the electricity governance initiative: findings of the kyrgyz governance assessment

THE ELECTRICITY GOVERNANCE INITIATIVE: FINDINGS OF THE KYRGYZ GOVERNANCE ASSESSMENT Nurzat Abdyrasulova, Executive Director, UNISONwww.unison.kg

26th May 2009. EGI Global Meeting in Pune

CIVIC ENVIRONMENTAL FOUNDATION UNISON

*Non governmental non for profit environmental organization acting on national and international levelHas been established in 2002 in BishkekIt has main two target areas of activities:Sustainable Energy development & Climate Change (energy efficiency, energy saving, RES promotion, EGI and Climate advocacy);Environmental Quality Improvement (eco-education, public awareness, POPs elimination, eco-tourism development, eco-sanitation). UNISON fulfill international events and information campaignsPUBLIC FOUNDATION UNISON


ENERGY SECTOREnergy is one of the most socially and politically sensitive issues in Kyrgyzstan with significant impact on country economy.

99% of the population are connected to the electricity grid

Electricity infrastructure has been established 40 years ago on the base of the hydropower cascade of the electricity stations - existing capacity is 2950 MWh and 730 MWh from TPP


CURRENT STATE -TPES SHARE*Source: International Energy Agency, 2003


Chart1

607

457

613

981

4

1

Electricity ConsumptionGWh

Total Final Consumption7937

Industry1817

Transport118

Agriculture2508

Commercial and Public Services0

Residential2415

Other Non-Specified1079

FEC, 2003ElectricityH&FFEC

GWhTJktOETJ

Industry and non-energy use1,817.06,541.219,191.561425,732.7

Transport118.0424.811,226.227811,651.0

Agriculture2,508.09,028.823.82169,052.6

Buildings (residential, public, service) and "other"3,494.012,578.430,379.4102542,957.8

Total7,937.028,573.260,820.82,133.089,394.0

Source: IEA, 2003

TPES

ktOETJ

Coal607.025,439.4

Oil and petroleum products457.019,152.9

Natural gas613.025,690.8

Hydro power981.041,113.7

Combustable renewables4.0167.6

Total2,662.0111,564.4

ProductionTrade ballance and stock changes*

Coal6,370.319,069.1

Oil and petroleum products2,891.816,261.1

Natural gas963.924,726.9

Hydro power46,897.3-6,202.7

Combustable renewables167.60.0

Total57,291.053,854.4

* Import + Stock changes - Export

1

2

Coal

Oil and petroleum products

Natural gas

Hydro power

Combustable renewables

TJ

3

CURRENT STATE -FEC BY ECONOMY SECTOR*Source: International Energy Agency, 2003


1

25984.2

11650.98

9052.56

42748.2

CS Kindergarten

NovemberDecemberJanuaryFebruaryMarch (prediction)TotalSom

Heat Consumption, Mcal83.69,927.39,600.06,900.03,900.030,410.941,571.7

DD, K.day5889729606903903600

0

Mcal/K.day0.14210.21310.00010.00010.0008.071

e,m, C-1.6-14.4-14-55-6.000

dt (i,m - e,m), K19.632.4322313

NovemberDecemberJanuaryFebruaryMarch (prediction)TotalTotal, in %

After EPC83.69,927.39,600.06,900.03,900.030,410.916.67%After EPC

Before EPC29,788.749,242.648,634.734,956.219,757.8182,380.0100.00%Before EPC

182,380.0

NovemberDecemberJanuaryFebruaryMarch (prediction)Total

e,m, C-1.6-14.4-14.0-5.05.0-6.0

Heat Consumption, Mcal83.69927.396006900390030410.9

e,m, C-1.6-14.4-14.0-5.05.00

Mcal/K.day0.1410.2110.0010.0010.008.07

e,m, C-1.6-14.4-14.0-5.05.0

dt (i,m - e,m), K19.632.432.023.013.0

CS Kindergarten

00

00

00

00

00

MCal

Potential

00

FEC

0

0

0

0

0

Heat Consumption, Mcal

C

Mcal

IndustryResidentialServices (public and commercial)District/Central heatingTotal

Technical energy saving potential7397.987149.344780.1170321030.421

Market EPC potential814.2761.61450.85343560.62

% share of market EPC potential11.0%10.7%30.4%31.4%16.9%

IndustryResidentialServices (public and commercial)District/Central heatingTotal

Market EPC potential814.2761.61450.85343560.6

Technical energy saving potential

Market EPC potential

0

0

0

0

Technical potential

Market EPC potential

Mcal

Heat-energy ballance, 2004IEA, 2003IEA, 2003

TJktOETJ

Industry44,005.50614.0025,732.74

Transport16,764.00278.0011,650.98

Agriculture8,382.00216.009,052.56

Services (public and commercial)7,962.90

Residential52,806.60

Other1,026.0042,999.66

Total129,921.002,134.0089,435.94

TPES2,661.00111,522.51

IEA

Industry and non-energy use25,984.20

Transport11,650.98

Agriculture9,052.56

Buildings (residential, public commercial)42,748.20

Total89,435.94

HEBallance

Industry and non-energy use44,005.50

Transport16,764.00

Agriculture8,382.00

Buildings (residential, public commercial)60,769.50

Total129,921.00

EGI RESEARCH14 indicators on Political Process and 17 on Regulatory process has been selected as *priority* indicators for pilot research in Kyrgyzstan

Restructuring and privatization process of the Energy Sector has been the main themes of the research

*


RESEARCH CONTENT

Energy Governance in Kyrgyzstan is closed sector, with lack of good governance principles, such as TRANSPARENCY, ACCOUNTABILITY, OPENNESS

*


MAJOR FINDINGS POLICY PROCESS Financial reports of the Implementation Agency are not available;There is no public participation during the decision making and no procedures of the alternative opinion consideration;No clear jurisdiction of the organization forms of the Energy Companies: in one hand Sate owns 90% of the share, in other hand juridically they are Join Stock companies accountable to Board of Directors. *


REGULATION PROCEDURES MAJOR FINDINGThere is distinguished Regulator Body but the key factor - independence is not coveredWritten norms exists but practical implementation is weak (e.g. licensing, appeal procedures, quality of service providing)There is unclear tariff policy and no well defined tariff methodologyNo public hearings and participation on tariffs settings


ENVIRONMENTAL AND SOCIAL ASPECTS Environmental security is declared as a first priority of the country policy, but economic interest prevail Environmental questions in the policy reform is considered and well reflected but practical implementation in minorVery weak public participation and information about ESIA of energy projects*


BUILDING PUBLIC CONFIDENCE THROUGH TRANSPARENCYDeclaration that there will be an independent regulatory commission Formation of a Working Group to develop immediate and long term measures for protecting the public interest. Formation of a reference group to enhance transparency and public confidence.*RECOMENDATIONS


IMMEDIATE ACTIONS Develop a credible and published set of proposed tariff methodologiesRevise and reissue sector Licenses and develop Performance Agreements Develop a set of procedures for transparent selection of private service providers Develop a set of procedures for the Regulatory Department that insures public access to documentsDevelop a set of procedures to post annual reports on Ministry websitesDevelop a set of procedures for the mandatory publication of feasibility studies and reports

*


LONGER TERM ACTIONS Review of legal and operational frameworks to identify gaps to be addressed for the sustainable development of the energy sector. A broad set of governance recommendations is outlined in the EGI Assessment Report.Development of a roadmap for the establishment of an independent regulatory commission Define the role of the independent regulatory commission in the development of a regional electricity market (including export pricing and security of supply)

*


THANK YOU FOR [email protected] www.unison.kg


International Workshop on Biomass market Development International Workshop on Biomass market Development 10 July 2006, Beograde, Serbia and Montenegro*10 July 2006, Beograde, Serbia and MontenegroInternational Workshop on Biomass market Development International Workshop on Biomass market Development 10 July 2006, Beograde, Serbia and Montenegro*10 July 2006, Beograde, Serbia and Montenegro

the electricity governance initiative: findings of the kyrgyz governance assessment

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