10.04.2012
Belarus set to export up to 5bn kWh of electricity to EU annually
MINSK, 10 April (BelTA) - Since the prices on wholesale electricity markets in the neighboring states are comparable with those in the Republic of Belarus, and taking into account the fluctuations in certain periods of the year as well as daily fluctuations, the country believes that it will be cost-effective to export 3 to 5 billion kWh of electricity per year to Poland, Lithuania and Latvia, and to other states of the European Union, says the state program for the development of the Belarusian energy system until 2016. The text of the program is available on the national legal Internet portal.
Evaluating the options to export electricity, the authors of the state program note that currently the demand and production of electricity (capacity) are balanced in the vast majority of EU states. Reciprocal import/export varies ± 5%.
In accordance with the energy policies, the Baltic Sea countries (Lithuania, Latvia, Estonia) aim to ensure integration with the power systems of the European Union and develop own generation sources, including nuclear power plants.
Ukraine seeks to ensure intensive development of nuclear energy and increase significantly the export of electricity up to 25 billion kWh to neighboring states in 2020.
Export to the Kaliningrad region is unlikely, because in addition to the development of the organic fuel production Russia is building a Baltic nuclear power plant with the capacity of about 2300MW.
Poland's energy strategy is to use its own coal and lignite, and build a nuclear power plant. However, Poland regularly shows interest in connecting to the Belarusian energy system through a DC insertion and import up to 3 billion kWh per year. However, the final decision is yet to be taken.
Because of the decommissioning of the Ignalina nuclear power plant and uncertainty around the construction of a new nuclear power plant in Lithuania, Belarus might export electricity to Lithuania and Latvia.
“Our major competitors are Russia and Ukraine. However, taking into consideration that the commissioning of new generating capacities in these countries significantly lags behind the plan, their export capacities might be restricted by domestic demand,” the document reads.
Competitiveness of Belarus-generated electricity can be estimated by comparing wholesale electricity prices and electricity tariffs in the neighboring states.
Wholesale prices depend on a season, time of a day, weekdays and weekends. In 2011 the prices varied considerably from 5.4 to 12 US cents per kWh (with the exchange rate of $1.3 per €1), the document reads.
Electricity tariffs, just like wholesale prices vary. To compare tariffs, one needs to use the following data: an average electricity tariff in the European Union in H1 2011 for industrial enterprises made 12.8 US cents per kWh, for households 25.9 US cents per kWh.
Electricity tariffs for business users and the population in the neighboring countries are as follows: 11.8 and 21.3 US cents/kWh in Poland; 14.6 and 17.6 in Lithuania; 12.9 and 16.9 in Latvia; 9.2 and 3.1 in Ukraine, 8.3 and 7.2 in Russia.
As of 1 January 2012 the average electricity tariff in Belarus was 13.73 US cents/kWh for business users and 2.56 for the population.
“The prices on the wholesale electricity markets in the neighboring countries are comparable with those in Belarus. In this respect, taking into account sharp seasonal fluctuations as well as the daily range, the annual export of 3 to 5 billion kWh of electivity to Poland, Lithuania, Latvia and other EU states seems to be economically viable. The construction of the nuclear power plant will create more favorable conditions and boost the export of electrical energy in the future,” the authors of the state program believe.
Keeping in mind the country’s geographical position, electricity transit remains one of the most efficient areas of the national energy system. The program provides for the creation of necessary technical conditions for the export and transit of electricity.
Evaluating the options to export electricity, the authors of the state program note that currently the demand and production of electricity (capacity) are balanced in the vast majority of EU states. Reciprocal import/export varies ± 5%.
In accordance with the energy policies, the Baltic Sea countries (Lithuania, Latvia, Estonia) aim to ensure integration with the power systems of the European Union and develop own generation sources, including nuclear power plants.
Ukraine seeks to ensure intensive development of nuclear energy and increase significantly the export of electricity up to 25 billion kWh to neighboring states in 2020.
Export to the Kaliningrad region is unlikely, because in addition to the development of the organic fuel production Russia is building a Baltic nuclear power plant with the capacity of about 2300MW.
Poland's energy strategy is to use its own coal and lignite, and build a nuclear power plant. However, Poland regularly shows interest in connecting to the Belarusian energy system through a DC insertion and import up to 3 billion kWh per year. However, the final decision is yet to be taken.
Because of the decommissioning of the Ignalina nuclear power plant and uncertainty around the construction of a new nuclear power plant in Lithuania, Belarus might export electricity to Lithuania and Latvia.
“Our major competitors are Russia and Ukraine. However, taking into consideration that the commissioning of new generating capacities in these countries significantly lags behind the plan, their export capacities might be restricted by domestic demand,” the document reads.
Competitiveness of Belarus-generated electricity can be estimated by comparing wholesale electricity prices and electricity tariffs in the neighboring states.
Wholesale prices depend on a season, time of a day, weekdays and weekends. In 2011 the prices varied considerably from 5.4 to 12 US cents per kWh (with the exchange rate of $1.3 per €1), the document reads.
Electricity tariffs, just like wholesale prices vary. To compare tariffs, one needs to use the following data: an average electricity tariff in the European Union in H1 2011 for industrial enterprises made 12.8 US cents per kWh, for households 25.9 US cents per kWh.
Electricity tariffs for business users and the population in the neighboring countries are as follows: 11.8 and 21.3 US cents/kWh in Poland; 14.6 and 17.6 in Lithuania; 12.9 and 16.9 in Latvia; 9.2 and 3.1 in Ukraine, 8.3 and 7.2 in Russia.
As of 1 January 2012 the average electricity tariff in Belarus was 13.73 US cents/kWh for business users and 2.56 for the population.
“The prices on the wholesale electricity markets in the neighboring countries are comparable with those in Belarus. In this respect, taking into account sharp seasonal fluctuations as well as the daily range, the annual export of 3 to 5 billion kWh of electivity to Poland, Lithuania, Latvia and other EU states seems to be economically viable. The construction of the nuclear power plant will create more favorable conditions and boost the export of electrical energy in the future,” the authors of the state program believe.
Keeping in mind the country’s geographical position, electricity transit remains one of the most efficient areas of the national energy system. The program provides for the creation of necessary technical conditions for the export and transit of electricity.