Viktor Karankevich, First Deputy Minister of Energy
Viktor Karankevich, First Deputy Minister of Energy

As the central governmental authority which coordinates the activities within the Belarusian energy sector, the Ministry of Energy is tasked with ensuring energy security and nuclear and radiation safety; preparing and implementing energy policies, creating conditions for effective work of energy state organizations, etc. First Deputy Minister Viktor Karankevich discusses priorities, achievements and current and future projects.

European Times: What are the main priorities of the Ministry of Energy?

Viktor Karankevich: Our main priority is ensuring a reliable and uninterrupted supply of natural and liquefied gas, electric energy and heating energy, as well as the needed amount of peat briquettes to the industrial sector and other consumers in Belarus.

Furthermore, we aim to optimize the expenses of all resources used in the process of production, transfer and distribution of energy, and as a result to reduce the costs for consumers and increase the efficiency of the energy and gas supply organizations. Primary measures aiming to reduce costs and increase the efficiency in using material and financial resources include: measures for saving energy; measures for reducing the consumption of fuel and energy resources; advancing the energy distribution technology; and numerous other operational and technical measures. Moreover, our priority is to gradually reduce costs for consumption, primarily for industrial consumers in order to increase the competitiveness of their products on domestic and foreign markets. Activities in this regard are part of the measures aiming to eliminate cross-subsidization of energy rates, a goal set in several state programs, including the Program of Activities of the Government of the Republic of Belarus for 2016-2020. The Ministry is also focused on reducing the dependence on imported natural gas by diversifying the fuel and energy balance of the energy system, which is realized through the construction of nuclear power plants, increasing the usage of local types of fuels, renewable energy sources, and secondary energy resources.

European Times: Belarus has witnessed a large-scale modernisation of energy facilities in the past decade. What are the latest achievements in this regard?

Viktor Karankevich: Following the collapse of the Soviet Union, Belarus witnessed substantial degradation of the existing equipment due to the fact that the volume of capital construction in the industry was significantly lower than the pace necessary for development and modernization of the electricity industry. As a result, the degradation of the main production assets of the energy system by 2005 amounted to more than 61%, which posed a threat to the energy security of the country.

Since 2006, a large-scale modernisation of energy facilities was conducted through the implementation of two State Programs (2006-2010 and 2011-2015). With these programs, Belenergo established 2.353,7 MW of highly effective electro-generating capacities, whereas 746 MW of obsolete generating capacities were decommissioned. Furthermore, about 26 km of electric networks and 1.3 km of heat networks were built or reconstructed. The implementation of these measures ensured a reduction of the wear and tear of the basic production assets of the whole energy system from 60.7% in 2005 to 40% in 2015. Moreover, the specific fuel consumption for electricity generation in 2015 was 235.5 gf/kWh, a reduction of 39.1 gf/kWh compared to 2005, when it amounted to 274.6 gf/kWh. Also, the technical consumption of electric energy for distribution was 9.01% in 2015, which is 2.07% lower than 2005, when it was 11.08%. The saving amounted to 3.47 million tonnes of fuel equivalent, which translates to three billion cubic meters of gas. Amounting to US$600 million, the economic effect of the implementation of the two state programs and the other activities in this period is evident; since 2015, it amounts to US$200 million on annual level.

Our commitment to providing a reliable and effective power supply in the required quantities is complemented with our dedication to the modernization of the industry. Objects commissioned under the State Program 2010-2015, including the Vitebsk HPP (40 MW), the Polotskaya HPP (21 MW), and the wind farm in Novogrudok district of Grodno region (7.5 MW), were put into operation in 2016 and 2017.

Viktor Karankevich, First Deputy Minister of Energy

European Times: What are some of the most significant projects currently implemented or planned for the near future?

Viktor Karankevich: The main measures to increase the efficiency of the Belarusian energy system are planned to be implemented within the framework of the Sectoral Program for the Development of the Belarusian Energy System for 2016-2020. One of the main priorities is securing a balanced development and modernization of energy system facilities.

Nuclear energy is the new intellectual and technological impulse in the development of the sector, significantly contributing to strengthening governmental independence and economic self-sufficiency. Until 2020, we plan to finish the construction of two units of the Belarusian nuclear power plant with a total capacity of 2.400 MW. Currently, full-scale construction work is being performed on all main buildings and structures of the two power units, as well as the auxiliary facilities of the nuclear power plant. The total sum of amounts to US$2.7 billion (29,5% from all contracts), including US$2.4 billion from the state export credit of the Russian Federation. There are 36 subcontractors (24 Belarusian and 12 Russian companies) involved in this project. The launch of the first power unit is planned for December 2019, and the second is planned for 2020. Future plans include the construction of a 330 kV overhead transmission line for distribution of power from the Belarusian nuclear power plant, the modernization of electric networks based on technology that automatically increases efficiency, reliability, economic benefits, and the sustainability of production and distribution of electricity (Smart Grid technologies).

The second most important project is the “Construction of the nuclear power plant in the Republic of Belarus. Output of power and communication with the power system”, a US$340.86 million contract between ‘RUE Grodnoenergo’ and ‘North China Power Engineering Company’, under China Energy Engineering Corporation. The project envisions the construction of 1032.5 km of 330 kV overhead transmission lines; reconstruction of 672.4 km of existing 110-330 kV transmission lines; reconstruction of four substations with the construction of 330 kV cells; construction of a new 330 kV substation ‘Postavy’; installation of a second transformer on the SS 330 kV ‘Smorgon’, etc. Construction is planned on 23 complexes on the territory of three regions: Vitebsk, Grodno and Minsk.