Energy Potential in the Republic of Belarus (hereinafter - the Strategy) was developed for 2011-2015 and for a period of until 2020 to determine further development and improvement of legal, organisational, economic, technical and technological conditions for the effective development of energy potential of the Republic of Belarus and to enhance level of energy security.

The Strategy includes unchanged targeted long-term objectives of the energy policy till 2020, defined in the Concept of Energy Security of the Republic of Belarus, approved by Presidential Decree No. 433 dated September 17, 2007, Directive No. 3 of the President of the Republic of Belarus Economy and thrift are the main factors of economic securitydated June 14, 2007 (National Register of Legal Acts of the Republic of Belarus, 2007, No. 146, 1 / 8668). At the same time, new economic conditions, caused by rising energy prices, reducing of fuel and energy consumption in 2009 in comparison with the amount specified in the Concept of Energy Security of the Republic of Belarus requested clarification of key parameters and mechanisms of FEC development, as well as development coordination of its industries with the needs of economy for the medium term perspective.

The energy potential of the country must ensure economic growth rates in accordance with the basic indicators of socio-economic development of the Republic of Belarus for the period of 2011 - 2015.

Objectives of the Strategy

The main objective of the Strategy is innovative and forward-looking development of the branches of fuel and energy complex ensuring production of competitive products at the level of international standards with absolute reliable and efficient energy supply of all sectors of the economy and population.

One of the most important goals for the next period is creation of new institutional framework for effective development and operation of energy sectorin the context of market conditions.

The Strategy is aimed at achieving the following indicators:

(per cent)

Parameter / 2009 / 2015 / 2020
Reducing the energy intensity of GDP to the level of 2005 / 24.8 / 50.0 / 60.0
Share of proprietary energy resources* in the balance of boiler and furnace fuel / 20.3 / 28–30 / 32–34
Share of natural gas in the consumption of boiler and furnace fuel / 71.8 / 64.0 / 55.0
Depreciation of fixed assets of FECorganisations / 54.3 / 48.3 / 43.0
Share of the dominant supplier of energy resources in gross consumption of FER / 82.3 / 70–71 / 64–57
Provision of containers for storing CBT (for gas and fuel oil), days / 61.2 / 78.9 / 118.0

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* Considering oil refined products from own oil and secondary energy resources, associated gas and export of fuel briquettes.

The priorities of the Strategy include:

increasing the energy security level of the country;

complete and reliable supply of the population and economy of the Republic with energy;

reducing the unit costs for production, transport and energy consumption;

maximum expedient use of own energy resources;

improving the financial sustainability and efficiency of functioning and development of branches of FEC.

Achieving of these objectives should be based on:

accelerated development and updating of FEC;

introduction of energy efficient technologies;

development of energy sources in local types of FER and renewable energy sources;

choice of reliable and cost-effective suppliers of FER outside the Republic;

rational structure of generating capacities and transport systems of energy sources;

maximum possible increase of own mineral resources;

using the geopolitical situation of the republic for the transit of all types of energy carriers and export of energy resources of own production;

priority deep oil refining and integrated hydrocarbons use considering the planned production of petroleum coke;

maximum possible replacement of light oil in internal combustion engines by new kinds of fuel resources (gas, hydrogen, biofuels and others);

conducting an active investment policy;

introduction of advanced technical regulations, national standards and norms, unified with the international ones, improving the manageability of the development process and promoting energy saving;

price and tax policies allowing eliminating of the disparities in prices (tariffs) for energy;

forming the competitive environment in all sectors of FEC by creating full-fledged actors of energy market and market infrastructure.

Energy Efficiency Improvement

The strategic goal of energy conservation for the period till 2015 should be reducing GDP energy intensity of the Republic of Belarus by 50 percent in comparison with the level of 2005, and by 60 percent - by 2020.

Achieving of this goal should be provided by the following means:

improvement of the organisational and economic policy of energy conservation;

increase of energy carriers efficiency coefficient at all stages of production (transformation), transportation and consumption;

increase of local fuel and energy resources, waste energy, renewable energy sources in the fuel balance of the republic.

Further development of legislative and regulatory base determining the rights, duties and responsibilities of organisations in energy use matters, technical and technological requirements to the design and operation of energy consuming equipment should be the basis of organisational and economical energy saving policy.

Implementation of this direction should be ensuredby means:

development of new economic mechanisms and improvement of existing economic mechanisms promoting increase of energy use efficiency in production (goods, works and services) and determining penalties for inefficient consumption of FER;

development of the mechanism, methods and quality of mandatory and voluntary energy audits of FER consumers;

development of tariff policies in order to promote energy savings, including the planned elimination of cross subsidies and the introduction of the differential tariffs system for energy consumption for industrial enterprises and population.

Improving the efficiency of energy use will be provided first of all by introduction of new energy-efficient technologies in all economic sectors and individual technological processes:

In the sphere of electric and heat energy production - as a result of introduction of electrical and heat energy generation based on steam and gas, gas turbine and gas-piston technologies with implementation of modern combined-cycle units with an efficiency of at least 57 percent, upgrading existing equipment with a reduction of fuel consumption for electric energy production by 10 percent by 2015 and by 15 percent - by 2020;

In heat supply system - reducing heat losses by 8 percent - by the following means:

economically reasonable transition of existing heat sources to cogeneration basis;

development of a low-temperature combined heating technology with quantitative and qualitative - quantitative regulation of heat load with decentralisation of peak heat capacity;

creating complexes of technological equipment and development of technological solution models of heat pumps application in heating systems;

improvement of industrial production technologies for heat pipelines with a pre-coated anti-corrosion coating, heat hydro insulation and remote diagnostics, regulating and stopping devices with automatic drive;

implementation of adaptive circuits and intelligent control systems, structures and equipment for heating and hot water supply;

introduction of pre-insulated polymeric pipes with advanced service life for the construction and reconstruction of heating systems;

optimisation of heating diagrams (elimination of long heating pipes, transition of loads from institutional boilers at HES, equipping buildings with individual independent heating units);

increase of water treatment equipment efficiency;

introduction of new reagentless methods of water treatment;

in industry - by decline of production specific energy consumption by 15 - 20 percent - achieved by the following means:

development and implementation of optimal supply diagrams for industrial objects based on the combination of primary energy sources, maximum use of secondary energy resources (hereinafter - SER) at all levels with transfer of surplus heat RES to heating of communal property objects and housing;

creation of effective automated furnaces of various types with an efficiency of not less than 50 percent (heating, hardening, roasting) with maximum utilisation of heat RES;

creation of highly effective drying facilities based on various types of infrared emitters;

creation of high effective washers based on the use of water heated in the contact water heaters and ultrasonic emitters;

introduction of energy saving processes into sand cores production;

development of energy efficient processes and equipment for metals melting and casting;

introduction of energy saving forming technologies and equipment;

establishment of complex local energy sources based on three-generation production of electric power, heat and cold;

creation of optimal diagrams and operation modes of various purpose compressor stations with heat pumping systems for simultaneous heat production by utilising low-potential RES from cooling systems and cooling compressor units;

production and introduction of energy efficient equipment for commercial, industrial and other objects;

technical re-equipment and modernisation of the foundry, thermal, galvanic and other energy-intensive industries;

in housing and communal services - by means of:

equipping water intakes with modern energy efficient pumping equipment with automated control systems;

creating waste water treatment facilities by establishing of biogas plants; optimisation of water supply for cities and towns to reduce the level of electricity consumption;

thermal modernisation of houses in order to make the thermal energy specific consumption for heating and ventilation not more than 60 kW-h for square metre per year after major repair and reconstruction of buildings;

large-scale introduction of individual automated control devices and heat metering devices in apartment buildings;

introduction of energy-efficient lighting in public places;

implementation of cogeneration plants using municipal waste;

use of local FER in the amount of at least 900 thousand tonnes of reference fuel by 2012;

reduction of specific fuel consumption for heat production by 5 percent by 2020;

use of municipal waste and sewage sludge to replace 80 - 100 thousand tonnes of reference fuel in 2020;

in construction and building materials production- by means of:

mastering the production processes of building materials based on the latest energy saving technologies and using the ash residue of brown coal and oil shale;

design and construction of buildings (structures) using mainly energy- saving technologies;

implementation of projects for residential, public and administrative buildings with energy-efficient adjustable ventilation, both inlet and exhaust, with one coolant input into a separate flat (separate office) to provide heat metering and heat supply regulation for every flat with waste air emissions;

construction of at least 60 percent of energy-efficient residential houses with a specific consumption of thermal energy for heating and ventilation not exceeding 60 kW-h per square metre for high-rise buildings and medium-rise buildings (4 to 9 floors) and 90 kW-h per square metre for low-rise buildings (1 to 3 floors) by 2015;

projecting and introduction of devices for heat recovery from sewage in homes and office buildings;

in agriculture - by means of:

introduction of power plants running on local fuels in major agricultural organisations and manufacturing organisations;

use of straw for energy purposes in the amount of up to 230 thousandtonnes of reference fuel;

modernisation of grain dryers equipping them with heat generators running on local fuels;

construction of local biogas complexes in the agricultural organisations engaged in the production of cattle, pigs and poultry;

modernisation of animal husbandry complexes with transition to new energy-efficient technologies;

in the forestry sector by the production of wood fuels in order to provide the demands - by means of:

creating new industries for wood pellets and wood briquettes production; introduction of equipment for fuel chips production from wood waste;

in food industry - by means of:

introduction of grains recycling technology for production of biogas to be used as fuel in boilers;

construction of wastewater treatment plants with introduction of new technologies for biogas production;

in all sectors - by means of:

reducing water losses in water supply networks and wastage of electricity for water pumping, introduction of modern plastic pipelines;

introduction of energy efficient equipment into the production of compressed and cool air, creation of an interconnected complex of technological subsystem in the centralised district heating and district cooling of large heat and cold consumers;

introduction of energy efficient lighting systems into all sectors of the economy, housing and utilities;

use of least 2 million tonnes of biodiesel fuel and ethanol fuel with the introduction of technologies for adaptation of internal combustion engines to run on gasoline with ethanol content more than10 percent by 2020;

introduction of equipment for heat and power cogeneration in the construction of new energy sources.

Local and Renewable Energy Resources

In 2009 the share of own energy resources produced on the territory of the Republic (crude oil, associated gas, peat, firewood, etc.) considering the secondary energy resources reached 20.3 per cent (5.29 million tonnes of reference fuel) in the consumption of boiler- heating oil.

In 2015 due to the increased use of local fuels and renewable energy sources the share of own energy resources in the balance of the boiler and furnace fuel will be at least 28 percent; in 2020 - not less than 32 percent.

High growth rate of local energy resources share in the total consumption for energy production requires the development of raw materials for each energy carrier. At present and in the forecast period wood fuel is the most significant one in the overall balance of local energy resources (about 32 per cent). Oil and associated gas production is declining because of existing reserves depletion. In order to ensure the proper balance it is necessary to focus mainly on increasing of production of local mineral resources and renewable energy.

During the period of 2006 - 2009 works on oil and gas and solid minerals exploration were carried out, regional geological studies were conducted in accordance with the State Program of Exploration Work directed to the mineral resources development in Belarus for the period of 2006 - 2010 and till 2020, approved by DecreeNo. 184 of the President of the Republic of Belarus dated March 28, 2006, as amended by the Presidential Decree No. 566 dated December 3, 2009 (National Register of Legal Acts of the Republic of Belarus, 2009, No. 292, 1 / 11132).

Based on explorations and potential production determination works and on use of primary energy carriers, the development and - in the conditions of economic feasibility - the introduction of global technologies of extraction and processing of oil, gas, oil shale and lignite will be continued.

In accordance with the state programs, works on increasing of peat and wood production and processing for energy will also be continued.

Oil and associated gas. Oil deposits on the territory of the Republic of Belarus are concentrated in a single oil and gas field - Pripyat basin, which covers an area of about 30 thousand square kilometres. Remaining recoverable industrial oil reserves are 56.25 million tonnes. The Belarusian oil is generally of high quality - easy, low-density, with low content of sulfur and paraffin; and this factor increases its value. Every year in Belarus several oil fields are opened. Currently 59 fields are being developed, the largest of which are already at the final stage of development and have a high water cut.

In 2010 1.7 million tonnes of oil and 203.8 million cubic metres of associated gas are planned to be produced; and recoverable oil reserves are planned to be increased for 1.1 million tonnes.

Wood fuel. The forestry of the Republic of Belarus is 9.248 hectares (38 percent of the total territory). The total stocks of standing timber is 1.56 billion cubic metres, including196.7 million cubic metres of mature and overmature standing timber, while the annual average increase is 25 million cubic metres. The main wood reserves authority is the Ministry of Forestry, which manages 85.5 percent of the Republic’s forests. The potential of wood fuel resources suitable for production of wood fuels include firewood, timber and wood waste, plantings of gray alder.

Firewood.