Eurasian Integration Yearbook 2012

Aigul Absametova. “Integration Processes in the Electric PowerSectors of the EDB Member States”Advanced Economic Cooperationin Sectors and IndustriesIn 2008, in order to mitigate power shortages resulting from an accident atBelarus’ Lukoml GRES, the lacking amount of electricity was supplied by Russia,Lithuania and Latvia (Lenta.ru, 2008) via the power plants in the north-westernIPS and the Baltic States that were loaded following the instructions of theSystem Operator of the Unified Energy System (UES System Operator, 2008).The power systems of the EDB member states cover four time zones anddaily peak hours in different systems do not coincide. It is expected that,given socioeconomic development, the winter peak loads in Kyrgyzstan andSouth Kazakhstan will be replaced by summer peak demand (Belyayev et al.,2008). There will be a similar effect in Tajikistan. The unification of systemswith winter and summer peak loads will have significant integration effects,saving generating capacity and lowering the cost of construction and operationof generating facilities. Given the daily differences in peak demand and thevariation in generating capacities between the national power systems, closercooperation between Central Asian EDB member states, primarily with Russia,where peak demand is in winter, is expected to produce the greatest capacitysavingand regime integration effects for all countries.Interstate initiatives on establishing a common CISelectricity marketThe power systems of the CIS countries emerged after the collapse of theUSSR when the Soviet power complex was divided between them. Integrationprocesses in the CIS power sectors began on February 14, 1992 when theAgreement on the Coordination of Interstate Relations in the Field of ElectricPower in the CIS (CIS, 1992) was signed by the Heads of States. In accordancewith the agreement, the countries formed the CIS Electric Energy Council(Mishuk, 2008).To ensure the reliable operation of the power systems and to create a basis formutually beneficial cooperation, the CIS Electric Energy Council approved theAgreement on Parallel Operation of the CIS Power Grids, which defined thecommon principles of parallel operation (Mishuk, 2008).On November 26, 1998, the Agreement on Ensuring Parallel Operation of theElectric Power Systems of the CIS Member States was signed (CIS, 1998). Thiswas the very first legal instrument (Mishuk, 2011) governing interaction betweencountries and enterprises regarding the parallel operation of the power grids oncommercial terms. The agreement was signed by Armenia, Belarus, Georgia,Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Uzbekistan and Ukraine(the latter with a modest proviso). Within the framework of the Agreementthe parties reached corresponding bilateral and multilateral agreements (CIS,1998).So, on November 22, 1999, Belarus and Russia signed an agreement to createan integrated power system (Agreement, 1999); on June 15, 2000 the parallelEurasian Development Bank205