Interconnection of EC and CIS power systems and ... - Eurelectric

Interconnection of EC and CIS power systems and electricity markets
– a way for increasing power supply reliability
Table of contents
1 Agreement on cooperation in the area of electricity sector between European
Community of electric energy enterprises (EURELECTRIC) And Electric Energy
Council of Commonwealth of Independent States........................................................................3
1.1 1993 – Prague..........................................................................................................................3
1.2 1998 – Moscow.....................................................................................................................11
1.3 2003 – Brussels .....................................................................................................................13
2 Formation of joint groups “Markets” and “Environment”..............................................................17
3 International Conference “Electricity Market from Lisbon to Vladivostok?
Environmental, Market and Technical Prerequisites”, (Brussels) and materials
of joint “Report comparing environmental legislation and policy situation in
the CIS EPC and EURELECTRIC Regions” (2003)..................................................................20
3.1 International conference “electricity market from Lisbon to Vladivostok?
Environmental, Market and Technical Prerequisites” Brussels ........................................20
3.2 Materials of Joint “Report on comparing environmental Legislation and
policy situation in the CIS EPC and EURELECTRIC regions .........................................35
3.2 Materials of Joint “Report describing the current market Legislation and
market electricity rules in the CIS EPC and EURELECTRIC regions .............................45
4 International seminar “Problems of geothermal energy development in
CIS-countries and activity of international GeoFund (2003)......................................................55
4.1 Program of seminar ...............................................................................................................55
4.2 Materials of seminar..............................................................................................................62
5 International conference “Electricity market from Lisbon to Vladivostok?
Defining necessary framework conditions” (Moscow) and materials
of joint report “Electricity market from Lisbon to Vladivostok? Defining
necessary framework conditions” (2005)....................................................................................69
5.1 International conference “Electricity market from Lisbon to Vladivostok?
Defining necessary framework conditions”.......................................................................69
5.2 Materials of Joint report “Electricity market from Lisbon to Vladivostok?
Defining necessary framework conditions”.......................................................................74
5.3 “Roadmap environmental on Key Environmental Protection Issues
of the EU and CIS power Markets Integration ..................................................................86
5.4 Materials of Joint report “Comparison of the EU and CIS Electricity Markets ...................91
5.5 “Roadmap Market Towards Compatible Markets in the EU and CIS countries”...............103
6. Materials of Analytical “Review of opportunities for participation of CIS
Electricity industries in market-based mechanisms of the Kyoto Protocol”.............................110
7. Materials of “General report on carrying out monitoring “Roadmap on key
ecological issues of unification of EC and CIS electricity markets”
in CIS-countries in 2007”..........................................................................................................118
8. Materials of “General report on monitoring “Roadmap on key ecological issues
of unification of EC and CIS electricity markets” in CIS-countries in 2008” ..........................127
2

1 Agreement on cooperation in the area of electricity sector between European
Community of electric energy enterprises (EURELECTRIC) And Electric Energy
Council of Commonwealth of Independent States
1.1 1993 – Prague
3

General Agreement
on cooperation in the field of electric power
between
the European Grouping of the Electricity Supply Industry
(EURELECTRIC)
and
the Executive Committee of the Electric Power Council
of the Commonwealth of Independent States
4

GENERAL AGREEMENT
on cooperation in the field of electric power
THE EXECUTIVE COMMITTEE OF THE ELECTRIC POWER COUNCIL of the
Commonwealth of Independent States (CIS), hereinafter referred to as the Executive
Committee, on the one hand,
and
THE EUROPEAN GROUPING OF THE ELECTRICITY SUPPLY INDUSTRY
(EURELECTRIC), hereinafter referred to as EURELECTRIC, on the other hand,
Having regard to the main principles of the European Energy Charter, signed in The
Hague on 17 December, 1991;
Taking into account the "Agreement concerning the coordination of the interstate
activities in the field of electric power industry of the Commonwealth of Independent
States" done in Minsk on February 14, 1992, and signed by eleven member states,
whose utilities together are forming an interconnected system linking Europe and Asia ;
Taking into account the "Statutes and Standing Orders" of EURELECTRIC, done in
Brussels on September 23, 1991, and signed by 14 members, representing the electric
utilities of the twelve member states of the European Community ;
Wishing to develop cooperation in the field of electric power for the mutual benefit of
their members ;
agree as follows:
1. OBJECTIVE OF THE AGREEMENT
It must be emphasized that EURELECTRIC's main role is to develop common
positions with respect to initiatives of the European Community concerning the
activities of Community electricity undertakings. EURELECTRIC is mandated by its
members to present their common and agreed positions to the European Community
Authorities. In this role, EURELECTRIC may utilize its position to act in the interest
of the Executive Committee with respect to EC policies of relevance to the Executive
Committee.
EURELECTRIC is essentially a non-profit making organisation and therefore does not
itself undertake commercial business, except when this might be in the common and
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general interest of its members; in this exceptional case, undertakings may work in
cooperation and EURELECTRIC may then set up the appropriate structure to handle
the study under consideration. EURELECTRIC has also the possibility to ask for the
collaboration of UNIPEDE and/or UCPTE.
EURELECTRIC represents the majority of electricity undertakings in the European
Community and has associate members from non-EC countries. Its statutes define
precisely the scope and limits of its activity. As a result, within the framework of this
General Agreement EURELECTRIC may also ask the collaboration of UNIPEDE or
UCPTE in order to fulfill its role with respect to the Executive Committee.
The Executive Committee is a working body of the ELECTRIC Power Council of the
CIS. The Executive Committee was organised in accordance with the "Agreement
concerning the coordination of the interstate activities in the field of electric power
industry of the Commonwealth of Independent States", signed by the heads of the CIS
Governments on February 14, 1992. The Executive Committee aims at preparing
solutions and coordinating actions on providing electricity supply of the CIS national
economy and population. In accordance with the Statutes adopted by the Electric
Power Council of the CIS the Executive Committee has got the right to form working
groups including specialists and experts from the CIS for the preparations of agreed
decisions in the field of functioning and developing the electric power industry.
The main tasks of the Executive Committee are development of common principles,
proposals and standards providing the effective operation of the CIS member states
interconnected power systems and also the formation of programs of entering into the
system of the world power industry and establishing business contacts for organisation
of cooperation with the international power engineering organisations.
The Agreement aims at promoting and developing cooperation between
EURELECTRIC and the Executive Committee, through exchanges of information,
studies of general and common interest, contacts between experts and specialists on
selected topics, as referred to in § 2, and contacts with other professional associations.
The scope of the Agreement is intended to cover all topics contributing to the
development of electrical systems, whether technical, economical, financial,
managerial, or concerning the organization of structures evolving in conditions of a
market economy.
Notwithstanding the above, the members of EURELECTRIC and the undertakings
they represent remain free to conclude bilateral or multilateral commercial agreements
with whichever partners they may choose in the CIS and such practice is not
inconsistent with the terms of cooperation set up in this agreement.
EURELECTRIC may also advise the Executive Committee on its relations with the
European Community.
6

2. AREAS OF COOPERATION
The areas in which cooperation between EURELECTRIC and the Executive
Committee are at present considered to be most relevant for both sides are the
following:
2.1. Organisation and methods of management (coordination) in the electrical power
industry of the CIS Electric Power Council member states.
2.2. Training of CIS Electric Power Council member states specialists in the
operation of electrical power systems in market economy conditions.
2.3. Analysis of the various options for setting up common information systems
between the various electrical systems of the CIS Electric Power Council
member states.
2.4. Critical analysis of drafts of standard and legislative documents concerning the
interaction of interconnected electric power systems of the CIS Electric Power
Council member states.
2.5. Ways and means of improving the management of interconnected electric
power systems in the field of operation and technological design.
2.6. Development and analysis of long term planning scenarios and development
programmes for electrical power systems of the CIS Electric Power Council
member states.
2.7. Elaboration of measures and projects concerning the integration of the
interconnected electrical systems of the CIS Electric Power Council member
states and the eventual extension of this interconnection.
2.8. Study of the possible options concerning clean and efficient fuel- burning
technologies; advice on energy conservation.
Other topics of mutual interest may be included the future in the need arises.
7

3. FORMS OF COOPERATION
Cooperation in the areas listed above will be carried out according to the following
principles, which should ensure the greatest efficiency for both sides:
3.1. Each side agrees to the free exchange of information - provided that it is not of
a commercial nature - and to make available to the other party statistical
material related to power systems.
3.2. If joint Working Groups are set up in order to study a selected item, appropriate
experts will be designated by each side and lists of names exchanged so that
work can start without delay.
3.3. The education and the training of specialists will take place on site
(laboratories, power plants, dispatch centers, research centers, substations)
depending on the topic under consideration.
3.4. Ad hoc expert bodies may be set up to prepare proposals for cooperation.
3.5. Both sides agree to the joint publication of information and statistical materials
on the electricity market.
3.6. Both sides agree to exchange specialists and experts for the purpose of this
agreement.
4. FINANCING
As a general rule, this Agreement for cooperation between the Executive Committee
and EURELECTRIC which are non-profit making organisations should not result
in commercial contracts and therefore there should not be any payments of any kind
between the sides as such.
This applies to:
4.1. The exchange of information and statistical materials.
4.2. Technical assistance obtained from other international organisations such as
UNIPEDE and UCPTE through the intervention of EURELECTRIC, for the
purpose of assisting the Executive Committee on matters referred to in § 2.
4.3. Assistance provided by EURELECTRIC intended to facilitate the relations of
the Executive Committee with various international organizations.
8

4.4. Joint studies of mutual and general interest to both sides where an equitable
balance of effort is involved, subject to careful optimization and assessment of
work force and time required to complete the study on both skies.
4.5. Other miscellaneous tasks: eg staff support, secretarial work, organization of
meetings, organisation of contacts with the European Community Institutions.
Notwithstanding the above, either side may subcontract work on its behalf on specific
issues which, although falling within the agreed scope of cooperation, cannot be
handled by its members for practical reasons. In that case, there would be financial
reimbursement.
In addition EURELECTRIC may provide the Executive Committee with advice on
how to obtain such technical or financial assistance as may be available from
international organizations.
5. ORGANISATION OF COOPERATION
Each side agrees to ensure transparency in implementing this Agreement.
In order to set up and carry out joint programmes, determine priorities, timetables and,
if necessary, organise joint working teams, the Executive Committee and
EURELECTRIC will establish a Joint Coordinating Committee (JCC) made of
representatives from each side which will meet twice a year, alternately in the areas of
the European Community and the CIS. Agreed programmes and expenditures must be
approved by EURELECTRIC and the Executive Committee prior to any practical
action being taken.
Once the common objectives and means have been set, the working contacts and the
exchange of information referred to in § 3 will be organized through correspondence.
6. VALIDITY OF THE AGREEMENT
The validity of the Agreement lasts for five years, beginning from date of signing and
may be extended automatically for a further five years subject to confirmation by both
parties.
However, any side may cancel the present Agreement subject to at least one year's
notice being given to the other side.
9

7. OFFICIAL LANGUAGES OF THE AGREEMENT
7.1. The present Agreement is signed in two versions in the Russian and English
languages. Both versions have the same power.
7.2. Correspondence and exchange of information shall be carried out in the Russian
and English languages.
For and on behalf For and on behalf
of the Executive Committee of EURELECTRIC
of the Electric Power Council
of the Commonwealth of Independent States
Prague, November 18, 1993
10

1.2 1998 – Moscow
11

PROTOCOL
of negotiations between the leaders of EURELECTRIC
and the Executive Committee of the Electric Power Council of the CIS
Moscow 30 March, 1998
Present
On behalf of EURELECTRIC:
N. Ketting, President of EURELECTRIC;
P. Bulteel, General Secretary of the Joint Secretariat UNIPEDE / EURELECTRIC;
J.Y. Delabre, Head of Unit, Domain 1 "Energy Policy and Energy Economics" of
EURELECTRIC.
On behalf of the Executive Committee:
V. Djanguirov, Chairman of the Executive Committee of the Electric Power Council of the
CIS;
Yu. Antimenko, Director of Department;
N. Vassilyeva, Head of Department
Yu. Markin, Head of the Information and Analytic Centre;
E. Kharlamova, Head of the Agency of External Economic Relations;
O. Perepelkina, Legal Adviser.
During negotiations the issues were discussed in accordance with the agreed Agenda.
The Parties have stated that the cooperation has been developed fruitfully and on the mutually
beneficial base over the last years. Five JCC meetings and negotiations between the leaders of
EURELECTRIC and the Executive Committee were organized and conducted.
The Parties have reached the following agreements:
1. To continue working with the extended text of the General Agreement on Cooperation
in the Field of Energy between EURELECTRIC and the Executive Committee of the Electric
Power Council of the CIS and confirm it by the exchange of fetters.
2. To hold the Sixth Meeting of the Joint Coordinating Committee (SCC) in Rome on 28
May, 1998 and approve the draft agenda of the JCC meeting.
3. To conduct a seminar on environmental matters in Rome on 29 May, 1998
concentrating mainly on the problems suggested for discussion by EURELECTRIC.
4. To prepare a high-level meeting of the countries that are connected - or in the for
seeable future will be connected - to the networks of UCPTE , respectively the CIS. This meeting
will be held in April/May, 1999.
5. To continue consultations on needs of an electricity protocol to the Energy Charter
Treaty, and analyse the effects of the application of the Charter Treaty.
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1.3 2003 – Brussels
13

Preamble
AGREEMENT
between
the Union of the Electricity Industry - EURELECTRIC
and
the Electric Power Council of the Commonwealth of Independent States
The Union of the Electricity Industry - EURELECTRIC, hereafter called EURELECTRIC, and the
Electric Power Council of the Commonwealth of Independent States, hereafter referred to as CIS
EPC, and together called the Parties, have expressed the will to continue to strengthen long-term
interrelations in the power sector and thus to contribute to the development of a pan-European and
Eurasian electricity market, in mutual respect of each other's identity and mission.
Whereas
EURELECTRIC's Membership, directing bodies, expertise structure and activities are such that
EURELECTRIC is fully representative of the European Electricity Industry.
EURELECTRIC concentrates on strategic expertise and on representation in public affairs for the
European Electricity Industry.
CIS EPC is an intergovernmental body and officially represents CIS electricity industry.
CIS EPC concentrates on coordination of joint activities of the CIS countries in the electricity field
aimed at providing of the sustainable and reliable electricity supply based on efficient functioning
of the CIS power systems.
Having regard to the main principles of the European Energy Charter signed in the Hague on 17
December 1991 and the Treaty to the European Energy Charter of 17 December 1994;
Having regard to the "Agreement concerning the coordination of the interstate activities in the field
of electric power industry of the Commonwealth of Independent States" signed by the Heads of
Governments of the CIS countries in Minsk on 14 February 1992;
Having regard to the EURELECTRIC Statutes of 7 December 1999 and its Standing Orders;
Having regard to the CIS EPC Status and Standing Orders of September 1998 and in July 2000;
Having regard to the General Agreement on Co-operation in the Field of Electric Power between
EURELECTRIC and CIS EPC of 18 November 1993 and extended for another five years in March
1998;
Having regard to the Minutes of the EURELECTRIC and CIS EPC Presidents' meetings in Warsaw
(20 March 2002), in Brussels (21 November 2002) and in Prague (23 June 2003).
Parties agree that:
Aims, objectives and forms of co-operation
CIS ELECTRIC POWER COUNCIL
1.1. The Agreement aims to enhance mutual dialogue on energy market development in the
respective regions, in particular the technical, market and environmental dimensions of such
development.
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1.2. The Parties support the strengthening of long-term interrelations in the power sector in order
to contribute to pan-European and Eurasian energy security and mutual cooperation. The
Parties recognize the need to understand better the mutual long-term objectives in relation to
power infrastructure development, to operational reliability, to the creation of competitive
conditions to environmental objectives and to other challenges, in order to develop
electricity market cooperation on Eurasian Continent. The Parties agree on the necessity of
taking into account both technological, market and environmental dimensions when
developing power market co-operation.
1.3. The Parties recognize that certain aspects of market development will not be handled by
EURELECTRIC, but by other association(s) in view of agreements concluded between
EURELECTRIC and these association(s). This relates in particular to the technical and
operational aspects of the European synchronous network, which are handled by the Union
for Co-ordination of Transmission of Electricity (UCTE).
1.4. The Parties encourage the active development of the dialogue between network associations
involved in order to identify the best solutions and necessary measures to promote
interconnection development. The Parties will coordinate actions where possible and
appropriate in promoting this dialogue in the political and energy spheres.
1.5. The Parties will promote their co-operation based on exchange of relevant information,
expertise, viewpoints, joint meetings and conferences, contacts between experts and
specialists and any other joint or coordinated actions when appropriate.
1.6. The Agreement does not prevent the CIS member-states from carrying out independent
consultations and activities with EURELECTRIC on issues of common interest, nor
members of EURELECTRIC from carrying out consultations and activities with the CIS
EPC and CIS member states.
2. Principles and forms of co-operation
2.1. Co-operation is based on the following main principles:
Open exchange of information covered by this Agreement, except for commercially
classified information and for information considered to be for internal purposes only
by one of the Parties,
Political non-interference in the activities of any CIS member-state and EU country,
Ensuring transparency in the implementation of this Agreement.
2.2. Forms of co-operation can be identified as following:
carry out regular meetings, in principle once a year at the level of the Presidents of both
associations, to assess progress and define further goals. The meetings should take place
alternatively in one of the countries of full membership of EURELECTRIC and country
- full member of the CIS EPC;
undertake regular information exchange on relevant proposals and documents affecting
the electricity market development in both regions;
coordinate policy making initiatives when appropriate;
contribute to reports or prepare joint reports;
regularly update the joint statistical reference book;
establish joint (ad-hoc) groups when appropriate;
organize common events when appropriate;
make cross-links(s) to Websites.
Any other forms of co-operation might be considered by the Parties.
2.3 The Secretariats of both Parties will maintain regular contacts in order to monitor and assess
achievements and to recommend further initiatives in the context of the Agreement.
15

3. Financing
3.1. As a general rule, this Agreement between EURELECTRIC and CIS EPC - which are nonprofit
making organizations - should not result in commercial contracts and therefore there
should not be any payments of any kind between the Parties as such. This applies to:
The exchange of information and statistical data;
Technical assistance and expertise provided by both organizations;
Studies resulting from joint work;
Other expenses related to joint work, such as staff support, secretarial work,
organization of meetings etc. Each Party is responsible for covering costs related to its
part of the work.
3.2. The Parties remain free to conclude any bilateral or multilateral commercial agreements
with any other Party.
4. Validity of the Agreement
4.1. The Agreement is of indeterminate duration. It can be reviewed at the request of one of the
Parties.
4.2. It can be terminated by either of the Parties after six months notice has been given.
4.3. The Agreement comes into force from the moment of its signing. The General Agreement
on co-operation in the field of electric power between the EURELECTRIC and the
Executive Committee of CIS EPC of 18 November 1993 becomes invalid from the moment
of signature of this Agreement.
5. Official languages of the Agreement
5.1. The Agreement is signed in both the English and Russian languages. Both versions have the
same power.
5.2. Joint official events shall be carried out in both the English and Russian languages, while
English will be the working language for correspondence.
Brussels, 13 November 2003
16

2 Formation of joint groups “Markets” and “Environment”
17

1. Present:
MINUTES
of the Joint meeting
of the CIS Electric Power Council
and EURELECTRIC Presidents
Brussels, Belgium 21
November 2002
From the CIS:
A.B.Chubais, President of the CIS Electric Power Council (EPC CIS);
V.A.Dzhangirov, Chairman of the Executive Committee;
A.M.Zelinsky, Chairman of the EPC CIS Working Commission;
K.A.Datsko, Director for Foreign Relations and Protocol, RAO "EES Rossii";
V.A.Halcobyan, Head of EPC CIS Foreign Relations Agency;
E.G.Zholudeva, Mr. Dzhangirov's assistant.
From EURELECTRIC:
H.Haider, President;
P.Bulteel, Secretary General;
L. Majlathova, Europe Desk Advisor.
Zochbauer, Assistant to Mr. Haider
2. Main goal of the meeting:
To discuss the progress achieved on cooperation between the EPS CIS and EURELECTRIC
(including implementation of decisions reached in accordance with the Minutes of the Joint meeting
of the EPS CIS and EURELECTRIC in Warsaw in March 2002) and draft further actions for
enhancing and improving efficiency of cooperation.
3. Speakers:
A.B.Chubais, H.Haider, A.M. Zelinsky, V.A.Dzhangirov, P.Bulteel.
4. Parties discussed the issues of the Agenda and noted:
CIS ELECTRIC POWER COUNCIL
That the current presidential meeting is a second regular meeting in accordance with the decision of
the Joint meeting of the EPC CIS and EURELECTRIC held in Warsaw, 20 March 2002.
On the first issue of the Agenda the parties noted that certain success has been achieved in
promoting the decisions of the Warsaw Joint meeting. The questions of developing co-operation
between EPC CIS and EURELECTRIC have been tackled at the following events:
The 22 nd EPS CIS meeting (Almaty, 18 October 2002);
18

The 7 th Joint Coordination Committee meeting of Executive Committee of the EPS CIS
and EURELECTRIC (Moscow, 24 October 2002);
The meetings of the Working Commission of the EPS CIS on preparation for synchronous
operation of the power systems of IPS/UPS with TESIS;
The meetings of the RAO UES Working Commission for developing the project of
synchronous operation of the IPS/UPS with the power systems of West, Central and South-
East europe;
The meeting of SYSTINT Working Group (Moscow, 25 October 2002);
The EURELECTRIC Board of Directors meeting (Brussels, 20 November 2002);
Contacts maintained between EURELECTRIC and the European Commission
On the second issue of the Agenda the parties noted the importance of the preliminary study
made by UCTE on determining possibilities of synchronous operation of power systems of
IPS/UPS with TESIS, as well as the importance of developing infrastructure for liberalized
electricity and power market. The CIS power interconnection should set up a structure, like UCTE
in Europe, which may become one of the main elements of this infrastructure.
5. Parties decided:
to assess the work done for putting into practice the decisions of the previous meeting as
satisfactory;
to set up two joint working groups on market rules and environmental issues. The
groups are to issue working papers on the above issues to serve as a basis for a seminar
involving also governmental representatives from both Parties to further discuss
necessary steps. A time-table should be as follows: working groups are to be established
in December 2002, working papers are to be completed in July 2003, a seminar is to be
held in October 2003;
to carry out regular information exchange on state of the art of the electric power system
and electric power markets development in the CIS countries and European Union via
contributing to the current EURELECTRIC Report on electricity sector reform and the
SYSTINT report - by the end of 1st Q 2003 and to make it a regular publication;
to issue a joint reference book with the statistical data collected - in May 2003;
to hold a next meeting of the EPC CIS and EURELECTRIC Presidents in June 2003 in
Prague;
to hold a next meeting of the JCC of the EPC CIS and EURELECTRIC in October 2003
along with the above seminar.
Encl: Agenda of the meting
19

3 International Conference “Electricity Market from Lisbon to Vladivostok?
Environmental, Market and Technical Prerequisites”, (Brussels) and materials of joint
“Report comparing environmental legislation and policy situation in the CIS EPC and
EURELECTRIC Regions” (2003)
3.1 International conference “electricity market from Lisbon to Vladivostok?
Environmental, Market and Technical Prerequisites” Brussels
20

EURELECTRIC UCTE CIS EPC Conference
"Electricity Market From Lisbon to Vladivostok?”
Environmental, Market and Technical Prerequisites
Day 1: Industry Perspectives and Interconnection between UCTE and Electricity
Systems of CIS and Baltic States
Brussels, 13 November 2003
Introduction
Some 180 electricity sector delegates and representatives of policymaking bodies came to
Brussels on 13-14 November to discuss, at a conference organised jointly by
EURELECTRIC, grid coordination body UCTE, and the sector association of the
Commonwealth of Independent States (CIS) the Electric Power Council (EPC), prospects
for developing a power market stretching across the European continent The event outlined
the environmental, market and technical prerequisites – the essential “three pillars” on
which such eventual East-West market integration must be based.
The Introductory session featured the three Presidents Hans Haider of EURELECTRIC,
Anatoli Chubais of CIS-EPC, and UCTE’s Martin Fuchs, outlining the basic industry
views. A session on Interconnections focused on the main features of the UCTE and
IPS/UPS electric systems, the respective challenges they face, and detailed a projected
technical study to investigate potential for synchronous operation. Results of the recent joint
EURELECTRIC-CIS EPC exercise, embodied in two reports outlining currently applicable
market rules and environmental legislation and policies in the two regions, served as a basis
for two following sessions on Market Structure and Environmental Issues. The final
session focused on the ongoing Political Dialogue, underlining the complexity of the
process and the need to work in parallel on all three issues.
Session I: Industry Perspectives
EURELECTRIC continues to voice its support for development of an open, competitive and
environmentally friendly pan-European market and is profoundly involved in addressing all
the issues, said EURELECTRIC President Hans Haider, opening the conference. “We
need to work towards a clearly compatible market framework and appropriate
environmental rules, in addition to technical reliability” if we are to successfully create such
a market, he added, stressing that these three “pillars” of East-West power market
integration should be seen as a whole, complementing each other.
The 2004 enlargement will bring the EU to the direct neighbourhood of the CIS and also
South East Europe and the Mediterranean region, thus expanding the geographical coverage
of the EU internal electricity market. Mr Haider pointed to the vital role that new
neighbouring countries of the enlarged European Union play in the Union’s energy policy,
with special emphasis on the “symbiotic” relationship between the EU and the Russian
21

Federation, given that Russia is a key supplier of natural gas to the EU, while at the same
time Russia depends on EU markets for a significant proportion of its foreign earnings.
Hans Haider described the conference as the “outcome of fruitful co-operation between
EURELECTRIC and CIS-EPC”, which began in1993, with a major conference in Warsaw
in 2002 where a Protocol was signed laying the foundation for further concrete action,
including the tasking of two joint working groups to describe the current situation with
regard to markets and environment in the two respective regions. Those two reports would
be presented during the relevant conference sessions, he explained. Meanwhile
EURELECTRIC’s Working Group on “Internal Electricity Market and External Trade in
Electricity”, had completed a report providing a comprehensive overview of the legal and
political framework of the EU’s external trade regime in electricity, identifying a set of
basic elements of international market developments and proposing a framework of
integration with non-EU countries.
The President also underlined that in this context EURELECTRIC strongly supports the
ongoing efforts by UCTE to investigate and assess the technical and operational aspects of
potential interconnection.
Mr Haider expressed confidence that, reinforced by input from policy-makers from both the
EU and CIS regions, the 2-day event would provide a constructive platform towards
transparent relations between West and East both at government and at industry level, and
constitute an important milestone in strengthening East-West energy cooperation and
dialogue.
CIS-EPC President Anatoli Chubais summarised key achievements made by Russia and
the other CIS countries in improving technical standards in their power system and
introducing market reforms. Mr Chubais insisted that the start-up of the Russian power
market and the first free trades on the Power Exchange on 1st November marked a "radical
change" and was evidence that a liberalised Russian market was a "realistic goal". Fast
structural changes were coming, both to the sector as a whole and to Russian major Unified
Energy Systems (RAO EES Rossii), of which he is Chief Executive Officer, with moves
towards unbundled companies separating the activities of power generation, transmission
and supply.
He strongly advocated the benefits of synchronous operation of the two electricity systems
as opposed to other possible ways of integrating markets. The recent UCTE "load flow
report" had identified "difficulties on the way to synchronised connection" of the two
systems, but had not excluded the very real possibility of such a link-up, an idea which had
made steps forward over the past one-and-a-half years he told the audience. Now it was time
to define the steps tp be taken. Russian Vice-Premier Victor Khristenko and the European
Commission's Director-General for Energy, Francois Lamoureux, had at a recent Summit
confirmed co-financing of a feasibility study, whose terms of reference must now be set.
Meanwhile we "keep working on the environmental requirements and market
harmonisation" the two other key parameters under consideration, but these aspects "must
not slow down our forward momentum", stressed Mr Chubais.
Meanwhile EES is making investments outside Russia and simultaneously opening up the
Russian power sector to outside participation, he told the audience. "Business runs ahead of
politicians and bureaucrats", he averred and closed by underlining the importance of the
conference in setting out the lines for progress on East-West integration.
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Referring to the conference title “Electricity Market from Lisbon to Vladivostok ?” Martin
Fuchs, President of UCTE, said he was not sure whether the final conclusion would see
the question mark remain or be replaced by an exclamation mark. He stressed that a full
feasibility study would be a prerequisite to any moves towards synchronised
interconnection, but also to be considered alongside other aspects.
From the outset when UCTE consisted of 6 core countries in the 1950s, and still today with
27 members, system security was always the main focus. The driving force in those preliberalisation
days was to improve the robustness of the system not to design for priceefficiency
or bulk transfers of power. So the system is today being used for purposes for
which it was not designed. Recent worrying incidents on the grids and black-outs in some
countries have shown even more clearly the need for strong operating rules. The existing
rules, embodied in the UCTE Operating Handbook today voluntary must be made
binding on the players, argued Mr Fuchs.
While some see a role for synchronised electricity connection across the continent from
Lisbon to Vladivostok in helping to ensure EU security of supply, "others say the opposite",
Mr Fuchs told the audience. All previous UCTE system extensions were much smaller and
it has usually taken 5-7 years to assess and apply. There must be "no experiment" with grid
security and the project must be assessed via comprehensive and neutral procedures, he
insisted. Current UCTE system procedures could not be maintained in a massive Lisbon-
Vladivostok system which would be of unique size in the world and the experts will
have to assess "under what conditions a link-up would be possible", he said. Mr Fuchs
underlined that the "complexity of the idea must not be underestimated" and he urged all
present at the conference to "refrain from sending out signals with unrealistic timehorizons".
The UCTE President warned the audience that so far "results are not promising"
and the indication is that additional electricity transit flow to the EU coming from the CIS
region "would only be feasible if Poland, Hungary et al reduced their flows". Moreover, "we
must keep sufficient capacity for system balancing", he underscored.
In fact East-West electricity integration is "not bound to any particular technical solution".
The "market will in any case have to decide what is the cost-effective solution", concluded
Mr Fuchs.
Introduction
Session II: Interconnection between UCTE and Electricity Systems
of CIS and Baltic States
Chairman: Christopher JONES, DG TREN head of “Electricity & Gas Unit”.
Christopher Jones, the Head of the “Electricity & Gas Unit” in the Directorate General for
Transport and Energy at the European Commission, introducing the session, referred to the
ongoing EU-Russia Energy Dialogue and reminded the audience of the Commission's "clear
objective" to extend the EU energy market structure to Russia and also to create satisfactory
energy relations with the "new neighbours" of the soon-to-be-enlarged European Union and
the Maghreb countries. Such market integration will "have to be done on the same
conditions as we set for the EU Member States ie reciprocity and market access, plus a
truly level playing-field based on trading markets, nuclear safety and security and
environmental requirements. The countries joining the Union next year "have made great
23

efforts" and others would be expected to do the same if they wish to integrate with the EU
market, he underlined. Commission Director-General Francois Lamoureux and Vice-
Premier Viktor Khristenko have set up a working group which will be ready to make a
preliminary report on the necessary steps towards reciprocity, he told the delegates.
Network security was also an absolute requirement, he stressed. Furthermore any solution
would have to be economically viable. Nevertheless, progress made in creating the EU
internal market in energy had been faster than predicted, and this may also be true for EU-
Russia integration, suggested Mr Jones.
Klaus Kleinekorte, who is the Convenor of the UCTE working group on Operations and
Security, gave an overview of the basic tasks and approach of UCTE, the West Europe
continental grid coordination body.
Following the recent Balkan upheavals, the UCTE synchronous area is currently split, and
moves to reconnect into a single area is a priority, he explained. After that, UCTE will turn
its attention to analysing the request from Russia to investigate possible synchronous
interconnection of UCTE with the IPS/UPS system that links CIS countries and Baltic
states.
In the pre-liberalisation days, vertically-integrated electricity companies of the various
European countries worked in a spirit of mutual responsibility and voluntary adherence to
common rules. “Now the process of unbundling called for by the liberalisation of the
electricity sector means that legally binding system security rules have became a necessity’,
he stressed.
Mr Kleinekorte further stressed that liberalisation was leading to heavier use of cross-border
power transmission, to increased congestion and to systems often being operated very close
to their thermal limits. Mr Kleinekorte explained the various levels of controls operated with
“automatic generation control” seeking to maintain balance between power generation and
demand within each control area. Load frequency control, or tertiary control, is done by the
operators.
Regarding coordination among TSOs, Mr Kleinekorte explained how scheduling and
accounting have changed dramatically because of the congestion. Therefore UCTE set up a
congestion focus procedure, the Day Ahead Congestion Forecast, with a common
information system. A Wide Area Measurement System also helps to keep track of the
inter-area oscillations, he explained.
UCTE has compiled an “Operational Handbook” setting out the rules and responsibilities of
those linked up to the synchronous power grid. Mr Kleinekorte said that a “Multilateral
Agreement” among all partners must be formalised so as to ensure enforcement of these
reliability standards. He said that various incidents and blackouts this summer had shown
that system reliability is severely jeopardised. “Rules will be tougher than in the past and
there will be more restrictions”, Mr Kleinekorte warned.
Eugeny Mishuk, the Chairman of the Executive Committee of CIS-EPC, talked to the
audience about the prospects for integrating the CIS-Baltic IPS/UPS System with the Trans-
European Synchronous Power System (TESIS). The 21st CIS Electric Power Council on
19th March 2002 formally decided that this was its goal, with the ultimate aim of
establishing an open Eurasian power market.
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The previous “Mir” interconnected power system had an installed capacity of 400 million
kW, between the USSR and Eastern Europe, with an annual export from USSR to
COMECON countries of about 35 billion KWh, he told the audience.
Towards the end of the 1990s, the need appeared to re-create a single electric power area
among the countries now called Commonwealth of Independent States (CIS) and the sector
embarked on a process of liberalisation. The CIS countries signed an agreement to carry out
joint coordinated action, on the basis of integrated power system.
Mr Mishuk told delegates that today the frequency volatility of the CIS grid is comparable
to that of the UCTE grid. In 2002, for the first time the frequency volatility of the UPS /IPS
system was sustained within the UCTE’s acceptable parameters (0.2 Hz) for 100% of the
operating hours, declared Mr Mishuk.
Georges de Montravel, the Head of the International Affairs at the French Electricity
Transmission Grid Company and Convenor of the UCTE working group on System
Development, presented the conclusions of the recent Load-Flow study performed by UCTE
to obtain an overall picture of the acceptable level of power transits on the UCTE system.
This study, based on three scenarios, describes the distribution of power flows, the
identification of the main transit corridors and of the critical areas, plus the impact on
primary system control. The study further lists a range of points to be studied in the
forthcoming feasibility study that will assess prospects for East-West interconnection.
Mr de Montravel pointed out that whatever scenario is applied, the transit corridors for any
power flow from the CIS countries towards the EU will have to cross three congested
borders: between the Czech Republic and Poland to Germany; from the Czech Republic and
Hungary to Austria; and from Slovenia to Italy. Echoing Mr Kleinekorte, Mr de Montravel
underlined that “the grids are already operating near the limits, and these limits on the
congested borders cannot be exceeded”. Because of the long lead time to build new lines
and given that the existing ones are already being used at full capacity, there will be no
significant opportunity to increase flows in the near future, he explained. Therefore, any
imports from the IPS-UPS system would have to replace mainly power generation in the
eastern part of the UCTE system, he pointed out. However, transit capacity will in any case
be lower than the physical capacity of the lines because of the need to maintain margins and
system balance. It was by no means certain that synchronous UCTE/UPS-IPS
interconnection was feasible, he warned the conference.
Mr de Montravel went on to make a second presentation on “the challenges of a
synchronous interconnection: technical, organisational, legal/contractual and financial
aspects”, in which he explained the different challenges to be faced in an interconnection on
the scale of UCTE and IPS/UPS, which would be the biggest synchronously operating
power area in the world.
He reminded the audience of the role of the TSOs as protector of the system against the four
phenomena characterising power outages: overloads in series; collapse of the frequency;
collapse of the voltage; and loss of synchronism.
In order to fulfil this task, UCTE acted on the components of the system and the
organisation in a broad sense and tried to design a system with control areas based on
homogeneous electrical zones which had a basic balance between power generation and
consumption.
25

The UCTE man stressed that every player must have clear operating rules, and required
exchanges of data must be well defined between control centres and other actors. “Before
connection, the final overall system has to be protected against the four phenomena, so the
requisite organisation must be in place”, he said.
In the case of possible connection between UCTE and IPS/UPS, where the components of
the system, operating rules and standards have been designed quite independently, a
common will is necessary on the part of all stakeholders to meet challenges such as
managing the modelling of the system and defining a legal framework. The forthcoming
preliminary study must address these organisational and legal issues and also include
technical analyses such as a probabilistic congestion analysis, signal stability analysis and a
transient stability analysis.
Victor Pauli, the Chairman of the Board of SO-CDU, explained the IPS/UPS view of a
possible synchronous interconnection. Link-ups had started in the 1980s, with East-West
power exchanges via AC-DC “back-to-back” stations with a total transmission capacity of
about 1.5GW, he said. Mr Pauli outlined previous international studies on possible
synchronous interconnection and stressed what he saw as the economic importance of
interconnection for industry in both the East and the West of the European continent.
There is today growing interest in European countries in increasing the amount of electricity
trade, as a means of securing power supply, diversifying and making better use of energy
sources, and thus also reducing the costs of further development of the interface
infrastructure, he told the audience.
Mr Pauli stressed that there is no alternative to enhancing cooperation in the energy field in
Europe. Any failure to act in this direction could lead to lost opportunities and further
difficulties for local energy supply, he argued.
Mr Pauli expressed the view that DC interconnections are not the right solution to the need
for integration. Instead, existing “powerful grid infrastructure (three 750Kkv lines, four
400kv, 4 220kv) between the Eastern and Western synchronous zones should be used, he
argued. The synchronous option will boost long-term confidence among the partners needed
for market extension and cooperation, he insisted. “Synchronous cooperation” implies three
elements: a common energy market, a common energy technology market, and a common
capital market, he told the conference.
Day 2: Market Structure and Environmental Issues
Brussels, 14 November 2003
Session III: “Market Structure:Market Legislation and Market Rules”
Outcome of the joint EURELECTRIC-CIS EPC group on “Markets”
Co-chairmen: Volker STEHMANN and Valentin BARINOV, co-chairmen of the joint
EURELECTRIC-CIS EPC group on “Markets”
Introduction
Volker Stehmann, co-chairman of the joint EURELECTRIC-CIS EPC group on
“Markets”, outlined the Market Report drafted by one of the two special joint
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EURELECTRIC-EPC groups set up by the November 2002 Protocol. He described the
working methodology and objectives of the group. The group had to produce descriptive
reports, EURELECTRIC and CIS EPC each responsible for a report on their own market,
exempt of policy recommendation but with identical structure, in order to allow comparison.
The EU model has been assessed and the coordination between the States of the CIS
described. 8 selected “core market rules” were also studied. Among these core market rules,
on the European Union side, are the questions of unbundling, pricing system and crossborder
transactions as well as the question of market opening. These core market rules also
cover the situation of regulators, of transmission infrastructure and of the investment in
generation. The regulation of trading and supply was also tackled. Mr Stehmann reminded
the audience that the EU was now heading for even stronger market integration, with full
opening to all electricity customers by July 2007.
Valentin Barinov co-Chairman of the Joint EURELECTRIC – CIP EPC group on
“Markets”, told the conference about ongoing efforts to create “market relations” in the
power sector of the Commonwealth of Independent States (CIS). Different countries are
proceeding at slightly different paces and on different legal bases but a common basic
standard – adopted in 1992 exists for all and the moves are being coordinated with a view
to creating an Interstate electricity market among the CIS.
Mr Barinov said that the objective of the CIS Internal Electricity Market (IEM) is to “create
a unified electricity market place based on parallel operation of power systems of CIS”, the
aims being to improve the efficiency and reliability of power supply; bring together reform
processes in the power industry; and “create a technical, legal and economic basis for later
unification of the CIS and European electricity markets”, he declared.
Each independent state can freely choose the organisational and legal form for managing its
electric power industry, but must provide efficient mechanisms of regulation, control and
ensuring transparency in monopoly structures for operational dispatching control,
transmission and distribution, and also provide transit for power through its networks using
coordinated tariffs following common rules.
There are also no restrictions as to where potential investors can construct and operate new
electric power stations throughout the CIS, in accordance with permitting or tender
procedures and the internal legislation of CIS.
In Russia and some of the faster-moving countries, radical changes have taken place
including the establishment of national bodies for regulating the electric power industry,
unbundling of the segments of electrical generation, transmission and distribution activities,
establishment of a system operator, the creation of a wholesale power market, and the
formation of joint stock companies, with moves to privatise them.
Turning to the opening of the electricity markets, Mr Barinov said that the barriers are
already being gradually lowered through bilateral agreements concluded between CIS; an
electricity exchange, with a spot market (24hours) and financial market; plus a balancing
market in real time.
Mr Barinov also highlighted the role being played by the association known as the Electric
Power Council (EPC) in coordinating the functioning and development of the CIS IEM
along similar lines to those reforms carried out in EU countries. “The basic principles of the
CIS Interstate electricity market are close to the principles of the electricity markets of EU
27

countries”, thus “creating a good basis for formation of a common electricity market across
the European continent”, Mr Barinov told the conference.
Stefan Gewaltig, from the European Commission, Unit Electricity and Gas Issues, outlined
the Commission’s thinking on the key elements for effective market opening in the energy
field. The Commission’s official policy towards the EU’s near neighbours is to extend the
framework of the Internal Energy Market to those countries and in the long term create a
wider pan-European market, but it will be by no means easy to create a working market,
which must be based on a level playing field in terms of fair competition, environmental
requirements and nuclear safety standards, he stressed. “Once we have the physical
interconnection, we will still have to make the market work”, he said. Total harmonisation
would not be necessary, but equivalence of rules must be achieved, he told delegates.
Mr Gewaltig pointed to some of the fundamental requirements enshrined in the Electricity
Market Directives, underlining market opening, to give customers the right to choose;
regulation of the market, ensuring network access on fair and non-discriminatory tariffs; and
unbundling, to guarantee that the network business has the necessary independence from the
business interests of the generation and supply businesses and ensure there is no crosssubsidisation
of the competitive business from natural monopoly revenues. He also
described the reciprocity clause, which helps to avoid trade distortions stemming from
different levels of market opening in different countries. Mr Gewaltig also stressed the
importance of effective competition policy on the one hand and trade rules to ensure
equivalent investment opportunities on the other.
With a view to working towards progressive equivalence in all these areas, mutual
stocktaking has been under way, with a major contribution from the EURELECTRIC-EPC
joint working groups. A factual report commissioned under the EU-Russia energy dialogue
is expected in the first half of 2004, he told delegates. Mr Gewaltig said that on the basis of
progress made with Russia, discussion could start also with other CIS countries, and “then
we could determine the next steps to be taken to finally come to the integration of the
markets”, he said, concluding that “laying down a reliable legal framework in formal
agreements is the ultimate goal we are aiming at”.
Hanna Trojanowska, chairwoman of EURELECTRIC’s Working Group on External
Trade, presented EURELECTRIC views on the framework for international electricity
market developments. Ms Trojanowska reminded the audience that there were a number of
important EU initiatives on bilateral, regional and multilateral level aiming to develop
international electricity trade and that any effective framework for international electricity
markets must set basic conditions for trade and market integration with non-EU countries.
In relation to the EU’s neighbours, such a framework should address issues relating to
interconnection, market structure, trade rules, investments, environmental protection and
nuclear safety.
Drawing delegates’ attention to those issues that her Working Group had found most
relevant, Ms Trojanowska warned that the potential for international trade in electricity
greatly depends on the scope and depth of regulatory reform; therefore the acceptance of a
set of core regulatory principle is a pre-condition for increased trade and market integration.
She stressed the importance of fair competition which, inter alia, requires the prohibition of
unfair trade practices and abuse of dominant position. Fair competition in trade can partly
be assured by compliance with the WTO body of law. In addition a favourable market
structure is needed to set conditions for fair competition in supply. Fair competition in
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power generation implies the existence of transparent authorisation procedures and
international tenders for construction of new capacity, she argued. Competitive access to the
gas market is also a priority. Furthermore, the importance of granting national and most
favoured nation treatment in trade and investment should not be overlooked. In addition,
there is a need for shared values and approaches to environmental protection, securing
reliable operation of networks and acceptance of a common set of safety standards,
including on nuclear safety.
Ms Trojanowska then presented a report by her Working Group on internal electricity trade
issues. The report assesses the political and legal framework of the EU internal electricity
market and offers a first elaboration of the concept of an international electricity trade
framework. The Working Group studied all the dimensions of the EU internal market and
gave an overview of the EU initiatives undertaken with the EU South-Eastern,
Mediterranean, Northern and Eastern neighbours. The report overviews the current and
future trends in electricity markets and anticipates the changes after enlargement. It further
sketches out a set of requirements for EURELECTRIC co-operation with the CIS EPC, the
Mediterranean and South-East European partners. Main challenges are the liberalisation of
energy markets in the neighbouring countries after the forthcoming EU enlargement, the
creation of a legal, commercial and regulatory framework for a pan-European market, and
the development of interconnections. In summary, Ms Trojanowska reminded delegates that
the EU international trade relations in electricity are and will continue to be a complex web
of multilateral, regional and bilateral arrangements and initiatives.
Alexander Sergeev, the Head of Market Division at RAO EES Rossii, outlined what he
saw as the potential economic benefits of East-West European market integration. He
estimated that some 200 Twh of electricity per year could be available for export to the
West, with a potential for perhaps 22Twh to be transferred as of next year, taking into
account the load-flow situation. As power is cheaper to generate in Russia than the EU,
based on relatively cheap gas supplies, the benefits to traders and customers were obvious,
he argued. Assuming 0.8% demand growth in the EU, this 22Twh would be absorbed
without taking business away from EU power generators, he predicted. Similarly, "when it's
economic to do so, Russia does import energy, offering market opportunities for companies
from the UCTE area, particularly as gas prices begin to be equalised across the two regions
and Russia's price advantage on generation narrows.
Sergey Kornyush, the Head of the Department of Foreign Economic Relations and
Innovations at UKRINTENERGO, explained to the audience how Ukraine fitted into the
prospective integrated market. Reform of Ukraine's power sector began in 1999, when
generation and transmission were separated in the previously vertically-integrated electricity
companies and 27 distribution companies created. Wholesale power trading began in 2000
and the market is today 100% open, he told delegates. Further reforms are under way and a
programme of modernisation has also been carried out by Ukrenergo to improve dispatch,
focusing on a number of priority projects. Mr Kornyush explained the position of the
Burshtyn power plant "island", which operates to UCTE standards of reliability and
frequency stability and is equipped with up-to-date control, automation, telecom, metering
systems, etc. Ukraine is now readying a national plan to integrate Ukraine into the EU
energy market, Mr Kornyush told the conference.
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Session IV: “Environmental Issues: Environmental Legislation and Policy Situation”
Outcome of the joint EURELECTRIC-CIS EPC group on “Environment”
Co-chairmen: William S. KYTE and Mikhail SAPAROV, co-chairmen of the joint
EURELECTRIC-CIS EPC group on “Environment”
Introduction
Dr Bill Kyte, one of the co-chairmen of the joint EURELECTRIC-CIS EPC group on
“Environment”, explained the outcome of the group which had begun on 10th February and
recently resulted in the finalisation of a report. Reminding the audience of the background
to current EU legislation relating to the electricity market, he underlined that in seeking to
extend the market further East, or South, "we need a common understanding on
environmental protection and also to satisfy ourselves that no major regulatory
discrepancies exist leading to different interpretation or implementation that would
distort the market". Dr Kyte outlined the development of EU environmental policies from a
command-and-control approach to an effects-based one and on to use of economic
instruments such as the upcoming Emissions Trading scheme. Key features of Community
environmental law also include permitting on the basis of Best Available Techniques, air
quality policies embodied inter alia in the Large Combustion Plant and National Emissions
Ceilings Directives. An effective national adminstrative framework was also sine-qua-non
for ensuring implementation of the legislation, Dr Kyte underlined.
Mikhail Saparov, one of the co-chairmen of the joint EURELECTIC-CIS EPC group on
“Environment”, explained the basis of environmental legislation and regulation pertaining
to the power sector in the CIS countries. The major principle is that of payment for use of
natural resources and an obligatory environmental impact assessment (EIA) for projects.
Permits are issued for emissions, discharges, waste disposal and water use and
environmental monitoring of the production process is carried out at each enterprise.
Specifical regulation applies to pollutants with flue gases nitrogen dioxide, sulphuer
dioxide, coal ash, oil ash and carbon dioxide. As regards power plants, combined cycle gas
turbines are the preferred approach to generation and clean coal technologies "will
determine the future" of thermal power plants, he said. "We base ourselves on best available
technique and the emissions limit values are built into the technical specification of the
power plant, he explained. We are now working "to lay the foundations for harmonisation
of our legislation with the EU", declared Mr Saparov.
Jos Delbeke, the Director of the “Air Quality, Climate Change, Chemicals and
Biotechnology” unit at the Directorate General for Environment of the European
Commission, outlined for the audience the basic philosophy underpinning EU
environmental legislation pertaining to the energy industry. "There has been a rapid
evolution in the way we do our environmental policy", he said. In the past, rules were
technically-oriented. Now the aim is for "consistency and market-orientation, to create a
more level playing field for companies and ensure that simplicity and cost-effectiveness is
built into the legislation", he stressed.
Mr Delbeke explained that the EU Emissions Trading scheme, due to be operational as of
January 2005, is designed to provide European business with a flexible tool for low-cost
compliance with CO2 emissions reductions targets in line with the Kyoto Protocol on
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climate change action. This will be the world's largest cap-and-trade scheme, covering 45%
of EU CO2 emissions, becoming even bigger when the EU15 expands to the EU25 next
year. The latest Commission proposal to link in credits from Joint Implementation (JI)
projects will strongly promote the JI concept and offer opportunities for such projects in
Russia, if Russia ratifies the Kyoto Protocol, he told delegates.
Mr Delbeke explained the advantages of increasing use of Renewable Energy Sources, but
drew attention to the plethora of different support schemes and incentives acrosss the
Community. The energy sector needs regulatory stability, clear targets and clear measures
and incentives, he said. The Commission is also preparing a proposal on Energy Services,
which will promote energy savings up to the equivalent of 230 million tonnes of oil, he told
the audience.
Mr Delbeke also stressed the need to ensure that EU efforts to improve air quality are not
neutralised by trans-boundary pollution. In this context, a level playing-field in energy will
require that Russia and the Ukraine ratify the Gothenburg Protocol, one of eight protocols
under the UN Convention on Long-Range transboundary Air Pollution, he underlined. The
Commission would be bringing out a "thematic strategy" on air pollution in mid-2005 with
a view to increasing the coherence of environmental pollution costs related to climate
change, air quality and acidification. This will help to "make the win-win areas and tradeoffs
exclicit", he explained. Mr Delbeke concluded with three questions: what will be the
environmental consequences of increasing use of natural gas; how will cuts in greenhouse
gases under the Kyoto Protocol affect overall air pollution; and how will the climate and air
pollution policies applied by Russia and Ukraine affect their energy market?
Through his presentation, “EU-Russia: the way to the common electricity market through
Kyoto mechanisms”, Stepan Dudarev, the Chief Executive of Energy Carbon Facility at
RAO “UES Russia”, spoke enthusiastically of the chance that we have to "create a new
market in carbon dioxide emissions, based on emissions trading and JI projects that will
also help to improve the climate change situation". Mr Dudarev told the audience that it was
proving quite a battle to get the Kyoto Protocol ratified by the Russian Duma, but he
believed that it would in the end be ratified, allowing Russia to participate alongside the EU
in trading credits for climate change action. "Kyoto will allow us to work out standards for
gaseous emissions", he said, adding that a "mutual carbon market could be the first step
towards a transational EU-Russia electric power market".
Mr Dudarev explained that industrial restructuring around the 1990 base year for emissions
calculations will mean that Russia has some 3bn tonnes of CO2 credits available and will be
able to sell "as great a quantity of allowances as the market is able to absorb". However,
Russia also has clear ambitions to modernise and improve its energy efficiency, thus
creating even more opportunity for emissions trading, he suggested. Russia currently has a
highly energy-intensive economy with a large potential for energy savings and demand side
reductions. The fact that Russia also has huge natural energy resources, qualified human
capital, low production costs and opportunities for attractive investment in the sector all
point to a strong incentive to develop cooperation with the EU within the framework of the
Kyoto Protocol, stressed Mr Dudarev.
Eugene Mazur, of the Environment Directorate at the Non-Member Countries Division of
the Organisation for Economic Co-operation and Development (OECD), spoke about
“Directions for Reform of Environmental Policy Instruments in Countries of Eastern
Europe, Caucasus and Central Asia (EECCA)”. The Environmental Action Programme
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Task Force was set up by the OECD Secretariat in 1993 and focus on EECCA since 1998. A
new mandate for its work was given by the “Environment for Europe” Ministerial
Conference in May 2003. It draws up policy documents, guidelines and practical tools,
promotes policy dialogue and cooperation among EECCA countries, and organises
demonstration projects.
Mr Mazur told delegates that there was a legal framework in place in the region but that it
tended to be overly complex, with gaps and contradictions, with many Soviet-era
approaches still in place and a lack of implementing regulations. The emphasis now
therefore is on policy instruments and the elaboration of specific, consistent implementing
regulations and procedures, he explained.
EU law is being taken as a benchmark an example being the EU Integrated Pollution
Prevention & Control Directive for regulating large polluters both due to its geographical
proximity as this will help to bring trade and investment and because EU environment
law tends to set out key principles and leave some flexibility on implementation, he told
delegates. However, full approximation of the laws was not feasible due to institutional
capacity constraints and limited resources, and the key aim is gradual convergence. Still,
many governments do not know where to begin, donors often embark on projects without
proper coordination of effort and so the key now is to choose priorities for action, targeting
major environmental problems and regulatory needs, said Mr Mazur.
Alexander Shirma, who is General Director at the National Power Control Center of
Belarus, outlined the “Environmental Legislation and Policy Situation in Belarus” He
explained that a basic principle of government policy was State ownership of all types of
natural resources. The Belarus government also charges for the exploitation of these
resources and, an environmental impact assessment for all economic entities being
designed, built or reconstructed is mandatory. Furthermore, a system of measures has been
set up establishing financial, administrative and criminal responsibility for the violation of
environmental legislation; it also requires reparation of inflicted damages by the violator.
He then outlined measures in force in the fields of air and water protection and waste
management and climate policy. Inter alia an energy saving law provides for control of
emissions of greenhouse gases. Measures pertinent to the electricity sector call for further
application of combined cycle power generation; conversion of boilers to take natural gas;
and greater use of "non-conventional" and renewable energy sources, Mr Shirma told the
conference.
Session V: Political Dialogue
Chairman: Paul BULTEEL, Secretary General of EURELECTRIC
Christian Cleutinx, the Director Co-ordinator of the EU-Russia Energy Dialogue at the
Directorate-General for Energy and Transport of the European Commission, who has played
a major role in the EU-Russia Energy Dialogue, told the audience that “when you speak
about electricity in the context of external policy, it’s not an end in itself but part of the
political framework”. The sheer importance of EU-Russia energy relations is illustrated by
the fact that the energy sector accounts for some 20% of Russia’s GDP, Russia has 30% of
world natural gas reserves, 20% of coal reserves, 14% of global uranium and 10% of oil
32

eserves. Energy forms 45% of all Russia’s exports to the EU, while the EU obtains 21% of
its oil and 41% of its gas from Russia.
Mr Cleutinx outlined recent economic developments in the Russian Federation, including a
current 6% p.a. growth rate, and a much improved investment rating. Looking at energy use,
Russia’s economy is much more energy-intensive than that of the EU, using natural gas
equivalent to almost 1,2 kilos of oil per euro of GDP, at adjusted purchasing power parity
value, and consuming almost 3 kWh of electricity per euro of GDP, compared with figures
many times lower in the European Union. However, Russia has enormous potential for
energy conservation and is planning to more than halve the energy intensity of its economy
by 2020.
The European Commission Director estimated that Ђ715 billion in investments would be
required in the Russian energy sector over the 2003-2020 period – 26% to develop natural
gas production, 16% for electricity (plus 4% for further nuclear development) and 8% in
energy efficiency measures. A gas price of $41 per 1,000m3 by 2006, and $62 per 1,000m3
by 2010 would be required to finance internal investments in the gas industry, according to
Russia’s official Energy Strategy. Prices are currently at $130 for export to the EU, though
much lower for domestic industry ($23) and households ($16), he pointed out.
Mr Cleutinx outlined the origins, results and prospects of the EU-Russia Energy Dialogue.
There is interest in the establishment of a single common European electricity market, he
said, but reiterated the prerequisites for Russia to sell power on the EU market –
harmonisation of technical standards; reciprocity in market-opening; cost-based pricing;
adequate provisions for environmental protection; and ensuring a high level of nuclear
safety. A joint working group was currently preparing a report, due by mid-2004, studying
the equivalence of market and environmental rules in Russia and the EU, following which, a
common strategy would be drawn up for progressive integration of the EU and Russian
electricity markets, and networks.
Currently, high-level reflections are going on regarding possible establishment of an EU-
Russia “institutionalised relationship” in the energy field, which “could pave the way for the
creation of a real Energy Community in parallel with development of a wider Common
European economic Space, Mr Cleutinx concluded.
Alexander de Roo, a Green Party Member of the European Parliament who sits on the
Environment Committee, spoke of the “Green dream” of a safe and healthy environment in
Europe. He argued that many Green policies once considered utopian were now
mainstream.
Mr de Roo outlined in particular the EU’s efforts to combat climate change, fulfilling its
obligation under the Kyoto protocol to reduce emissions of greenhouse gases by 8% over
the 2008-2012 period, and beyond this. The recent EU provisions on Energy Taxation,
adopted after many years of trying “will not do a lot for climate change”, he said, but he
praised the idea of the forthcoming EU Emissions Trading scheme, which sets a ceiling on
emissions and leaves companies to find the best way to meet it, including through trading of
emissions allowances.
Referring to the project mechanisms set out in the Kyoto Protocol – Joint Implementation
(JI) and Clean Development Mechanism (CDI) – the Green MEP said that JI would be
highly relevant to EU-Russia relations – EU companies investing in climate-friendly
projects on Russian territory and claiming credits against their emissions reductions
33

obligations provided that Russia ratifies the Protocol. However, neither nuclear power
projects nor new large hydro construction would be eligible for credits under JI, even
though they are both CO2-free energy sources, he explained, which meant that Renewable
Energy Sources (RES) and energy efficiency projects would have to make up the bulk of
climate-friendly projects.
Mr de Roo concluded with five points. He said that nuclear power would not expand in the
future, as it would be too expensive when all factors are considered; that gas would become
more dominant; that efficient technologies for coal must be developed; that RES would be
boosted; and that there must be greater emphasis on overall energy efficiency. Everyone
must work together to ensure a healthy environment on the European continent in the future,
stressed Mr de Roo.
Paul Bulteel, Secretary General of EURELECTRIC, chairing the session, underlined that
the development of EU-Russia energy relations was a “complex process, that the time-scale
for solving problems must not be underestimated, and that “the path ahead might have its
ups and downs”. The process can only succeed when the relevant “technical and political
agreements are in place”. Concluding the event, Mr Bulteel expressed the view that the
conference had “set the agenda for progress in integrating the EU and Russian electricity
markets” – namely that further insights are needed into the technical aspects of electricity
integration and that work must proceed on the aspects related to market structure and the
environmental framework. The EURELECTRIC Secretary-General told the audience that
the two joint working groups would reconvene on Monday 17 November to take their work
forward. Meanwhile UCTE would be embarking on its analysis and assessment of the
power network situation. Mr Bulteel expressed confidence that the next conference on East-
West electricity partnership would be able to report substantial progress and offer new
insights.
34

3.2 Materials of Joint “Report on comparing environmental Legislation and
policy situation in the CIS EPC and EURELECTRIC regions
35

Report comparing environmental legislation and policy
situation in the CIS EPC and EURELECTRIC regions
EURELECTRIC part
May 2003
36

Table of contents
1 Scope and outline of the report ___________________________________________
1.1 Specific issues not covered ___________________________________________
1.2 Outline of the report ________________________________________________
2 General overview ______________________________________________________
2.1 Fiscal instruments __________________________________________________
2.2 Non-legislative instruments___________________________________________
2.3 Climate policies ____________________________________________________
2.4 Other environmental legislation fields __________________________________
2.4.1 Biodiversity protection _________________________________________
2.4.2 Environmental noise ___________________________________________
2.5 International Conventions and Protocols_________________________________
3 Core environmental legislation ___________________________________________
3.1 Environmental permitting and integrated environmental protection ___________
3.1.1 Integrated pollution prevention and control (IPPC) ___________________
3.1.2 Environmental Impact Assessment _______________________________
3.1.3 Waste Incineration ____________________________________________
3.1.4 Prevention of industrial accidents_________________________________
3.2 Air protection______________________________________________________
3.2.1 Ambient air quality____________________________________________
3.2.2 Emissions from combustion plants________________________________
3.2.3 National emission ceilings ______________________________________
3.2.4 Other air quality related legislation _______________________________
3.3 Water protection ___________________________________________________
3.4 Waste Management Legislation _______________________________________
3.4.1 Framework legislation on waste __________________________________
3.4.2 Hazardous waste legislation _____________________________________
3.4.3 The EU Waste Lists ___________________________________________
3.4.4 Shipments of waste____________________________________________
3.4.5 Disposal of waste _____________________________________________
3.4.6 Specific legal acts _____________________________________________
4 Bibliography __________________________________________________________
4.1 Legal acts_________________________________________________________
4.2 Other formal documents issued by governments and authorities ______________
4.3 Other documents (further reading) _____________________________________
Annex I International environmental Conventions relevant to the Electricity
Sector ________________________________________________________
Annex II Ambient air quality limit and target values for air pollutants __________
Annex III Emission Limit Values for Large Combustion Plants_________________
Annex IV National emission ceilings________________________________________
Annex V Short introduction to EU legislation _______________________________
37

1 Scope and outline of the report
This report, the EURELECTRIC part of the twin CIS EPC – EURELECTRIC reports,
covers (chiefly) EU environmental legislation. This currently applies in the EU15 countries
and will become applicable in the twelve Accession (Candidate) Countries in the near
future. Thus, national legislation and policy instruments are, as a general rule, not
considered.
The report is intended to provide a thorough overview of the legislative and policy situation
in the region. It focuses on the purely legislative situation (traditional “command and
control”) which best lends itself to comparison. Additionally, it provides general discussion
on other, related, issues affecting the Electricity Industry, such as fiscal instruments, where
comparison is more difficult, not the least because such instruments are typically national
and due to the subsequent diversity among individual countries. It also briefly discusses
voluntary instruments, such as voluntary agreements and environmental management
systems.
Even though the aim of the report is to provide as full a comparison as possible, it does not
claim to provide an absolutely comprehensive picture of the situation given the width of the
field and the limited time available for the preparation of the report. It concentrates on the
most important issues.
Disclaimer:
The description of legislative and other acts in this report is by necessity general and
focuses on their impacts on the Electricity Industry. To enable study of the complete
legislative acts described herein, a comprehensive list is provided in Section Error!
Reference source not found..
38

1.1 Specific issues not covered
The report does not cover nuclear safety.
Issues related to the field of worker health and safety, such as indoor noise pollution and
asbestos contamination, are outside the scope of the report. For the same reason, legislation
related to electromagnetic fields exposure is not covered.
The report covers the generation and transmission/distribution/supply of electricity. It does
not cover environmental aspects further upstream in the production chain such as fuel
extraction impacts.
Soil contamination and remediation are not considered as such legislation has, by and large,
been developed on a national level.
Chemicals legislation is not covered as the level of detail and substance specificity of this
type of legislation makes comparison exceedingly difficult and beyond the scope of the
limited time frame for the development of this report.
However, the current EU developments in the fields of soil and chemicals policy might
require these areas to be revisited in the future.
1.2 Outline of the report
The report is divided into two parts, one addressing the EU and one addressing the CIS
region. Each part starts with a general discussion on environmental legislation and policy
situation in the two areas (Section Error! Reference source not found.), continues with a
section (Section Error! Reference source not found.) on the environmental legislation
considered as fundamental to the Electricity Industry in a competitive market. It ends with a
bibliography (Section Error! Reference source not found.) listing environmental
legislative acts, other formal policy documents of interest and suggestions for further
reading.
39

REPORT
Legislation status and policy on environmental protection
in electric power industry of CIS countries
Report is prepared by working group of CIS EPC
on the problems of environmental protection
Moscow 2003
40

CONTENT
1 SCOPE AND OUTLINE OF THE REPORT _______________________________
1.1 Specific issues not covered ___________________________________________
1.2 Outline of the report ________________________________________________
2 GENERAL OVERVIEW _______________________________________________
2.1 Fiscal instruments __________________________________________________
Azerbaijan Republic ______________________________________________
Republic of Armenia ______________________________________________
Republic of Belarus_______________________________________________
Georgia ________________________________________________________
Republic of Kazakhstan ___________________________________________
Kirghiz Republic _________________________________________________
Republic of Moldova______________________________________________
Russian Federation _______________________________________________
Republic of Tajikistan _____________________________________________
Republic of Uzbekistan ____________________________________________
The Ukraine_____________________________________________________
2.2 Non-legislative instruments___________________________________________
Republic of Belarus_______________________________________________
2.3 Climate policies ____________________________________________________
Azerbaijan Republic ______________________________________________
Republic of Armenia ______________________________________________
Republic of Belarus_______________________________________________
Georgia ________________________________________________________
Republic of Kazakhstan ___________________________________________
Kirghiz Republic _________________________________________________
Republic of Moldova______________________________________________
Russian Federation _______________________________________________
Republic of Tajikistan _____________________________________________
Turkmenistan____________________________________________________
Republic of Uzbekistan ____________________________________________
The Ukraine_____________________________________________________
2.4 Other environmental legislation fields __________________________________
Azerbaijan Republic ______________________________________________
Republic of Belarus_______________________________________________
Republic of Kazakhstan ___________________________________________
Republic of Uzbekistan ____________________________________________
2.5 International Conventions and Protocols_________________________________
41

3 CORE ENVIRONMENTAL LEGISLATION ______________________________
3.1 Environmental permitting and integrated environmental protection ___________
3.2 Air protection______________________________________________________
Azerbaijan Republic ______________________________________________
Republic of Armenia ______________________________________________
Republic of Belarus_______________________________________________
Georgia ________________________________________________________
Republic of Kazakhstan ___________________________________________
Kirghiz Republic _________________________________________________
Republic of Moldova______________________________________________
Russian Federation _______________________________________________
Republic of Tajikistan _____________________________________________
Republic of Uzbekistan ____________________________________________
The Ukraine_____________________________________________________
3.3 Water protection ___________________________________________________
Azerbaijan Republic ______________________________________________
Republic of Belarus_______________________________________________
Georgia ________________________________________________________
Republic of Kazakhstan ___________________________________________
Kirghiz Republic _________________________________________________
Republic of Moldova______________________________________________
Russian Federation _______________________________________________
Republic of Tajikistan _____________________________________________
Republic of Uzbekistan ____________________________________________
The Ukraine_____________________________________________________
3.4 Waste Management Legislation _______________________________________
Azerbaijan Republic ______________________________________________
Republic of Belarus_______________________________________________
Georgia ________________________________________________________
Republic of Kazakhstan ___________________________________________
Kirghiz Republic _________________________________________________
Republic of Moldova______________________________________________
Russian Federation _______________________________________________
Republic of Tajikistan _____________________________________________
Republic of Uzbekistan ____________________________________________
The Ukraine_____________________________________________________
42

4 BIBLIOGRAPHY _____________________________________________________
4.1 Laws and normative documents _______________________________________
Azerbaijan Republic ______________________________________________
Republic of Armenia ______________________________________________
Republic of Belarus_______________________________________________
Georgia ________________________________________________________
Republic of Kazakhstan ___________________________________________
Kirghiz Republic _________________________________________________
Republic of Moldova______________________________________________
Russian Federation _______________________________________________
Republic of Tajikistan _____________________________________________
Republic of Uzbekistan ____________________________________________
The Ukraine_____________________________________________________
ANNEX I International Environmental Conventions Relevant To
The Electricity Sector_________________________________________
ANNEX II Ambient air quality limit and target values for air pollutants________
Azerbaijan Republic_____________________________________________________
Republic of Armenia ____________________________________________________
Republic of Belarus _____________________________________________________
Republic of Kazakhstan __________________________________________________
Kirghiz Republic _______________________________________________________
Russian Federation ______________________________________________________
Republic of Uzbekistan __________________________________________________
The Ukraine ___________________________________________________________
ANNEX III Emission limit values for large combustion plants _________________
Republic of Belarus _____________________________________________________
Republic of Kazakhstan __________________________________________________
Kirghiz Republic _______________________________________________________
Russian Federation ______________________________________________________
Republic of Uzbekistan __________________________________________________
ANNEX IV National emission ceilings _____________________________________
Republic Belarus _______________________________________________________
ANNEX V Brief data on Interparliament Assembly and legislation
of CIS countries on environmental protection_____________________
43

1 SCOPE AND OUTLINE OF THE REPORT
The goal or report is to prepare the descriptive and comparative investigation of the
problems of legislation and politics in the area of environmental protection as applied to the
electricity production and transmission on the lines with voltage above 110 kV.
The report covers the nature-protective legislation for the objects of electric power
industry in 12 CIS countries including:
Azerbaijan Republic
Republic of Armenia
Republic of Belarus
Georgia
Republic of Kazakhstan
Kirghiz Republic
Republic of Moldova
Russian Federation
Republic of Tajikistan
Turkmenistan
Republic of Uzbekistan
The Ukraine.
1.1 Specific issues not covered
The report does not cover nuclear safety.
Issues related to the field of worker health and safety, such as indoor noise pollution
and asbestos contamination, are outside the scope of the report. For the same reason,
legislation related to electromagnetic fields exposure is not covered.
The report covers the generation and transmission/distribution/supply of electricity. It
does not cover environmental aspects further upstream in the production chain such as fuel
extraction impacts.
Soil contamination and remediation are not considered as such legislation has, by and
large, been developed on a national level.
Chemicals legislation is not covered as the level of detail and substance specificity of
this type of legislation makes comparison exceedingly difficult and beyond the scope of the
limited time frame for the development of this report.
1.2 Outline of the report
The report is divided into two parts, one addressing the EU and one addressing the
CIS region. Each part starts with a general discussion on environmental legislation and
policy situation in the two areas (Section 2), continues with a section (Section 3) on the
environmental legislation considered as fundamental to the Electricity Industry in a
competitive market. It ends with a bibliography (Section 4) listing environmental legislative
acts, other formal policy documents of interest and suggestions for further reading.
In addition the report contains five Annexes.
44

3.2 Materials of Joint “Report describing the current market Legislation and
market electricity rules in the CIS EPC and EURELECTRIC regions
45

July 2003
Ref: 2003-305-0007
Report describing the current market
legislation and market electricity rules
in the CIS EPC and EURELECTRIC
regions
Joint CIS EPC-EURELECTRIC Ad-Hoc Group
Markets
CIS ELECTRIC POWER COUNCIL
46

Report describing the current market legislation
and market rules in the CIS EPC and
EURELECTRIC regions
Joint CIS EPC-EURELECTRIC Ad-Hoc Group
Markets
Paper prepared by:
CIS EPC Members: Valentin BARINOV (Chairman)
Gikmet GASANOV (AZ), Levon VARDANYAN (AR),
Natalia BAGROVETS (BY), Nurzhan UTEGULOV (KZ),
Adolf MACHIN (K), Kutbedin NAZHIMIDINOV (K),
Igor KUZKO (MD), Alexander SERGEYEV (RU),
Alexander ASTAKHOV (TJ), Igor KHAN (UZ),
Andrey TUROS (UA)
CIS EPC Secretariat: Artem GERTZEN, Ekaterina ZHOLUDEVA
EURELECTRIC Members: Volker STEHMANN (DE, Chairman)
Stéphane HECQ (BE), Jörg KERLEN-PRINZ (DE),
Risto MÄKINEN (FI), Herbert SEIDLMANN (AT),
Jan SUNDELL (SE), Giovanni TAGLIALATELA (IT),
Anne-Marie TATIN (FR)
EURELECTRIC Secretariat: Anne-Malorie GERON
Gael GLORIEUX
Miroslaw PIOTROWSKI
EURELECTRIC and CIS EPC each only take
responsibility for those sections of the present Report
that describe the market where they are active.
Copyright ©
Union of the Electricity Industry - EURELECTRIC, 2003
All rights reserved
Printed at EURELECTRIC, Brussels (Belgium)
Copyright ©
Electric Power Council of the Commonwealth of Independent States, 2003
All rights reserved
Printed at EURELECTRIC, Brussels (Belgium)
47

The Union of the Electricity Industry - EURELECTRIC, formed as a result of a merger in December
1999 of the twin Electricity Industry Associations, UNIPEDE 1 and EURELECTRIC 2 , is the sector
association representing the common interests of the European Electricity Industry and its worldwide
affiliates and associates.
Its mission is to contribute to the development and competitiveness of the Electricity Industry and to promote
the role of electricity in the advancement of society.
As a centre of strategic expertise, the Union of the Electricity Industry - EURELECTRIC will identify
and represent the common interests of its members and assist them in formulating common solutions to be
implemented and in coordinating and carrying out the necessary actions. To that end it will also act in liaison
with other international associations and organisations, respecting the specific missions and responsibilities
of these organisations.
The Union of the Electricity Industry - EURELECTRIC is also the association of the Electricity Industry
within the European Union representing it in public affairs, in particular in relation to the institutions of the
EU and other international organisations, in order to promote the interests of its members at a political level
and to create awareness of its policies.
The reports published by EURELECTRIC are the result of the work of its structure of expertise: they
represent one of the most direct methods of circulating knowledge and information throughout the sector, on
subjects of common interest.
They are intended for wide circulation both within the electricity supply industry and outside it.
lease do not hesitate to ask for the latest available printed EURELECTRIC publications catalogue (wit h
summaries of EURELECTRIC reports) from:
Union of the Electricity Industry - EURELECTRIC
Documentation
66 Boulevard de l'lmperatrice
BE-1000 Brussels
BELGIUM
Tel: +32 2 515 10 00
Fax: +32 2 515 10 10
Email: cpalermo@eurelectric.org
You can also use the EURELECTRIC Internet Web site, which provides the following information:
EURELECTRIC general information
EURELECTRIC positions and statements
Events & Conferences
Publications Catalogue
http://www.eurelectric.org
1 International Union of Producers and Distributors of Electrical Energy
2 European Grouping of Electricity Undertakings
48

CIS ELECTRIC POWER COUNCIL
THE ELECTRIC POWER COUNCIL
OF THE COMMONWEALTH OF INDEPENDENT STATES
The Electric Power Council of the CIS and its working body - the Executive Committee
were set up under the Agreement on Coordination of Interstate Relations in the Field of
Electric Power Engineering of the Commonwealth of Independent States signed by the
heads of governments of the CIS countries on 14 February 1992.
The top officials of energy management bodies as plenipotentiaries of Azerbaijani Republic,
Republic of Armenia, Republic of Belarus, Georgia, Republic of Kazakhstan, Kyrghyz
Republic, Republic of Moldova, Russian Federation, Republic of Tadjikistan,
Turkmenistan, Republic of Uzbekistan, the Ukraine as well as the Chairman of the
Executive Committee are the members of the CIS Electric Power Council.
The main goal of the CIS Electric Power Council activity is organization of joint and coordinated
actions directed to providing sustainable and secure energy supply of the economy
and inhabitants of the CIS states based on efficient operation of integrated electric power
systems of the CIS as well as organisation of parallel operation of the CIS power systems
and the Baltic Integrated Power System with power systems of Western, Central and South-
Eastern Europe.
7, Kitaigorodsky proyezd, 109074, Moscow, Russia
Tel: (7095) 710 55 51,710 66 02
Fax: (7095) 925 86 05
E-mail: maii@energo-cis.org
http ://www.energo-cis.org
49

Table of contents
I. INTRODUCTION & EXECUTIVE SUMMARY _________________________
II. OBJECTIVE, SCOPE AND OUTLINE OF THE REPORT ________________
Objective _____________________________________________________________
Scope ________________________________________________________________
Specific issues covered and not covered in the Report ________________________
_____________________________________________________________________
Outline _______________________________________________________________
_____________________________________________________________________
III. GENERAL OVERVIEW _____________________________________________
Section 1 EURELECTRIC region _______________________________________
Section 2 CIS EPC region______________________________________________
A Background _____________________________________________________
В General overview_________________________________________________
IV. DESCRIPTION OF THE EU MARKET ________________________________
Section 1 Core market rules and regulatory system ________________________
1.1. Market opening __________________________________________________
1.2. Regulatory authorities ____________________________________________
1.3. Separation of network operation, generation & supply _________________
1.4. Pricing system ___________________________________________________
___________________________________________________________________
1.5. Cross-Border Transactions ________________________________________
1.6. Investment in Generation Facilities__________________________________
1.7. Electricity Transport Infrastructure_________________________________
1.8. Regulation of Electricity trading and supply __________________________
Section 2 Overview of the EU Internal Electricity Market ___________________
2.1. Implementation of the Electricity Directive ___________________________
2.2. Price developments _______________________________________________
2.3. Cross-border transactions _________________________________________
2.4. Customer switching_______________________________________________
V. DESCRIPTION OF MARKETS IN THE CIS EPC REGION _______________
Section 1 Core market rules and regulatory system ________________________
Preface Legislative framework _________________________________________
1.1. Market opening __________________________________________________
1.2. Regulatory authorities ____________________________________________
1.3. Separation of network operation, production and supply _______________
1.4. Pricing system ___________________________________________________
1.5. Cross-Border Transactions ________________________________________
1.6. Investments in Generation Facilities _________________________________
1.7. Electricity Transport Infrastructure_________________________________
1.8. Regulation of Electricity trading and supply __________________________
50

Section 2 - Coordination of market relations development in electric power
industry and creation of CIS Interstate electricity market ____________________
VI. BIBLIOGRAPHY ___________________________________________________
VII. ANNEXES__________________________________________________________
Annex 1: EURELECTRIC "IEM table" ___________________________________
Annex 2: Short introduction to the EU legislation and decision-making process __
51

I. INTRODUCTION & EXECUTIVE SUMMARY
This report is the outcome of a joint project between two Electricity Industry organisations,
namely the Commonwealth of Independent States Electric Power Council ( CIS EPC),
representing the Electricity Industry in the 12 CIS countries, and Union of the Electricity
Industry - EURELECTRIC, representing the European Electricity Industry. CIS EPC and
EURELECTRIC have a history of fruitful co-operation dating back to 1993 when a
programme of co-operation was launched. This co-operation received new impetus at a
meeting of the Presidents of the two bodies in Warsaw on 20 March 2002, organised during
a joint EURELECTRIC and RAO "EES Rossii" conference "Towards a pan-European
Energy Partnership". At this meeting, a Protocol was signed underlining the support of the
two organisations for strengthening long-term inter-relations in the power sector. In the
Protocol, it was further agreed that there was a need to take account of technological,
market structure as well as environmental dimensions when developing power market cooperation
and to continue an active dialogue in identifying the best solutions and necessary
measures to develop interconnections.
On 21 November 2002, the Presidents of CIS EPC and EURELECTRIC met again to
discuss progress in the co-operation between the two organisations. At this meeting, a
decision was taken to establish two joint ad-hoc groups to describe the regulatory situation
in the two areas with regard to market rules and environmental legislation. This report is the
outcome of the work of the ad-hoc group on market legislation and policy situation (ad-hoc
group "Market"). The work of this group started with a kick-off meeting in Brussels on 11
February 2003 and was concluded at a closing meeting in Moscow on 13 June, the same
year, when this report was finalised and agreed.
This report is divided into two parts, one describing the situation in the CIS region and one
on the situation in the EU (the EU acquis communautaire will be applicable to ten
Accession Countries, whose Electricity Industry are full members of EURELECTRIC, as of
2004). The two parts use identical headings and heading numbers which enables a direct
comparison between the two regions to be made on an issue by issue basis. For practical
reasons, the EURELECTRIC and CIS EPC members of the Joint Working Group have
elaborated the sections of the Report related to their respective region.
In the part dedicated to the EURELECTRIC region, since the regulation in the Accession
Countries is evolving rapidly in order to adjust to the EU energy acquis, the view was taken
to essentially focus the report on the situation in the existing 15 EU Member States. Thus,
by "EURELECTRIC countries", the report essentially refers to these 15 Member States,
though bearing in mind that the EU legislation on energy will be fully applicable to the
Accession Countries joining the EU as of May 2004.
In this framework, the Joint Ad-Hoc group "Market" has identified eight areas that are
characteristic and fundamental for integrated electricity markets. These areas cover market
opening; the existence and role of regulatory authorities; the separation of network
operation, production and supply; and the structure of pricing systems. Furthermore, the
report deals with cross-border transactions; investments in generation facilities; the
organizations responsible for electricity transport infrastructure and finally the regulation of
electricity trading and supply.
52

In the European Union, these areas are largely covered by the Electricity Directive 96/92
adopted in 1996, and the accession countries will apply it fully when joining the EU in May
2004. Moreover, the Parliament of the EU has, in second reading, adopted two new draft
Directives on Electricity and Gas as well as a draft Regulation on conditions for access to
the network for cross-border exchanges in electricity. These Directives, once adopted and
implemented at national level, will strengthen and speed up the establishment of the Internal
Energy Market.
The CIS countries are on their side currently progressing in the setting-up of basic principles
of organizing an "Interstate electricity market of the CIS".
53

II. OBJECTIVE, SCOPE AND OUTLINE OF THE REPORT
Objective
CIS EPC & EURELECTRIC set up a Joint Ad-Hoc Group on market rules (Joint Group),
with the aim of realizing a descriptive and comparative study of current market legislation
and market structure in the CIS EPC and EURELECTRIC regions.
This Report, delivering the results of the study, is purely descriptive and does not make any
policy recommendations. It will serve as a basis to a workshop planned for end 2003.
Scope
For EURELECTRIC, the report covers the current EU market rules applicable to the
electricity sector. These rules are currently applicable to the EU15 and will gradually
become applicable to the ten Acceding Countries in the near future. The national
implementation of these EU rules in the Member States is only considered as far as it is
indispensable to understand the functioning of the internal market.
The report is intended to provide a thorough overview of the current legislation applicable
to the electricity sector in the EURELECTRIC and CIS EPC regions. Focusing on the
legislative situation, it will however also envisage the market structures that derive from this
legislation.
Even though the aim of the report is be to provide as full a comparison as possible, it can
not claim to provide an absolutely comprehensive picture of the situation. Out of the
necessity, considering the width of the field and the limited time available for the
preparation of the report, it is concentrating on the most important issues.
Specific issues covered and not covered in the Report
The report is notably not covering the overall political environment and administrative
structures. The report covers the regulation of generation, transmission, distribution and
supply of electricity including pricing system or protection of investments.
Outline
The Report is built on two distinct contributions from EURELECTRIC (Chapter IV) 3 and
CIS EPC (Chapter V). In each of the related Chapters, the Report starts with a general
description of the market situation, presenting the philosophy and history of regulatory
developments, as well as the market structures deriving from the fundamental legislation in
place (Sections 1). In a second part (Sections 2), the most important elements of the
legislation in place in the EURELECTRIC and CIS EPC regions are described and
compared.
3 EURELECTRIC contribution makes reference to both the 1st & 2nd EU Commission Benchmarking Reports and
reproduces tables taken from these two documents. EURELECTRIC however wishes to specify that it did not check the
relevance of all data provided in these two Commission Reports.
54

4 International seminar “Problems of geothermal energy development in CIScountries
and activity of international GeoFund (2003)
4.1 Program of seminar
55

Moscow
2-3 October 2003
Seminar
Program of seminar
56

Seminar
Project of the World Bank
and Global Ecological Fund on
Development of geothermal energy
in the countries of Europe and Central Asia:
Participation if CIS countries
Moscow, 2–3 October 2003,
OJSC “G.M.Krzhizhanovsky ENIN”
Seminar is devoted to the discussion of Project of the World Bank (WB) and Global
Ecological Fund (GEF)
“ Development of geothermal energy in the countries of Europe and Central Asia and
activity of the Fund on geothermal energy development (GeoFund)” for the detection of
CIS-countries’ interest in the project and GEF activity.
GeoFUND has a goal to solve the following main problems:
Rendering of technical assistance to the organizations included in the GeoFund programs
on development of geothermal energy projects including the transfer to developers
the information on technologies, the assistance in preparing Feasibility study and
business-plans etc.;
By means of administration of guarantees, the reduction of risks, connected with the
realization of projects and conditioned by the features of geothermal resources;
Investment support of projects by means of covering the part of project expenditure from
the World Bank by means of attracting the grants of other financial entities and
investment companies.
ORGANIZATIONAL COMMITTEE OF SEMINAR:
Shreiber H. – WB, leader of program;
Averchenkov A. – WB, consultant;
Volkov E. – OJSC “ENIN”, Executive director;
Максименко Ю. – RPOI, General director;
Djanquirov V., Executive committee of Electric Energy Council of CIS, Chairman;
Vasilyev V. – OJSC “ENIN”, Manager of geothermal energy laboratory.
Executive secretary of organizational committee – Kabakov V.
57

9.00 Registration of participants
2 nd October
10.00 Opening of Seminar.
Complimentary address to the participants of:
Volkov E., OJSC “G.M.Krzhizhanovsky ENIN”, Executive director,
corresponding member of Russian Academy of Sciences;
Djanquirov V., Executive committee of Electric Energy Council of CIS,
Chairman;
Shweizer D., World Bank, Director on Russia.
Session 1
Presentation of the project of WB and GEF “Development of geothermal energy in the
countries of Europe and Central Asia and GeoFund activity”
10.40 Shreiber H. (WB, leader of program)
“Strategy of growing use of geothermal resources in Europe and
Central Asia”
11.20 Averchenkov A. (WB, consultant)
“Facilities and prospects of financial support of geothermal projects in
CIS by means of GeoFund”
11.50 Coffee break
12.10 Vasilyev V. (OJSC “ENIN”), Gorkina I. (РПОИ),
Saparov M. (OJSC “ENIN”).
“Methodological principles for selection and assessment of investment
projects suggested for financing by n\means of GeoFund”
12.40 Povarov O. (JSC “Nauka”).
Information on the following international seminar on the problem of
GeoFund in Sochi
13.00 Discussion. Session sizing up.
13.30 Lunch
58

Session 2
Status and prospects of geothermal energy development in CIS-countries
(Geothermal resources, existing incentives and barriers on the way of geothermal energy
development, national programs on geothermal energy usage, possible projects, interests to
the cooperation with GeoFund)
14.30 Azerbaijan Republic
14.50 Republic Armenia
15.10 Republic Belarus
15.30 Georgia
15.50 Republic Kazakhstan
16.10 Kyrgyz Republic
16.30 Republic Moldova
16.50 Russian Federation
17.10 Sizing up of the first day of Seminar
3 rd October
Continuing of Session 2
Status and prospects of geothermal energy development in CIS-countries
10.00 Republic Tadzhikistan
10.20 Turkmenistan
10.40 Republic Uzbekistan
11.00 Ukraine
11.30 Coffee break
12.00 –13.30 Session 3
13.30 Lunch
Facilities of countries-donors and international organizations on
supporting the GeoFund activity in CIS-countries: Denmark, Germany
(KwF), Poland, EC,UNDP, EBRD, NEFKO
59

14.30 –16.00 Session 4
Round table
General discussion on barriers on the way of geothermal energy
development in CIS-countries, measures on overcoming these barriers,
national priorities in granting the assistance for geothermal energy
development (information-analytical, investment, methodological)
16.00–16.30 Sizing-up. Determination of sequent steps on development of GeoFund
cooperation with CIS-countries.
Closing of Seminar.
Materials of seminar will be published
as a separate information publication
“Problems of geothermal energy development in CIS-countries
and activity of international GeoFund”
60

Information for contacts
It is possible to receive the more detailed
Information on seminar
A. In secretariat of Seminar:
OJSC “G.M.Krzhizhanovsky ENIN”,
Moscow, 119991, Leninsky prospect, 19,
Department of marketing and scientific-technical information:
Kabakov Vladimir
Tel./Fax: (7 495) 770-3418
E-mail: vikab@eninnet.ru;
Muratova Tatiana
Tel./Fax: (7 495) 770-3639
E-mail: t_murat@eninnet.ru;
B. In Geothermal Energy Laboratory of
OJSC “G.M.Krzhizhanovsky ENIN”,
Moscow, 119991, Leninsky prospect, 19,
Vasilyev Victor
Tel./FAX: (7 495) 770-3151
E-mail: vasilyev@eninnet.ru
61

4.2 Materials of seminar
62

GeoFund-2003
Problems of geothermal energy development in CIS-countries
and activity of international GeoFund
Materials of Seminar
Moscow
November 25-26, 2003
G.M.Krzhizhanovsky ENIN
63

Table of contents
Preface__________________________________________________________________3
Project on geothermal energy development in East Europe and Central Asia. Special
features of GeoFund cooperation with CIS-countries _________________________11
Shreiber H., Averchenkov A.A.
Methodological principles for selection and assessment of investment projects suggested for
financing by means of GeoFund _________________________________________19
Gorkina I.D., Maksimenko Yu.L., Saparov M.I., Vasilyev V.A.
Geothermal resources in Azerbaijan__________________________________________27
Mukhtarov A.Sh., Khamedov A.M.
Status and prospects of geothermal energy development in Armenia ________________33
Agabalian A.Yu.
Status and prospects of geothermal energy development in Georgia_________________43
Vardigoreli O.Sh., Vardigoreli I.O., Tsertsvadze N.V., Zivzivadze K.P.
Status and prospects of geothermal energy development in Kazakhstan______________53
Daukeyev G.Zh., Kibarin A.A., Ogai V.D.
Utilization of geothermal resources’ energy in Kyrgyz Republic ___________________65
Almusin G.T., Mavlianbekov Sh.U., Obosov A.D.
Status and prospects of geothermal energy development in Republic Tadzhikistan _____73
Nasirov E.M.
Resources base of geothermal energy of Ukraine and prospects of its development_____77
Babenko G.A., Zabarniy G.N., Khvorov M.M., Shurchkov A.V.
Geologic study of prospective hydrothermal zones in Latvia ______________________87
Pomerantseva R., Brilmane B., Ivanova O.
Status and prospects of geothermal energy development in Russia__________________95
Vasilyev V.A., Povarov O.A., Rasorjonov V.P.
Geothermal resources in Russia, technology and economics of their development_____105
Litvinenko V.S., Boguslavsky E.I.
Status and prospects of geothermal energy development in Krasnodarsky Krai _______121
Butusov V.A.
Status and prospects of geothermal energy development in
Tomskaya region ____________________________________________________129
Lukutin B.V., Javorsky M.I.
Status and prospects of geothermal energy development in Dagestan_______________135
Aliyev R.M., Badavov G.B., Vlasov V.C.
64

Preface
The international seminar «GeoFund-2003. Project of World Bank and Global
Ecological Fund on geothermal energy development in the countries of Europe and Central
Asia: participation of CIS-countries» took place on 25-26 November 2003 in OJSC
“G.M.Krzhizhanovsky ENIN”.
Seminar was organized by Executive Committee of Electric Energy Council of CIS
and Power Engineering Institute named after G.M.Krzhizhanovsky with the support of
World Bank.
The main topic of seminar was the discussion on the concept and facilities of
GeoFund established by World Bank and Global Ecological Fund (GEF) for supporting the
geothermal energy development in the countries of Europe and Central Asia. This initiative
develops the practice of cooperation of World Bank and GEF with the states, which need
the investment support for forwarding the important national and global program of
economic and ecological character. The discussion was concentrated on the forms of
interconnection of GeoFund with CIS-countries, the specific investment projects on
geothermal energy development, the conditions of attracting the funds of other financial
organization, the participation of State and private structures I the realization of initiated
program.
The goal of seminar was the detection of interest of CIS-countries for participating in
Project, the identification of power engineers groups being able for cooperation as well as
managers and potential sponsors and the determination of directions of activating the works
on geothermal energy development.
The representatives of World Bank as the originator and sponsor of program and
seven states of CIS-countries showing the availability to work within the frameworks of
Project: Republics Armenia, Georgia, Republic Kazakhstan, Kyrgyz Republic, Republic
Tadzhikistan, Ukraine, Russian Federation as well as the representatives of Latvia took part
in the work of seminar. The authors of report from Azerbaijan, which declared their
participation, couldn’t come to seminar.
Seminar aroused the large interest of representatives from different ministries,
offices, organizations and entities of Russian Federation, which concentrate on the problems
of energy industry development. The known specialists of some regional Russian
organizations, which occupy the leading positions in development and study of geothermal
resources, – from Saint Petersburg, Krasnodar, Tomsk, Dagestan, Moscow made their
presentations.
The seminar «GeoFund-2003» became the second one of such type carried out with
the support of World Bank and Global Ecological Fund in 2003. International geothermal
seminar «IGS-2003» organized by Russian association «Geothermal Energy Society» and
JSC «Nauka» in October in city Sochi collected for discussing the geothermal energy
problems the representatives of Russia and a large number of European countries. The main
topic of seminar in Sochi was the practical realization of World Bank strategy «Fire without
smoke» being the basis of Global Ecological Fund project on geothermal energy
development in the countries of Europe and Central Asia.
The features of Moscow seminar was, first of all, its issue connected with the
objective of financing the geothermal projects and, secondly, its direction reflected the
statement of specific energy problems in CIS-countries. The representatives of the most
CIS-countries conglomerated in the first time at the post-Soviet space in Moscow for the
interested exchange of opinions on the status and prospect of geothermal energy
65

development at their territories. The problematic and sometimes crisis phenomena in energy
industry typical for all states with transient economy, the environmental problems connected
with them, the imperfection of institutional structure and legal base, the undeveloped of
market mechanisms and financial medium – all together made quite timely for CIS
countries the appearance of challenging program of technical and investment assistance
addressed to the countries of Europe and Central Asia for geothermal energy development.
It was nonchance cause that the organizers of seminar were the Executive Committee
of Electric Energy Council of CIS and OJSC ENIN. CIS Executive Committee of Electric
Energy Council as a coordinator of energy industry development in CIS-countries and
ENIN as an institute participating in realization of all large geothermal projects in the
former USSR couldn’t not support the initiative of creating GeoFund.
E.I.Gavrilov – deputy director of OJSC «ENIN» opening the seminar – reminded to
the participants of seminar that ENIN carried out more than 30 years R&D and field tests at
the geothermal areas of Kamchatka, Kuril islands, Stavropol krai and Dagestan. As the head
organization of former USSR Minenergo on geothermal energy and on a line of USSR State
Committee on Science and Technique ENIN had coordinated the works of more than 30
Research Institutes, design and production organizations of former USSR. The institute
accumulated the large experience of cooperation with CIS-countries ad European states on
the problems of market regulation and environmental problems. The leading specialists of
ENIN are the co-chairmen of corresponding working groups of Executive Committee of
Electric Energy Council of CIS and EURELECTRIC. E.I.Gavrilov noted that the meeting in
the ENIN walls of colleagues from CIS both of working together before and coming in the
geothermal sphere recently allow to hope in the unification of efforts of the specialists on
the nontraditional energy for the solving the problems equally important for all former
Soviet Republics. He expressed the confidence that it would be possible by means of
GeoFund to initiate and carry out on the modern scientific-technical and organizational level
the new geothermal energy projects and to approach in the nearest decade the share of
geothermal energy in the fuel-energy balance of CIS-countries up to the appreciable level.
In such way the CIS-countries will be included in the worldwide efforts on the reduction of
industrial loads on the nature.
The chairman of Executive Committee of Electric Energy Council of CIS
E.S.Mishuk, who made the complimentary address, remarked that the utilization of
renewable including geothermal energy sources is in a line of the problems, which are
constantly in the sphere of Electric Energy Council attention. Indeed the usage of renewable
energy sources is directly built in the solution of problems of coordinated policy of CISstates
on energy conservation, optimization of fuel supply and fuel balance, reduction of
environmental impact of energy objects. Just therefore the Electric Energy Council as a
coordinator of energy industry development if CIS-countries supported the idea of carrying
out the seminar devoted to the Project of GeoFund foundation for assisting the geothermal
energy development in the countries of Europe and Central Asia, in particular, in CIScountries.
A majority of CIS-countries replied on the invitation of Executive Committee,
took part in seminar and had thus demonstrated the high degree of interest in Project.
Electric Energy Council of CIS states that the support of geothermal energy development is
in the scope of positive tendencies on the development of investments in the economics of
CIS-countries (and Baltic states, from which the Latvian representatives took part in
Moscow seminar). It is very important for CIS-countries, which will participate in the WB-
GEF Project that GeoFund will assist in choosing technologies, preparation of Feasibility
66

studies and business-plans will alleviate the possible risks of realizing geothermal projects
by granting the corresponding guarantees and organizing the investment support of projects.
The complimentary words to the seminar participants were also said by
P.P.Bezrukikh – a head of management of RF Ministry of Energy and A.T.Razakov – a
chief of Department interior usage of RF Ministry o economic development and commerce.
P.P.Bezrukikh underlines the significance of renewable resources begins to be
gradually and more deeply understood by the circles responsible for making decision in the
area of Russian energy policy both at federal and at regional and local levels. The wide
discussion on new Energy strategy of Russia in the period up to 2020 prepared with
participation of a large amount of specialists – economists and power engineers – and
adopted by Russian Government promoted strongly to it.
At the present time the electricity output on the basis of renewable sources constitute
0.5% from the general production, or less than 5 bln kW-h per year. Accordingly to Energy
strategy about 1000 MW of electric and 1200 MW of heat capacities could be
commissioned already by 2010 on the base of renewable energy sources. As P.P.Bezrukikh
underlines, though the work with Energy strategy had the distinct resonance in society and
rendered the positive effect on the understanding of nontraditional energy problems, but any
promising programs could be scarcely realized without participation of state structures in
the real support of this direction. Such support is the necessary condition for realizing WB-
GEF Project for all CIS-countries.
The chief of Department of Interior Usage of RF Ministry of economic development
and commerce A.T.Razakov paid his attention in the complimentary words addressed to the
seminar participants that the technical potential of renewable energy sources in Russia
constitutes about 4.6 bln toe a year, i.e. in five times exceeds the volume of consumption of
all fuel-energy resources in the country. For all kinds of equipment for renewable energy
sources with the exception of large wind plants the Russian technologies correspond to the
world standard. Mutnovskaya GeoPP, which was put in operation after the long years of its
construction and provides the electricity and heat supply of energy-deficient territory of
Kamchatka, confirms the exceptional importance of the problem discussed at seminar.
Moreover the volume of financing directed by State for the nontraditional energy
development is absolutely insufficient. So, the planned stated capital investments in all
Federal target program «South of Russia» – the territory, which is potentially rich with
geothermal sources, – constitutes totally 50 mln. rub., while the current expenditure for
R&D on this program – about 3.5 mln. rub. The amounts granted by World Bank only on
the technical assistance for geothermal projects could evidently constitute the considerable
input in the intended program.
The leader of World Bank Program H.Screiber had also the complimentary words to
participants of seminar during its opening. He noted that the important part of World Bank
mandatory function – is the assistance to the countries-clients in the development of
resources of ecologically stable energy. This direction is determined as having the priority
in many strategic documents of Bank including in its ecological and energy strategies. Many
countries of region have the significant potential of geothermal resources as well as the
experience of their utilization for heat supply, electricity generation and in balneology.
World Bank considers the seminar in Moscow as the important stage for preparation
of full-scale GEF project, as the site for the exchange of opinions and information on the
geothermal energy state and prospects among the wide circle of specialists from the
countries of region with participations of World Bank experts. As one from the most
important goals of seminar, Bank considers the finding of main barriers on the way of
67

geothermal energy development in the region, the establishment of ways for their removal
of overcoming, the determination of directions of international assistance to the countries
for the wide application of geothermal resources.
The seminar was completed by the general discussion within the frameworks of
round table. The participants of seminar in a course of final discussion exchanged the
opinions on the outcome of two-day meeting, pronounced the assertions about perspectives
of CIS-countries participation in the project of World Bank and GEF, discussed the
possibilities of attracting the investments in the specific geothermal projects. More than 25
particular investment projects from the different CIS-countries were totally presented at
seminar that represents the good base for the active work of GeoFund in this region.
It was unanimously noted that the completed meeting was very useful, allowed to
specify the positions of Parties and manifest the main barriers standing on the way of
projects realization.
The very high, general estimate of initiatives of World Bank was given as to the
support of nontraditional energy development in CIS-countries. The proposals on the
content of program of technical assistance were formulated. They reflect the special features
and demands of CIS countries and are the following:
to grant the financial assistance in preparing the documentation on investment
projects (business-plans, feasibility studies, assessment of environmental impact etc.);
to carry out the investigation of technical, geological and ecological aspects of
thermal wastewater reinjection and to organize the training on this problem for improvers;
to carry out the investigation of legal and economic stimulus for the geothermal
energy development in the countries of region;
to support the organization and functioning of the group of experts on geothermal
energy from CIS-countries, which could work under the aegis of CIS Electric Energy
Council;
to support the development of Russian-language site or portal in Internet with
geothermal energy topics in CIS-countries;
to support the creation of international network for regional and municipal
administrations using or intending to use the geothermal resources.
All reports presented at seminar and devoted to the status and prospects of
geothermal energy development in CIS-countries and separate regions of Russian
Federation were published in the collected reports.
The readers can acquaint in the Applications to the book with the materials of World
Bank and GEF containing the description of program strategy, rules of rendering of
assistance to the countries-applicants and preparation of documents applied to GeoFund:
Document of World Bank «Geothermal energy development in the ocuntries of
Europe and Central Asia and activity of geothermal energy development’s fund (GeoFund).
Ghjject of GEF» (Brief resume);
Document of World Bank «Fire without smoke. Srategy of widening the geothermal
energy use in the region of Europe and Central Asia » (Resume);
Certificate on the concept of suggested project. Form of presenting the materials for
initial assessment of possibility for rendering the requested support from the side of
GeoFund.
68

5 International conference “Electricity market from Lisbon to Vladivostok?
Defining necessary framework conditions” (Moscow) and materials of joint report
“Electricity market from Lisbon to Vladivostok? Defining necessary framework
conditions” (2005)
5.1 International conference “Electricity market from Lisbon to Vladivostok?
Defining necessary framework conditions”
69

2nd joint EURELECTRIC – CIS EPC SEMINAR
CIS ELECTRIC POWER COUNCIL
ELECTRICITY MARKET FROM LISBON TO VLADIVOSTOK ?
08:30 Registration
Opening and Welcome
Defining necessary framework conditions
24 November 2005, Moscow, Russia
Renaissance Hotel
PROGRAMME
24 November 2005
09:30 Anatoly CHUBAIS
President of CIS EPC
09:45 Lars JOSEFSSON
Vice President of EURELECTRIC
10:00 Vladimir PEKHTIN
Vice Speaker of the Parliament of Russian
Federation
10:10 Christian CLEUTINX
European Commission, DG TREN,
Director for nuclear energy, Co-ordinator
for the EU-Russia Energy Dialogue
10:20 Grigory RAPOTA
General Secretary EURASES
Introduction
Co-chairmen of the seminar:
Paul BULTEEL
Secretary General of EURELECTRIC
10:30 Technological aspects of the EU and CIS
electricity networks interconnection
Eugeny MISHUK
Chairman of CIS EPC Executive
Committee
Boris AJUEV
Chairman CIS EPC KOTK,
Chairman of Board of JSC “SO-CDU”
70

10:45 Feasibility of the synchronous interconnection
of IPS/UPS with UCTE – an overview about the
study
11:00 Coffee Break
Session I:
Convergence of CIS and EU electricity market conditions
11:20 Outcomes of the joint EURELECTRIC-CIS
EPC
group on “Markets” - Roadmap towards
compatible electricity markets in EU & CIS
countries
11:50 Panel discussion:
EU side:
Christian CLEUTINX
European Commission, DG TREN, Director for
nuclear energy, Co-ordinator for the EU-Russia
Energy Dialogue
Dmitry NOVOSELOV
Vice President, Public Affairs-Russia, Fortum
Corporation
Vidmantas JANKAUSKAS
Chairman, National Control Commission for
Prices and Energy, Lithuania, Member of
ERRA - Energy Regulators Regional
Associations
CIS side:
Anatoly CHUBAIS
President of CIS EPC
Anatoly JANOVSKY
Director of Fuel and Energy Department of the
Ministry of Industry and Energy of Russian
Federation
Esbergen ABITAEV
Vice President JSC “KEGOK”, Republic of
Kazakhstan
Nadezhda ZEITLINA
General Director of RF Energy Commissions
Inter -Institutional Association
Ilyas DAVYDOV
First Deputy Director General National
Electricity Network Company “Kyrgyzstan”
Matthias LUTHER
Project Manager of the UCTE-IPS/UPS
electricity transmission study
Jan SUNDELL
Valentin BARINOV
Co-chairmen of the joint
EURELECTRIC-CIS EPC
group on “Markets”
Lars JOSEFSSON
Vice President of EURELECTRIC
Sarunas BIRUTIS
Member of the European Parliament
Vladimir ANTOSIY
Minister of Industry and Infrastructure of
the Republic of Moldova
Valentin ZAVADNIKOV
Chairman of the Commission for Industry
Policy, Council of Federation of the
Federal Assembly of Russian Federation
Kirill ANDROSOV
Director of Tariff Government Regulation
and Infrastructure Reforms Department of
the Ministry of Economic Development
and Trade of Russian Federation
Nikolay GRIGORYAN
Deputy Chairman of the Commission on
public services regulation of Armenia
Evgeny DOD
Director General “INTER UPS of Russia”
71

Igor KLOCHKO
Director General JSC ”Power Machines”
Oleg BARKIN
Deputy Chairman of the Board NP ATS
Questions and debate
13:00 Foyer exposition
13:30-15:00 Lunch
Session II:
Convergence of environmental issues
15:00 Outcome of the joint EURELECTRIC-CIS EPC
group on “Environment” – Roadmap on key
environmental protection issues of the EU &
CIS power market integration
15:30 Panel discussion:
EU side:
Christian CLEUTINX
European Commission, DG TREN, Director for
nuclear energy, Co-ordinator for the EU-Russia
Energy Dialogue
John SCOWCROFT
EURELECTRIC, Head of Environment &
Sustainable Development Unit
CIS side:
Grigory RAPOTA
General Secretary EURASES
Saparbek BALKIBEKOV
Director General JSC “Power stations”, Kyrgyz
Republic
Andrey GORJKOV
General Director of Energy Carbon Fund
Oleg PLUZHNIKOV
Head of Unit for ecology of the Ministry of
Economic Development of Russian Federation
Vladimir KHLEBNIKOV
Director General JSC “OGK-1”
Sergey IVANOV
First Deputy Director General on
Economy and Finance, Executive Director
FGUP “Rosenergoatom”
William S. KYTE
Mikhail SAPAROV
Co-chairmen of the joint
EURELECTRIC-CIS EPC
group on “Environment”
Jean-Louis LAVROFF
Head of Environmental Section, EU
Delegation in Moscow
Tonis MERISTE
Eesti Energie a.s., Estonia
Yuri LIPANOV
Deputy Chairman of the RF Parliament
Committee for Energy, Transport and
Communication
Pavel YAKUBOVICH
Deputy Director General State Power
Company “Belenergo”
Stanislav JIZNIN
Department on Economic Cooperation,
Ministry for Foreign Affairs of Russian
Federation
Mikhail BUYANOV
Head of Electricity Division, Federal
Energy Agency
72

Vladimir PESHKUN
Deputy Head of Division on energy
supervision, Federal Agency on ecological and
nuclear supervision
Anatoliy BATALOV
Deputy Director NEC "Ukrenergo"
International Organisations:
Alexander AVERCHENKOV
Consultant, World Bank
Questions and debate
Nikolay DAVYDENKO
Deputy Technical Director – Director on
scientific and technical policy FGUP
“Rosenergoatom”
Vitaliy POSTOLATIY
Director of Energy Institute
Academy of Science of the Republic of
Moldova
Vladimir LITVAK
Regional Coordinator, Energy and
Climate Change, Europe and CIS,
UNDP/GEF
16:00 (?) 20 min. Coffee Break is envisaged either during or after the Session II of the seminar
Conclusion
17:20 Closing speech Paul BULTEEL
Secretary General of EURELECTRIC
17:40 End of the seminar
Visiting of the foyer exposition
18:30 Networking dinner offered by RAO "UPS of
Russia"(Renaissance Hotel)
Eugeny MISHUK
Chairman of the CIS EPC Executive
Committee
73

5.2 Materials of Joint report “Electricity market from Lisbon to Vladivostok?
Defining necessary framework conditions”
74

November 2005
Ref. :
Key Environmental Protection Issues of the
EU and CIS Power Market Integration
Joint CIS EPC-EURELECTRIC Group “Environment”
CIS ELECTRIC POWER COUNCIL
75

Paper prepared by:
Key Environmental Protection Issues of the
EU and CIS Power Market Integration
Joint CIS EPC-EURELECTRIC Group “Environment”
CIS EPC Members of the Joint
Working Group "Environment":
Mikhail Saparov (Chairman, Russian Federation),
Lilia Dulinetz, Yury Rymashevsky (Republic of Belarus),
Saule Zhakutova (Republic of Kazakhstan), Kutbedin
Nazhimidinov (Republic of Kyrgyzstan), Oleg
KONENKOV, Irina Putilova (Russian Federation),
Eugeny Kudinov (Ukraine)
CIS EPC Executive Committee: Eugeniy MISHUK, Chairman of the CIS EPC
Vyacheslav Aksenov, VladimirVolosski,
Vladislav Kalinov, Vasily Malaha,
Olga Porshakova
EURELECTRIC Members of the
Joint Working
Group"Environment":
William S. KYTE (UK, Chairman),
Jean-Guy BARTAIRE (FR), Nigel BURDETT (UK),
Manfred HILDEBRAND (DE), Tõnis MERISTE (EE),
Jan VAN DER KOOIJ (NL), Owen WILSON (IE)
EURELECTRIC Secretariat Paul BULTEEL, Secretary General
John Scowcroft, Head of Environment Unit
Anna TÖRNER, Advisor Environment Unit
EURELECTRIC and CIS EPC each only take
responsibility for those sections of the present Report
where they are active.
Copyright ©
Electric Power Council of the Commonwealth of Independent States -
EPC CIS 2005
All rights reserved
Printed at EURELECTRIC, Brussels ((Belgium)
Copyright ©
Union of the Electricity Industry - EURELECTRIC, 2005
All rights reserved
Printed at EURELECTRIC, Brussels (Belgium)
76

The Union of the Electricity Industry–EURELECTRIC is the sector association representing
the common interests of the electricity industry at pan-European level, plus its affiliates and
associates on several other continents.
In line with its mission, EURELECTRIC seeks to contribute to the competitiveness of the
electricity industry, to provide effective representation for the industry in public affairs, and to
promote the role of electricity both in the advancement of society and in helping provide
solutions to the challenges of sustainable development.
EURELECTRIC’s formal opinions, policy positions and reports are formulated in Working
Groups, composed of experts from the electricity industry, supervised by five Committees. This
“structure of expertise” ensures that EURELECTRIC’s published documents are based on highquality
input with up-to-date input information.
For further information on EURELECTRIC activities, visit our website, which provides general
information on the association and on policy issues relevant to the electricity industry; latest
news of our activities; EURELECTRIC positions and statements; a publications catalogue
listing EURELECTRIC reports; and information on our events and conferences.
EURELECTRIC pursues in all its activities
the application of the following sustainable
development values:
Economic Development
Growth, added-value, efficiency
Environmental Leadership
Commitment, innovation, pro-activeness
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Transparency, ethics, accountability
www.eurelectric.org
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Boulevard de l’Impératrice, 66 - bte2 - B - 1000 BRUXELLES
Tel. : + 32 2 515 10 00 - Fax. : + 32 2 515 10 10
Email: cbusard@eurelectric.org
77

CIS ELECTRIC POWER COUNCIL
The Electric Power Council of the Commonwealth of Independent States
The Electric Power Council of the Commonwealth of Independent States (the CIS EPC) and its working
body, the Executive Committee, were set up in accordance with the Agreement on the Coordination of
Interstate Relations in the field of electric power, signed by the heads of government in February, 1992.
The CIS EPC comprises the most senior officials of the key electric power bodies of its member states:
Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, the Russian Federation,
Tajikistan, Turkmenistan, Uzbekistan and Ukraine. Its President and Vice-President are chosen from
amongst its members on a rotating basis. The Chairman of its Executive Committee is appointed by the
Council.
The overall objective of the EPC is to help ensure sustainable power supply to the CIS countries, to be
achieved through a common technological basis for power generation and transmission as well as the parallel
operation of national power systems.
At present 10 of the 12 national power systems of the CIS countries are involved in the synchronous parallel
operation. This network also operates in parallel with the power systems of Latvia, Lithuania, Estonia and
Mongolia. Other operational power exchange schemes operate between the synchronous parallel CIS
network and Armenia, Norway, Finland, Poland, Slovakia, Hungary, Turkey, Iran, Afghanistan and China.
The CIS EPC strategic task is ensuring the smooth operation of the interconnected power systems of its
member states and establishing a common market with the interconnected power systems of the European
Union.
The CIS EPC have been working together with the European union of electric power industry,
EURELECTRIC and the Union for coordination of transmission of electricity, UCTE on the elaboration of
common approaches to resolve legal, economic, technological, technical, operational and environmental
problems in order to unite the CIS and EU power markets.
The CIS EPC and its Executive Committee are also charged with:
Coordination of interactions of the Commonwealth states in the power field;
Elaboration of common principles, norms and rules for the parallel synchronous operation of
power systems;
Creation of a common information and metrological power environment for its member states;
Assistance in professional training of the personnel of member state power organisations and
companies;
Assistance to member states in the preparation of joint and international power and related
environment protection projects;
Coordination of preparatory work on the synchronous interconnection of the CIS and EU power
systems and the creation of the common Euro-Asian power market;
Reinforcement of foreign relations between the CIS and third countries in the power sector;
Representation of the CIS EPC member state collective interests in international organisations
and power associations.
www.energo-cis.org
Executive Committee
CIS Electric Power Council
109074, Moscow, Kitaigorodsky proezd, 7
Тел.: (095) 710-59-86, 710-66-02 - Fax: (095) 925-86-05
E-mail: mail@energo-cis.org
78

Table of contents
VOCABULARY & ABBREVIATIONS_______________________________________
1 EXECUTIVE SUMMARY ______________________________________________
2 INTRODUCTION _____________________________________________________
2.1 Background and general situation ______________________________________
2.2 Objective of the report_____________________ Error! Bookmark not defined.
2.3 Scope of the report__________________________________________________
2.4 Outline of the report ________________________________________________
3 Key issue areas ________________________________________________________
3.1 Air ______________________________________________________________
3.1.1 EU strategy to reduce air pollution________________________________
3.1.2 CIS strategy to reduce air pollution _______________________________
3.2 Climate___________________________________________________________
3.2.1 United Nations Framework Convention on Climate Change
and the Kyoto Protocol _________________________________________
3.2.2 EU Strategy on climate change __________________________________
3.2.3 CIS Strategy on climate change __________________________________
3.2.4 Implementing the Kyoto Protocol’s flexible mechanisms
in the CIS and EU regions ______________________________________
3.3 Water ____________________________________________________________
3.3.1 EU strategy on water protection __________________________________
3.3.2 CIS strategy on water protection _________________________________
3.4 Waste and residues ____________________________________________
3.4.1 EU Strategy on waste and residues________________________________
3.4.2 CIS Strategy on waste and residues _______________________________
3.5 Planned changes in regulations ________________________________________
3.5.1 EU Developments_____________________________________________
3.5.2 CIS Developments ____________________________________________
4 Environmental Indicators for key areas ___________________________________
4.1 Indicators presentation_______________________________________________
4.2 Summary of EU data ________________________________________________
4.2.1 EU graphs ___________________________________________________
4.3 Summary of CIS data _______________________________________________
4.3.1 CIS graphs __________________________________________________
4.4 Comparative analysis________________________________________________
4.4.1 Comparative analysis graphs ____________________________________
5 Horizontal issues_______________________________________________________
5.1 Monitoring & verification of environmental legislation _____________________
5.1.1 EU strategy on monitoring & verification __________________________
5.1.2 CIS strategy on monitoring & verification__________________________
5.2 Environmental Management Systems ___________________________________
5.2.1 EU strategy on Environmental Management Systems _________________
5.2.2 CIS strategy on Environmental Management Systems ________________
5.3 Environmental Impact Assessment (EIA) ________________________________
5.3.1 EU strategy on Environmental Impact Assessment ___________________
5.3.2 CIS strategy on Environmental Impact Assessment __________________
79

6 Сonclusions and Recommendations _______________________________________
6.1 Conclusion of comparative analysis ____________________________________
6.2 Recommendations of organisational and technical measures _________________
6.3 Proposed future activities ____________________________________________
ANNEX I: EU data for environmental indicators ___________________________
ANNEX II: CIS data for environmental indicators___________________________
ANNEX III: International Environmental Conventions relevant to the Electricity
Industry – EU implementation _________________________________
ANNEX IV: International Environmental Conventions relevant to the Electricity
Industry – CIS implementation_________________________________
ANNEX V: Article 5 and 7 of the Kyoto Protocol ____________________________
80

EXECUTIVE SUMMARY
In November 2003, EURELECTRIC and the CIS Electric Power Council commissioned
their Joint Working Group on Environment to make a proposal on the compatibility of
legislation, standards and rules in the field of environmental protection in order to support
the promotion of a common electricity market. At their meeting in Sydney on 8 September
2004, the Presidents of EURELECTRIC and the CIS Electric Power Council decided to
further task the Joint Working Group to develop a roadmap towards compatible
environmental conditions for the possible integration of the EU and CIS power markets.
Joint Working Group elaborated draft of the report “Key Environmental Protection Issues of
the EU and CIS Power Market Integration” and draft of the Roadmap.
This report describes the respective CIS and EU legislation on air protection, climate
change, the protection of water resources, and wastes.4 It describes actions to be undertaken
to align CIS and EU environmental legislation. The extent of the impact of EU and CIS
power plants on the environment was assessed in the report. Twelve environment indicators
were selected as criteria for that assessment. The EU and CIS environment indicators were
compared for the periods of 1980, 1990, 2000 and for the prospective period to 2020 (where
data has been available). The dynamic of the indicators shows that power plants’ negative
influence on the environment is tending progressively to reduce and that there are positive
changes in the environmental conditions within both territories. The results of this study
show that from the environment protection perspective there are no significant obstacles
which, as a matter of principle, would prevent connecting the CIS and EU power systems
and integration of their power markets. However, to ensure continued and deepened
convergence of environmental protection issues, a Roadmap has been developed, which lists
the most important environmental requirements (to be introduced on a phased basis) for
power market integration.
The Executive Summary and the Roadmap outline the key environmental protection issues
of relevance for power market integration. These include: i) aligning environmental
protection legislation and standards in the CIS and EU regions; ii) the implementation and
enforcement of certain organisational and technological measures aimed at facilitating
environmental protection activities at power plants so that a high level of environmental
protection is achieved throughout the two regions.
For EU and CIS power market integration to take place, it is necessary that the principles in
the Executive Summary and the roadmap be politically agreed. Furthermore, common
monitoring and dispute settlement mechanisms should be established in which the two
Electricity Industries should be represented.
4 The descriptive report on EU and CIS environmental legislation, prepared by the Joint Working Group and published
in September 2003, indicates that legislation in both regions is based on those International Conventions and Protocols,
which have been signed and ratified in the respective region.
81

Key issues of environmental protection legislation and standards
An important document establishing the strategic framework in the UN ECE region in this
field is “Environmental partnerships in the UN ECE region: Environment Strategy for
countries of Eastern Europe, Caucasus and Central Asia (EECCA) ” 5 . The overall objective
of this Strategy is to contribute to improving environmental conditions by strengthening the
efforts of these countries in environmental protection and by facilitating partnership and
cooperation between EECCA countries and other countries of the UN ECE region.
The following issues have been identified in the strategy as being among those that should
be resolved at national level to facilitate convergence towards equivalent standards of
environmental protection legislation are of relevance to the power market:
Optimisation of environmental quality standards: ensuring that regulated
priority substances can be effectively monitored; setting realistic standards
based on risk management considerations and internationally accepted norms
(e.g. UN ECE Conventions and Protocols).
Reforms of the permitting system: streamlining permitting procedures;
gradual transition to integrated permitting for large polluters. The licensing
or permitting framework should be based on the policy principle of
preventing or, when not feasible, reducing all significant emissions to a
minimum and the use of best available techniques (BAT). BAT is described
as the most effective and advanced technology or method of operation that
can be applied to reduce all significant plant emissions, subject to technical
and economic considerations, in setting operating conditions that avoid or
minimise environmental impacts.
Improvement of Environmental Impact Assessment (EIA) practi ces:
developing comprehensive impact assessment criteria for different types of
projects; addressing the full range of environmental impacts (not just
emission limits) under full EIA; broadening public participation; and the
development of EIA techniques.
The following issues also need to be considered for the longer term:
Promoting strategic enforcement and building the courts’ environmental
litigation capacity: putting the emphasis on deterring potential violators;
design of enforcement programs combining sanctions, improvement and
compliance promotion measures; raising the courts’ environmental
significance.
Development and implementation of compliance promotion programs:
broadening the use of information-based instruments and promoting cleaner
production and environmental management in enterprises, e.g. through
certification.
Strengthening of environmental monitoring systems: prioritisation of
monitoring programs by targeting priority pollutants; strengthening selfmonitoring
and reporting; coordination of monitoring and data management
to develop a national monitoring system.
5 Environmental partnerships in the UN ECE region: Environment Strategy for countries of Eastern Europe, Caucasus
and Central Asia – Strategic Framework, submitted by the Steering Group on Environment Strategy for countries of
Eastern Europe, Caucasus and Central Asia through the Ad Hoc Working Group of Senior Officials at the Fifth
Ministerial Conference “Environment for Europe” in Kiev, Ukraine, 21-23 May, 2003.
82

Further, a number of specific key issues also need to be addressed in the context of power
market integration, such as:
Air emissions – Emissions to air may have local, regional and/or global impacts and are, in
general, the most costly of discharges to control for power plants, particularly for thermal
power plants operating on solid fuel. Consequently, aligning environmental protection
standards in this area should receive priority attention.
Climate issues – The importance of the Kyoto Protocol as the key international tool to
address climate change is confirmed.
Environmental management systems – Prudent and effective management of the
environmental impacts of installations is best achieved within a structured and systematic
framework. Formalised environmental management systems provide such a framework.
Additionally, they assist in demonstrating the electricity industry’s commitment towards
environmental protection where they are validated to an external standard. The adoption of
structured and audited environmental management systems by operators and other voluntary
agreements and initiatives aimed at continuous improvement in environmental performance
is strongly encouraged.
Residues and waste issues - The goal of minimising the production of waste and the
prevention of surface and groundwater contamination by waste and other emissions is
acknowledged. Legislative and regulatory frameworks should facilitate maximum re-use
and recycling of by-products from electricity generation and the application of abatement
techniques.
Conclusions of investigation of environmental indicators
The indicators compared in this report showed the following:
After a considerable fall in industrial production, the total GDP volume in
CIS countries has shown a stable increase since 1995. One can come to the
following conclusion that, in spite of absolute figures’ considerable
difference, the GDP in CIS and EU countries after 1995 had the same growth
trend. The 2020 forecast anticipates the same trend.
GDP energy intensity in CIS countries declined up to 1995. It is projected
that this indicator in the CIS countries will nearly be double the value in EU
countries up to the year 2020.
Total SO2 emissions from electricity production in EU countries in the period
since 1990 up to 2020 is projected to decrease by more then 6.5 times and in
CIS countries by more then 2 times. The absolute amount of SO2 emissions
in EU countries up to 2000 exceeded that in the CIS countries but the
indicator is forecasted to be lower in the EU in the following period.
Total NOx emissions from electricity production in the EU countries are
projected to decrease by nearly 2.2 times in the period 1990 – 2020 and in
the CIS countries by more then 1.5 times.
Comparative analysis of СО2 total emissions from electricity production in
both CIS and EU regions shows the same tendency – a decrease in emissions
within the period 1990 – 2000 and rise forecast in the following period up
2020.
83

The change of SО2 specific emissions (t/GWh) in CIS and EU countries has
the same tendency – projected to decrease within the period from 1990 up to
2020. In 2020, this indicator in CIS countries is projected to be 3 times
higher than in EU countries.
In the period under consideration the dynamics of NОx specific emissions
(t/GWh) in the CIS and EU countries has the same tendency. The CIS
indicator in 2020 is forecasted to be more than 2.5 times higher than in the
EU countries.
The specific CO2 emissions (t/GWh) are expected to decrease in EU by more
than 30% between 1990 and 2020. The specific CO2 emissions in CIS region
also show a general downward trend (with the exception of 2010) by an
expected reduction of 17% in the same time period.
Within the CIS countries, the decrease in total pollutant emissions in the electricity
generating industry between 1990 and 2000 occurred due to fall in manufacturing industry
production.
The improvement in environment (SO 2 and NOx specific emissions) within the considered
period was the result of decreased consumption of high sulfur mazut [HFO], and increase in
gas in the fuel balance of heat power plants and the application of different advanced
technologies to decrease the formation of NOx in boiler furnaces.
Recommendations
Organisational and technological measures which are of key importance for a power
market establishment
To improve environmental protection at the power plants it is recommended that the
following organisational and technological measures should be taken:
Optimisation and alignment of environmental quality standards with
international legal requirements.
Co-ordinate licensing or permitting processes that integrate the operating
conditions applied to all emissions and discharges.
Establish technical norms on emissions and discharges at the power stations
based on BAT.
Definition of ways and means for the alignment of environmental
performance of power stations up to the level of implementation of
obligations under the UN Conventions and Protocols, e.g. the UN ECE
Convention on Long-range Transboundary Air Pollution and its associated
Protocols and the UN Framework Convention on Climate Change and its
Kyoto Protocol.
Develop and implement a consent process that evaluates and has regard to
the environmental impacts of new installations (projects) by applying
appropriate conditions when granting permissions to construct.
84

Implement effective processes to enforce legal requirements and licence or
permit conditions which establish a penalty regime that is proportionate and
dissuasive.
Introducing environmental management system at the power stations to meet
the ISO 14001 or equivalent standard.
Proposed future activities
Subsequent steps to achieve the convergence of environmental protection legislation,
implementation of organisational and technological measures, and achievement of a
uniform, high, overall standard of environmental protection are:
Elaboration in the CIS countries of proposals to introduce modifications to
the normative basic legislation documentation regulating the permitting
framework for environmental protection and environmental impact
assessment.
Comparative analysis of environmental reporting systems in the CIS and EU
countries, elaboration of proposals for their harmonisation and acceptance
(collection of data, quality control, verification of reliability).
Evaluation of investment resources required for compliance with aligned
environmental protection legislations and standards in the CIS and EU power
companies with relevant analysis of new financing mechanisms.
Preparation of a priority project list, including those aimed at increasing
energy efficiency and the use of renewable resources by CIS energy
companies that meet the requirements of joint implementation (JI) and the
clean development mechanism (CDM) under the Kyoto Protocol to the UN
Framework Convention on Climate Change.
Elaboration of proposals on the harmonisation of the specialists’ training in
the field of environmental issues related to electricity production in the CIS
and EU countries.
85

5.3 “Roadmap environmental on Key Environmental Protection Issues of the
EU and CIS power Markets Integration
86

ROADMAP ENVIRONMENT
on Key Environmental Protection Issues
of the EU and CIS Power Markets Integration
By Joint CIS EPC-EURELECTRIC Working Group Environment
[to be read in conjunction with the Roadmap prepared by the
Joint CIS EPC-EURELECTRIC Working Group Market]
In November 2003, EURELECTRIC and the CIS Electric Power Council
commissioned their Joint Working Group on Environment to seek a common view on
priorities in environmental protection to lay the basis for action to be taken on further
market development in the two regions. They tasked the Joint Working Group
Environment to make a proposal on the compatibility of legislation and rules in the
field of environmental protection in order to promote a common electricity market.
At their meeting in Sydney on 8 September 2004, the Presidents of EURELECTRIC and the
CIS Electric Power Council decided to further task the Joint Working Groups to define prerequisites
and road-maps for compatible environmental and market conditions.
In order to ensure that the environmental protection, as impacting on the power industry, is
aligned in the CIS and EU regions, the CIS EPC – EURELECTRIC Working Group
“Environment” has, in this Roadmap, listed the most important environmental requirements
for the power markets integration. These requirements are separated into four different
phases in a similar fashion to the Markets Roadmap (no exact timing is however proposed
due to dependence of other factors, e.g. technical feasibility of interconnection and market
conditions). A differentiated approach for CIS countries most involved in potential
electricity trade is anticipated.
For the EU and the CIS power markets integration to take place, it is necessary that the
principles in this Roadmap are politically agreed. Furthermore, common monitoring and
dispute settlement mechanisms should be established in which the two Electricity Industries
should be represented.
87

PHASE ZERO - Current Situation
To the extent that limited trade is already taking place (a few cases between Finland and the
Russian Federation, Ukraine and Hungary, Republic of Byelorussia and Poland etc.) it is
necessary to ensure that certain requirements for environmental protection are fulfilled
before the next phase “Preparation for Limited Wholesale Market Opening” can start.
The Joint Environment Working Group has developed an action plan and proposed a series
of organizational and technological measures for improvement of environment protection
activities at electric power operations and necessary for creation of the integrated power
market. The action plan includes:
Move towards licensing or permitting processes that integrate the operating
conditions applied to all emissions and discharges.
Optimisation and alignment of environmental quality standards.
Establish technical standards for emissions and discharges at the power stations
based on BAT.
Definition of steps for alignment of environmental performance of power stations
up to the level of implementation of obligations under the UN Conventions and
Protocols, e.g. the UN ECE Convention on Long-range Transboundary Air
Pollution (UN ECE CLRTAP) and its associated Protocols and the UN
Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol.
Develop and implement consent processes that evaluate and have regard to the
environmental impacts of new installations (projects) by applying appropriate
conditions when granting permissions to construct.
Implement effective processes to enforce legal requirements and license or permit
conditions which establish a penalty regime that is proportionate and dissuasive.
Introducing environmental management systems within all relevant power
industry operations to meet the ISO 14001 or equivalent standard.
88

PHASE ONE - Preparation for limited wholesale market opening
Phase 1 of the Roadmap sets out those environmental requirements that need to be in place
before there is a limited wholesale market opening, which is defined as the mutual opening
of power production market with a corresponding level of controlled trade and investment
flow between the EU and CIS markets. Phase 1 includes:
Elaboration in the CIS countries of proposals on introducing modifications to the
normative basic legislation documentation regulating the permitting framework for
environmental protection and environmental impact assessment in power utilities.
Comparative analysis of environmental reporting systems in the CIS and EU
countries, elaboration of proposals for their harmonisation and acceptance
(collection of data, quality control, verification of reliability).
Evaluation of investment resources required for compliance with the converging
environmental protection legislation and standards in the CIS and EU power
companies together with an analysis of possible new financing mechanisms.
Preparation of a priority projects list, including those aimed at increasing energy
efficiency and the use of renewable resources by CIS energy companies that meet
the requirements of joint implementation (JI) and the clean development
mechanism (CDM) under the Kyoto Protocol to the UN Framework Convention
on Climate Change.
Elaboration of proposals for the harmonisation and integration of the specialists’
training in the field of environmental issues related to electricity production in the
CIS and EU countries.
89

PHASE TWO and THREE - Preparation for Full Market Opening
Phase 2 and 3 of the Roadmap describes those environmental requirements that need to be
in place before there is a full wholesale and retail market opening, which is defined as the
full opening up of the markets by ensuring customer choice at wholesale and retail level
with a corresponding level of controlled trade and investment flows between the EU and
CIS.
Before full market opening, the following requirements, based on the previous phases, must
be in place in both regions:
Environmental performance according to UN Conventions and Protocols
Convergent environmental performance of power stations up to the level of implementation
of obligations under the signed and ratified UN Conventions and Protocols.
Integrated permitting systems based on best available techniques
Established functioning and co-ordinated licensing or permitting processes that integrate the
operating conditions applied to all emissions and discharges. Best available techniques
should be considered as the basis for granting permits.
Process to enforce legal requirements
Implemented effective processes to enforce legal requirements and license or permit
conditions which also establish penalty regimes that are proportionate and dissuasive.
Environmental Impact Assessment procedures
Established and functioning procedures that evaluate and have regard to the environmental
impacts of new installations (projects) by applying appropriate conditions when granting
permissions to construct.
Environmental Management Systems
Introduction of audited environmental management systems at power plants to meet the ISO
14001 or equivalent standard.
90

5.4 Materials of Joint report “Comparison of the EU and CIS Electricity
Markets
91

November 2005
Ref: 2005-391-0010
Comparison of the EU and CIS
Electricity Markets
CIS EPC / EURELECTRIC
joint ad-hoc group – Markets
CIS ELECTRIC POWER COUNCIL
92

Paper prepared by:
CIS EPC Members of the Joint
Working Group "Markets":
Comparison of the EU and CIS
Electricity Markets
Joint CIS EPC-EURELECTRIC
Working Group Markets
V.BARINOV (Russia, Co-Chairman,)
N.USIFBEJLI, T.IBRAGIMOV (Azerbaijan),
V.KIRILENKO, G.DOLGIKH, N.BAGROVETS,
N.RESHETNIKOVA (Belorussia ), G.SEKANIJA (Georgia),
S.ZHAKUTOVA, N.UTEGULOV (Kazakhstan),
G.ALMUSIN, A.MAKHIN (Kirghizstan),
G.VERIN (Moldova ), N. ZAIKINA (Russia)
CIS EPC Executive Committee: E.MISHUK, V.AKSENOV, V.
VOLOSSKIY, A.GERTSEN,
EURELECTRIC Members of the
Joint Working Group "Markets":
V.KALININ, O.PORSHAKOVA
EURELECTRIC Secretariat: Paul BULTEEL
Anne-Malorie GERON
Eva HOOS
Jan SUNDELL (SE, Co-Chairman)
Ruggero ARICO (IT), Roald HAUGEN (NO),
Stéphane HECQ (BE), András KACSO (HU),
Jöorg KERLEN (DE), Risto MÄKINEN (FI),
Herbert SEIDLMANN (AT), Anne-Marie TATIN (FR)
EURELECTRIC and CIS EPC each only take responsibility for those sections of the present
Report that describe the market where they are active.
Copyright ©
Union of the Electricity Industry EURELECTRIC, 2005
All rights reserved
Printed at EURELECTRIC, Brussels (Belgium)
Copyright ©
Electric Power Council of the Commonwealth of Independent States, 2005
All rights reserved
Printed at EURELECTRIC, Brussels (Belgium)
93

The Union of the Electricity Industry-EURELECTRIC is the sector association
representing the common interests of the electricity industry at pan-European level, plus its
affiliates and associates on several other continents.
In line with its mission, EURELECTRIC seeks to contribute to the competitiveness of the
electricity industry, to provide effective representation for the industry in public affairs, and
to promote the role of electricity both in the advancement of society and in helping provide
solutions to the challenges of sustainable development.
EURELECTRIC's formal opinions, policy positions and reports are formulated in Working
Groups, composed of experts from the electricity industry, supervised by five Committees.
This "structure of expertise" ensures that EURELECTRIC's published documents are based
on high- quality input with up-to-date input information.
For further information on EURELECTRIC activities, visit our website, which provides
general information on the association and on policy issues relevant to the electricity
industry; latest news of our activities; EURELECTRIC positions and statements; a
publications catalogue listing EURELECTRIC reports; and information on our events and
conferences.
EURELECTRIC pursues in all its activities
the application of the following sustainable
development values:
Economic Development
Growth, added-value, efficiency
Environmental Leadership
Commitment, innovation, pro-activeness
Social Responsibility
Transparency, ethics, accountability
www.eurelectric.org
Union of the Electricity Industry EURELECTRIC A.I.S.B.L.
Boulevard de I'lmpératrice, 66 - bte2 - В - 1000 BRUXELLES
Tel. : +32 2 515 10 00 - Fax. : +32 2 515 10 10
E-mail: cbusard@eurelectric.org
94

CIS ELECTRIC POWER COUNCIL
The Electric Power Council of the Commonwealth of Independent States
The Electric Power Council of the Commonwealth of Independent States (the CIS EPC) and its working
body, the Executive Committee, were set up in accordance with the Agreement on the Coordination of
Interstate Relations in the field of electric power, signed by the heads of government in February, 1992.
The CIS EPC comprises the most senior officials of the key electric power bodies of its member states:
Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, the Russian Federation,
Tajikistan, Turkmenistan, Uzbekistan and Ukraine. Its President and Vice-President are chosen from
amongst its members on a rotating basis. The Council appoints the Chairman of its Executive Committee.
The overall objective of the EPC is to help ensure sustainable power supply to the CIS countries, to be
achieved through a common technological basis for power generation and transmission as well as the parallel
operation of national power systems.
At present 10 of the 12 national power systems of the CIS countries are involved in the synchronous parallel
operation. This network also operates in parallel with the power systems of Latvia, Lithuania, Estonia and
Mongolia. Other operational power exchange schemes operate between the synchronous parallel CIS
network and Armenia, Norway, Finland, Poland, Slovakia, Hungary, Turkey, Iran, Afghanistan and China.
The CIS EPC strategic task is ensuring the smooth operation of the interconnected power systems of its
member states and establishing a common market with the interconnected power systems of the European
Union.
The CIS EPC have been working together with the European union of electric power industry,
EURELECTRIC and the Union for coordination of transmission of electricity, UCTE on the elaboration of
common approaches to resolve legal, economic, technological, technical, operational and environmental
problems in order to unite the CIS and EU power markets.
The CIS EPC and its Executive Committee are also charged with:
Coordination of interactions of the Commonwealth states in the power field;
Elaboration of common principles, norms and rules for the parallel synchronous operation of power
systems;
Creation of a common information and metrological power environment for its member states;
Assistance in professional training of the personnel of member state power organisations and
companies;
Assistance to member states in the preparation of joint and international power and related
environment protection projects;
Coordination of preparatory work on the synchronous interconnection of the CIS and EU power
systems and the creation of the common Euro-Asian power market;
Reinforcement of foreign relations between the CIS and third countries in the power sector;
Representation of the CIS EPC member state collective interests in international organisations and
power associations.
www.eurelectric.org
Исполнительный комитет
Электроэнергетического Совета СНГ
109074, г. Москва, Китайгородский пр., 7
Тел.: (095) 710-59-86, 710-66-02 - Fax: (095)925-86-05
E-mail: mail@energo-cis.org
95

TABLE OF CONTENT
INTRODUCTION ________________________________________________________
STATE AND GOVERNMENTS _____________________________________________
Common Principles ____________________________________________________
Functions of State __________________________________________________
Role of the Government in the Electricity Sector __________________________
The European Union ___________________________________________________
Role of the EU institutions and the Member States _________________________
EU law in the field of electricity _______________________________________
Role of governments in the electricity Sector _____________________________
Separation between general governance and regulatory control ______________
The EU internal electricity market _________________________________________
Market opening ____________________________________________________
Ownership of energy sector companies__________________________________
The Commonwealth of Independent States __________________________________
CIS institutions and states ____________________________________________
Common CIS electricity market________________________________________
Electricity markets in the CIS states ____________________________________
The role of CIS governments in the electricity sector _______________________
State of Liberalisation and Market Reforms ______________________________
Ownership of Energy Sector Companies_________________________________
Conclusions __________________________________________________________
REGULATORS __________________________________________________________
Common Principles ____________________________________________________
The European Union ___________________________________________________
Independence of the National Regulatory Authorities ______________________
Tasks ____________________________________________________________
Complaints________________________________________________________
Appeals___________________________________________________________
Additional responsibilities ____________________________________________
The Commonwealth of Independent States __________________________________
Independence of the National Regulatory Authorities ______________________
Tasks ____________________________________________________________
Complaints________________________________________________________
Appeals___________________________________________________________
Additional responsibilities ____________________________________________
Conclusions __________________________________________________________
TRANSMISSION SYSTEM OPERATORS ____________________________________
Common Principles ____________________________________________________
The European Union ___________________________________________________
Independence of transmission system operator____________________________
Legal and management unbundling_____________________________________
Regulated third party access to the network ______________________________
Cost-based, regulated and published network tariffs _______________________
Cross-border activity ________________________________________________
Congestion management _____________________________________________
The Commonwealth of Independent States __________________________________
96

Independence of the transmission system operator_________________________
Unbundling _______________________________________________________
Non-discriminatory access to the network _______________________________
Cost-based, regulated and published network tariffs _______________________
Cross-border activity ________________________________________________
Congestion management _____________________________________________
Conclusions __________________________________________________________
DISTRIBUTION SYSTEM OPERATOR ______________________________________
Common Principles ____________________________________________________
The European Union ___________________________________________________
Unbundling _______________________________________________________
Derogations _______________________________________________________
Regulated third party access to the distribution network ____________________
Special duties of the distribution system operator__________________________
The Commonwealth of Independent States __________________________________
Unbundling _______________________________________________________
Regulated third party access to the distribution network ____________________
Conclusions __________________________________________________________
THE GENERATING COMPANIES __________________________________________
Common Principles ____________________________________________________
Function of generating companies _____________________________________
Competition _______________________________________________________
Ownership and investments ___________________________________________
Other functions in the market _________________________________________
The European Union ___________________________________________________
The Commonwealth of Independent States __________________________________
The CIS Electricity Market Today ______________________________________
The CIS countries on-going electricity market reforms _____________________
Conclusions __________________________________________________________
SUPPLIER COMPANIES AND RETAIL MARKET _____________________________
Common Principles ____________________________________________________
Functions _________________________________________________________
Competition _______________________________________________________
Ownership and investments ___________________________________________
Other functions in the market _________________________________________
The European Union ___________________________________________________
Pricing in retail markets _____________________________________________
Market opening and access to customers ________________________________
Competition _______________________________________________________
Unbundling _______________________________________________________
The Commonwealth of Independent States __________________________________
Pricing in retail markets _____________________________________________
Market opening and access to customers ________________________________
Competition _______________________________________________________
Unbundling _______________________________________________________
Conclusions __________________________________________________________
SERVICE COMPANIES ___________________________________________________
Common Principles ____________________________________________________
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Functions _________________________________________________________
The European Union ___________________________________________________
Separation ________________________________________________________
Productivity _______________________________________________________
Security and quality _________________________________________________
Tendering _________________________________________________________
The Commonwealth of Independent States __________________________________
Conclusion ___________________________________________________________
TRADERS AND WHOLESALE MARKETS___________________________________
Common Principles ____________________________________________________
The European Union ___________________________________________________
The Commonwealth of Independent States __________________________________
Conclusions __________________________________________________________
CONCLUSIONS__________________________________________________________
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EXECUTIVE SUMMARY
In November 2003, Union of the Electricity Industry-EURELECTRIC and the Electric
Power Council of the Commonwealth of Independent States (CIS EPC) mandated their Joint
Working Group on "Markets" to prepare a report comparing electricity market rules and
legislation in the EU and CIS market areas in order to assess their levels of compatibility. In
September 2004, the Presidents of EURELECTRIC and the CIS EPC met in Sydney and
commissioned the Joint Group to develop a roadmap towards compatible market conditions
and propose actions for bringing the two electricity markets closer together. The Joint
Group prepared the draft Report comparing the EU and CIS electricity markets and the
Roadmap. The Report and the Roadmap were submitted for approval to the Presidents at
their meeting in Vienna, June 14, 2005.
STATES AND GOVERNMENTS
There is a tendency of convergence between the EU and the CIS in the role of the State and
Government in the energy sector, however differences remain. In the EU, governments
withdrew from direct participation in energy sector activities, while the level of government
control over the assets and operations of energy companies is significant in the CIS. The ongoing
reforms aim to bring the markets of the EU and the CIS closer together. The CIS
governments are reforming their electricity industries to promote the development of market
relations and demonopolisation in the electricity sector.
REGULATORS
All EU countries have established independent regulators responsible for nondiscriminatory
access to the electricity network, effective competition and efficient
functioning of the electricity market. Regulators in the EU feature a legal obligation to be
independent from industry interests. They set and supervise network tariffs and act as
dispute settlement bodies in network access complaints.
The Regulators in four of the CIS countries have attributes similar to those of the EU
regulators. In the other CIS states ministries or other government bodies carry out the
regulatory functions. Their main task is to set up end-user prices for both industrial and
household consumers. They also often play a role in licensing, forecasting supply and
demand, adopting investment programs, consumer protection and antimonopoly control. It
is recognised that their role as dispute settlement bodies need to be strengthened in the
frame of
the on-going market reforms.
TRANSMISSION AND DISTRIBUTION SYSTEM OPERATORS
The independence of the transmission system operator as a key condition of a wellfunctioning
electricity market is recognised both in the EU and in the CIS. Many EU
countries have since long established the transmission system operator as an independent
legal entity separated from generation, supply and trade interests. In many CIS States the
transmission system operators are already organised as separate legal entities or are
progressively being established as such in the framework of the on-going electricity sector
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eform. In the CIS separation of the distribution system operators from generation is
generally under way as well. In the EU DSOs should become independent by July 2007.
Similar plans also exist in the CIS
Non-discriminatory access to the transmission as well as to the distribution network is
acknowledged as a key electricity market principle in both the EU and the CIS. In the EU, a
system of regulated third party access has been introduced in all countries. In the CIS, a
system of regulated access and the principle of non-discrimination is often enshrined in the
law and supervised by antimonopoly agencies without however amounting to fully-fledged
regulated third-party access. The principle of non-discriminatory access is stronger
implemented in the inter-state electricity flows (in the transmission networks), and less in
the domestic trade.
In the EU the transmission and distribution tariffs are published and transparent by law. In
most of the CIS countries, it is acknowledged that the network tariffs should be publicly
available. However this principle cannot be fully realised until the separation of the
monopoly network activities from the competitive generation, supply and trade is completed
as planned.
In the EU export and import monopolies, as well as export and import duties are abolished,
while they often remain in place in CIS interstate and international cross-border trade.
GENERATION
In the EU, electricity production is fully deregulated. Generating companies sell electricity
at market prices in competition with other producers and take investment decision based on
their own perception of possible future revenues in the markets. They do not have monopoly
and special rights and therefore can go bankrupt if they fail.
In most CIS countries, reforms are under way to create a competitive generation market by
progressively establishing generation companies separated from the former state energy
monopolies. Further restructuring is planned to complete separation of generation from
transmission and distribution entities and to severe their relations from state finances. The
goal is to make production market based.
The principle of customer choice has been implemented in the EU, where all industrial and
most household customers are already eligible, i.e. free to choose supplier. Customer choice
is an important objective of the CIS reforms. CIS countries have made significant progress
in making wholesale market actors and large industrial users eligible. Furthermore, in the
CIS the existing anti-monopoly rules are foreseen to be strengthened to provide effective
guarantees against the abuse of market power, and governments are making efforts to create
more favorable conditions for the entry of new players and investors by restructuring
national monopolies. These reforms will have the effect of reducing the gap between the EU
and CIS market configurations.
SUPPLIERS AND RETAIL MARKET
The free choice of all customers is a recognised electricity market principle in both the EU
and the CIS and enshrined in the EU as well as in the CIS legislations. In most EU countries
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the retail markets are already fully opened or are going to be opened soon. In the EU, the
supply competition is strong. In several EU-countries tens of thousands or even hundreds of
thousands final customers have already changed their supplier.
In CIS countries there are plans to introduce open retail markets and some countries have
eligible customers at nearly all but household levels. However although recognised in law,
customer choice is often limited in practice mainly because of the integration of supply in
the regional distribution and generation companies, and the number of generation and
supply companies is limited.
TRADERS AND WHOLESALE MARKET
Both in the EU and in the CIS countries it is important that liquid wholesale markets are
created or developed further in order to achieve adequate prices for electricity, to give
correct price signals to the market actors and to increase transparency, efficiency,
productivity, innovation and competitiveness. In particular, access to congested (cross
border) networks is to be managed through the market based mechanisms coordinated by a
transmission system operator.
In the CIS countries, technical rule-based dispatching should be complemented by marketrule
based one, and generation dispatching should be based on supply and demand bids.
Single dispatching may hinder the development of market, obscure functions and
responsibility of the market players and prevent accounting for the true value of electricity
and services. Access to the networks is to be made possible for all market participants on
non-discriminatory rules.
PROPOSAL FOR ACTIONS
Currently, the EU and CIS market rules and legislations are not compatible. Based on the
report, the Joint EURELECTRIC-CIS EPC Working Group on Markets has prepared a
roadmap for the gradual creation of compatible market conditions and to promote closer
market relations in the EU and CIS electricity sectors. A greater level of compatibility is
needed for the establishment of large- scale interconnections and to increase the level of
mutual market opening.
The roadmap contains three stages in addition to the starting point, which is the current
situation at present. Each stage corresponds to higher level of compatibility entailing a
proportionately increased level of reciprocal market opening in the EU and CIS market
areas. Upon the implementation of the roadmap the markets will become fully compatible.
Full compatibility of market rules and legislations is a pre-condition for full and mutual
market opening.
The roadmap represents the industry's view about the measures that should be put in place
with regard to compatible market organization and market rules for the creation of
conditions for unhindered trade and investment flows among the EU and CIS electricity
markets.
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The EU and CIS electricity industries underline that for power market integration to take
place, it is necessary that the principles outlined in the report and the roadmap are politically
agreed. Furthermore, it is strongly recommended that common implementation and
monitoring mechanisms and dispute settlement rules be established, over which both
electricity industries would have influence.
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5.5 “Roadmap Market Towards Compatible Markets in the EU and CIS
countries”
103

Roadmap Market
Towards Compatible Electricity Markets
in the EU and CIS Countries
In November 2003, EURELECTRIC and the CIS Electric Power Council
commissioned their Joint Working Group on Markets to seek a common view on
priorities in market rules to lay the basis for action to be taken on further market
development in the two regions. They tasked the Joint Working Group to make a
proposal on the compatibility of legislation and rules of the two electricity markets.
In their meeting in Sydney on 8 September 2004, the Presidents of EURELECTRIC and the
CIS Electric Power Council decided to further task the Joint Working Group to define prerequisites
and road-maps to compatible environmental and market conditions and submit by
mid-2005 a report which includes descriptions and comparisons of the two markets,
evaluation of compatibility, principles and a draft roadmap for establishing a common
electricity market.
According to the Terms of Reference and the instructions of the Presidents, the Joint
Working Group has prepared the first draft of the roadmap towards compatible electricity
markets in the EU and CIS regions.
The purpose of the roadmap is to provide a plan for gradually creating compatible market
conditions in the EU and CIS countries. It contains three main stages in addition to the
starting point - which is the situation at present. Each stage corresponds to higher level of
compatibility entailing a proportionately increased level of reciprocal market opening in the
EU and CIS market areas. Upon the implementation of the roadmap, the markets will be
fully compatible. Full compatibility of market rules and legislation is the pre-condition for
full and mutual market opening in the EU and CIS.
The phases of the roadmap build on each other. The second phase requires that the first
phase is fully completed and it develops the market and legislative framework a step further.
Likewise the third phase pre-supposes that the institutions and legislative frameworks of the
previous two phases - to which it brings further improvements in terms of market rules and
opening - are already in place.
The roadmap represents the industry’s views about the measures that should be taken in
order to put in place compatible market frameworks and regulations necessary to create
conditions for unhindered trade and investment flows among the electricity markets of the
EU and the CIS countries.
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PHASE ZERO Current Situation
The report comparing the EU and CIS electricity markets shows that market rules and
regulations currently are not yet compatible in the EU and CIS regions for the time being.
To the extent that limited trade is already taking place it is necessary to ensure that trade
laws, regulations and practices are transparent, competition is fair and established
investments receive treatment that is not less favourable than national treatment or most
favoured nation treatment - whichever provides stronger protection.
In preparation for the implementation of the roadmap and to monitor existing trade and
investment practices between the EU and CIS countries, it is necessary to set up a Common
Regulatory Council. It would have at least the following tasks:
a. Facilitate preparation for the implementation of the roadmap
b. Monitor and control trade flows in case of:
i. use of monopoly power;
ii. abuse of dominant position;
iii. unfair trade practices;
iv. risk of operational failures of transmission network;
v. injury or threat of injury to security of supply;
vi. dumped and subsidised export;
vii. environmental concerns;
viii. nuclear safety concerns;
ix. lack of reciprocity in eligibility of contracting rights
The Common Regulatory Council would be set up with agreement of the EU and the CIS. It
would be established in cooperation with EU and CIS governments, the European
Commission, the CIS Electric Power Council and other stakeholders, including transmission
system operators and EURELECTRIC.
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PHASE ONE - Preparation for Limited Wholesale Market Opening
Phase One of the roadmap aims to establish a level of compatibility which would allow the
mutual opening up of the power production market with a corresponding level of controlled
trade and investment flow between the EU and CIS markets. The completion time of Phase
One will be determined after a timetable for the creation of common CIS electricity market
is set-up.
In Phase One a minimum number of conditions should be met before starting the joint
operation of the EU and the CIS power systems. The technological rules of the synchronous
operation and principles of cross-border trade and electricity transit should be agreed upon.
This Phase consists of establishing the following market institutions and legislative
framework in case, and to the extent that, these are not in place:
a. Establishment of independent transmission network operators granted separate legal
personality and fully independent management from generation, supply and trading
interests;
b. Abolishing of export and import monopolies in electricity trade;
c. Abolishing of exclusive and special rights in generation;
d. Elimination of cross subsidies;
e. Creation of a competitive wholesale generation market subject to at least the following
rules:
i. price control is removed, prices are cost-based and market-based reflecting supply
and demand;
ii. no State subsidies, and fuel subsidies are not granted;
f. Introduction of co-ordinated auctioning of capacity on cross-border interconnections;
g. Non-discriminatory, transparent access to the transmission network at both national and
interstate level enshrined in and adequately guaranteed by legislation;
h. Removal of legal and regulatory obstacles for EU and CIS companies to enter each
other’s generation markets;
i. Protection of investment by ensuring national or most favoured nation treatment,
whichever is most favourable;
j. Application of WTO rules and the Energy Charter Treaty.
After Phase ONE is completed the establishment of large-scale interconnections of the EU
and CIS power systems can be realised.
In Phase ONE, trade will continue to be carried out by bilateral contracts and on power
exchanges. Trade flow would be monitored and controlled by the Common Regulatory
Council.
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In implementation of Phase One of the Roadmap, the Common Regulatory Council would
have at least the following tasks:
a. Monitor and provide support for the implementation of the roadmap;
b. Monitor and control trade flows by subjecting trade flows and supply contracts to exante
approval in case of and to avoid:
i. use of monopoly power;
ii. cross subsidies;
iii. abuse of dominant position;
iv. unfair trade practices;
v. risk of operational failures of transmission network ;
vi. injury or threat of injury to security of supply;
vii. dumped and subsidized export;
viii. environmental concerns;
ix. nuclear safety concerns;
x. lack of reciprocity in eligibility of contracting rights.
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PHASE TWO - Limited Wholesale Market Opening
Preparation for the Full Wholesale Market Opening
Phase TWO of the roadmap aims to establish a level of compatibility which would allow the
full opening up of wholesale markets by ensuring customer choice at wholesale level with a
corresponding level of controlled trade and investment flows between the EU and CIS
markets. The completion time of Phase Two will be determined after a timetable for the
creation of common CIS electricity market is set-up.
This Phase consists of establishing the following market institutions and legislative
framework in case, and to the extent that, these are not in place:
a. Establishment of Independent Regulators which are fully independent from the interests
of the industry, enjoys adequate independence from the day-to-day political influence of
the government, and have appropriate dispute settlement powers;
b. Establishment of an adequate legislative and regulatory framework for effective
regulatory control in the domestic market so as real competition at wholesale level can
occur;
c. Regulated non-discriminatory Third Party Access to the transmission network at both
national and interstate level enshrined in and adequately guaranteed by legislation;
d. Transparency of available network capacity ensured;
e. Customer choice and end-user market opening at wholesale level enshrined in and
adequately guaranteed by legislation;
f. Competitive access to gas markets and fuel supplies;
g. Flow on interconnectors and trade between areas based on market-based mechanisms
(explicit auctioning, implicit auctioning, market coupling);
h. Trade via all forms: bilateral, Over The Counter (OTC), power exchanges;
i. Creation and operation of liquid, transparent and trustworthy power exchanges;
j. Companies established in EU and CIS states can freely participate in each other’s
wholesale markets, power exchanges and other forms of trade;
In this Phase, trade between EU and CIS wholesale market actors would be carried out via
all forms: bilateral, over-the-counter (OTC) and power exchanges. Trade flow would be
monitored and controlled by the Common Regulatory Council.
In implementation of Phase TWO of the Roadmap, the Common Regulatory Council would
continue to have the same tasks as in Phase ONE.
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PHASE THREE - Full Wholesale Market Opening
Preparation for the Full Market Opening
Phase THREE of the roadmap aims to establish full compatibility between the EU and CIS
electricity markets allowing full market opening at both wholesale and retail levels with all
customers having the right to choose supplier. This phase corresponds to free trade and
investment flows. The completion of this phase shall depend on the maturity of the
domestic markets to accommodate the necessary reforms.
In this Phase the following market institutions and legislative reforms are expected to be
established:
a. Ensuring the rights for all customers to choose supplier by establishing the necessary
legislative and regulatory framework;
b. Regulated non-discriminatory Third Party Access to distribution network at both
national and interstate level enshrined in and adequately guaranteed by legislation;
c. Establishment of an adequate legislative and regulatory framework for effective
regulatory control in the domestic market so as real competition at both wholesale and
retail levels can occur.
Upon completion of this phase, the two markets would be fully compatible in terms of
market rules. This would open the possibility of full reciprocal market opening between EU
and CIS markets.
After compatibility is reached in all other areas that it deems relevant, the Common
Regulatory Council would have monitoring and advisory power, but would no longer have
power to subject trade and investment flows to control.
109

6. Materials of Analytical “Review of opportunities for participation of CIS
Electricity industries in market-based mechanisms of the Kyoto Protocol”
110

The Electric Power Council of the CIS
(EPC CIS)
Review of opportunities for participation
of CIS Electricity Industries in market-based mechanisms
of the Kyoto Protocol
The Review was prepared by the experts of
the Joint CIS EPC-EURELECTRIC Group “Environment”
with the financial support of the World Bank
January, 2006
111

Table of contents
VOCABULARY & ABBREVIATIONS______________________________________
1. INTRODUCTION ___________________________________________________
2. OBJECTIVES ______________________________________________________
3. PROJECT-BASED KYOTO PROTOCOL MECHANISMS: JI AND CDM ___
3a. Project participants ________________________________________________
3b. Eligibility criteria__________________________________________________
3c. Overview of project cycle ___________________________________________
4. OPPORTUNITIES FOR JI/CDM PROJECT DEVELOPMENT IN CIS
ELECTRICITY UTILITIES __________________________________________
4a. Current and projected GHG emissions in CIS Electricity Sector _____________
4b. Potential for JI/CDM project development ______________________________
Azerbaijan _______________________________________________________
Armenia _________________________________________________________
Belarus __________________________________________________________
Georgia _________________________________________________________
Kazakhstan_______________________________________________________
Kirghizstan_______________________________________________________
Moldova_________________________________________________________
Russian Federation ________________________________________________
Tajikistan ________________________________________________________
Turkmenistan _____________________________________________________
Uzbekistan _______________________________________________________
Ukraine _________________________________________________________
5. NATIONAL INSTITUTIONAL FRAMEWORK FOR JI AND CDM
IN CIS COUNTRIES_________________________________________________
5a. Status of Kyoto Protocol ratification and climate change policies ____________
5b. National JI/CDM legal and regulatory framework and procedures ___________
6. EXPERIENCE OF CIS ELECTRICITY COMPANIES WITH JI/CDM
PROJECTS_________________________________________________________
6a. Current JI/CDM pipe-line in CIS Power Utilities. Project categories,
size and volume ___________________________________________________
6b. Overview of project costs and revenues ________________________________
Ukraine Azerbaijan ________________________________________________
Armenia _________________________________________________________
Georgia _________________________________________________________
Belarus __________________________________________________________
Kazakhstan_______________________________________________________
Moldova_________________________________________________________
Russian Federation ________________________________________________
Tajikistan ________________________________________________________
Uzbekistan _______________________________________________________
Ukraine _________________________________________________________
112

6c. Assessment of project baseline and additionality in selected projects _________
6d. Major obstacles and risks associated with JI/CDM project development
in CIS___________________________________________________________
7. CONLUSIONS ______________________________________________________
LITERATURE __________________________________________________________
ANNEX ________________________________________________________________
Azerbaijan __________________________________________________________
Armenia ____________________________________________________________
Georgia_____________________________________________________________
Belarus _____________________________________________________________
Kazakhstan __________________________________________________________
Moldova ____________________________________________________________
Russian Federation ____________________________________________________
Tajikistan ___________________________________________________________
Uzbekistan __________________________________________________________
Ukraine_____________________________________________________________
113

1. INTRODUCTION
The Carbon Finance Assistance Program of the World Bank, a technical assistance facility
for capacity building and project preparation, seeks to build the capacity of developing
countries and economies in transition to fully participate in the global carbon market. The
carbon market provides a platform for governments, private companies, and individuals to
trade carbon-related emissions reductions to meet the commitment of industrialized
countries to reducing greenhouse gas emissions under the Clean Development Mechanisms
and Joint Implementation of the Kyoto Protocol or for voluntary reasons, at the same time
assisting developing countries by attracting environmentally friendly investment and sound
technology transfer for their sustainable economic development.
The Electric Power Council of the Commonwealth of Independent States (CIS EPC) and the
Union of the EU Electricity Industry – EURELECTRIC are the associations of the
Electricity Industry within the CIS and EU member states respectively. As a result of their
joint efforts aimed at strengthening cooperation between the EU and CIS electricity
markets, an Ad-Hoc working group on Environment was established in 2003 to investigate
environmental dimensions of such cooperation. One of the tasks of the Working Group is to
identify the opportunities for joint project development under the flexible mechanisms of
Kyoto Protocol, Joint Implementation and Clean Development Mechanism, between the EU
and CIS electricity companies.
It is well known that raising awareness and promoting private sector’s involvement in JI and
CDM is one of the areas where external assistance is most urgently required in the CIS
countries.
In this context, the World Bank and CIS EPC - EURELECTRIC Ad Hoc Group on
Environment will form a partnership to promote the involvement of CIS and EU Electricity
Industry in development and implementation of JI/CDM projects within the framework of
the Kyoto Protocol.
The presented “Review of opportunities for participation of CIS Electricity Industries in
market-based mechanisms of the Kyoto Protocol” was prepared by the experts of the Joint
CIS EPC-EURELECTRIC Group “Environment” – Konenkov O.Y., Saparov M.I. (Co -
Chairman of the Joint Working Group) and Malaha V.N., with the financial support of the
World Bank
2. OBJECTIVES
The objective of this short-term assignment is to prepare a draft report on the emerging
opportunities for cooperation under the two market-based mechanisms of the Kyoto
Protocol, Joint Implementation and Clean Development Mechanism.
114

7. CONLUSIONS
The Electric Power Council of the Commonwealth of Independent States (CIS EPC) and the
Union of the EU Electricity Industry – EURELECTRIC are the associations of the
Electricity Industry within the CIS and EU member states respectively. As a result of their
joint efforts aimed at strengthening cooperation between the EU and CIS electricity
markets, an Ad-Hoc working group on Environment was established in 2003 to investigate
environmental dimensions of such cooperation. One of the tasks of the Working Group is to
identify the opportunities for joint project development under the flexible mechanisms of
Kyoto Protocol, Joint Implementation and Clean Development Mechanism, between the EU
and CIS electricity companies.
The urgency of this issue relevant to the power market is stressed in the Environment
Strategy for countries of Eastern Europe, Caucasus and Central Asia (EECCA)6" − the key
document that defines strategic framework of partnership and cooperation between CIS and
EC.
Among the planning actions formulated in the document, part IV «Integrate Environmental
Considerations into the Development of Key Economic Sectors», section 4.2. «Energy
Sector» to be mentioned the following:
Ensure that our environmental policies and programs designed to mitigate climate
change and to achieve the Kyoto targets will properly incorporate energy efficiency
objectives and measures;
Support the funding of activities directed at improving energy efficiency and promote
cost effective energy efficiency projects in the use of the flexible mechanisms of Joint
Implementation and the Clean Development Mechanisms defined under the Kyoto
Protocol:
Promote mobilization of domestic and foreign investments, including inter-alia,
investments for development of renewable energy sources.
In the Annex to the Environment Strategy an initial list of participating international
organizations and institutions that could support the EECCA countries to achieve the
objectives of the Strategy is presented.
In the item 4 “Sectoral integration” of the list in sub item 4.2 “Energy Sector” World Band
and UNDP are mentioned among other institutions.
The Carbon Finance Assistance Program of the World Bank, a technical assistance facility
for capacity building and project preparation, seeks to build the capacity of developing
countries and economies in transition to fully participate in the global carbon market. The
carbon market provides a platform for governments, private companies, and individuals to
trade carbon-related emissions reductions to meet the commitment of industrialized
countries to reducing greenhouse gas emissions under the Clean Development Mechanisms
and Joint Implementation of the Kyoto Protocol or for voluntary reasons, at the same time
6 Environmental partnerships in the UN ECE region: Environment Strategy for countries of Eastern Europe, Caucasus
and Central Asia – Strategic Framework, submitted by the Steering Group on Environment Strategy for countries of
Eastern Europe, Caucasus and Central Asia through the Ad Hoc Working Group of Senior Officials at the Fifth
Ministerial Conference “Environment for Europe” in Kiev, Ukraine, 21-23 May, 2003.
115

assisting developing countries by attracting environmentally friendly investment and sound
technology transfer for their sustainable economic development.
Presently all 12 CIS countries ratified the United Nations Framework Convention on
Climate Change (UNFCCC) and practically all CIS countries ratified or joined the Kyoto
protocol. except for Kazakhstan and Tadjikistan.
All CIS countries prepared and released National communications according to the
UNFCCC obligations. Russian Federation has already released three National
communications.
Perspective energy development plans were elaborated or are under elaboration in a number
of CIS countries.
In nearly all CIS countries, National Action plans aimed at implementation of specific
measures ensuring limitation and reduction of green-house gases emissions including those
in the power sector are under development now.
National CO2 emission ratio for different fuel combustion was identified as a result of
detailed monitoring of GHG emissions from thermal power plants in a number of CIS
countries.
Action plans of CIS power companies targeted on limitation and reducing of GHG
emissions include the following:
Preparation of JI and CDM projects for power industry;
Participation in international tenders for the purchase of Emission Reduction Units from
JI and CDM projects;
Development of stable and long term business relations with power plants carbon
investors;
Monitoring of GHG emissions and the development of emission monitoring systems for
power plants;
Participation in the development of national and corporate emission trading systems;
Participation in developing state policy for GHG emission control;
Development of corporate analytical software systems “GHG”.
The report presents 142 projects for GHG emission reductions proposed for the
implementation in power industry of CIS countries, including:
projects in electroenergy on organic fuel − 83
projects with renewable energy sources (RER) application− 59
Total projects’ annual GHG emission reduction can exceed 20 million tons of СО2equivalent,
including:
Total volume of required investments for the presented projects amounts about 9 billion
USD.
Describing the CIS countries experience it is worth mentioning the RAO UES Russia
management position that established in 2000 the Energy Carbon Fund to coordinate the
Kyoto protocol mechanisms application and carbon investments attraction in energy sector.
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Analysis of the materials presented in the report evidences that CIS countries’ energy power
industries possess considerable potential of GHG emission reductions. This potential results
from the fact that commissioning of new facilities within the last 15 years was substantially
lower then in the previous period. This brought the existing facilities to functional and
moral depreciation.
It is worth mentioning that many CIS countries do consider the use of renewable energy
sources as one of the priorities of their power industry development.
At the same time there is still a number of potential barriers (financial, legislative,
institutional and others) for the implementation of projects aimed at limitation and reduction
of GHG emissions.
The major obstacles are
Presently most of the CIS countries (except for - Armenia, Azerbaijan, Georgia,
Moldova) have so far not designated a Designated National Authority.
Lack of approved procedures for JI/CDM projects approval.
No legislature documents for the JI/CDM projects preparation and implementation
elaborated (except for Kazakhstan)
Lack of experts that posess the JI/CDM projects preparation methodology
Undeveloped system of national GHG inventory procedure.
Lack of specialized structure for the preparation and implementation of JI/CDM projects
in the electricity industry (except for Russian Federation).
The results of this study allow us to draw a conclusion on the expediency and urgency of
project preparation (with the support of EPS CIS, EURELECTRIC, World Bank and other
donors) aimed at the potential development and barriers overcoming on the way of
preparation and implementation of JI and CDM projects in power industry of CIS countries.
117

7. Materials of “General report on carrying out monitoring “Roadmap on key
ecological issues of unification of EC and CIS electricity markets” in CIS-countries in
2007”
118

CIS ELECTRIC POWER COUNCIL
GENERAL REPORT
ON CARRYING OUT THE MONITORING OF
"COMMUNICATION MAP ON KEY ECOLOGICAL ISSUES OF
UNIFICATION OF ELECTRIC ENERGY MARKETS OF EC AND
CIS" IN CIS-COUNTRIES
FOR 2007
Report was prepared by Working group of CIS Electric Energy Council
«Environment» with participating of Executive Council of CIS EEC
October 2008
119

LIST OF EXECUTORS
Chairman of WG of CIS EEC "Environment",
Saparov M.I., Russian Federation
Members of Working Group of CIS EEC “Environment":
Geydarov A.G., Republic Azerbaijan
Nikiforov A.A., Milash E.A., Kurilov V.V., Republic Belarus
Dzhagiparova A.T., Tusupbaeva М.А., Republic Kazakhstan
Mamytov M.A., Moldosanova Zh.A., Kyrgyz Republic
Zhelyapov I.S., Republic Moldova
Konjonkov O.Yu., Novosjolova O.A., Russian Federation
Bobojev H.B., Dzhuraev D.K., Republic Tadzhikistan
Pavlova G.V., Muminova M.P., Republic Uzbekistan
Executive Committee of CIS Electric Energy Council:
Mishuk E.S., Volossky V.P., Kalinov V.F.
120

TABLE OF CONTENT
1. Introduction
2. Measures suggested in the program of environment for CIS-countries
2.1 Phase zero - current situation
2.1.1. Forwarding to the creation of licensing procedure or entitlements
that unify the operating conditions concerning all environmental
emissions
2.1.2. Optimization and harmonization of ecological standards of
environmental quality
2.1.3. Establishment and introduction at thermal power plants of technical
standards on emissions and discharges based on using the best
existing technologies (BET)
2.1.4. Determination of ways of step-by-step approaching of ecological
indicators of TPP to the level providing the fulfillment of obligations
on UN Convections and Protocols such as "on trans-boundary
transfer of pollutions in air for large distances" and Protocols and
Framework Convection of Climate Change (FCCC) and Kyoto
Protocol connected with it
2.1.5. Execution on the constant base of the procedure of assessment of
environmental impact for new industrial plants (objects) by means of
bringing the corresponding requirements during the entitlements for
their construction
2.1.6. Implementation of efficient process providing the fulfillment of legal
requirements and licensing or permissive conditions and installing
the order for application of penalties ratable to violations and being
preventive
2.1.7. Introduction of ecological management system at all power
engineering objects in correspondence with the requirements of ISO
14001 or equivalent standard
2.2. Phase one – Preparation to the opening of limited wholesale
market
2.2.1. Development in CIS of proposals on changing the normative
documents regulating the resolving activity for nature management
and fulfillment of assessment of environmental impact in energy
companies
2.2.2. Execution of contrastive analysis of the system of ecological
accountability at the objects of electric power industry of CIS and
EC countries, development of proposals for their matching and
unification (collection of data, quality control, adequacy).
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2.2.3. Estimate of investment resources’ volumes, which are necessary to
the electric energy companies of CIS-countries and EC in connection
with changing nature-protective legislations and standards together
with the analysis of new possible mechanisms of financing
2.2.4. Preparation of a list of foreground investment projects including
those directed to the increasing of energy efficiency and using of
renewable energy sources in energy companies of CIS-countries
acceptable for realization of mechanisms of Joint Implementation,
(Л) and clean development (CDM), which are foreseen by Kyoto
Protocol attached to the Framework Convection of Climate Change
(FCCC)
2.2.5. Development of proposals on unification and integration of the
system of training and retraining of specialists in the area of ecology
in electric power industry of CIS and EC
3. Conclusions
Applications
Application 1. COMMUNICATION MAP on key ecological issues
of unifying the electric energy markets of EC and CIS, Moscow-
Brussels, 2005
Application 2. Ecological partnership in the region of UN EEC:
ecological strategy for the countries of East Europe, Caucasus and
Central Asia, Kiev, 2003
Application 3. List of documents adopted the sixth conference on
ministers «Environment for Europe», Belgrade, Serbia, 2007.
Application 4. Declaration of ministers of the region of UN
European economic commission (UN EEC) «Bridging in future»,
Belgrade, Serbia, 2007
Application 5. Guiding principles of efficient systems of natureprotective
permissions, Belgrade, Serbia, 2007
Application 6. Water initiative of European Union – Eastern Europe,
Caucasus and Central Asia, Belgrade, Serbia, 2007
Application 7. Needs connected with realization of UN EEC strategy
for education in interests of sustainable development, Geneva, 2008.
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1. Introduction
One of strategic objectives of Electric Energy Council is an organization of parallel
operation of the union of CIS-countries power systems with the unified power systems of
European Community countries.
For solving this goal, the Electric Energy Council of CIS together with European unity of
electric power industry EURELECTRIC and Union of coordination transmission electricity
UCTE works forming the general approaches to the solution of legal, economic, technical,
technological, operative and ecological problems. The joint working group of
EURELECTRIC and EEC CIS «Environment» was created for the goals of ecological
cooperation.
In 2005 Joint working group prepared the comparative report on the evaluation of the state
of environmental protection conditions in two regions «Key issues of environmental
protection with unification of electric energy markets of EC and CIS-countries ». The report
contains the description of EC and CIS legislations on protection of air basin, change of
climate, protection and rational usage of water resources and waste. The report describes as
well the planned actions on changing the nature-protective legislations and their
harmonization with the nature-protective legislation of CIS-countries, the analysis the main
aspects of legislation on environmental protection and also the comparison of levels of
environmental impact from the objects of electric power industry in EC and CIS.
The plan of actions – «Road map on key ecological problems of unifying the electric energy
markets of EC and CIS» (Application 1) was prepared on the basis of report. This plan was
approved at 28th meeting of EEC CIS. The positions of document «Ecological partnership
in the region of UN EEC: ecological strategy for the countries of East Europe, Caucasus and
Central Asia» adopted at the Fifth Conference of ministers «Environment for Europe»
(Kiev, 2003, Application) were used in preparing “Road map”.
The road map represents the plan of incremental creation of combined ecological conditions
in the regions of ES and CIS consisting of four parts - phases from «Current situation»
(Phase zero) to the full opening of wholesale markets and the beginning of preparation to
the full opening of market (Phase three). Each phase corresponds to the higher level of
compatibility, after which the proportionally increasing level of mutual opening of markets
in the market zones of EC and CIS is following.
The Presidents of EEC CIS and EUROELECTRIC approved in September 2006 the List
foreground joint action on realizing the Road maps for the convergence of market and
ecological conditions in EC and CIS. The sixth Conference of head officers (ministers) of
European states-UN members «Environment for Europe» took place in Belgrade in October
2007. Here a few documents concerning the Road map were adopted. The texts of a part of
documents adopted at the Conference in Belgrade are presented in Application 3-7.
In particular:
Application 5 contains the document with guiding principles of creating the efficient
systems for granting nature-protective permissions, which concern directly the main
issues of Phase one and Phase two of «Road map» (see below Chapter 2, items. 2.1.1
and 2.2.1);
Application 6 contains the document with information of the last achievements and
further prospects of realization of Water Initiative of European Community for the
countries of Eastern Europe, Caucasus and Central Asia;
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Application 7 contains the document with consideration of the issues of training the
specialists in the field of ecology and sustainable development.
The Presidents of EES CIS and EUROELECTRIC agreed on 12 th June 2007 at the 8th
meeting in Antwerpen "to entrust to Joint group on environment to adjudge the process of
execution for monitoring of Road map on environment on the regular base" (item 6.3.4 of
Protocol).
This solution of President was approved on October 12, 2007 at the 32nd meeting of CIS
Electric Energy Council, and it was entrusted to the Executive Committee to organize the
meeting of participants of Joint working group EUROELECTRIC – EEC CIS on
environment from the side of CIS for discussing the topic on organization of monitoring.
The meeting of JWG EUROELECTRIC and EES CIS "Environment" from CIS countries
tool place in Moscow in December 13-14, 2007. На заседании был согласован The table
format of monitoring for progress of works on Road map of EEC CIS-EUROELECTRIC on
environment was coordinated at the meeting, and it was suggested to organize the constantly
acting Working group of CIS Electric Energy Council « Environment ».
The CIS Electric Energy Council approved in May 23, 2008 at the 33rd meeting the
suggested format of monitoring for Road map and made a decision on creation of constantly
active working group of CIS Electric Energy Council «Environment». The Council
approved as a leader of group Saparov Mikhail Isaevich, leading researcher of OJSC
"G.M.Krzhizhanovsky power engineering institute" (OJSC "ENIN").
The present General report was prepared by the specialists of OJSC "G.M.Krzhizhanovsky
"ENIN" and Executive Committee of EES CIS on the basis of national reports presented by
8 countries of CIS: Republic Azerbaijan, Republic Belarus, Republic Kazakhstan, Kyrgyz
Republic, Russian Federation, Republic Moldova, Republic Tadzhikistan, Republic
Uzbekistan.
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3. Conclusions
This General report allows evaluating the state of fulfillment of measures containing in the
plan of actions – Road map on environment in the separate countries and area of CIS on the
whole.
The report allows to judge about the degree, with which the CIS-countries take into account
the ecological component in developing the documents of strategic planning in electric
power industry (names of standards, models, programs, methods, approaches etc.).
In particular, the report contains the adopted normative documents; the description of
specific measures on harmonization of national and international standards on ecology in
electric power industry; the data on fulfillment of obligations on Framework Convention of
Climate Change (FCCC) and Kyoto protocol; the data on amount, name and status of
projects prepared on schemes of JI and CDM; the information on execution of international
convention on environmental protection; am list and status of multilateral treaties as well as
the description of specific measures directed to the fulfillment of obligations on
international treaties at the electric power industry objects.
Te information presented by countries-members of EEC CIS and the given General report
allow making the following conclusions:
At the present time 8 countries of CIS (Republic Azerbaijan, Republic Belarus,
Republic Kazakhstan, Kyrgyz Republic, Russian Federation, Republic Moldova,
Republic Tadzhikistan, Republic Uzbekistan) presented the report on realization of
positions of «Road map» for 2007.
Practically in each position of «Road map» there is a certain progress in CIS-countries.
The best forwarding on «Road map» was achieved in Republic Kazakhstan, Russian
Federation and Republic Belarus.
The best examples of realizing the main directions of «Road map» are:
Republic Kazakhstan:
Ecological code of Republic was approved 09.01.2007. The Laws: «On environmental
protection», «On ecological expertise», «On protection of atmospheric air» were
cancelled.
The concept of complex permissions was introduced, and it is the only document
certifying the right nature manager to carry out the environmental emissions (emissions,
discharges of contaminants, disposal of production and consumption waste in
environment, harmful physical impacts) under condition of introducing the best
available technologies and execution of technical specific norms of emissions.
Technical regulation "Requirement for environmental emissions with combustion of
fuels of different types in the boilers of thermal power plants" ( statement of RK
Government № 1232 on 14.12.07) was adopted.
Introduction of technical specific norms of emissions foresees the transient period from
2008 to 2013.
The draft statement of Republic Kazakhstan Government «On approving the list of the
best available technologies» was developed.
The unique inventory of normative documents on environmental protection was formed.
The active legislation stimulates the implementation of international standards.
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Russian Federation:
Within the frameworks of Ecological program, RAO «UES of Russia» developed the
standards of organization on ecological safety of electric power industry objects
including 7 standards on TPP:
Air basin protection
Protection of water medium
Soils pollution (ash-and-slag waste)
Acoustic effect (sound)
Technical requirements for the plants and systems of flue gases cleaning from sulfur
dioxide
Technical requirements for the plants of flue gases cleaning from nitrogen oxides by
technologies of СНКВ и СКВ and systems of management of nitrogen-cleaning
plants
Requirements for control and management of operating regimes of boilers with
their equipment of technological methods for nitrogen oxides suppression
as well as the standards of organization «Strategic ecological estimate of investment
plans and programs of energy companies. General positions», which were harmonized
with Directive 2001/42/EC «Assessment of environmental impact for the certain plans
and programs».
The normative-methodological on implementation of SEM and ecological audit has
been formed.
The system of ecological management of OJSC «Mosenergo» was developed,
introduced and certified for the correspondence of ISO 14001.
The training of managers and specialists of energy companies on the course «Ecological
management and ecological audit» was organized.
Information manual «Modern nature-protective technologies in electric power industry»
was prepared.
The development of Web-site with open access «The best modern available and
prospective nature-protective technologies in electric power industry» is completing.
Republic Belarus:
The Order of Ministry of energy of Republic Belarus on 30.11.2007 installed for SEU
«Belenergo» the assignment on a number of organization, where the systems of
environmental management should be certified in 2007-2010 in accordance with the
requirements of international standard ISO 14001.
The measures on increasing the energy efficiency of active equipment, substitution of
gas and mazute on the local types of fuel and application of alternative energy sources
foreseen by “State complex program…” are considered as the projects acceptable for
realization within the frameworks of mechanisms of Joint Implementation on the
objects of electric power industry.
The Working group of CIS Electric Energy Council «Environment» recommends the
present General report for presentation for approving at the 34th meeting of CIS Electric
Energy Council in October 2008.
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8. Materials of “General report on monitoring “Roadmap on key ecological
issues of unification of EC and CIS electricity markets” in CIS-countries in 2008”
127

CIS ELECTRIC POWER COUNCIL
GENERAL REPORT
ON CARRYING OUT THE MONITORING OF "ROAD MAP ON
KEY ECOLOGICAL ISSUES OF UNIFICATION OF ELECTRIC
ENERGY MARKETS OF EC AND CIS" IN CIS-COUNTRIES
FOR 2008
Report was prepared by Working group of CIS Electric Energy Council
on environmental protection with participation of Executive Council of CIS EEC
2010 г.
128

LIST OF EXECUTORS
Chairman of Working group of CIS EEC on environmental protection
Saparov M.I., Russian Federation
Memvers of Working Group of CIS EEC on environmental protection:
Geydarov A.G., Republic Azerbaijan
Korduba I.V., Nikiforov A.A., Mazurkevich T.M., Milash E.A., Kurilov V.V., Republic
Belarus
Dzhagiparova A.T., Medeuov Zh.K., Tusupbaeva М.А., Republic Kazakhstan
Mamytov M.A., Moldosanova Zh.A., Kyrgyz Republic
Zhelyapov I.S., Republic Moldova
Konjonkov O.Yu., Korzikova M.V., Novosjolova O.A., Russian Federation
Bobojev H.B., Dzhuraev D.K., Republic Tadzhikistan
Muminova M.P., Republic Uzbekistan
Executive Committee of CIS Electric Energy Council:
Mishuk E.S., Volossky V.P., Kalinov V.F., Malakha V.N.
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TABLE OF CONTENT
1. Introduction
2. Measures suggested in Road map on environment for CIS-countries
2.1 Phase zero – Current situations
2.1.1. Progression in the direction of licensing procedures development or
provision of permissions unified the operation conditions concerning
all environmental emissions
2.1.2. Optimization and harmonization of ecological standard of
environmental quality
2.1.3. Establishment and introduction at electric power plants of technical
standards on emissions and discharges based on using the best
existing technologies (BET)
2.1.4. Determination of ways for incremental reduction of TPP ecological
indicators to the level providing the fulfillment of obligations on UN
Conventions and Protocols, such as "On trans-boundary transfer of
pollution in air for large distances" and Protocols and UN
Framework Convention of Climate Change and Kyoto Protocol
connected with it.
2.1.5. Implementation of the constant base of procedure for assessment of
environmental impact of new industrial plants (objects) by means of
presentation of corresponding requirements during granting the
permissions for their construction
2.1.6. Implementation of efficient process providing the fulfillment of legal
requirements and licensing of permissible conditions and installing
the rules of application of penalty provisions ratable to violations
and having the preventive character
2.1.7. Introduction of ecological management system at all electric power
objects in accordance with requirements of ISO 14001 or equivalent
standard
2.2. Phase one – Preparation to the opening of limited wholesale
market
2.2.1. Development of proposals in CIS on changing normative documents
regulating the permissible activity for nature management and
fulfillment of assessment of environmental impact in energy
companies
2.2.2. Execution of comparative analysis for the ecological accounting
systems at the objects of electric power industry of EC and CIScountries,
development of proposals for their harmonization and
unification (collection of data, quality control, reliability)
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2.2.3. Evaluation of investment resources’ volumes that are necessary for
electric energy companies of EC and CIS-countries in connection
with changing nature-protective legislations and standard together
with analysis of new possible mechanisms of financing
2.2.4. Preparation of a list of priority investment projects including those
directed to increasing the energy efficiency and using the renewable
energy sources in energy companies if CIS-countries acceptable for
realization within the frameworks of mechanisms of Joint
implementation (Л) and clean development (CDM) foreseen by
Kyoto Protocol to the UN Framework Convention on Climate
Change
2.2.5. Development of suggestions on unification and integration of the
system of training and retraining of specialists in the area of electric
power industry ecology in countries of CIS and EC
Application. ROAD NAP on the key ecological issues of EC and CIS
electric energy markets’ unification, Moscow-Brussels, 2005
131

1. Introduction
One of strategic objectives of Electric Energy Council is an organization of parallel
operation of the union of CIS-countries power systems with the unified power systems of
European Community countries.
For solving this goal, the Electric Energy Council of CIS together with European unity of
electric power industry EURELECTRIC and Union of coordination transmission electricity
UCTE works forming the general approaches to the solution of legal, economic, technical,
technological, operative and ecological problems. The joint working group of
EURELECTRIC and EEC CIS «Environment» was created for the goals of ecological
cooperation.
In 2005 Joint working group prepared the comparative report on the evaluation of the state
of environmental protection conditions in two regions «Key issues of environmental
protection with unification of electric energy markets of EC and CIS-countries ». The report
contains the description of EC and CIS legislations on protection of air basin, change of
climate, protection and rational usage of water resources and waste. The report describes as
well the planned actions on changing the nature-protective legislations and their
harmonization with the nature-protective legislation of CIS-countries, the analysis the main
aspects of legislation on environmental protection and also the comparison of levels of
environmental impact from the objects of electric power industry in EC and CIS.
The plan of actions – «Road map on key ecological problems of unifying the electric energy
markets of EC and CIS» (Application) was prepared on the basis of report. This plan was
approved at 28th meeting of EEC CIS. The positions of document «Ecological partnership
in the region of UN UEC: ecological strategy for the countries of East Europe, Caucasus
and Central Asia» adopted at the Fifth Conference of ministers «Environment for Europe»
(Kiev, 2003, Application) were used in preparing “Road map”.
The road map represents the plan of incremental creation of comparable ecological
conditions in the regions of ES and CIS for formation of common electric energy market.
The Road map consists of four parts - phases from «Current situation» (Phase zero) to the
full opening of wholesale markets and the beginning of preparation to the full opening of
market (Phase three). Each phase corresponds to the higher level of compatibility, after
which the proportionally increasing level of mutual opening of markets in the market zones
of EC and CIS is following.
The presidents of CIS EEC and EURELECTRIC agreed in June 12 2007 at the 8th meeting
in Antwerp "assigning to the Joint working group on environmental protection to organize
the process of carrying out the monitoring of Road map on environment on regular basis"
(item 6.3.4 of Protocol).
This decision of Presidents was approved at the 32nd meeting of CIS Electric Energy
Council in October 12, 2007, and it was assigned to Executive Committee to organize the
meeting of participants of Joint working group EURELECTRIC - CIS EEC "Environment"
from CIS-countries for the discussion of issue on organizing monitoring.
The meeting of JWG EURELECTRIC and CIS EEC "Environment" from CIS-countries
took place in December13-14, 2007 in Moscow. На заседании был согласован The format
monitoring table in Road map of CIS EEC-EURELECTRIC on environment was
132

coordinated at the meeting and it was suggested to organize the constantly active Working
group of CIS Electric Energy Council on environmental protection.
CIS Electric Energy Council at the 33rd meeting in May 23, 2008 approved the suggested
format of Road map monitoring and made decision on organization of constantly active
Working group of CIS EEC on environmental protection. The Council approved as a leader
of group Saparov Mikhail Isaevich, leading researcher of OJSC "G.M.Krzhizhanovsky
Power Engineering Institute" (OJSC "ENIN").
The general report on implementation of monitoring of "Road map in key ecological issues
of EC and CIS electric energy markets unification" in CIS-countries was prepared by
Working group together with Executive Committee of CIS EEC on the basis of presented
national reports as a result of statistical accountability for 2007.
General report allows evaluating the state of fulfilled measures contained in Road map, in
separate countries and CIS-region on the whole and to judge about the degree, with which
the CIS-countries take into account the ecological component, when they develop the
documents of strategic planning in electric power industry (name of standards, models,
programs, methods, approaches etc.).
The report contains the adopted normative legal documents; the description of specific
measures on harmonization of national and international standards on ecology for electric
power industry; the data on fulfillment of obligations on Framework Convention on Climate
Change (FCCC) and Kyoto protocol. There are also the amount, name and status of projects
prepared on schemes of PJI and CDM; the information about observance of international
conventions on environmental protection; a list and status of multilateral treaties as well as
the description of specific measures directed to the fulfillment of obligations on
international treaties on electric energy objects of CIS-countries.
The process of forming normative-methodological base for realizing the above-pointed
measures is actively developed at the present time. Some countries adopted the laws on
RES, there is the revision of laws on energy conservation and development of new laws on
increasing the energy and ecological efficiency.
Still in October 2002 the Governments of countries-participants of CIS signed the
Agreement on their cooperation in the area of energy efficiency and energy saving, which
determined due to its purposes the formation of energy-saving interstate policy by means of
carrying out the coordinated action in the area of economic and scientific-technical
cooperation, marketing, development and realization of projects, including the joint ones,
usage of advanced technologies in the area of energy conservation, renewable energy
sources, introduction of local types of fuel, harmonization of legislative and normative-legal
base, exchange of information, securing of stable reduction of power engineering effect on
environment, development of financing mechanism for joint projects and training of
specialists. This document is directed for the serious and long-term CIS cooperation.
The arrangements achieved in Agreement were defined concretely in «Main directions and
principles of interactions between CIS-countries-participants in the area of provision of
energy efficiency and energy saving » approved by Solution of CIS Economic Council in
March 11, 2005.
The main directions should promote to determine the priorities within the frameworks of
branch, state and regional plans on widening application and introduction of energy efficient
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and energy saving technologies and equipment and to attraction of investments for realizing
of energy efficient projects with high economic profitability.
The target goal of Main directions is the development and realization of the complex of
organizational, normative-legal, financing-economical, scientific-technical and informationtraining
measures directed to the development and intensification of interstate cooperation
of CIS-countries-participants and achievement of progress in the area of development and
implementation of progressive energy-efficient technologies, equipment and methods of
management in the trades of regions.
The CIS Electric Energy Council at its 34th meeting in October 24, 2008, after hearing and
discussing the information «On the course of monitoring of Road map of CIS EEC-
EURELECTRIC on environment», took on discount the information of Executive
committee of CIS EEC on coordination with EURELECTRIC of format of the Table of
monitoring of Road map in CIS-countries on the totals of statistical accountability in 2007.
It was assigned to Executive Committee of CIS EEC to send General report in
EURELECTRC for acquaintance and preparation of joint report of EEC and
EURELECTRIC on monitoring of Road map in CIS ECC-EURELECTRIC on environment
forа 2007.
The further directions of combined activity were discussed and coordinated at the 10th
meeting of Presidents of CIS EEC and EYRELECTRIC organized in Moscow in March 20,
2009. In particular, the Parties accepted it as necessary to carry out the revision
(actualization) of Road map for environment and to work out the new general strategy about
future priorities and projects.
The Presidents approved the work of Joint working group of EURELECTRIC-CIS EEC
«Environment» on preparation of Report on monitoring of "Road map on key ecological
issues of EC and CIS electric energy markets unification" in 2007 and assigned also to this
group to prepare the similar report on the results of statistical accountability in 2008.
Presidents of EURELECTRIC and CIS EEC agreed assigning to the Joint working group of
EURELECTRIC and CIS EEC «Environment» to carry out the evaluation of electric power
industry development scenarios in CIS-countries in the period after 2012 (post-Kyoto) from
the point view of greenhouse gases emission within the frameworks of requirements of
compatibility of EC and CIS electric energy markets.
The meeting of Working group of CIS Electric Energy Council of environmental protection
took place in Moscow in October 8-9, 2009.
The participants of meeting considered the proposals on revision (actualization) of “Road
map on key ecological issues of electric energy markets unification in EC and CIScountries»
and determination of priority areas for CIS EEC and EURELECTRIC
cooperation.
The Working group didn’t recommend to change the text of «Road map on key ecological
issues of electric energy markets unification in EC and CIS-countries», as it corresponds to
all modern European and world tendencies and directions of nature-protective activity
developments, but to develop the more obvious form and to optimize the periodicity of
presentation of the results of combined nature-protective activity monitoring, to coordinate
the presented material with EURELECTRIC and to transfer them for approval by CIS EEC.
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The meeting of Chairman of Executive Committee of CIS EEC E.S.Mishuk with the head of
Department of environment and policy of sustainable development of EURELECTRIC
Secretariat John SKOUKROFT took place in October 19, 2009.
The issues of priority direction of cooperation at the new stage and actualization of «Road
map on key ecological issues of EC and CIS electric energy markets unification» were
discussed at this meeting.
The Parties agreed to complement the traditional directions of CIS EEC and
EURELECTRIC cooperation in ecological sphere by the direction of climate change
including also after 2012 energy efficiency and renewable energy sources.
The Parties decided as well to recommend to CIS Electric Energy Council and Council of
Directors of EURELECTRIC to attach to Joint working group EURELECTRIC–CIS EEC
«Environment» the status of constantly active combined working organ and to entrust to
Joint group to carry out the working interaction on all aspects of cooperation in the area of
environmental protection, energy efficiency and renewable energy sources.
The Council off CIS Governments’ head approved in November 20, 2009 the Concept of
cooperation of CIS-countries-participants in the area of power engineering.
The concept is based on the priority of economic interests of CIS-countries-participants and
foresees, in particular:
Provision of efficient utilization of energy potential of CIS-countries- participants
and sustainable development of total energy potential of CIS;
Provision of energy security of each state – participate of CIS within the
framework of general energy security of CIS taking into account the facilities;
Combined development and efficient utilization of renewable energy sources;
Combined solution of ecological problems in the area of fuel-energy complex;
Development of common information space in the power engineering field.
It was not possible to adopt the new Agreement, which could come for changing the Kyoto
protocol active up to 2012, at 15th Conference of Parties on the UN Framework Convention
on Climate Change, which took place in Copenhagen in December 7-18, 2009 with
participation of representatives from 192 countries.
But the Declaration reflecting the view of very different countries on perfecting the work on
improvement of ecological situation at the planet; on attempt to prevent unfavorable climate
changes was accepted at Conference.
The fact that the countries-participants of Summit couldn’t come to the new agreement
testifies the complexity and multi-side character of the problem of climate change, the role
and degree of anxiety of each separate country, while a number of countries-participants
shows the scale and degree of anxiety of all world community by this problem.
The arrangements fixed in Declaration will make a path to the new global climate
agreement.
CIS-countries try reducing the power engineering effect on environment by means of
increasing energy efficiency, energy saving and development of renewable energy sources.
The present General report is the second one and contains the information of monitoring of
«Road map on key ecological issues of EC and CIS electric energy markets unification» in
CIS-countries by the results of statistical accountability for 2008.
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The report was prepared by the specialists of OJSC "G.M.Krzhizhanovsky "ENIN" and
Executive Committee of EES CIS on the basis of national reports presented by 8 countries
of CIS: Republic Azerbaijan, Republic Belarus, Republic Kazakhstan, Kyrgyz Republic,
Russian Federation, Republic Moldova, Republic Tadzhikistan, Republic Uzbekistan.
136