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Introduce efficiency labelling schemes for all residential and service sector heating and cooling systems. Phase out voluntary schemes and replace them with mandatory schemes. Incorporate heating and cooling system labelling into home energy performance labelling as a separate item, with supporting documentation made available on replacement and retrofit opportunities. Begin 2011. All OECD countries to have comprehensive mandatory labelling by 2015, developing countries by 2020.
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Standardised national and international testing and evaluation procedures for specific technologies can increase understanding among developers, architects and installers and accelerate the maturity of local industry more broadly.
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The problem is often one of asymmetric information. That is to say that one party, usually the seller, has better or more complete information than the buyer.
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The lack of independent information that is perceived as trustworthy, comparable and unbiased is a major barrier to the uptake of energy-efficient and low/zero-carbon technologies. Addressing this lack of data needs to be a policy priority.
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For example, as part of their wider strategy for promoting solar thermal, Austria ran a promotional and training campaign from 2004 to 2008 that included information and promotional events (including trade fairs); training measures for installation and technical staff, planners, and energy consultants; planning support for large solar thermal systems; expert workshops; presentations; an information website; information brochures; and a free solar thermal consultation hotline.
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In the building sector, the purchase of heating and cooling equipment is often given little consideration by architects, builders and home owners; the industry standard is usually fitted. This is rarely the lowest life-cycle cost option, and is unlikely to factor in future energy and CO2 price risk.
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Policies are required that ensure that decision makers are provided with standardised information (that goes beyond current labelling schemes) about the energy efficient or low/zero carbon technology best suited to their building and operational requirements. This information must be tailored to ensure that it is as relevant as possible and meets the needs of stakeholders, as research has shown that different consumer groups respond to information about energy savings opportunities differently (Barr, Gilg, and Ford, 2005).
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This will require: z Research into the requirements of different decision makers (builders, architects, installers, home owners, etc.) and the presentation of information most likely to successfully influence their purchase decision. z Development of standardised information packages in consultation with stakeholders, which should include information on efficiency, CO2 emissions, life-cycle costs and scenarios that evaluate energy/carbon price risks.
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Current policies that address information barriers include product energy performance labelling, which can be either voluntary or mandatory. The effectiveness of this depends a lot on the decision maker having a good understanding of what the information really means. These policies therefore need to be complemented by educating consumers and ensuring that those presenting the information are well-versed in the implications for consumers.
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There are two main types of labels: comparison labels and endorsement labels. Comparison labels provide information on relative efficiency using some kind of rating/index system, but may include absolute energy consumption information and/or energy available.
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More detailed information will be required for commercial appliances and for building sector professionals, however. Building professionals should have access to detailed and customisable tools to help evaluate heating and cooling technologies and their performance under various simplified operating and financial scenarios.
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The information provided needs to include relative efficiency (potentially based on existing labelling schemes), energy consumption, annual running costs, life-cycle costs and CO2 emissions. Standardised scenarios that look at energy price and CO2 price risk should also be included.
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More efficient or low/zero-carbon technologies generally have higher initial investment costs than incumbent technologies so reducing such costs will improve the uptake of these. Complementary policies on providing information on the life-cycle costs will help allow an accurate assessment of their competitiveness and reduce the first-cost barrier problem to some extent, but will not be enough by themselves to achieve a market transformation.
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It is important to review the existing regulatory framework on heating and cooling systems in buildings to ensure that conflicts do not occur among the myriad regulatory regimes for buildings (e.g. fire, health and safety; local planning regulations; electrical and gas regulations; and those directly related to heating and cooling equipment). Co-ordinating and aligning the regulatory framework to remove any barriers while still meeting other policy goals (fire, safety, etc), is an important pre-requisite for a successful deployment programme.
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An important policy opportunity exists in public procurement policy. Governments can lead the way by ensuring policies are in place to mandate or incentivise the public procurement of efficient and low/zero-carbon heating and cooling technologies.
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This roadmap recommends the following actions: Introduce a stable, long-term regulatory framework aligned with the high-level goals for energy and CO2 savings in buildings in order to provide decision makers the confidence to invest long-term (e.g. legislation that ring-fences policy and funding to provide long-term certainty).
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The higher capital costs of many energy-efficient and low/zero-carbon heating and cooling technologies and other barriers means that clear, long-term, effective, efficient and predictable deployment incentives are required to help transform the market to the point where support policies are no longer needed.
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A portfolio of policies will be required to take into account all the various actors and their decision-making criteria in the residential and service sectors. Tailoring deployment policies and the complementary policies to address information barriers will require careful research and consideration of the best policy levers for each market segment.
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Innovative financing policies must be developed in conjunction with other deployment policies in order to ensure that they are effective. These should be integrated as seamlessly as possible into the deployment policies to reduce transaction costs.
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Options include schemes where consumers are not required to pay the additional first-cost premium, which is recovered over time through utility bills, or other energy service contracting models.
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Those under a certain emissions limit receive a cash bonus, while those over the limit must pay a penalty. This can theoretically be scaled to be self-funding, but experience has shown this to be challenging.
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Another option is to pool many of the small-scale investment decisions of residential and service sector customers into large portfolios to allow sophisticated assessment of future risk and benefits.
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This would facilitate larger-scale projects, minimise the cost of capital and the transaction costs involved in acquiring funding. However, the challenges are different in developing countries, where immature financial markets or institutional frailty might be a barrier (IEA, 20ten).
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Requiring landlords to disclose monthly energy costs for all new leases, and requiring underwriters of mortgages and new construction loans to consider energy costs, and to factor in the energy and carbon price risks in loan repayment risk, could all help.
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Ensure building sector professionals are aware of the importance of energy costs and future operating cost risks for tenants.Ongoing.
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Governments, utilities and other entities should provide education to home-builders, architects, engineers and commercial building owners and operators. Reliable, tailor-made, "easy to understand" information for end-users is important.
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Ensuring that a qualified installer base expands to meet the potential deployment growth of energy-efficient technologies will be essential to ensuring the technical potential is realised.
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Certification and labelling of equipment helps boost consumer confidence in a product and can improve competition and reliability of the systems if effective monitoring, verification and enforcement programmes are in place.
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Governments around the world must work together to ensure sufficient co-ordination of activities and avoid working at cross-purposes, to accelerate technology development and adoption in the most efficient way.
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A number of activities can help improve international collaboration and information-sharing. Governments should maximise the use of websites to publically share information and learning and identify best practices.
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Regular international meetings can help governments learn from experiences in other countries and increase contacts. Multi-stakeholder workshops – including governments, utilities, manufacturers and others – are also important to improving collaboration and sharing best practices in areas such as standardisation, system integration, innovative applications and consumer behaviour.
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Information should also be shared about policies that are particularly effective or ineffective to avoid duplication of mistakes and encourage repeat successes across countries.
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Early involvement of developing countries in international collaboration and information sharing should be ensured to overcome unique but surmountable barriers in emerging markets.
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Technology and research should also be shared. Expertise sharing and exchanges of experts should be explored. Common research agendas can address shared problems (e.g. systems integration and performance, seasonal performance).
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The IEA Secretariat can play a role in convening workshops and in co-ordinating activities, including planning, data collection, international analysis and research methodologies.
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National roadmaps can show how stakeholders can better set appropriate targets, guide market introduction, understand end-use needs and behaviour, integrate energy-efficient technologies into heating and cooling systems, craft supportive policies.
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By formulating common goals, the global community can work toward the significant CO2 reductions enabled by energy-efficiency technologies.
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In addition to making recommendations about how governments, researchers and equipment manufacturers and suppliers can identify their route to increased deployment of energy-efficient technology by 2050, this roadmap strongly encourages stakeholders to formally develop and share their own national roadmaps.
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This roadmap has responded to government leaders’ requests for more detailed analysis regarding future deployment of energy-efficient heating and cooling technologies. It outlines a set of strategic goals, actions, and milestones to reach higher levels of market penetration around the world by 2050.
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The existence of a roadmap document is not enough on its own. This roadmap is meant to be a process that takes into account new developments from research breakthroughs, demonstration projects, new types of policies and international collaborative efforts. The roadmap has been designed with milestones that the international community can use to ensure development and deployment efforts are on track to achieve the greenhouse gas emissions reductions that are required by 2050.
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To ensure co-ordination and harmonisation of activities, there needs to be a clear understanding of the roles of different stakeholder groups, along with commitments to achieving various objectives and targets over time. Table 8 identifies near-term priority actions for the full set of stakeholders that will need to be taken to achieve this roadmap.
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The IEA has benefited from major inputs from representatives from government agencies, industry, the buildings sector and other experts. These groups should continue to collaborate, along with others, to work together in a harmonised manner in the future. Specifically, the IEA proposes to develop a Roadmap Implementation and Monitoring Committee that would work together in an ongoing fashion.
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ministries should give manufacturers incentives to ramp up to large-scale production quickly in order to reduce costs, requiring stable, medium- to long-term policy frameworks allowing companies to better plan their investment, R&D and deployment strategies.
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Remove barriers to heating and cooling technologies in the existing domestic taxation system and import and export tariff/quota structure.
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Develop innovative financial models and programmes to address cost barriers, repayable through utility bills or making low/zero-carbon heating and cooling technology installation costs deductable from local rateable value, not additive.
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Use policies to help address first-cost barriers and higher life-cycle costs to achieve rapid early deployment of heating and cooling technologies during a fixed transition period that will achieve market transformation.
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Require regulatory regimes that give utilities incentives to look at system-level savings potential and that share financial rewards among beneficiaries, or at least don’t expropriate benefits from decision makers.
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Ensure government procurement policy, backed by adequate funds, facilitates the purchase of energy-efficient and low/zero-carbon heating and technology systems.
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Allocate additional support to RD&D programmes for energy-efficient and low/zero-carbon heating and cooling technologies.
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Include energy-efficient and low/zero-carbon heating and cooling technologies (existing and emerging) as part of standard education of architects, engineers and heating and cooling technology installers.
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Work towards standardisation of test methods, establish appropriate metrics and empirically verify performance via in-use testing, including for customised systems.
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Stakeholder Action item: Environment/energy/resource ministries and regulators z Improve the collection of statistics, including the greater use of common methodologies harmonised internationally, on end-use energy consumption and energy indicators.
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z Develop ambitious national/regional/local roadmaps with targets for energy-efficient and low/zero-carbon heating and cooling technologies between now and 2050.
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z Establish appropriate codes and standards for energy-efficient and low/zero-carbon heating and cooling technologies, including their harmonisation at an international level through ISO.
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z Clearly define the roles and responsibilities of different actors (governments, regulators, building sector professionals, equipment manufacturers, utilities and consumers); develop co-operative and collaborative strategies among multiple levels of government and building sector stakeholders in the national plan for energy-efficient and low/zero-carbon heating and cooling technologies.
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* With governments, ensure that all national targets can be met, if stable long-term policy frameworks provide the incentive to scale up manufacturing capacity.
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* Identify and implement policies to ensure adequate industry service capability is in place to meet the projected growth in deployment.
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* Take part in monitoring, verification and enforcement programmes at international level to share information.
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* In partnership with other stakeholders, develop national or international programmes for product and installation certification and quality assurance.
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* Governments and industry must include consumers in the planning process and ensure that their needs and desires are understood/met.
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* Develop outreach and information programmes to help consumers understand the benefits of energy-efficient and low/zero-carbon heating and cooling technologies and increase their interest in adopting them.
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* Legitimise the benefits to be gained by the measures outlined in this roadmap through endorsement, promotion and educational programmes.
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* Work with standards organisations like ASHRAE and builders’ groups to develop more performance-based standards and guides.
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* Work with environmental and energy groups, trade associations and energy/environment ministries to develop and present consistent greenhouse gas accounting on renewable energy and energy efficiency.
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State governments should implement policies through local code authorities and energy agencies. They should provide equal compensation and incentives to utilities to invest in distributed and efficiency technologies as they receive to invest in generation, transmission and distribution.
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Supranational organizations such as the IEA should coordinate sharing of hardware, software and research among countries. They should monitor and evaluate the launch and ramp-up of energy-efficient and low/zero-carbon heating and cooling technologies among national governments.
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These are the only two paragraphs that do not contain table data or references. Let me know if you need anything else!
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Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the Promotion of the Use of Energy from Renewable Sources and Amending and Subsequently Repealing Directives 2001/77/EC and 2003/30/EC, Official Journal of the European Union, no. L 140, 5.6.2009.
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The Russian electricity sector faces emerging challenges and opportunities, as it seeks to reform its outdated infrastructure and meet growing demand.
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Russian electricity reform emerging as a key challenge for the country's energy sector, with significant implications for its economic development and global energy security.
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The Russian government has announced plans to increase the share of renewable energy in the country's energy mix, which could lead to increased investment in solar and wind power.
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However, the reform is also expected to lead to higher electricity prices, which could impact Russia's industrial sector, including its key oil and gas companies.
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The International Energy Agency is an autonomous body which was established in November 1974 within the framework of the Organisation for Economic Co-operation and Development to implement an international energy programme.
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It carries out a comprehensive programme of energy co-operation among twenty-six of the OECD's thirty member countries. The basic aims of the IEA are to maintain and improve systems for coping with oil supply disruptions to promote rational energy policies in a global context through co-operative relations with non-member countries industry and international organisations to operate a permanent information system on the international oil market to improve the world's energy supply and demand structure by developing alternative energy sources and increasing the efficiency of energy use to assist in the integration of environmental and energy policies.
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The IEA member countries are Australia Austria Belgium Canada the Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan the Republic of Korea Luxembourg the Netherlands New Zealand Norway Portugal Spain Sweden Switzerland Turkey the United Kingdom the United States. The European Commission takes part in the work of the IEA.
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The Organisation for Economic Co-operation and Development is a unique forum where the governments of thirty democracies work together to address the economic social and environmental challenges of globalisation.
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The Russian government has embarked on a highly ambitious program of electricity reform. Russian policymakers have recognised that attracting timely and appropriate investment will remain a substantial and ongoing challenge, which can most effectively be addressed through the creation of efficient electricity markets operating in response to genuine price signals, within a robust and predictable legal and regulatory framework.
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Only such markets, in which competition is based on transparent prices that accurately reflect costs, can deliver the efficient, reliable and internationally competitive performance needed to meet the government’s economic targets in the longer term. Such markets can attract the new investment that the industry will need, especially in order to ensure security of electricity supply beyond 2010.
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If it is to succeed, the reform program will have to create market structures, market rules and a regulatory framework that will foster the emergence of competitive wholesale and retail markets in electricity. As in many IEA member countries having taken steps in electricity reform in the past, many challenges are to be expected over the course of the Russian reform process, both at the policy stage and during implementation.
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This book does not attempt to address the many detailed issues that may arise but instead focuses on some aspects of the proposed reform that could have a key bearing on its ultimate success. The book examines the proposed market structure and the importance of the diversity of ownership as well as the strength of the inter-regional grid system to maintain healthy competition and guard against regional congestion problems which would raise the possibility of regional monopolies forming and market power abuse.
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A key to the success of competitive markets in electricity and eventually other parts of Russia’s energy sector will be strong, well-resourced, well-informed, well-trained and independent regulators that can rise to the challenge of establishing access to network and other monopoly products and services on fair and reasonable terms for all market players.
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The IEA commends the Russian Government’s plan to use this period to gradually raise regulated end-user tariffs to levels consistent with the delivered price of electricity sourced through the competitive wholesale and retail market. Such rebalancing would allow customer choice to be extended progressively through the life of the vesting arrangements and ultimately to all users at the end of the vesting contract period if desired. The recent public backlash against monetization of certain public services demonstrates the importance of getting this balance right.
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Although the proposal is likely to extend the transitional period, it has the potential to provide greater stability, certainty and public acceptance to the implementation process, which would help to enhance the likelihood of the reform being fully and successfully implemented.
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The IEA has been following the evolution of this critically important electricity reform process in Russia since it moved into its active phase in Spring 2003. We are heartened by the progress to date and the Government’s newly reaffirmed commitment to the electricity reform process in late 2004. We consider the greatest challenges lie ahead in the many technical details that will need to be resolved to bring such a substantial reform to a successful conclusion. Time will tell whether the Government will maintain its resolve to complete the reform. It is our hope that this book will provide objective guidance and encourage efforts to see this reform through to a successful conclusion.
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This book has been prepared in the context of a wider OECD project examining regulatory reform in Russia. It could not have been completed without the insight and input provided by various Russian Government officials with whom the authors met over the course of the restructuring of the electricity sector from early Spring 2003 to the present.
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The principal author of this book is Doug Cooke of the Energy Diversification Division within the Long Term Office. Isabel Murray, Russia Desk Officer of the Non-member Country Office, provided the Russian analysis and context.
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In 2019, Russia's total electricity generation reached 1.24 trillion kWh, with thermal power plants accounting for around 75% of that amount.
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The country has a robust transmission grid, comprising over 550,000 km of high-voltage lines and cables, supported by over 100 substations.
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Russia's bulk transmission system is operated by the System Operator (SO), which manages the grid's stability, ensuring reliable power supply to consumers.
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Top refers to the share of regional capacity of the largest generator and Top 3 to the regional capacity share of the largest 3 generators.
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Russia is a vast country with diverse climate, geography, and economy, which affects the electricity balances in its regions.
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The majority of Russia's regions have their own power generation capacities, including thermal, nuclear, and renewable sources, as well as transmission infrastructure, although some regions rely more heavily on interregional transmission links to balance supply and demand.
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In 2019, the total electric power generated in Russia was approximately 1.15 billion kWh, with a share of renewables increasing from 3.5% in 2010 to around 12% in 2020.
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The North-West Federal District is one of the most energy-intensive regions in Russia, driven by the needs of its industrial base, including oil refining and chemical processing.
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In contrast, the Far Eastern Federal District has a relatively low per capita electricity consumption due to its remote location and lack of significant industries.
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Russia's regions and sub-regions have varying levels of self-sufficiency, with some relying heavily on interregional transmission links to balance supply and demand.
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The Central Federal District is home to Russia's capital city Moscow and is characterized by a high level of industrial activity and urbanization.
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Russia is pursuing a strategy of very high economic growth, with an objective of doubling its gross domestic product in ten years. Efficient and reliable electricity markets will be critical to the success of this policy.
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The Russian government has embarked on a highly ambitious program of electricity reform. If it is to succeed, the reform program will have to create market structures, market rules and a regulatory framework that will foster the emergence of competitive wholesale and retail markets in electricity.
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Only such markets, in which competition is based on transparent prices that accurately reflect prices, can deliver the efficient, reliable and internationally competitive performance needed to meet the government’s economic targets. Such markets would also attract the new investment that the industry will need, especially in order to ensure security of electricity supply after 2010.
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