Wind Power Market and Electricity Market in CIS Countries in 2016
/20th April 2016, RENEWABLE MARKET WATCHTM/ Total cumulative wind power installation number in CIS countries is less than 1 GW at the end of 2015, a tiny share of the global cumulative installed wind power capacity of 435 GW by the end of 2015. However, the situation at CIS countries wind energy market is about to change in a positive growth direction.
Besides Ukraine, an undisputed leader through installed wind power capacity amongst CIS countries, Kazakhstan also has ambitions to take serious share from this market.
CIS countries are pursuing an effort to reform and liberalize their electricity markets. Some of them have achieved considerable results and have put in place some or most of the elements of a functioning electricity market. The independence of the regulator seems to have remarkable progress in Ukraine and Kazakhstan. In almost all the countries efforts are being undertaken with considerable success to separate the network, especially the transmission ones. As a result, some of the TSOs can now be considered as independent; for example JSC “KEGOC” – JSC “Electric networks governing company of Kazakhstan”, JSC “Electric Energy Network Operator” of Armenia, “Georgian State Electric Network” of Georgia, “National Electric Network of Kyrgyzstan”, Federal Network Company of the United Energy Network of Russia and National Energy Company “Ukrenergo” of Ukraine.
In some CIS countries, network access is defined by the legislation in force. The CIS common electricity market concept provides obligations for transmission network operators to ensure nondiscriminatory network access. In many CIS countries, the transmission system operator is an integrated part of the national electricity company. Transmission activities are generally organized in a separate department or unit within the national electricity company and are generally reported separately from other activities performed by the same company. The majority of the CIS's electric power utilities are established as joint-stock companies and are financially independent of the government bodies.
At the beginning of 2002, the Electric Power Council of the Commonwealth of Independent States (EPC CIS) expressed its interest in the synchronous interconnection with the power systems of the CIS countries and the Baltic States (IPS/UPS) to the power systems of the members of the Union for the Co-ordination of Transmission of Electricity (UCTE).
On May 25, 2007, in Yalta, the Council of Heads of Governments of the Commonwealth of Independent States adopted the Agreement on forming the CIS Common Electricity Market (CIS CEM). The Agreement was signed by 6 states: the Republic of Armenia, Republic of Belarus, Republic of Kazakhstan, Kyrgyz Republic, Russian Federation, Republic of Tajikistan.
The Concept of the Formation of the Common Power Market represents a coordinated approach to forming the common power market of the CIS. The concept takes into account the main principles of integration and liberalization of the European energy markets. Under the Concept, the following types of relations between its subjects determine the functional structure of the Common Power Market of the CIS.
The industry is the key consumer of electricity for the CIS countries (metallurgy, chemical industry, energy and machine construction), followed by households and transportation industry. The CIS countries economy is overall more energy-intensive than the economies of the EU countries.
The CIS region is one of the youngest wind energy markets in the world. The vast territories and growth in electricity consumption, increase in prices for energy carriers, environmental pollution and fight against climate change - all these factors have stimulated discussions and government actions about the wind energy sector development in these countries.
CIS countries are possible to turn into the newfound hotspot for wind energy investments in the next few years. The maturing markets in Western Europe allowed investors to look for new opportunities in Eastern European and CIS countries. In the period 2008 – 2015, Bulgaria, Czech Republic, Hungary, Poland and Romania have attracted a major share of investments amongst Eastern European countries. However, with the reduction in feed-in tariffs and green certificates, these might lose its supremacy in the region, making CIS countries the next most promising market.
CIS Countries Wind Market Outlook 2016 - 2025, offer comprehensive information on major policies governing renewable energy market in this region. The report presents an in-depth analysis of the renewable energy policies across the major renewable energies (including wind) in CIS countries. This report provides the current and future renewable energy targets and plans and the present policy framework, giving a fair idea of the overall growth potential of the wind energy industry in the CIS area. The report also provides major technology specific policies and incentives provided in the countries. A comparative analysis of major policy instruments, country attractiveness indices for renewable energy investments and analysis of market risk factors in CIS countries regarding the wind power industry has also been provided.
More information about this very promising solar and wind market you may read here: CIS Countries Wind Market Outlook 2016 - 2025