Publication Laka-library:
A partnership of unequals. Electricity exports from the eastern neighbourhood and Western Balkans
Author | I.Holovko, O.Miskun, D.Chipashvili, P.Gallop |
6-04-0-30-25.pdf | |
Date | June 2012 |
Classification | 6.04.0.30/25 (INTERNATIONAL ORGANISATIONS - LIBERALISATION) |
Front |
From the publication:
A partnership of unequals Electricity exports from the eastern neighbourhood and Western Balkans June 2012 Research and writing: Iryna Holovko, National Ecological Centre of Ukraine, Ukraine Olena Miskun, National Ecological Centre of Ukraine, Ukraine Dato Chipashvili, Green Alternative, Georgia Pippa Gallop, CEE Bankwatch Network Executive summary Cooperation in the energy sector is one of the European Union’s key priorities in its relationships with neighbouring states. Although the strategic documents and polices suggest that the promotion of energy efficiency, energy savings and the use of renewable energy sources should be the primary areas of cooperation along with “energy security”1, it is the latter that receives the lion’s share of attention from the EU side. In several cases “energy security” also receives a disproportionally large amount of financial support both directly from the European Commission, through the Neighbourhood Investment Facility (NIF) and from the international financial institutions (IFIs), namely the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). The EU’s ambitious target to cut its greenhouse gas emissions by 80-95 percent in 20502 requires significant efforts as a major shift in thinking is needed to ensure a rapid transition away from modes of living based on constantly increasing energy consumption. The apparently easier path to “solve” this problem involves securing more energy imports in order to cover the gap between demand and internal production. Securing increased electricity imports from neighbourhood countries has already received a great deal of EU attention in the Western Balkans, Ukraine and Georgia. An analysis of EBRD investments in the Ukrainian energy sector shows that export-oriented infrastructure projects accounted for roughly 61.6 percent of the bank’s total lending to the power and energy sector between 2006 and 20113. During this period the EBRD financed two high-voltage transmission lines in Ukraine, forming different parts of an ambitious plan for the “second backbone” transmission corridor running from the east to the west of the country, up to Ukraine’s borders with the EU. Currently the EBRD is considering a EUR 300 million loan (with a further EUR 300 to 500 million accompanying loan expected from Euratom) for the upgrading of old Soviet type nuclear reactors so as to achieve “current standards in nuclear safety [that] should lift the nuclear safety related embargo and allow Ukraine greater flexibility to trade with the EU”.4 In reality this means lifetime extension of old nuclear units and creation of a physical connection with the EU to transmit electricity generated by them. As a side effect this would lead to an increase of coal generated electricity as the gap in domestic consumption would be covered by it. This in turn would lead to doubling of CO2.