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Modernization of the Russian Energy Industry and New Global Energy Structure

16 January2019
Modernization of the Russian Energy Industry and New Global Energy Structure

On December 16, at the 10th Gaidar Forum, an expert discussion “Modernization of the Russian Energy Industry and New Global Energy Structure” took place.

The modernization of the Russian economy is certainly among the key topics of discussion of the future of the Russian energy market in 2018. The Ministry of Energy has developed a draft Resolution of the Government of the Russian Federation “On carrying out of competitive power take-off on reconstruction (technical re-equipping, modernization) of thermal electric stations”, according to which investments in the reconstruction of TPP will be invited in Russia in 2021-2030. A micro-generation bill has been developed and supported by the government. The mechanism of support of renewable energy sources (RES) for the period of 2025-2035 was started in the past year. The session is devoted to discussion of topical issues of Russian energy sector development in Russia.

Vladimir Potashnikov, Senior Research Fellow, Center for Economic Modeling of Energy and Environment, RANEPA, said: “In all scenarios of the equilibrium model, coal is forced out, gas is also being strongly forced out, and the share of sun and wind is growing.”

Modern energy trends are in Energy Transition – energy transition from large centralized systems with large stations and powerful networks towards decentralization, distributed energy, emergence of many small stations and storage devices, erasing the boundary between the generator and the consumer, increasing freedom of consumer choice.

According to Oleg Barkin, Deputy Chairman of the Board on Market Development, NP Market Council, the modernization of the Russian energy sector allows for the maximum expansion of the boundaries of the renewable energy support mechanism.

Dmitry Vakhrukov, Director of the Department for State Regulation of Tariffs and Infrastructure Reforms of the Ministry of Economic Development of the Russian Federation: “All trends in the Russian energy sector have three key factors: climatic conditions, cross-subsidization in the energy sector, and the price of electricity for the consumer.”

For the time being, the Russian energy industry as a whole remains apart from the “energy transition”. There are also objective reasons for this: the unified energy system with large stations for decades reliably provided consumers with cheap electricity and heat. The "margin of safety" laid down during the USSR allowed to survive a series of economic crises at the end of the 20th century and continues to keep the industry afloat to this day. The position of conservative experts is understandable – it is hardly reasonable to completely abandon what works well and reliably, to abandon the wealth of our ancestors in favor of new-fangled imported technologies.

Anna Dityakina, RANEPA

 

All records of live broadcasts from the Gaidar Forum 2019

10th Gaidar Forum Organizers:

The Russian Presidential Academy of National Economy and Public Administration (RANEPA);
The Gaidar Institute for Economic Policy (Gaidar Institute);
The Association of Innovative Regions of Russia (AIRR).

The general partners of the Gaidar Forum are Gazprom and Gazprombank; strategic partners include Prosveshcheniye publishing house, Coca-Cola, Pharmstandard group, ACIG Group of Companies, the Russian Textbook Corporation, SANOFI, Novartis, Johnson & Johnson, Russian Railways, MSD, and Mastercard; EY, Cisco and Russian Direct Investment Fund are partners. This discussion’s partners are Philips, Cherkizovo and RVC.

The general information partners of the Gaidar Forum include the Rossiya 24 TV channel, Forbes global media company, RBC and TASS news agencies. The official information agency is Rossiya Segodnya. The general radio partner is Business FM. The strategic information partners are Kommersant Publishers, the RT TV channel, Interfax and Gazeta.RU. The main information partners are Profil weekly, FederalPress news agency, and Invest Foresight online magazine. The international information partners are Sputnik and Cision. Other media partners include PRIME news agency, Rossiyskaya Gazeta, RNS news agency, Radio Ekho Moskvy, News.Ru, Polit.ru, Parlamentskaya Gazeta, the PRO BUSINESS TV channel, Strategia magazine, AK&M, BRICS, Ekonomika i Zhizn weekly, National Banking Journal, Expert Tatarstan magazine, the Smart Country information platform, Financial One, Naans Media, and the Public Administration scientific political journal.

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