Energy Security In The Member States Of The Eurasian Economic Union In The Electric Power Sector: Legal And Economic Aspects

 
PIIS231243500021982-8-1
DOI10.18572/2410-4390-2018-2-69-73
Publication type Article
Status Published
Authors
Occupation: Head of the Energy and Nuclear Policy Section of the Energy Department
Affiliation: Energy Department at the Eurasian Economic Commission
Address: Russian Federation, Moscow
Occupation: Consultant of the Energy and Nuclear Policy Section
Affiliation: the Energy Department at the Eurasian Economic Commission
Address: Russian Federation, Moscow
Journal nameEnergy law forum
EditionIssue 2
Pages69-73
Abstract

In connection with the current situation of geopolitical tensions and application of sanctions, the issues of energy security that make it possible to provide reliable and uninterrupted energy supply to national economies as well as consumers of all categories and levels at an affordable price become particularly relevant for the member states of the Eurasian Economic Union (hereinafter referred to as the member states and the Union respectively). One of the key areas of integration defined by the Treaty on the Eurasian Economic Union (hereinafter referred to as the Treaty), which was signed by the Presidents of countries on May 29, 2014, is energy, which, to a large extent, determines the dynamics and the rates of development of national economies, their competitiveness in the world markets, and the standard of living of the population. In accordance with Article 79 of the Treaty, the member states agreed to pursue a coordinated energy policy and develop mutually beneficial cooperation with due account for provision of energy security. Pursuant to Article 81 of the Treaty, the member states jointly with the Energy Department of the Eurasian Economic Commission are actively engaged in the stepby-step formation of the common electricity market of the Union (hereinafter referred to as the CEM). The principles of its formation specified in the Concept for the Formation of the CEM of the Union also contain provisions on ensuring energy security of the member states with due account for preservation of peculiarities of the domestic energy markets of each of the states. Therefore, it seems relevant to study the problems of legal regulation of energy security in the electric power industry in the member states of the EAEU.

Keywordsenergy law, energy security, member states of the Eurasian Economic Union, formation of the common electricity market of the Eurasian Economic Union, electric power system
Received06.05.2018
Publication date30.06.2018
Number of characters11387
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1 At the national level, each member state faces the tasks of legal regulation of energy security specified in their long-term and short-term development strategies. In a systematized form, these tasks of supranational and national levels aimed at ensuring energy security and specified in strategic planning documents are outlined in the scheme in Figure 1.
2 The main strategic directions of development in the energy sector of the member states of the EAEU are as follows:
3 for the Republic of Belarus, energy independence, diversification of suppliers and types of energy resources, reliability of supplies, reservation, processing and distribution of fuel and energy resources, energy efficiency of ultimate consumption, improvement of the management system for the fuel and energy complex and its organizational structure [1]; for the Republic of Armenia and the Republic of Kazakhstan, development of renewable energy sources as well as energy efficiency and energy saving ones [2]; for the Kyrgyz Republic, development of non-carbon energy, financial recovery of the energy sector, capital investment in the construction and reconstruction of the sector’s assets, and development of information technology, which will ensure successful implementation of projects and introduction of smart meters [3]; for the Russian Federation, reduction of the energy consumptions of the economy, digitalization of the energy complex, increased availability of resources, emergence of new routes, and, accordingly, integration of regional markets [4].
4 The purposes of development of the electric power industry of the member states of the EAEU and the comparative characteristics of their electricity markets are given in Tables 1 and 2. Analysis of the data of these tables makes it possible to conclude that energy security issues are
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Fig. 1 – Tasks of Legal Regulation of Energy Security in the Member States of the Union

6 Table 1 Purposes of Development of the Electric Power Industry of the Member States of the Union
Republic of Armenia Republic of Belarus Republic of Kazakhstan Kyrgyz Republic Russian Federation
ensuring energy se- improvement improvement of ef- ensuring sustainable eco- transition of the country’s energy
curity; of efficiency ficient use of en- nomic growth through sector through structural transfor-
ensuring sustainable and reliabili- ergy resources strengthening of energy mation to a higher, qualitatively
development of the ty of function- for promotion of and economic security, new level, maximally contributing
energy sector based on ing of the Be- growth of econ- achievement of financial to the dynamic social and eco-
improvement of the larusian energy omy and quality and economic recovery nomic development of the Rus-
energy efficiency of system and up- of life of the pop- as well as the competitive sian Federation;
the economy, develop- grade of ener- ulation as well as advantage of the Kyrgyz promotion of grid infrastructure
ment of nuclear pow- gy security on strengthening of Republic in the region- and generating capacity as well as
er industry and effi- its basis foreign economic al export market of elec- ensuring satisfaction of long-term
cient use of renewable relations tric power and medium-term demand for
resources electricity and capacity
7 Table 2 Comparative Characteristics of Electricity Markets of the Member States of the Union
Criteria for comparison Republic of Armenia Republic of Belarus Republic of Kazakhstan Kyrgyz Republic Russian Federation
Regulators Ministry of Energy and Natural Resources Commission for Regulation of Public Services (CRPS) Ministry of Energy Ministry of Economy Ministry of Energy Ministry of National Economy Ministry of Economy State Agency for Fuel and Energy Complex Regulation Ministry of Energy Federal Antimonopoly Service
Basic regulations Law No. ЗР-148 of the Repub- lic of Armenia dd. March 21, 2001 On the Energy Industry Law No. 293-3 of the Republic of Belarus dd. January 8, 2015 On Energy Saving Law No. 588-II of the Republic of Kazakhstan dd. July 9, 2004 On the Electric Power Industry; Law of the Republic of Kazakhstan On Introduction of Amendments and Supplements to Some Legislative Acts of the Republic of Kazakhstan on the Activities of Independent Industry Regulators; Resolution No. 392 of the Government of the Republic of Kazakhstan dd. March 25, 2009 On Approval of Ceiling Rates Law No. 56 of the Kyrgyz Republic On the Energy Industry dd. October 30, 1996; Law No. 8 of the Kyrgyz Republic On the Electric Power Industry dd. January 28, 1997; Law No. 149 of the Kyrgyz Republic On the Natural Monopolies in the Kyrgyz Republic dd. August 8, 2011 Federal Law No. 35-ФЗ dd. March 26, 2003 On the Electric Power Industry; Federal Law No. 256 dd. July 21, 2011 On Safety of the Fuel and Energy Sector Facilities; Resolution of the Government of the Russian Federation No. 1178 dd. December 29, 2011 On Pricing in the Field of Regulated Prices (Tariffs) in the Electric Power Industry
Market model Single buyer-seller model Forced pool of independent producers and importers of electricity with regulated tariffs at all functional levels, except for foreign trade transactions. Goods: electric power No trading floor State Production Association Belenergo, a vertically integrated company, performs fully regulated by the state activities for the production, transmission, distribution, and sale of electricity as well as its export and import. Goods: electric power No trading floor Decentralized mod- el based on bilateral contracts. Wholesale market consists of the following segments: decentralized sale and purchase market; market of centralized trade; balancing market (imitation mode); capacity market (to be launched on January 1, 2019). Goods: electric power Trading floor: KOREM, JSC Model based on bilateral contracts with one dominating producer (Electric stations, OJSC) Goods: electric power No trading floor Centralized model including possible twoway trade. Wholesale market consists of the following segments: market of free bilateral contracts; day-ahead market; balancing market; capacity market. Two goods: electric power and capacity Trading floor: ATS, JSC
considered in each country on the basis of the current conditions of the energy complex, social and economic interests, and priorities of development of the state. The electric power system of each country has unique features inherent only in them, which significantly affects the relations forming within the EAEU in the energy sector.

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1. Concept of Energy Security of the Republic of Belarus: approved by Resolution № 1084 of the Council of Ministers of the Republic of Belarus dd. December 23, 2015.

2. National Security Strategy of the Republic of Armenia: approved at the meeting of the National Security Council of the President of the Republic of Armenia dd. January 26, 2007; Concept Aimed at Ensuring the Energy Security of the Republic of Armenia: Decree № UP-182-N of the President of the Republic of Armenia dd. October 23, 2013.

3. Concept of Development of Fuel and Energy Complex of the Republic of Kazakhstan up to 2030: approved by Resolution № 724 of the Government of the Republic of Kazakhstan dd. June 28, 2014.

4. Energy Strategy up to 2030: approved by Resolution № 1715-r of the Government of the Russian Federation dd. November 13, 2009.

5. Melnik D.A. Research of Features of the Electric Power Markets of the Member States of the Eurasian Economic Union // Economy and Entrepreneurship. 2016. № 12-4.

6. Romanova V.V. Energy Law Order: Current State and Tasks. Moscow : Yurist Publishing House. 2016; Energy Markets: Problems and Tasks of Legal Regulation. Monograph edited by V.V. Romanova, Doctor of Law. Moscow : Yurist Publishing House. 2018.

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