Belarus to Spend $7.5 billion on Power System Development

05.10.2010 15:06
Архив Редакция

$7.5 billion is planned to spend on the implementation of state energy development programs in Belarus in 2011-2015. In particular, investments in energy development will make $5.9 billion. This was stated by the Minister of Energy Alexander Ozerets  at the meeting of the Council of Ministers of Belarus on October 5.

According to the draft state program of the Belarusian energy system development for 2011-2015, the source of financing will be the funds of organizations, implementing the program, loans, direct investments and budget funds. Budgetary allocations will be spent on socially important objects, BelTA informs.

According to Alexander Ozerets, $3.9 billion is planned to spend on the construction and reconstruction of the generating capacity. These funds will be collected mainly through the loans from China and European countries.

«In order to reduce the foreign exchange component of the program, the Ministry of Energy organized the meaningful work on power equipment and materials production for the industry to localize the delivery of necessary units, parts and equipment from abroad,» Minister of Energy said.

The draft state program takes into account the orders of the president of Belarus and provides for the renovation and development pace increase of the country’s power more than in double. Thus, the years 2011 -2015 are scheduled to introduce 3.1 thousand MW of efficient electric power due to adoption of modern steam units with an efficiency above 57%. Modernization of existing equipment at the TPP with the latest gas turbine technology, transfer of steam turbines in the mode of loss of vacuum and the implementation of measures to improve the structure of electricity generation in CHP plants are provided for as well.

In addition, uneconomic, obsolete and outdated equipment with efficiency under 39% will be withdrawn from service in the next five years. Alexander Ozerets explained that this would reduce the specific fuel consumption for electricity production by 10% in the whole energy system in 2015.

State Program Would Save $ 500 Million, Ozerets

In order to diversify the fuel and energy balance of power system, state program provides for the construction of coal Zel’venskii station, the three mini-CHP plants, boilers on local fuels in Mazyr Heat Power Plant, the construction of the Hrodna, Polatsk, Vitebsk and other hydroelectric and wind power stations. These projects will annually replace up to two billion cubic meters of natural gas by 2015. This, in turn, will reduce the monetary burden on the system by $ 500 million.

As Alexander Ozerets explains, that in the result of the program energy capacity will rise up and increased power output will increase electricity exports to five billion kilowatt-hours in 2016.
Belarusian Minister of Energy also reported that by 2014 Belarus plans to eliminate cross-subsidies in gas prices and energy tariffs completely.

According to Alexander Ozerets, all this is aimed at reducing energy costs to consumers of the real economy sector. Energy Minister explained that the first stage of the elimination of cross subsidies plans to abolish favorable natural gas prices, electricity and heat tariffs for certain legal entities and individual entrepreneurs.

Complete elimination of cross-subsidies in prices for natural gas, supplied by GAP «Beltopgaz» organizations, is scheduled for 2013, the tariffs for electricity and heat, supplied by organizations Belenergo — 2014.

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