The incentive of the regions to optimize costs in heat power industry is enhanced in the conditions of the difficult economic situation

7 october 2015 | Rossiyskaya Biznes-Gazeta

Implementation of pilot projects for heat and power generation using alternative to petroleum products energy sources in certain regions not only allowed to achieve significant savings in expensive oil and fuel oil. The already achieved economic effect gives grounds to speak about the beginning of the formation of a set of special measures that will be implemented at the federal level, and the specialized research and analytical structures got the order to start working on their creation.

Aleksander Martynyuk
Aleksander Martynyuk
Department for Strategic Studies in Energy

The Analytical Center's Expert Aleksander Martynyuk explained to the correspondent of "Rossiyskaya Biznes-Gazeta" that nowadays we can talk about the positive trend of replacement boilers on oil and petroleum products. For the last 5 years, their number decreased by more than 20%. Last but not least it happens because of more intensive use of local energy resources. "For example, in the Arkhangelsk Oblast, this process occurs in part due to the use of the forest biomass, which share in the structure of the energy consumed by the local system utilities tends to 40%, although in 2007 it was only 18%," he said. The Republic of Karelia and other regions where the timber industry is developed, also succeed in the replacement of oil and oil products with the forest biomass. In the Vladimir Oblast the experience in the use of peat, whose role in the housing and communal services continues to rise, is noteworthy.

Nevertheless Mr. Martynyuk drew attention to the fact that almost always a number of problems occur during project implementation. Due to the specifics of each region their set is not identical, and there is no one universal solution to overcome them. "Most of the problems are related to provision of energy security, economic efficiency of the project, the limitations of the legislation. The most successful process of involvement of local fuels into heating system occurs in areas where management is particularly active in realization of the potential of their use," said the expert. 

Again mentioning the Arkhangelsk Oblast as an instance, Mr. Martynyuk explained why the use of the forest biomass as a fuel there is rapidly increasing. "There is a widespread practice of multilateral contracts allowing to secure liabilities and distribute the responsibility of all persons involved in the project. Under such contracts, the investor, for example, reduces the uncertainty associated with the level of future tariffs for the payback period of investments and guaranty of stable supply of heat generating facilities with resources," said the expert. In general, the process of changing of the fuel structure of heat generation in the future will continue to be determined by economic factors. The incentive of the regions to optimize costs in the heat power industry is enhanced in the conditions of the difficult economic situation.