Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts

NATO Science Series
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Series IV: Earth and Environmental Sciences – Vol. 59

Renewable Energies for Central
Asia Countries: Economic,
Environmental and Social Impacts

edited by

Aldo Iacomelli
Pisa University - ISES ITALIA - Italian Section of International Solar Energy Society,
Rome, Italy
Proceedings of the NATO SFP Workshop on
Renewable Energies for Central Asia Countries: Economic, Environmental and Social

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 TABLE OF CONTENTS

ACKNOWLEDGEMENTS................................................................................ vii
TASHKENT STATEMENT……………………………....…... ....................... ix
LIST OF AUTHORS.......................................................................................... xiii
LIST OF PARTICIPANTS ................................................................................ xvii
INTRODUCTION .............................................................................................. xxiii

1. Renewable Energy (RE), Energy Efficiency (EE) &

Energy Services: the Energy Market Transformation
Aldo Iacomelli.................................................................................. 1
2. Promoting Effective and Efficient Public Private Partnerships
(PPPs)
Aldo Iacomelli.................................................................................. 19
3. The Clean Development Mechanism: New Instrument in
Financing Renewable Energy Technologies
Romeo Pacudan................................................................................ 27
4. International Co-operation on Energy Technologies Research
and Development
The International Energy Agency Framework
Alicia Mignone................................................................................. 43
5. Market Deployment of Renewable Energy in Central Asia:
Implications for Energy Diversification
Teresa Malyshev .............................................................................. 59
6. World Energy Outlook 2004: Key Findings and Messages
Marco Baroni ................................................................................... 75
7. Main Achievements of the IEA Programme on
Hydropower Technologies
Frans H. Koch .................................................................................. 87
vi Table of Contents

8. Renewable Resources to Hydrogen: Appropriated

Technologies for Developing Countries
V. Naso, E. Bocci, F. Orecchini, D. Marcelo................................... 95
9. The Conception of the Use of Renewable Energy Sources and
their Role in the Energy Balance of Uzbekistan
T.P. Salikhov, T.H. Nasyrov ............................................................ 103
10. Current State and Prospects of Renewable Energy Technology
in Russia
Sergey Molodtsov ............................................................................ 123
11. The Hybrid Solar – Wind Source of the Electro Energy and
Prospect of its Application
R. I. Isaev, D.A. Abdullaev .............................................................. 131
12. New Methods for Improvement of Efficiency of Solar
Cells on the Basic Si-monocrystals
R.A. Muminov, O.M. Tursunkulov.................................................. 141
13. Design of Semiconductor Nanostructures for
Solar Cell Application
L. Nosova, S. Gavrilov, I. Sieber , A. Belaidi, L. Dloczik,
Th. Dittrich, A.A. Saidov, P.K. Khabibullaev ................................. 149
14. Utilization Possibilities of Renewable Sources of Energy
in Southern Kazakhstan by the Example of
Karatausko-Ugamski Energy Complex
T.K. Koishiyev ................................................................................. 157
15. Renewable Energy: Environmental and Nature
Protection Aspects
Kulsina Kachkynbaeva..................................................................... 163
16. To the Problem of Production and Using of Biofuel
in Conditions of Uzbekistan
O.V. Lebedev, R.K. Musurmanov, K.A. Sharipov, A.S. Azizov..... 175
 ACKNOWLEDGEMENTS

I would like to thank the NATO Scientific Division, in particular Dr.

Alain Jubier, in supporting the initiative; the Uzbekistan Authorities,
for the tireless cooperation, the help and the kindness in hosting the
workshop, in particular Professor Alik Akunov, Dr. Svetlana Gusakova, the
academician Pulat Kabibullaeve.
I would like to thank dr. Giacomo Spaghetti for the translation from
Russian during the workshop and for the support in the organization.
Many thanks to the authors of this book and to dr. Marzia Tamburrino and
Mrs Paola Carducci for their useful help in editing this book, and dr.
Emanuele Piccinno and dr. Daniele Villoresi for the suggestions and the
help in the administration part of the project.
I would like to thank ISES ITALY staff and Professor Vincenzo Naso,
CIRPS Director, who made possible the mission to Uzbekistan.
Finally I would like to thank Dr. Alicia Mignone, Italian OCSE
representative, for the important help in identify, with dr. Carlo Corsi,
director of Consorzio Roma Ricerche, the donor, NATO Scientific Division,
and for the help to design the workshop program.
Last but not least I would like to thanks Leonardo and Marta that are
waiting for me continuously and patiently for the meetings and the books.
 TASHKENT STATEMENT

of the NATO Advanced Research Workshop

«Advanced Renewable Energies for Central Asia Countries:
economic, environmental and social impacts»

On November 15-17, 2004 the workshop was held in Tashkent

organized by the NATO Science Committee in association with the Center
for Science and Technologies under the Cabinet of Ministers of the Republic
of Uzbekistan, the Inter-University Research Center on Sustainable
Development (CIRPS), University of Rome "LA SAPIENZA" (Italy) and
Technology Transfer Agency (Uzbekistan).

The workshop was attended by representatives of NATO Science

Committee, scientists, specialists and experts from the USA, UK, Canada,
France, Italy, Japan, Australia, Russia, Ukraine, Kazakhstan, Kyrgyzstan and
Uzbekistan and United Nations Environment Programme Risoe Centre -
Denmark.

The analysis, study and evaluation of all aspects of the energy sector
in Uzbekistan and other Central Asian countries, especially from the point of
development prospects and utilization of the renewable energy sources, their
potentials in positive influence on economic development were regarded as
important goal of cooperation between NATO member countries and Central
Asian countries.

The participants of the workshop recognized that:

The International NATO Science Committee workshop was

organized together with the Center for Science and Technologies under the
Cabinet of Ministers of the Republic of Uzbekistan and Inter-University
Research Center on Sustainable Development (CIRPS) and University of
Rome "LA SAPIENZA" (Italy) and Technology Transfer Agency.

Uzbekistan has significant scientific, technical and technological

potential in the field of advanced renewable energy technologies including a
unique 1 MW Big Solar Furnace for high temperature synthesis of materials
x Tashkent Statement

with given properties as well as for generating electric, thermal energy and
hydrogen. Scientific and technical achievements in developing solar
elements based on semi-conductor crystals, experience gained in using low-
grade solar energy, results of high temperature materials engineering. These
achievements can contribute to a partnership between NATO countries and
Republic of Uzbekistan and other Central Asian countries.

The achievements of the workshop were:

mutual benefits, scientific and practical effectiveness significantly

contributing to innovation processes of the Republic of Uzbekistan. The
workshop encouraged establishment and further development of the
mutually beneficial contacts between scientific representatives of NATO
member and partner countries.

The participants of the workshop recommended that:

1. The Center for Science and Technologies under the Cabinet of

Ministers of the Republic of Uzbekistan and Technology Transfer Agency
to approve of a cooperation program with NATO Science Committee,
including grants for implementing innovation research achievements in
developing technologies in the field of renewable energy, as well as solar
energy, in Uzbekistan and Central Asian countries.

2. The Center for Science and Technologies under the Cabinet of

Ministers of the Republic of Uzbekistan to organize and conduct a series of
workshop in the regions of Uzbekistan in order to disseminate experience
gained in the field of advanced renewable energy technologies and
stimulating innovation activity.

3. a program of collaboration between the Republic of

Uzbekistan, Central Asian and Newly Independent countries and NATO
member countries in information and expertise exchange related to
implement institutional and legal framework for using renewable energy
sources could be an important condition to develop innovation processes.

4. The Inter-University Research Center on Sustainable

Development CIRPS, University of Rome "La Sapienza" recommends to
Central Asian countries to work out collaborative and prospective research
and technological projects on renewable energy with provisions for
financing respective part from each country and to request assistance in
Tashkent Statement xi

additional funding such projects from NATO Science Committee in form

of grants. Organize next workshop on hydrogen energy in Tashkent in
2005, where would be discussed different methods of hydrogen production
and storage; transport issues; evaluation of production costs; experience
and operating data from demonstration projects; international and regional
initiatives; national research programs and industry involvement.
The workshop could be organized by the Center for Science
and Technologies under the Cabinet of Ministers of the Republic of
Uzbekistan in collaboration with

5. The enter into force of Kyoto Protocol by spring 2005, after

the ratification of more than 55% of emissions from Annex 1 countries,
with the Protocol mechanisms such as Joint Implementation (JI), Clean
Development Mechanism (CDM) and Emission Trading (ET) will offer an
important opportunity for Governments and industries to use RES and
technological innovation in the energy sector to meet Kyoto target in the
first budget period, to improve quality of life, economic growth and to
reduce emissions.

6. To ensure that our research activity, which is our collective

strength, will be used for constructive partnership for change and for the
achievement of the common goal of promoting the rational use of energy,
energy saving and the promotion of Renewable Energy towards a
sustainable development;

7. To support the initiative by working with the financial

community to facilitate an increase in lending to, and investment in,
renewable projects using the proposed mechanisms. Parallel
activities will also be undertaken to help financial institutions
become more aware of RE investment opportunities, streamline
procedures, lower transaction costs, and assess/manage the risks and
returns associated with the deployment of the selected technologies.

8. CIRPS, University of Rome "La Sapienza" to lead the

creation of a network of scientists, representatives of administrative
structure and private sector to stimulate research activities in the
renewable energies, energy efficiency and hydrogen economy and
technologies.

9. It is recommended to publish proceedings of the NATO

ARW «Advanced technologies «Advanced Renewable Energies for
xii Tashkent Statement

Central Asia Countries: economic, environmental and social

impacts» in a separate book.

Signatures

Tashkent, Republic of Uzbekistan 17 November 2004

 LIST OF AUTHORS

Aldo Iacomelli
Pisa University
Secretary General of ISES ITALIA Co-director NATO Advanced
Research Workshop
Professor
Via E. Filiberto, 1-3
56127 Pisa Via Tomasso Grossi, 6
Mob. +39 335 8141630 00184 Rome
Tel. +39 050 2213363 Mob. +39 335 8141630
e-mail: [email protected] Fax +39 06 77073612
Tel. +39 06 77073610 –11
e-mail: [email protected]
PACUDAN Romeo
United Nations Environmental Programme RISO Center
Doctor
P.O. Box 49 DK- 4000 Roskilde, Denmark
Phone: +45 4677 5170 Fax: +45 4632 1999
E-mail: [email protected]

MIGNONE Alicia
Energy and Science Advisor Permanent Delegation of Italy to OECD
Professor
50, Rue de Varenne 75007 Paris, France
Tel: (33) 01 44 39 21 60 Fax: (33) 01 45 48 00 60
Email: [email protected]

MALYSHEV Teresa Carroll

Renewable Energy export IEA International Energy Agency,
Energy Analyst
9, rue de la Federation 75739 PARIS Cedex 15
Tel: (33) 1 40 57 67 12 Fax: (33) 1 40 57 66 59
E-mail: [email protected]
xiv List of Authors

BARONI Marco
International Energy Agency
Doctor
9, rue de la Federation 75739 PARIS Cedex 15
Tel: +33 1 40 57 65 82 Fax: +33 1 40 57 66 59
E-mail: [email protected]

KOCH Frans Herman

Executive Committee Implementing Agreement for Hydropower
Technologies and Programmes
Doctor
26 Meadowcroft Cr., Ottawa, Ont K1J1G9,Canada
Tel.: +(1) 613 744 56 11 Fax: +(1) 613 748 31 57
E-mail: [email protected]

NASO Vincenzo
CIRPS Director General University of Rome “La Sapienza”
Academician
CIRPS – Piazza del Colosseo, 9 -00184 Roma – Italia
Tel.: +39 06 772653206 Fax: +39 06 772653215
Email: [email protected]

NASYROV Timur Khayrullaevich

Director of Energy Center of Uzbekistan
Academician
Tel/fax: +998 71 133 08 15, ȿ-mail: [email protected]

MOLODTSOV Sergei Dmitrievich

Deputy Director for Science of the Center for Energy Policy of Russia
Tel. 8 095 200 45 06, 200 37 34, 200 44 79
E-mail: [email protected]
List of Authors xv

ABDULLAEV Djura Abdullaevich

Scientific advisor to Center of scientific-engineering and marketing
research of Uzbek Agency of communication and information
Academician
Tel + 99871 137 56 24, Fax +99871 137 52 07,
ȿ-mail: [email protected]

ISAEV Rikhsi Isakhodjaevich

Deputy Director of Center of Scientific Engineering and Marketing
Research of the Uzbek Agency
of Communication and Information
Tel (998 71) 137 56 24, Fax (998 71) 137 52 07,
ȿ-mail: [email protected]

MUMINOV Ramizulla Abdullaevich

Physics and Technical Institute of NPO “Physics-Sun”
Academician
Tel +998 71 135 40 32 Fax +998 71 135 42 91

NOSOVA Ludmila
Thermal Physics Department of Uzbek Academy of Sciences
Tel. +998 71 117 48 70 Fax: +998 71 117 48 71

SAIDOV Abdulla Abdunazarovich

Deputy Head of Heat Physics Department of the Academy of Sciences of
the Republic of Uzbekistan
Professor
Tel. +998 71 117 48 70, 173 37 96 Fax: +998 71 117 48 71

KHABIBULLAEV Pulat Kirgizbaevich

Director of Center for Science and Technologies (CST) under the Cabinet of
Ministers of the Republic of Uzbekistan
xvi List of Authors

Director of Thermal Physics Department of Uzbek Academy of Sciences

Academician
Fax +998 71 137 61 78

KOYSHIEV Temirkhan Kosybaevich

Head of Renewable Energy Sources Department ɨf Kazakh State University
Professor
Almaty, Si-Sinhay str.22, apt.48,
tel 8 3272 48 27 65 mobile 8 333 23 150 75
E-mail: [email protected], [email protected]

KACHKYNBAEVA Kulsina Kanietovna

Director of Branch of Central Asia Regional Environment Center in Kyrgyz
Republic
Bishkek, Aliaskar Toktonalieva str 2/1, Kyrgyzsatn. 720055
tel./fax. (8 10 996 312) 61 13 55, E-mail: [email protected],
[email protected], [email protected]

LEBEDEV Oleg Vladimirovich

Head of Laboratory of Institute of Construction Mechanics and Seismic
Resistance of Academy of Science of Uzbekistan
Chief of Department of Tashkent Automotive Institute
Academician
E-mail: [email protected].
 LIST OF PARTICIPANTS

NATO COUNTRIES

CANADA
KOCH Frans Herman
Executive Committee Implementing Agreement for Hydropower
Technologies and Programmes
Doctor
26 Meadowcroft Cr., Ottawa, Ont K1J1G9,Canada
Tel.: +(1) 613 744 56 11 Fax: +(1) 613 748 31 57 E-mail: [email protected]

DENMARK
PACUDAN Romeo
United Nations Environmental Programme RISO Center
Doctor
P.O. Box 49 DK- 4000 Roskilde, Denmark
Phone: +45 4677 5170 Fax: +45 4632 1999
E-mail: [email protected]

FRANCE
BARONI Marco
International Energy Agency
Doctor
9, rue de la Federation 75739 PARIS Cedex 15
Tel: +33 1 40 57 65 82 Fax: +33 1 40 57 66 59
E-mail: [email protected]

ITALY
IACOMELLI Aldo
Inter-University Consortium For Research on Sustainable Development
(CIRPS)
University of Rome “La Sapienza”
Secretary General of ISES ITALIA Co-director NATO Advanced
Research Workshop
Professor Via Tomasso Grossi, 6
Via E. Filiberto, 1-3 00184 Rome
56127 Pisa Mob. +39 335 8141630
Mob. +39 335 8141630 Fax +39 06 77073612
Tel. +39 050 2213363 Tel. +39 06 77073610 – 11
e-mail: [email protected] e-mail: [email protected]
xviii List of Participants

NASO Vincenzo
CIRPS Director General University of Rome “La Sapienza”
Academician
CIRPS – Piazza del Colosseo, 9 -00184 Roma – Italia
Tel.: +39 06 772653206 Fax: +39 06 772653215
Email: [email protected]

SPAGHETTI Giacomo
CIRPS - University of Rome “La Sapienza”
Doctor
CIRPS – Piazza del Colosseo, 9 -00184 Roma – Italia
Tel.: +39 06 772653206 Fax: +39 06 772653215 Mob.: 3493423348
Email: [email protected]

MIGNONE Alicia
Energy and Science Advisor Permanent Delegation of Italy to OECD
Professor
50, Rue de Varenne 75007 Paris, France
Tel: (33) 01 44 39 21 60 Fax: (33) 01 45 48 00 60
Email: [email protected]

SWEDEN
TELENIUS Bjorn
Executive Committee Implementing Agreement for Bioenergy,
International Energy Agency
National Energy Administration
Biomass expert
Box 310, 631 04 Eskilstuna Besoksadress: Kungsgatan 43
Tel: 016-544 2109 Fax: 016-544 2261 Mobil: 070-497 0401
E-mail: [email protected]

UNITED STATES
MALYSHEV Teresa Carroll
Renewable Energy export IEA International Energy Agency,
Energy Analyst
9, rue de la Federation 75739 PARIS Cedex 15
Tel: (33) 1 40 57 67 12 Fax: (33) 1 40 57 66 59
E-mail: [email protected]
List of Participants xix

NIS COUNTRIES

K A Z AK H S T A N
KOYSHIEV Temirkhan Kosybaevich
Head of Renewable Energy Sources Department ɨf Kazakh State University
Professor
Almaty, Si-Sinhay str.22, apt.48,
tel 8 3272 48 27 65 mobile 8 333 23 150 75
E-mail: [email protected], [email protected]

KYRGYZSTAN
KACHKYNBAEVA Kulsina Kanietovna
Director of Branch of Central Asia Regional Environment Center in Kyrgyz
Republic
Bishkek, Aliaskar Toktonalieva str 2/1, Kyrgyzsatn. 720055
tel./fax. (8 10 996 312) 61 13 55, E-mail: [email protected],
[email protected], [email protected]

OBOZOV Alaybek Jumabekovich

Director of ”Kyun” Renewable Energy Center under the Government of
Kyrgyz Republic
Member of Engineering Academy
Professor
Tel. (8 10 996 312) 55 92 01 / 05, Fax 8 10 996 312 55 92 04,
Mob. 0502 57 02 66
E-mail: [email protected]

RUSSIA
MOLODTSOV Sergei Dmitrievich
Deputy Director for Science of the Center for Energy Policy of Russia
Tel. 8 095 200 45 06, 200 37 34, 200 44 79
E-mail: [email protected]

STREBKOV Dmitry Semenovich

Director of All-Union Institute of Agriculture Electrification
Academician
Tel. 8 095 170 51 01, 171 19 20 E-mail: [email protected]

KHARCHENO Valery Vladimirovich

Director of All-Union Institute of Agriculture Electrification
Head of RES dept
Doctor
xx List of Participants

Tel. (+7095) 171 1423, (+7095) 171 2191, Fax. (+7095) 171 5101
E-mail: [email protected]; [email protected]

UKRAINE
KUDRYA Stepan Aleksandrovich
Deputy Director for science of the Renewable Energy Institute of the
National Academy of Sciences of Ukraine
Professor
Tel/fax 8 10 38 (044) 559 23 63 Mobile 8 10 38 (067) 465 66 68
E-mail: [email protected]

UZBEKISTAN
PARTICIPANTS

KHABIBULLAEV Pulat Kirgizbaevich

Director of Center for Science and Technologies (CST) under the Cabinet of
Ministers of the Republic of Uzbekistan
Director of Thermal Physics Department of Uzbek Academy of Sciences
Academician
Fax +998 71 137 61 78

AKHUNOV Ali Akhunovich

Deputy Director of Center for Science and Technologies under the Cabinet
of Ministers of the Republic of Uzbekistan
Professor
Tel. +998 71 135 62 70 Fax +99871 137 62 74

ABDULLAEV Djura Abdullaevich

Scientific advisor to Center of scientific-engineering and marketing
research of Uzbek Agency of communication and information
Academician
Tel + 99871 137 56 24, Fax +99871 137 52 07,
ȿ-mail: [email protected]

MUMINOV Ramizulla Abdullaevich

Physics and Technical Institute of NPO “Physics-Sun”
Academician
Tel +998 71 135 40 32 Fax +998 71 135 42 91

NASYROV Timur Khayrullaevich

Director of Energy Center of Uzbekistan
Academician
List of Participants xxi

Tel/fax: +998 71 133 08 15, ȿ-mail: [email protected]

ABDURAKHMANOV Abdujabor Abdurakhmanovich

Director of Institute of Materials of NPO “Physics- Sun”
Professor
Tel/fax +998 71 133 95 64 Tel +998 272 224 10

ALLAEV Kahramon Rakhimovich

Rector of Tashkent State Technical University
Professor
Tel. +998 71 144 78 80. Fax +998 71 118 90 52

ZAKHIDOV Romen Abdullaevich

Head of Laboratory of renewable energy sources of the Institute of Energy
and Automatics of the Uzbek Academy of Sciences.
Head of theoretical heat technics of Tashkent State Technical University
Academician
Tel: +998 71 162 09 21, E-mail: [email protected]

LEBEDEV Oleg Vladimirovich

Head of Laboratory of Institute of Construction Mechanics and Seismic
Resistance of Academy of Science of Uzbekistan
Chief of Department of Tashkent Automotive Institute
Academician
E-mail: [email protected].

LUTPULLAEV Sagdulla Lutpullaevich

Director of Physics-Technical Institute NPO “Physics- Sun”
Professor
Tel. +998 71 133 12 71 Fax +998 71 135 42 91

SAIDOV Abdulla Abdunazarovich

Deputy Head of Heat Physics Department of the Academy of Sciences of
the Republic of Uzbekistan
Professor
Tel. +998 71 117 48 70, 173 37 96 Fax: +998 71 117 48 71

ISAEV Rikhsi Isakhodjaevich

Deputy Director of Center of Scientific Engineering and Marketing
Research of the Uzbek Agency
of Communication and Information
Tel (998 71) 137 56 24, Fax (998 71) 137 52 07,
xxii List of Participants

ȿ-mail: [email protected]

GUSAKOVA Svetlana Dmitrievna

Director of Technology Transfer Agency
Co-Director of NATO ARW
Doctor
Tel/Fax +998 71 139 49 17, Tel 39 48 07
E-mail: [email protected]

NOSOVA Ludmila
Thermal Physics Department of Uzbek Academy of Sciences
Tel. +998 71 117 48 70 Fax: +998 71 117 48 71

INVITED PERSONS

SHIRIN Vadim Viktorovich

Director of Qurilishgelioservice Corporation
Tel. . +99871 135 41 60, +99871133 64 47,
E-mail [email protected],

NIKULINA Svetlana Petrovna

Programme Manager of Environment Programme of the Government of
Uzbekistan supported by UNDP
e-mail [email protected]

AZAROV Oleg Vladimirovich

Head of energy saving technologies department of National Holding
Company “Uzneftegaz”
Tel. +99871 136 37 43
 INTRODUCTION

In the last few years, the awareness and worries towards the
exhaustion of natural resources are increasing, but this fact is still very
discussed about its analytical measurement, and therefore is not yet
demonstrated.
However, what has been demonstrated is that the 6 billion
inhabitants of the Earth move around the world every kind of goods and
wares for a level of 8 tons per-capita, which means about 50 billion tons per
year. This is the same amount as that of the materials moved yearly by
natural forces, such as winds, eruptions, earthquakes, rain.
The Man, with his anthropic activities, became a “geologic force”.
The most important environmental problems caused by human activities, are
connected with the use of natural resources.
The United Nations, with the IPCC (International Panel on Climate
Change), studied the climate changes, and demonstrated, in their scientific
reports, that:
i In the last 100 years of the 1900, the Earth temperature rose, in average,
of 0.4 - 0.6 °C;
i The XX century was the warmest of the last six centuries, and the last
years of 1900 were the warmest;
i By the end of the next century, is expected an increase of the
temperature, in average of 2 °C, with greater increase at higher latitudes.
i The level of the sea has risen of an average of about 10-25 cm, in
particular after the thermo-expansion of the oceans. The
temperature of the sea is rising also at the deepest levels.

Because of all this facts, an intervention on greenhouse gas

emissions is more and more pressing: even with an immediate intervention,
the temperature of the Earth would increase for decades, due to the
entrapment of solar heat in the atmosphere.
Today the concentration of carbon dioxide is of more than 358 ppm
(part per million), and is 30% higher compared to 200 years ago (pre-
industrial era).
The dependence from fossil sources is still too strong, and the mix of
combustibles in the future will be more and more dependent from the OPEC
xxiv Introduction

countries, in particular those in the Middle East, as well as from some NIS
countries in the Caspian region.
The shift to coal tries to soften this geopolitical dependence from
fossil sources, but does not respond properly to climate crisis and to health
and environmental emergencies. Consumption of fossil sources are divided
mainly into three macro-sectors: production of thermo-electric energy,
mobility of goods and people, heating/conditioning and lighting of rooms.
The world average of thermo-electric power plants are very old, and
there were no investments for many years, today the average efficiency of
electricity production is about 35 – 37 %. New power plants with combined
cycle, reach an average efficiency of 55%, but with the distributed
cogeneration, small power plants near by energy demand it would be
possible to obtain even higher performances with less costs included the
environmental costs.
In the residential field, there is an average consumption of about 200
kWh/m2/year, in the offices and private houses compared to 50 kWh/m2/year
in some countries where there is an investment in energy demand side
management, with systems of passive heating, day-lighting, could be used
less than one third of that amount of energy word wide.
However, the mobility sector (mainly road transport) of goods and
people, is the sector that is mostly dependent on fossil combustible, oil and
its by-products, with massive rigidity of the system and with an increase of
the rate of growth of consumptions and gas emissions of about 27% yearly
world wide.
An investment on rational uses of energy, savings and efficiency is
the main premise to support the development of new energy sources its
needed. If energy consumption decreases, renewable sources could cover a
significant part of the demand of energy (in particular electricity), if
consumption remains uselessly high because inefficient, renewable energy
sources reduce their positive impact.
If many phases of industrial production (even heavy industries)
become more efficient and less energy-consuming (acting also on final uses),
renewable energy would become a reality, a feasible method even in these
sectors.
With investments being equal (today all in the sector of generation
from fossil sources), if there were parallel researches on how to reduce
consumption and wastes considerably (at least 35%) and on power plants
Introduction xxv

from renewable sources, there would be also a reduction of gas emissions,

without any negative influence on development.
New technologies (and new “energy products”) will play a crucial
role for the development of a market of “sustainable energy products” that
should grow in a competitive way (cost-effective) to stand against the
challenge of change.

Aldo Iacomelli, PhD

Editor
Chapter 1

RENEWABLE ENERGY (RE), ENERGY

EFFICIENCY (EE) & ENERGY SERVICES: THE
ENERGY MARKET TRANSFORMATION

Aldo Iacomelli, PhD

Pisa University -
ISES ITALIA – Italian Section of
International Solar Energy Society
[email protected]

1. THE “PLAN OF IMPLEMENTATION” OF THE

JOHANNESBURG WORLD SUMMIT ON SUSTAINABLE
DEVELOPMENT (WSSD)

The WSSD in Johannesburg strongly reaffirms the

commitment to the Rio principles, the full implementation of Agenda 21 and
the Programme for the Further Implementation of Agenda 21, and also
commit the nations to achieving the internationally agreed development
goals, including those contained in the United Nations Millennium
Declaration trough the “Plan of Implementation”. To this end, concrete
actions and measures are needed at all levels and to enhancing international
cooperation, taking into account the principle of common but
differentiated responsibilities as set out in Principle 7 of the Rio
Declaration on Environment and Development.
The three components of sustainable development as
interdependent and mutually reinforcing pillars, as confirmed outcome of
WSSD are:
x economic development;
x social development;
x environmental protection.

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 1–17.
© 2005 Springer. Printed in the Netherlands.
2 ALDO IACOMELLI

After Johannesburg the “new paradigma”, showed in the

diagram below, keeps jointed the three pillars with the social issues on the
top of Sustainable Development Pyramid as the new driving force for the
development, and definitely clarifies the huge difference between the
economic growth (the previous paradigma in the business as usual age) and
the new perspectives of durable development: the challenge for the future
generations.

Fig 1. Johannesburg vs. Rio the Janeiro the Pyramid of Priority

SOCIAL ECONOMY ENVIRONMENT

ECONOMY ENVIRONMENT SOCIAL

JOHANNESBURG 2002 RIO DE JANEIRO 1992

Poverty eradication, changing unsustainable patterns of

production and consumption, and protecting and managing the natural
resource base of economic and social development are overarching
objectives of, and essential requirements for, sustainable development.
At the international and national level for achieving
sustainable development and ensuring SOCIAL, ECONOMIC and
ENVIRONMENTAL, essential benefits are:
ipeace;
isecurity (food, water, energy, information health services,
culture);
istability and respect for human rights and fundamental
freedoms;
isocial and economic policies;
idemocratic institutions responsive to the needs of the people;
irespect for cultural diversity.
ithe right to development;
igender equality;
ithe rule of law, anti-corruption measures;
igood governance within each country;
RENEWABLE ENERGY (RE), ENERGY EFFICIENCY (EE) & ENERGY SERVICES 3

isound environmental practices.

we will focus, to the end of this article on energy issues and

we will loop to the WSSD outcome on Energy and Transport

1.1 Energy
The energy issues where the weak point in Johannesburg
Summit. The nations weren’t able to achieve an agreement with target and
deadline for needed actions to prevent climate changes and to avoid energy
shocks. Nevertheless one of the outcome is to increase the global share of
renewable energy sources with the objective of increasing its contribution to
total energy supply, recognizing the role of national and voluntary regional
targets as well as initiatives. Develop and utilize indigenous energy sources
and infrastructures for various local uses and promote rural community
participation, in developing and utilizing renewable energy technologies to
find simple and local solutions. To facilitate the access to energy as one of
the measures to poverty eradication actions at all levels should include:
¾ improve access to reliable, affordable, economically viable,
socially acceptable and environmentally sound energy services
and resources,
¾ enhanced rural electrification and decentralized energy systems,
¾ increased use of renewables,
¾ cleaner liquid and gaseous fuels
¾ enhanced energy efficiency,
¾ capacity-building,
¾ financial and innovative financing mechanisms;
¾ technological assistance;
¾ improve access to modern biomass technologies and fuel-wood
sources and supplies;
¾ support the transition to the cleaner use of liquid and gaseous
fossil fuels, where considered more environmentally sound,
socially acceptable and cost-effective;
¾ develop national energy policies and regulatory frameworks;
¾ create the necessary economic, social and institutional conditions
in the energy sector to improve access to reliable, affordable,
economically viable, socially acceptable and environmentally
sound energy services;
¾ promote public-private partnerships.
4 ALDO IACOMELLI

In Johannesburg the focus was not only on renewable energy

technologies but also on taking into account cleaner fossil fuel technologies
and, under pressure of many developing countries, large hydro, with the aim
of a transfer to developing countries on concessional terms as mutually
agreed. But if we combine the WSSD outcome with the Kyoto Protocol
target, because it is a legal binding instrument, RE&EE and sustainable
energy are the future of development and not the clean fossil fuel technology.
Promote increased research and development in the field of
new energy service, including renewable energy, energy efficiency and
advanced sustainable energy technologies, based specifically on gas CHP
and microcogen. Diversify energy supply by developing advanced, cleaner,
more efficient, affordable and cost-effective energy technologies.
The technology transfer must be realized on a mutual agreed
bases between developed and developing countries. This actions should
include:
¾ develop domestic programmes for energy
efficiency;
¾ provide environmentally sound technology
transfer;
¾ eliminate the barrier for the diffusion of environmentally sound
technologies;
¾ develop capacity-building at national and regional
level;
¾ develop and disseminate alternative energy technologies with the
aim of giving a greater share of the energy mix to renewable
energies, energy technologies, including cleaner fossil fuel
technologies as transition frap;
¾ promote BAT and BEP in the energy sector;
¾ promote research programme for further development in energy
technology;
¾ provide technical assistance to developing countries, with the
involvement of the private sector, to reduce flaring and venting of
gas associated with crude oil production.

1.2 Transport

Promote an integrated approach to policy-making at the

national, regional and local levels for transport services and systems to
RENEWABLE ENERGY (RE), ENERGY EFFICIENCY (EE) & ENERGY SERVICES 5

promote sustainable development, including policies and planning for land

use, infrastructure, public transport systems and goods delivery networks,
with a view to providing:
1. safe, affordable and efficient transportation;
2. increasing energy efficiency;
3. reducing pollution;
4. reducing congestion;
5. reducing adverse health effects;
6. limiting urban sprawl.

This would include actions at all levels to:

¾implement transport strategies for sustainable development,
improve the affordability, efficiency and convenience of
transportation;
¾improve urban air quality and health,
¾reduce greenhouse gas emissions, development of better vehicle
technologies, more environmentally sound, affordable and
socially acceptable;
¾promote investment and partnerships for the development of
sustainable, energy efficient multi-modal transportation systems;
¾promote public mass transportation systems;
¾promote better transportation systems in rural areas;
¾ensure technical and financial assistance for developing countries
and countries with economies in transition.

1.3 Public-Private Partnership (PPP)

Some concrete elements for the development of means of
implementation work program, to make concrete the outcome of WSSD.
Promote public-private partnerships, financial support for
technical assistance, the development of technology and capacity-building to
developing countries to:
™ enhance trade infrastructure;
™ strengthen financial institutions;
™ increase developing country capacity to diversify and increase
exports to cope with the instability of commodity prices and
declining terms of trade;
™ increase the value added of developing country exports.
6 ALDO IACOMELLI

Continue to enhance the mutual supportiveness of trade,

environment and development with a view to achieving sustainable
development through actions at all levels to:
9 support the completion of the work programme of the Doha
Ministerial Declaration on subsidies so as to promote sustainable
development and enhance the environment;
9 encourage reform of subsidies that have considerable negative
effects on the environment and are incompatible with sustainable
development;
9 encourage efforts to promote cooperation on trade, environment
and development,
9 providing technical assistance to developing countries, between
the secretariats of WTO, UNCTAD, UNDP, UNEP and other
relevant international environmental and development and
regional organizations;
9 encourage the voluntary use of environmental impact assessments
as an important national-level tool to better identify trade,
environment and development inter-linkages.

1.4 Economic and financial measures

Provide financial assistance to developing countries, with the
involvement of the private sector in the energy field with the aim of
mobilizing the adequate financial instruments and resources. Develop and
support efforts to improve transparency and information about energy
markets.
The international community should develop policies and
measures to reduce market distortions and promote energy systems
compatible with sustainable development through the use of improved
market signals and by removing market distortions, including restructuring
taxation and phasing out harmful subsidies, where they exist. To this end
actions is needed, where appropriate, to phase out subsidies in this area that
inhibit sustainable development, taking fully into account the specific
conditions and different levels of development of individual countries and
considering their adverse effect, particularly on developing countries;
Recommend that international financial institutions and other
agencies’ policies support developing countries, as well as countries with
economies in transition, in their own efforts to establish policy and
regulatory frameworks which create a level playing field between:
RENEWABLE ENERGY (RE), ENERGY EFFICIENCY (EE) & ENERGY SERVICES 7

1. renewable energy,
2. energy efficiency,
3. advanced energy technologies (including advanced and cleaner
fossil fuel technologies, and centralized, distributed and
decentralized energy systems).

Financial instruments and mechanisms, should utilize, also,

the Global Environment Facility (GEF), within its mandate, to provide
financial resources to developing countries, in particular least developed
countries and small island developing States, to meet their capacity needs
for:
¾ develop technical know-how;
¾ capacity building;
¾ training;
¾ strengthening national institutions in reliable, affordable,
economically viable, socially acceptable and environmentally
sound energy;
¾ promoting energy efficiency and conservation;
¾ promoting renewable energy;
¾ promoting advanced energy technologies (including advanced
and cleaner fossil fuel technologies).

International and regional cooperation arrangements should

be strengthened for promoting cross-border energy trade, including the
interconnection of electricity grids and oil and natural gas pipelines.

2. STOP THE GROWTH OF GREENHOUSE GAS

EMISSIONS WITH THE RATIONAL USE OF ENERGY
AND OF NEW ENERGY SERVICES &SOURCES.
The governments should use several instruments to choose
and support some energy technologies or innovative energy products
(included savings and efficiency), such as:
¾ Fiscal measures;
¾ Policies and guidelines;
¾ Information, labeling, voluntary agreements, other programs of
assistance and support;
¾ Research and developments of new technologies.

In particular, it is about technology progress, with the

ecological modernization. These measures of “energy policy” should focus
8 ALDO IACOMELLI

on the “amount of energy produced by renewable sources” to maximize it,

and on “costs of production of energy from renewable sources” to minimize
it.
Using price instruments, a “strategy” is used based on
renewable energy sources, trying to create a relevant supply. For this
purpose, a gross remuneration is assured to the producers, with a price
guaranteed higher than that of energy from conventional sources, so that the
differential revenue is an incentive to a greater opening of the market, from
the supply side, and to the removal of every entry barrier.
After fixing the unit price, after necessary fluctuations, the
quantity produced at that price will be defined freely and stabilized with
time.
With the instruments of quantity, on the other hand, it is the
amount of energy produced that is fixed, leaving the price floating to set at
that level of production.
This happens with a mechanism of “competitive auction” that
selects producers according to the lower costs.
The difference between the 2 options is the difference
between price and costs. It is necessary to distinguish between short term
and long term.
In the short term, the auction mechanism will lead to lower
production costs for energy from renewable sources, because it removes the
revenues, and therefore is to be considered more efficient. The beneficiaries
of the missing burden of the revenue are the energy buyers, against who
would have weight that burden, trough the dispenser utilities, or trough the
general fiscal system.
In the short term as well, the quantity mechanism will lead,
vice versa, to an extra price for the community, an extra price that should not
be considered different from a public investment in a private research: the
expressed aim is to recover that investment achieving a growing technical
efficiency and, therefore, minor costs in the future.
This reflection passes on to the long term, when the possible
re-investment of the differential revenues, caused by the mechanism of the
guaranteed price, in technology research with results which can be useful to
all producers, will lead gradually to lower costs.
RENEWABLE ENERGY (RE), ENERGY EFFICIENCY (EE) & ENERGY SERVICES 9

Fig. 2. Technology learning curve & cost reduction opportunities

100
kWh costs in Euro cents

1998
Solar photovoltaics 2010
2020
10
Solar thermal
Bioelectricity Small hydro

Wind
Geothermal

1
1 10 100 100
Installed capacity in kWh per capita

Source: elaboration from IEA data

Fig. 3. RE market costs-price evolution in the global context

Development Price cap Stability

Price or
Cost per
UNIT

GLOBAL PRODUCTION
10 ALDO IACOMELLI

At the beginning of any period characterized by a certain

technology, corresponding therefore to the so-called “first phase”, costs tend
to remain stiff or only slightly decreasing: it is the so-called “umbrella
price”.
At the very moment of creation of the market, they should
normally be fixed by the pioneer producers at a lower lever than the initial
actual costs, because these are normally so high that would exclude every
approach to the market, in the case of an integral translation on prices.

Fig. 4 Cost reduction opportunities, every * = 4% - 6% of cost reduction within a decade.

R&D Manu- Economy

facturing of scale
volume
Bioelectricity ** * *
Geothermal ** * ***
Small hydro ** * **
Solar photovoltaics ***** **** *
CSP *** *** ****
Wind onshore ** * ***
Wind offshore *** * ***
Source: elaboration from IEA data

For example, in the case of energy efficiency, the market

mechanism entailed a displacement to a category of products with a greater
efficiency and is marginalizing the poorest products. The transformation of
the market of energy products will lead to the development of better
technologies and deeper diffusion of new technologies, if compared to the
“starting point”.
RENEWABLE ENERGY (RE), ENERGY EFFICIENCY (EE) & ENERGY SERVICES 11

Fig. 5 the role of ”learning by doing” comes out from the efficiency lesson

Fig. 6 Annual Growth of Renewables Supply from 1971 to 2000

Innovative business strategies could facilitate the

transformation of the energy market.
In a very simple way, until not long ago, the core business of
an utility was the energy selling to domestic clients or to industries, and the
key factor to success was the price of electricity. In fact, within a “regulated”
12 ALDO IACOMELLI

market, any transformation of the market itself was practically not possible.
The liberalization of electricity and gas is increasing the competitivity of the
market. Looking at the most advanced experiences in Northern Europe (for
example UK), the price of electricity at first decreased, almost as if the price
itself was the only competitive factor.

Fig. 7 Technology push and market pull the pillar of the energy policy reform

To the last extent, those companies with most competitive

prices and the lowest costs will prevail in the market. But, without electricity
at low cost, how can an energy company survive in the market, in the long
term?
The Business is not only to sell a product or a technology but
is something that involves the “target groups” of clients and its distribution
channels. It is not only a question of new technologies, but a new way of
offering products and services.
The utilities can have benefits on the market if they are able to
be innovative.
Where do the money go in the cycle of energy “value”?
The “desegregation” of the business of utilities has started.
Previously, when production and transmission (and also distribution) were in
the same hands, the emphasis (even for the weight of prices) was on
production. After the dismantling, still on the way, of the monopoly of the
utilities in Europe, the “peak of price” is today within the line of distribution,
and the final users are often “linked” to local distributors.
Move the attention, as is going to happen in the next future,
on final users in a disaggregated market, much of the profits would come
from services to final users.
RENEWABLE ENERGY (RE), ENERGY EFFICIENCY (EE) & ENERGY SERVICES 13

This is going to fully happen when consumers could have the

possibility to choose between options of distribution.
The road of the “innovative energy products” has been
tracked: after a
The transition phase will be dominated by gas and carbon,
than there are the renewable energies and especially the rational uses of
energy will be a forced road. But, since the transition from an energy system
to another will last decades, the foundation of a future system is built now.
Therefore, a full application of the European set of laws needs also a strong
political shove and investments to direct the technology innovation, the
transformation of the energy market and the choices towards rational uses of
energies and renewables.
This view is enriched also from the employment possibilities
that, in the case of renewable energy, are an important added value.

Table 1. Workers from different source to produce annually a TWh of energy

Source Workers (workers-year) (TWh)

Oil 260
Oil Off-Shore 265
Natural Gas 250
Coal 370
Nuclear 75
Wood 1000
Hydro 250

Mini – hydro 120

Wind 918
PV 76.000
Ethanol (from biomass) 4.000
Source: ISES ITALIA elaboration from lecterature

In addition to the important normative framework set by the

European Union and by Italian institutions, we need to point out some
instruments of energy policies that are able to stimulate the rational uses of
energy and renewable sources, such as recommended in the conclusion.
14 ALDO IACOMELLI

3. CONCLUSION
The Policy & Measure suggested to develop in a country such
as the central Asia Countries a path for renewable energy and energy
efficiency should follow a set of guide principle such as:
i ECONOMIC AND FINANCIAL ASPECTS
a) Incentives to production, as the “feed in tariffs or law”, fiscal credits
to production, “net metering”, fiscal credits to the utilities that “sell”
energy efficiency to final users;
b) Financial mechanisms, as “bond”, loans and mortgages at a lower
rate, fiscal credits and mechanisms of public and private financial
support to the production of energy from renewable sources.
c) “benefit” systems (System Benefits Charges - SBC), to support the
recover of financial or fiscal incentives, to cover within the shortest
time the loans demanded by the entrepreneur of renewables energy.
d) Programs of financing from Public bodies to University and specific
agencies for the basic researches, and intervention of private capitals
for applied researches and commercial development;
e) Incentive to commercial mechanisms (“Trading”) of “commodities”,
as green certificates, white certificates and Certificates of Emissions
Reduction (CERs) fixed by the Kyoto Protocol, to strengthen the
renewable energies, enhance the entry of this energy sources in the
market, increase the value of the environmental added benefits of
such energy choices.
f) Introduction of target taxation (carbon energy tax) not only as an
increased fiscal withdraw, but also as governmental “zero
incentives” to the business and utilities that do not use renewable
energy sources.
i INTERVENTIONS TROUGH INTERMEDIATE AND LOCAL BODIES
g) individuation of minimum shares of renewable energies that every
municipality, Province or Region in Italy should provide, requesting
each local body to cover at least 35% of its energy needs with “green
electricity”, produced from renewable sources.
h) Development of regional, provincial and municipal programs, to
promote renewable sources and research applied to the land, together
with Italian and European universities and companies.
i INTERVENTION ON PROCEDURES AND AUTHORIZATION
i) Removal of procedural and bureaucratic difficulties, as building
licenses and other authorizations that are a barrier for the use of
renewable sources, always considering the need for the protection of
RENEWABLE ENERGY (RE), ENERGY EFFICIENCY (EE) & ENERGY SERVICES 15

the environment and of the Italian artistic heritage, and especially

the time limit for the decisions about authorizations.
j) Removal of extreme economic and fiscal barriers that hinder
renewable sources, promoting access to the network for auto-
producers, including individual users.
k) Standardization process of regulatory and authorization systems on a
national basis, that would allow unifying them and with the national
and European sets of laws
l) Development and application of agreements of inter-connection to
the transmission network that have to be standardized and easy to
apply.

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Hendriks, C.A., J-W Velthijsen, E. Worrell, and K. Blok, 1995, Regulation and
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Chapter 2

PROMOTING EFFECTIVE AND EFFICIENT

PUBLIC PRIVATE PARTNERSHIPS (PPPs)

Aldo Iacomelli, PhD

Pisa University -
ISES ITALIA – Italian Section of
International Solar Energy Society
[email protected]

1. INTRODUCTION
How to implement on the ground concrete projects? Which
capital to support the investment and the management? From the WSSD
summit one of the proposal was to promote public-private partnerships
(PPP), to identify new financial support for technology innovation,
development of this new sustainable technology and implement the needed
capacity-building to help developing countries to:
™enhance trade infrastructure;
™strengthen financial institutions;
™increase developing country capacity to diversify and increase
exports to cope with the instability of commodity prices and
declining terms of trade;
™increase the value added of developing country exports.

Continue to enhance the mutual supportiveness of trade,

environment and development with a view to achieving sustainable
development through actions at all levels to:
9support the completion of the work programme of the Doha
Ministerial Declaration on subsidies so as to promote sustainable
development and enhance the environment;

19

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 19–26.
© 2005 Springer. Printed in the Netherlands.
20 ALDO IACOMELLI

9encourage reform of subsidies that have considerable negative

effects on the environment and are incompatible with sustainable
development;
9encourage efforts to promote cooperation on trade, environment
and development,
9providing technical assistance to developing countries, between
the secretariats of WTO, UNCTAD, UNDP, UNEP and other
relevant international environmental and development and
regional organizations;
9encourage the voluntary use of environmental impact assessments
as an important national-level tool to better identify trade,
environment and development inter-linkages.

2. PROPOSED FINANCIAL MECHANISM

The proposed financial mechanism, including the creation of
a dedicated public-private “energy sector investment fund” (equity funds,
multilateral funds, etc) will:
™ create a more favourable public-private financing mechanism that
will directly and indirectly increase the capability of our
resources’ capability to leverage private and other public
resources;
™ create a pool of patient capital, by allowing returns on investment
which are below what the market, i.e. 5% instead of 15-25 %, that
venture capitalists are seeking;
™ increasing access to affordable capital by a special agreement
with banks using the EIAF research analysis and evaluation (both
technical and financial);
™ promote the long-term viability of energy sector investments and
growth perspectives of Energy Service Companies (ESCo) and
related private sector activities in developing countries;
™ complement awareness raising and capacity building efforts;
™ offering increased access to a knowledgeable team of investors
that can also provide managerial support to for developing
country entrepreneurs (trough joint ventures and EIAF
assistance).
PROMOTING EFFECTIVE AND EFFICIENT PUBLIC PRIVATE PARTNERSHIPS 21

2.1 Investment dedicated funds

The creation of an intermediate dedicated fund-based
financial mechanism, would significantly increase the effectiveness and
efficiency of public resources supporting “energy sector” investments. A
fund-based mechanism can help to avoid a proliferation of fund application
conditions and long time to deliver funds.
Fund based investment mechanism provide a more stable and
reliable source of funding compared to resources made available on an
annual basis. Fund-based resources are also more visible and more easily
identifiable by potentially interested investors.
Financing energy sector ventures capital, in particular in
developing countries will often require tailor made solutions. Selected public
and private initiators could established a legal instrument setting out the
rules of procedure governing a trust fund. The instrument would define the
conditions under which public and private donors and investors could pool
financial resources and build-up a viable portfolio of diversified investments.

2.2 Engaging pro-active fund managers

Investment financing is often a highly interactive process
whereby decisions mainly take place in a commercial environment.
For the purpose of sound financial management, the
investment management function could be split between an “operational”
function (to be attributed to a professional investment management team
such as the “Mediterranean Investment Advisory Facility”(EIAF)) and the
“treasury and control”, which could be attributed to the treasury of a well-
respected public financial institution such as the ADB, EIB, the World Bank
or the GEF.

2.3 Enhancing risk management options

The high risks associated often with investments in
developing countries and to some extent (although of decreasing importance)
associated with energy & water sector investments is a major obstacle for
creating an “investment pipeline” towards sustainable energy research
implementation in developing countries.
The proposed use of a dedicated revolving fund offers some
important risk mitigation options for public and private donors. EIAF should
22 ALDO IACOMELLI

train in developing countries “ad hoc” staffed fund management team that
can be able to follow up the research implementation.

3. EXAMPLES OF ENERGY SECTOR PPP

The potential to leverage private financial resources is related
to the nature of the investment, with the governance structures that will be
put in place. It could be envisaged that the low return accruing to public
investors is leave to private investors thereby offering a higher return than
what they could get themselves in similar conditions.
Assuming that the investment fund is targeting middle income
developing countries where expected returns are around 6% and the
minimum ROI a private sector investor is requiring is 15%, the ratio of
public versus private funding of such a PPP investment fund would be 60% -
40%.
This ratio would inversely relate to the expected returns from
the private sector.

Fig. 1. Options for a Public Private Partnership

Public Private Partnership / Patient Capital

lPublic 1.000.000 1% 0,0%
Private 99.000.000 99% 15,0%
"Grants"
100.000.000 100% 14,9% "VC
0%
"
15-20%
Public 60.000.000 60% 0,0%
Private 40.000.000 40% 15,0% 3-6%
100.000.000 100% 6,0% solving the weak ROI
through public / private
Public 80.000.000 80% 0,0% partnerships
Private 20.000.000 20% 15,0%
100.000.000 100% 3,0%

Depending on the assumptions taken, the leverage potential –

measured in terms of the resources needed to generate a single “energy
sector” investment capability, range from 10 to 160 in a non-leveraged fund
structure.
PROMOTING EFFECTIVE AND EFFICIENT PUBLIC PRIVATE PARTNERSHIPS 23

3.1 Characteristics of “Project financing”

"An operation of project financing is the organization to
finance a research, identifying the subjects that if there are appropriate
guarantees, would entrust the repayment of their credit to the cash flows
expected to be created by the research itself”.
This type of operation has some characteristics:
¾ project financing itself is not a true financial instrument, but more
a mixture of other instruments, already existing on the market;
¾
the receiver of the financing is the project itself, partly
independent from the makers.

To complete a project financing there is the need to legally

divide the research itself from the organizers;
¾ project financing is different from other financial instruments also
because of the high number of bodies and organizations involved,
each with diverse purposes and with specific risks.

To solve the problem of finding a financing with the

instrument of “project financing”, some conditions should be fulfilled, such
as:
¾ there must be a project, defined by its performance objective, and
by its time and resource limit;
¾ there must be some subjects that are determined to take
individually the risks related to the realization of the project itself;
¾ these subjects must be able to structure a system of guarantees to
support the financing of the project.

Without all these conditions, the use of a project financing is

not possible. The main function of this kind of operation is the possibility to
distribute properly the risks related to the project that, individually, none of
the organizers would be able to tolerate.
These risks are of various nature:
¾ technical risks, related to the making and management of the
project;
¾ economical risks, related to the ineffective and inefficient use of
the capital;
¾ operative risk, originating from the ineffective and inefficient use
of the capital;
¾ market risks, caused by the demand fluctuation;
¾ institutional risks, that include also the so-called country risk,
deriving from the low stability of political institutions in
24 ALDO IACOMELLI

particular situations in the country (such as in many developing

countries);
¾credit risk, caused by the possible insolvency of one or more
promoters or guarantor;
¾Financial risks, related to the fluctuation of interest, change and
inflation rates.

These risks are present in a different way in the different

phases of the project, so that the financing bodies and the promoters of the
project will face the risks depending on the phase in which they are more
involved, based on the bonds they took.
In the end, it can be said that is possible to apply the project
financing to the energy sector, as long as four conditions are fulfilled:
¾ several institutions and organizations must have an interest in the
project to be completed, because there is the need to share the
risks related to the project;
¾ it must be possible to value in a correct way the dimension of the
project that has to be financed, if the value of the energy
infrastructures that are planned is not relevant compared to the
debt capacity of the manager, this instrument is not appropriate,
being sufficient more traditional financial instruments;
¾ complexity and technical characteristics of the project financing
require significant management skills.

A main issue is the division of the project into several phases,

each financed by different investors with different risks.
The main variable in time, that require three phases:
¾ defining of the project and building of the works. It includes all
engineering and planning works;
¾ starting of the project. It measures the suitability of the relation
between the costs (also expected) and the specifications estimated
during the planning of the financing;
¾ management as planned. Now the financial instrument acts as a
real company. It is expected that cash flows coming from the
service management can cover up operative costs, allowing at the
same time a proper profit and the cover of the bonds originated by
the contracts made to share the risks.
PROMOTING EFFECTIVE AND EFFICIENT PUBLIC PRIVATE PARTNERSHIPS 25

Fig. 2 Benchmark of successful “Project Financing” in the water sector (that conceptually
is similar to the energy): “CONSORZIO AGUA AZUL SA”

Warrantees:
Government of Perù

ACEA S.p.A. IMPREGILO COJPOII

45% S.p.A. S.p.A.
45% 10%

Contracts EPC:
i Civil Works
Impregilo-CoJPoIi
i Electro-
mechanical
Works CONSORTIUM AGUA AZUL
ACEA- CoJPoIi (Contract BOT)

Technical consultant:
C.Lotti & Ass. Services
contract
with the
rules for the
delivery of
Legal consultant: energy
Rodrigo, Elias & services
Medrano Abogados Financial
"take-or-
consultant:
pay"
Citybank

CUSTOMER: SEDAPAL
(Public WATER Company)
26 ALDO IACOMELLI

REFERENCES
Blok, K., and G.J.M. Phylipsen, 1996, Common policies and measures for
greenhouse gas emission limitation and reduction, Background document for the workshop
‘Towards a European consensus’, Dublin, September 2-3, Department of Science, Technology
and Society, Utrecht University, Utrecht.
Blok, K., D. van Vuuren, A.J.M. van Wijk and L.G. Hein, 1996, Policies and
measures to reduce CO2 emissions by efficiency and renewables, WWF Netherlands, Zeist.
Blok, K., and G.J.M. Phylipsen, 1997, European Union policies and measures to
achieve the 15% negotiating position, Dept. of Science, technology and Society, Utrecht
University, Utrrecht.
Burniaux, J.M., J.P. Martin, G. Nicoletti and J. Oliveira-Martins, 1992, The costs of
international agreements to reduce CO2 emissions, OECD, Paris.
Capros, P., T. Georgakopoulos, D. Van Regemoorter and S. Proost, 1996, Results
from the General Equilibrium model GEM-E3, September.
EC, 1996c, A Community strategy to reduce CO2 emissions from passenger cars
and improve the fuel economy, Council Conclusions, European Union - The Council, 8748-
96, Brussels.
EC, 1996d, Strategy Paper for reducing methane emissions, European Commission,
COM(96)557, Brussels.
EC, 1997, Climate change - Analysis of proposed EU emission reduction objectives
for Kyoto, Commission Staff Working Paper, European Commission, Brussels.
Enquete Kommission, 1995, Mehr Zukünft für die Erde, Nachhaltige
Energipolitik für dauerhafte Klimaschutz (More future for the earth; lasting energy policies
for sustainable climate protection), Economica Verlag, Bonn.

IEA Energy and Poverty 2002. Special Publication for Johannesburg Summit
International Energy Agency, Paris, 2002
IEA Energy Balances of non-OECD Countries 2001. International Energy
Agency, 2002
IEA Energy Balances of OECD Countries 2001. International Energy Agency,
2002
Wijk, A.J.M. van, J.P. Coelingh, 1993, Wind power potential in OECD countries,
Department of Science, Technology and Society, Utrecht University.
WSSD Plan of Implementation, advanced unedited text. World Summit on
Sustainable Development, Johannesburg, 4 September 2002
Chapter 3

THE CLEAN DEVELOPMENT MECHANISM:

NEW INSTRUMENT IN FINANCING
RENEWABLE ENERGY TECHNOLOGIES

Romeo Pacudan, PhD

Senior Energy Economist

Risoe National Laboratory
Roskilde, Denmark

The Clean Development Mechanism (CDM) is one of the

flexible mechanisms established under the Kyoto Protocol of the United
Nations Framework Convention on Climate Change (UNFCCC) to assist
industrialized countries in meeting their emissions reduction obligations at
lower cost and at the same time to stimulate investments that promote
sustainable development in developing countries. The UNFCCC is an
international treaty formulated in 1992 and entered into force in 1994, which
sets a goal of stabilizing atmospheric concentration of greenhouse gases at
safe levels. The UNFCCC’s supreme body, the Conference of Parties
(COP), supervises the activities towards the achievement of the
Convention’s goals. In its first meeting in Berlin, Germany, the body
decided that the post-2000 commitments to reduce emissions would only be
set for industrialized countries, also known as Annex 1 countries. During the
body’s third meeting in Kyoto, Japan, the supreme body set a legally binding
requirement for Annex-1 countries to trim down their greenhouse gas
emissions to an average of 5.2% below their 1990 emissions levels. This
legally binding commitment is also known as the Kyoto Protocol. In order
for the Kyoto Protocol to enter into force, it requires ratification of at least
55 parties to the convention, which accounts for 55% of Annex 1 emissions
in 1990. With Russia’s ratification of the Protocol in November 2004, the

27

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 27–42.
© 2005 Springer. Printed in the Netherlands.
28 ROMEO PACUDAN

number of Parties rose to 127, accounting for 61.6% of the Annex 1 1990
emissions. The Protocol entered into force in February 16, 2005.
Greenhouse gases covered under the Kyoto protocol are
carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,
perfluorocarbons and sulfur hexafluoride. The Protocol requires Annex 1
countries to engage in domestic activities that reduce emissions or absorb
emissions such as afforestation and reforestation. To help these countries
reduce the costs of meeting their obligations, the Protocol establishes three
flexible mechanisms, and these are: i) Emissions Trading (ET), ii) Joint
Implementation (JI), and iii) Clean Development Mechanism (CDM). In
Emissions Trading, Annex 1 countries are allowed to exchange among
themselves parts of their assigned amount units (AAUs); in Joint
Implementation, Annex 1 countries are allowed to claim emission reductions
units (ERUs) arising from their investments in another Annex 1 country; and
in Clean Development Mechanism, Annex 1 countries are allowed to claim
certified emissions reductions (CERs) from their sustainable development
investments in developing countries.

1 THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is a project-based
mechanism where Annex 1 countries can purchase or claim CERs from
projects implemented in developing countries (non Annex 1 countries) to be
used for meeting their emissions reduction targets. Projects that qualify for
CDM include the following: end-use energy efficiency, supply-side energy
efficiency, renewable energy, fuel switching, agriculture, industrial
processes, solvent and other product use, waste management, and sinks
(afforestation and reforestation).
These projects must also satisfy two main conditions set by the
protocol: additionality and contributions to sustainable development. The
additionality condition states that projects must result in reductions in
emissions that are additional to any that would occur in the absence of the
project activity, and that the projects must lead to real, measurable and long
term benefits. The sustainability condition states that projects must assist
developing countries in achieving their sustainable development goals.
There is however no guideline provided by the Protocol except that each
country must develop its own criteria and assessment procedures.
The CDM process is governed by the CDM Executive Board.
The Board accredits independent operational entities to validate proposed
CDM projects, verify and certify emissions reductions. It also maintains a
CDM registry, which issues CERs, manage the CER levy, and maintain CER
THE CLEAN DEVELOPMENT MECHANISM 29

account for each developing country hosting a CDM project. For developing
countries to participate in CDM, the Protocol requires that each country must
establish a national authority responsible for CDM, ratify the Kyoto Protocol
and participate voluntarily.
Investors may prefer large-scale projects in developing
countries since these projects generate large quantity of CERs at lower
transaction cost per unit of emissions reduction. In order to remove the bias
towards large-scale projects, the Executive Board has developed simplified
modalities and procedures for small-scale projects to reduce transaction
costs. Small-scale CDM projects are defined as the following: i) renewable
energy project activities with a maximum output capacity equivalent of up to
15 MW; ii) energy efficiency improvement project activities which reduce
energy consumption on the supply and/or demand side, by up to the
equivalent of 15 GWh per year; or iii) other project activities that both
reduce anthropogenic emissions by sources and directly emit less than 15
thousand tonnes of carbon dioxide equivalent annually.
Bundling of smaller projects to reduce transaction costs are
also allowed by the Board as long as the total size of the bundled project
satisfies the small-scale project criteria. On the other hand, de-bundling of a
large-scale project into smaller scale projects is prohibited by the Board. A
de-bundling test was developed by the Board as the following: small-scale
projects are deemed de-bundled components of a large-scale project when the
application to register another small-scale project shows that i) participants
are the same entities to that of the previous project, ii) the project category
and technology/measures remain the same, iii) the previous project was
registered in the previous 2 years, and iv) the project boundary of the
previous project is within 1 km of the proposed new project.

2 CARBON FINANCE AND PROJECT VIABILITY

CDM projects produce both conventional project output and
carbon benefits (CERs). The value of carbon benefits and its impact on
project viability are influenced by several factors such as the amount of
CERs generated by the project, the price of CER and the transaction costs
involved in securing CERs.
30 ROMEO PACUDAN

2.1 Quantity of CERs

The amount of CERs generated by the project depends on the
greenhouse gas displaced by the project and the crediting period selected.
Renewable energy and energy efficiency projects displace
carbon intensive electricity and/or heat generation. Grid-based or off-grid
projects that displace more carbon intensive coal and diesel fuels generate
more CERs than those that displace natural gas. Projects that capture
methane and other greenhouse gases produce more CERs since the global
warming potential (GWP) of methane and other gases are several times
higher than that of carbon dioxide. Methane’s GWP is 21 times, nitrous
oxide is 310 times, hydrofluorocarbons (HFCs) range from 140-11,700
times, perfluorocarbons (PFCs) is on average 6,770 times and sulfur
hexaflouride is 23,900 times higher than carbon dioxide.
The total CER generated is determined by the selected
crediting period. The Marrakech accords specify two options for project
developers: 7 years with twice the option of renewal (totalling 21 years) or,
10 years without renewal.

2.2 Price of CERs

The price of CERs is determined in the carbon market. The
CER market is one of the fragmented carbon markets. The global carbon
market consists of diverse greenhouse gas reduction transactions and can be
broadly classified as follows: i) project-based or baseline and credit system.
Emission reductions are created and traded through a given project or
activity. CDM and JI are examples of the project-based system where CERs
and ERUs are generated respectively; ii) allowance market or cap and trade
system. Emission allowances are defined by regulations at the international,
national, regional or firm level. Examples of allowance market include the
Emissions Trading under the Kyoto Protocol (global), EU Emission Trading
System or EU ETS (regional), the UK and the Danish trading systems
(national), and BP and Shell internal trading (firm).
Most of market volume transactions are project-based, and the
emissions reductions credits are intended either for Kyoto Protocol or non-
Kyoto compliance. Buyers have various motives in engaging transactions in
the global carbon market. Risk minimization objectives could be classified
as follows: i) immediate compliance in the national markets where buyers
seek to comply with existing legislative obligations and constraints; ii)
Kyoto pre-compliance where buyers expect the project to be registered under
THE CLEAN DEVELOPMENT MECHANISM 31

either JI or CDM; iii) voluntary compliance where buyers aim to use the
emission reductions to meet part of their voluntary targets; and iv) retail
schemes where buyers wish to be climate-neutral in order to demonstrate
their social responsibility or promote particular brand. In addition to risk
minimization, other objectives include the following: i) learning by doing, ii)
experimenting with diverse contract structures, iii) influencing policy, iv)
broadening the envelope of flexibility, v) public relations, and vi) goodwill
(PCF, 2003).
The fragmented nature of the global carbon market generates
differentiated prices for emissions reductions as shown in Table 1.
Allowance markets generate high emission reduction prices since the
delivery risks are believed to be minimal. Though JI and CDM are both
project-based, PCF pays higher prices for ERUs since JI are supported by
Host Country Agreements and Assigned Amount Units, which reduces
PCF’s exposure to risks. ERUPT however in its January 2003 tender for JI
projects have specified a price range similar to C-ERUPT tender for CDM
projects.

Table 1. Carbon Emission Reduction Prices (per TCO2e)

Project-Based
Clean Development Allowance Markets
Joint Implementation
Mechanism
1
PCF PCF5 Regional
x US$3.0-3.5 x US$ 3.5-4.0 x EU-ETS8 €5.0-7.0
x premium of US$0.5 per ton ERUPT6 (indicative price); € 13.059
of CO2e for projects with x First tender average (forward price in Jan
developmental components price - €8.46 (closed in 2004); €7.1710 (forward
(Colombia Wind Farm) April 2001) price in Apr 2004)
C-ERUPT2 (maximum prices) x Second tender average National
x renewable energy – €5.5 price - €4.78 (closed in x UK-ETS11 – Bid price
x biomass energy - €4.4 March 2002) £1.75, offer price £2.25
x energy efficiency - €4.4 x Third tender - expected Firm
x fuel switch and methane - price range - €3.0-5.07 x BP Emissions Trading
€3.3 (closed in January 2003) Scheme12 (Scheme
x average price - €4.73 Denmark-Romania JI8 discontinued in 2001)
Finish Government 4 x estimated price range average in 2000 – US$7.6
x small-scale - €2.47-3.2 €5.40-8.10 average in 2001 –
US$39.63
1
PCF Annual Report 2002; 2C-ERUPT Tender Document 2002; 3Carbon Market Europe
(March 21 2003); 4http://global.finland.fi; 5PCF Annual Report 2002; 6Environmental
Finance (February 2003); 7GHG Market Trends 2/2003; Carbon Market Europe (March 7,
2003); 8Carbon Market Europe (May 2 2003); 9Evolution Markets LLC (Jan 2004); 10Carbon
Market Europe (April 15 2004); 11Carbon Market Europe (August 15 2003);
12
ww.bp.com/files/15/Climate_Change_2001_performance_1541.pdf
32 ROMEO PACUDAN

The pricing of CER is highly speculative. The PCF considers

several parameters in determining its price in the PCF’s carbon purchase
agreement. Moreover, certain project parameters command price premiums
under the PCF program. These include: i) the existence of government
guarantees, ii) project generation of social benefits, and iii) the exclusion of
preparation costs in the total project cost. Among the CDM projects being
contracted by PCF, a price premium of US$ 0.5 per TCO2e has been offered
to the Colombia Jepirachi Wind Farm sponsors for the delivery of activities
that improve the social conditions of the local indigenous population that
hosts the project.
In C-ERUPT program, prices are also differentiated according
to technology type. CER from renewable energy project forms the reference
price (maximum price of EUR 5.5 per CER). CERs from sustainable grown
biomass projects as well as from energy efficiency projects are priced 20%
lower (maximum price of EUR 4.5) while those from fuel switching and
methane recovery projects are 40% cheaper (maximum price of EUR 3.3).
At present there is no single CER price. It is differentiated
according to risks, technology type and social development components.
The current PCF CER rate ranges from US$3 to 4 per ton of CO2; under the
C-ERUPT program, it revolves around US$ 4 to 4.5 per ton of CO2. The
CER price differentiation could evolve into the following categories: i)
CERs from projects that fulfil the WWF Gold Standard, ii) CERs from
projects with community development features, iii) CERs from standard
projects, and iv) long-term and temporary CERs from forestry projects
(Michaelowa, A., CDM Monitor, March 11, 2004).
Several economic models forecast a single carbon price since
these models assume a competitive and unfettered markets. With the US
presence in the GHG market, these models projected a very high carbon
prices. After the Bonn Agreement and Marakkech Accords, and with the
absence of the US in the market, these models projected low carbon prices.
In reality, the carbon markets are fragmented and prices generated by these
markets are differentiated. In a recent GHG market analysis, Natsource
(2002) forecasts prices for project-based carbon emission reductions (both JI
and CDM markets) to vary from US$3 to 5 for the period 2002-2005,
US$2.5 to 9.0 during 2005-2007, and US$5 to11 from 2008-2012.

2.3 Transaction costs

Transaction costs are those that arise from initiating and
completing transactions to secure CERs. These consist of pre-operational
costs (or upfront costs), implementation costs (i.e. costs spread out over the
THE CLEAN DEVELOPMENT MECHANISM 33

entire crediting period), and trading costs (Table 2). Pre-operational costs
include direct expenses for search, negotiation, validation, and approval.
Implementation costs are those incurred for monitoring, certification, and
enforcement while trading costs are those incurred in trading CERs such as
brokerage costs and costs to hold an account in national registry.
PCF’s pre-operational transaction costs amounts 229 thousand
Euros (265 thousand dollars) while Ecosecurities (2002) estimates the
minimum up-front transaction cost at around 70 thousand Euros (£42,000)
(Table 3).
The CDM Executive Board has recently determined the
registration fee for CDM projects. Fees for small-scale projects are fixed at
US$5,000 while those for large-scale projects are between US$10,000 –
30,000. The registration fees are the following: i) ” 5,000 annual CO2
equivalent reduction - US$ 5,000; ii) >15,000 and ” 50,000 annual CO2
equivalent reduction - US$ 10,000; iii) >50,000 and ” 100,000 annual CO2
equivalent reduction - US$ 15,000; iv) >100,000 and ” 200,000 annual CO2
equivalent reduction - US$ 20,000; and v) >100,000 annual CO2 equivalent
reduction - US$ 30,000. This rate also applies for bundled projects.
Several studies show that the transaction cost per ton of CO2
for large projects is very small or even negligible while that for small-scale
projects is quite significant. Given this, it is obvious that investors would
prefer large-scale projects. Fast-tracking small-scale projects (simplifying
the procedures and standardizing the information and reporting
requirements) not only reduces transaction costs but also improves project
financial viability. According to Ecosecurities (2002), fast-tracked
procedures lead up to around 67% reduction in transaction costs.
34 ROMEO PACUDAN

Table 2. CDM Transaction Costs

Transaction Cost
Description
Component
Search Costs Costs incurred by investors and hosts as they seek
out partners for mutually advantageous projects
Negotiation Costs Includes those costs incurred in the preparation of
Pre-implementation phase

the Project Design Document that also documents

assignment and scheduling of benefits over the
project time period. It also includes expenses in
organizing public consultation with key
stakeholders.
Baseline determination Development of a baseline
Approval costs Costs of authorization from host country
Validation Costs Costs incurred in reviewing and revising the
Project Design Document by operational entity
Review Costs Costs of reviewing a validation document
Registration Costs Registration by UNFCCC Executive Board/JI
Supervisory Committee
Monitoring Costs Costs to collect data
Verification Costs Costs to hire an operational entity and to report to
Implementation Phase

the UNFCCC Executive Board/Supervisory

Committee
Review Costs Costs of reviewing a verification
Certification Costs Includes costs in the issuance of Certified
Emission Reductions (CERs for CDM) and
Emission Reduction Units (ERUs for JI) by
UNFCCC Executive Board
Enforcement costs Includes administrative and legal costs incurred in
enforcing transaction agreements
Transfer Costs Brokerage costs
Trading

Registration Costs Costs to hold an account in national registry

Source: Michaelowa, A., Stronzik, M., Eckerman, F., and Hunt, Alistair, 2003.
THE CLEAN DEVELOPMENT MECHANISM 35

Table 3. CDM Transaction Cost Estimates

EcoSecurities, 2002 PCF

Project Cycle
(£) (US $)
Preparation and review 40,000
Pre-operational Phase Design

Baseline Study 12,000 – 15,000 20,000

Monitoring Plan 5,000 – 10,000 20,000
Environmental -
Assessment
Stakeholder Consultation -
Approval -
Validation 10,000 – 20,000 30,000
Consultation and project 105,000
appraisal
Legal and Contractual 15,000 – 25,000 50,000
Arrangements
Sales of CERs 5% - 15% of CER Value
Adaptation Levy1 2% of the CER value annually
Risk Mitigation 1%-3% of CER value annually
Operational Phase

Verification 5,000 per audit 25,000 (initial)

10,000-25,000
(periodic)
10,000-20,000
(periodic
supervision)
Executive Board To be determined (X% of CER
Administration value)
1
Projects in least developed countries are exempted from the 2% adaptation levy.
Sources: Ecosecurities, 2002; PCF Annual Report 2002.

2.4 Impact of CERs on project feasibility

The net financial gain derived from the sale of CERs is the
difference between the project CER value and the transaction costs. Three
elements influence the net impact of CERs on project profitability: value of
CERs (low CER value implies low net benefits), overall transaction costs
(high transaction costs yield low net benefits), and up-front transaction costs
(high upfront payments could also result in low benefits). Project developers
generally expect up-front transaction costs within the range of 5 to 7% of the
net present value of the revenue or total transaction costs around 10 to 12%
of the net present value of revenue (Ecosecurities, 2002).
A positive net financial gain means that CER revenues
improve the financial viability of the project. Table 4 presents the impacts of
carbon financing to the proposed 60 MW Wind Farm project in Zafarana,
Egypt. For the CER price scenarios of US$3 and 10 per ton of CO2
36 ROMEO PACUDAN

equivalent, the project’s net present value increases by 173% and 588%
respectively. The project’s internal rate of return increases by 1.04 and 3.38
percentage points while the return of equity rises by 2.73 and 8.24
percentage points for the respective CER price scenarios.
Table 5 shows the impact of CERs on IRRs in selected
projects. The effect of CER cash flow on project IRRs vary by project type.
The impact of CERs on wind power project IRR is relatively small (few
percentage points increase) while it is substantially important for fugitive
methane capture projects. More CERs are generated by methane capture
projects since the global warming potential of methane is 21 times higher
than carbon dioxide. This makes methane capture projects relatively
attractive to CDM project developers. In fact, for the first 45 projects
submitted to the CDM Executive Board for methodology review, 27% (12
projects) are methane gas capture projects.

Table 4. Impact of carbon financing on the proposed 60-MW Zafarana Wind Farm Project
in Egypt

Economic Without carbon With carbon finance

Indicators finance US$3 per ton CO2eq US$10 per ton CO2eq
Internal Rate of 5.63% 6.67% 9.01%
Return
Net Present Value US$2,954,117 US$8,065,191 US$20,320,777
Return on Equity 19.10% 21.83% 27.34%
after taxes
Note: Financial and economic data are given in Appendix 3.1
Source: Ringius, L., Grohnheit, P.E., Nielsen, L.H., Olivier, A., Painuly, J., and Villavicencio,
A. 2002. Wind Power Projects in the CDM: Methodologies and Tools for Baselines, Carbon
Financing and Sustainability Analysis. Risoe National Laboratory.

Table 5. Impact of CERs on project IRR

IRR without IRR without Change in

Country Project
carbon finance (%) carbon finance (%) IRR (%)
Costa Rica wind power 9.7 10.6 0.9
Jamaica wind power 17.0 18.0 1.0
Morocco wind power 12.7 14.0 1.3
Chile Hydro 9.2 10.4 1.2
Costa Rica Hydro 7.1 9.7 2.6
Guyana Bagasse 7.2 7.7 0.5
Brazil Biomass 8.3 13.5 5.2
India solid waste 13.8 18.7 5.0
Source: PCF Annual Report 2001
THE CLEAN DEVELOPMENT MECHANISM 37

3 CER TRANSACTIONS
Project-based transactions dominate the global trade of
greenhouse gas emission reductions. It represented 85% of the total
transaction volume in 2002, and 97% between 1996 and 2002 (PCF Plus,
2002). The total carbon market volume traded in 2001 was about 13
MMTCO2e, increasing to 29 MMTCO2e in 2002, and reaching to more than
70 MMTCO2e in the first 10 months of 2003 (PCF, 2003). Point Carbon
(2004) projected that the total volume will reach 100 MMTCO2e in 2004.
The World Bank’s PCF and the Dutch Government’s C-
ERUPT tender are the current main buyers of CERs through direct purchase
transactions. As of 2003, the PCF has signed 7 emission reductions purchase
agreements (ERPAs) with total emissions reductions of 12.19 MMTCO2e.
Also, PCF has 144 projects under preparation and received 420 project idea
notes. The C-ERUPT tender, on the other hand, approved 18 projects in
2003 aimed to generate emissions reductions of 16.7 MMTCO2e. A number
of PCF projects have been operational since 2002. Most of the PCF and C-
ERUPT’s projects would be commissioned between 2003-2007. CDM
portfolios were also launched by Austria, Denmark, Finland and Sweden.
The Austrian government opened a tender for CDM projects in December
2003. Denmark is cooperating with Thai industries and will select 5 projects
for actual CDM implementation. The Finnish Government launched a
tender for small-scale projects and is currently engaged with 7 CDM
projects. Sweden launched a tender in 2002 and selected 5 projects in India,
Brazil and South Africa. Most recently, Belgium announced its plan to
purchase emissions reductions of around 2.46 MMTCO2e annually in the
period 2008-2012.
CER procurement funds are growing and expanding. As
shown in Table 6, three new public-private partnership funds have been
recently launched by the World Bank: the Community Development Carbon
Fund, the Bio-Carbon Fund and the Italian Carbon Fund. Public-private
partnership funds to purchase CERs were also established by the European
Investment Bank, Japanese Banks, Germany’s KfW and Ecosecurities-
Standard Bank of London (Danish CDM Facility). In addition to the
Government of the Netherlands, several European governments have
launched CDM funds. These governments have used several vehicles in
CER procurement such as government-own tenders through banks and
multilateral institutions. Bilateral transactions are also emerging. Several
European governments and the government of Canada have signed MOUs
with several Latin American and Asian countries for the development of
projects and supply of CERs.
38 ROMEO PACUDAN

CERs purchased through public-private partnership and

government funds are mainly used for Kyoto compliance. Private funds are
also being established to secure CERs for purposes other than compliance.
Mitsubishi Corporation of Japan recently purchased emission rights from a
Chilean Hydropower project for trading purposes. More recently, Cumbria
Energy, Investic Bank and Less carbon launched ICECAP, a vehicle to
purchase CERs for large industrial emitters and Annex 1 governments.
Mitsubishi Securities Company and Mizuho Securities Company are also
planning to be involved in the purchase of carbon emissions certificates to
cater to the needs of their business clients. Aside from trading, institutions
interested in becoming carbon neutral with their activities could be another
buyer of CERs. The Dutch Development Finance Company, for example,
have announced their intention to compensate carbon dioxide emissions
from their activities in developing countries and that it plans to purchase
CERs from projects the company finances.
THE CLEAN DEVELOPMENT MECHANISM 39

Table 6. CER Procurement Funds

Public-Private Private Funds

Government Funds
Partnerships
Multilateral Institutions Own Tender For trading
The World Bank Denmark CDM Program ICECAP
Prototype Carbon Dutch Government C- (Cumbria Energy,
Fund (US$ 180 million) ERUPT Program Investec Bank and
Community Finnish CDM/JI Pilot Less Carbon)
Development Carbon Program (€ 20 million) Mitsubishi
Fund (US$ 100 million) Sweden International Corporation
World Bank Bio- Climate Investment Program - (purchased emission
Carbon Fund (US$ 100 CDM rights from
million) Austria JI/CDM Hidroelectrica
Italian Carbon Procurement Program Guardia Vieja, SA)
Fund (US$15 million) Belgium CDM/JI Mitsubishi
Spanish Carbon Program Securities Co.
Fund (under discussion) Through Mizuho
European Investment Bank Commercial/Development Banks Securities Co.
Proposed Carbon Rabo Bank (Dutch Voluntary use (carbon
Investment Trust Government) dioxide neutral)
Other Financial Through Multilateral Institutions Dutch
Institutions World Bank (The Development Finance
Japan Netherlands Clean Development Company
Japan Bank for Facility - € 70 million)
International Cooperation IFC (IFC-Netherlands
(JBIC) and Development Carbon Facility - € 44 million)
Bank of Japan Through Bilateral Transactions
Joint Carbon (signed MOUs)
Fund (10 billion yen) Austria: discussions with
Germany China
KfW Canada: Costa Rica,
German Carbon Colombia, Chile, Nicaragua,
Fund (€ 50 million) Tunisia, South Korea
Denmark Denmark: Malaysia,
Ecosecurities and Standard Chile; discussions with China,
Bank of London South Africa
Denmark Carbon Finland: China, Costa
Facility (DKK 59 Rica, El Salvador, Nicaragua,
million) India
France: Colombia and
Morocco
Italy: Algeria, China,
Cuba, Cyprus, Egypt, El
Salvador, Israel, Morocco
Netherlands: Colombia,
Costa Rica, El Salvador, Panama,
Uruguay, Bolivia, Nicaragua,
Guatemala, Honduras. Under
negotiation: Indonesia,
Philippines).
40 ROMEO PACUDAN

4 SECURING PROJECT FUNDS

CDM projects require upfront investments that are normally
obtained from different sources such as loans, equity, grants, and upfront
payments for emission reductions. Loans or debts refer to funds lent to
CDM project owners by financiers. Debt can be obtained through public
markets (bonds) or private placements (bank loans and institutional debt).
Equityi refers to funds funneled to the CDM project by company
shareholders. Equity may be sourced from internal sources (sponsors) or
external investors (public or private markets). The return on equity is
obtained either from dividends or from sale of shares. Grantsii are funds
provided by institutions and governments to CDM project owners and
developers who contribute to donors’ objectives. Grants need not be repaid
and oftentimes, cover only a percentage of project costs. The carbon
purchase agreement often stipulates payment on agreed price upon delivery
of CERs but CER buyers sometimes provide upfront payment upon
purchase. For example, the PCF provides upfront payment up to 25% of the
total CER value. However, to compensate for increased risk, upfront
payments are discounted.
Like conventional projects, financing CDM projects can be
arranged either through corporate or project financing. These are described
as follows: i) in project financing, a project company is formed and
investments are viewed as assets of the company. Investment funds are
sourced either from equity or debt. Assets and cash flow secure debts.
Creditors do not have recourse to the other resources of sponsors; ii) under
corporate financing, new projects are undertaken as extension of assets of the
existing company. Capital investments and borrowing are not placed under
the project account. Loans are considered as company debts and lenders
have full recourse to all the assets and revenues of the company over and
above those generated in the new project.
Additional project revenues such as CERs could leverage debt
financing in project financing arrangement and could be used to service
debts. Guest et al (2003) presents that the carbon cash flow can help
increase debt carrying capacity. The carbon revenues could help increase
debt leverage of project by increasing the debt service coverage ratio
(DSCR) levels of the project. In addition to improving debt capacity, there
are other options to debt service through the carbon cash flow. These
include: pre-paying debt based on Forward Emission Reduction Purchase
Agreements (ERPAs); depositing carbon cash flow directly with banks for
credit against debt service thereby lowering liability on electricity cash flow;
and using ERPAs and/or forward carbon sales as collateral for loans (this is
THE CLEAN DEVELOPMENT MECHANISM 41

the case for Plantar project in Brazil where the CER purchase agreement
with the PCF was used as collateral for commercial bank financing).

5. CONCLUSION
The Clean Development Mechanism (CDM) stimulates
investments on renewable energy projects in developing countries. The
carbon asset in the form of certified emission reductions (CERs) generated
by CDM projects improves project viability and attracts capital to finance
the development of these projects. The entry into force of the Kyoto
Protocol creates real demand for CERs from Annex 1 countries and the
current policies of many Annex 1 countries, particularly European countries,
to supplement emissions reductions from domestic actions with CERs from
projects in developing countries result in the creation of carbon funds
dedicated to CER procurement. These funds, in turn, leverage equity and
debt financing that are necessary to develop the project.

REFERENCES
BP Emissions Trading Scheme. http://www.bp.com
Carbon Market Europe. http://www.pointcarbon.com
CERUPT Tender Document, 2002. http://www.senter.nl
CDM Monitor. http://www.pointcarbon.com
Environmental Finance. vol 4, no. 4, February 2003.
Evolution Markets LLC. http://evomarkets.com
EcoSecurities, Clean Development Mechanism (CDM): Simplified Modalities and Procedures
for Small-scale Projects, A DFID Report, May 2002. http://www.ecosecurities.com
Guest, Justin, Stuart, Marc and Wellington, Fred. The Role of Emissions trading in Asian
clean energy finance, JASSA 2003; issue 4.
GHG Market Trends. http://www.ghgmarket.info
Lee, M. K., Fenhann, J., Haelsnæs, K., Pacudan, R., Olhoff, A., CDM Information and
Guidebook, UNEP Risoe Center, Denmark, June 2004.
Lee, M.K. and Pacudan, R. Capacity Building for CDM, Asia Pacific Technology Monitor,
March-Apr 2003, pp. 29-32.
Michaelowa, Axel, Stronzik Marcus, Eckerman, Fraucke and Hunt Alistair, Transaction Cost
of the Kyoto Mechanisms, Climate Policy 2003; 3:261-278.
Pacudan, R. and Lee, M.K. Overview of the CDM market and CER prices, Responding to
Climate Change 2003, pp. 72-75.
Prototype Carbon Fund. Annual Reports 2001, 2002, 2003.
http://www.prototypecarbonfund.org
Prototype Carbon Fund. State and Trends in the Market 2004.
http://www.prototypecarbonfund.org
Ringius, L., Grohnheit, P.E., Nielsen, L.H., Olivier, A., Painuly, J., and Villavicencio, A.
Wind Power Projects in the CDM: Methodologies and Tools for Baselines, Carbon Financing
and Sustainability Analysis. Risoe National Laboratory, 2002.
42 ROMEO PACUDAN

United Nations Development Programme. The Clean Development Mechanism: A User’s

Guide. 2003.
United Nations Convention Framework Convention on Climate Change. http://unfccc.int

i
Equity fund providers that target carbon credits include: Dexia-FondElec Energy
Efficiency and Emission Reduction Fund (71 million Euros, since 2000). FondElec
Latin American Clean Energy Services Fund (US$ 31 million, since 2001). Global-
Asia Clean Energy Services Fund, FE Clean Energy Group (US$100-150 million)
(seeking for 20-25 % returns). Private-public partnerships that provide upfront
financing to CDM projects include Climate Investment Partnership.
ii
The Danish Government offers grants to firms in Thailand to kick start CDM
projects. In addition, The European Investment Bank intends to launch a
Transaction Assistance Facility which will help in project identification and
preparation and carbon credit marketing. The facility will provide a grant, which is
repayable from the revenue generated by the sale of carbon.
Chapter 4

INTERNATIONAL CO-OPERATION ON
ENERGY TECHNOLOGIES RESEARCH AND
DEVELOPMENT
The International Energy Agency Framework

Alicia Mignone*

Energy and Science Advisor,

Permanent Delegation of Italy to OECD

1. INTRODUCTION

1.1 The IEA

The International Energy Agency (IEA) is an autonomous
body which was established in November 1974 within the Framework of the
Organization for Economic Co-operation and Development (OECD) to
implement an International Energy Program in the wake of the first oil
shock. It carries out a comprehensive program of long term co-operation on
energy among twenty-six1 of the OECD thirty member countries. The initial
objectives were to represent the major consuming nations and to work for
stability in the world energy markets.
The basic aims of the IEA are:
i To maintain and improve systems for coping with oil disruptions;
1
IEA Member countries: Australia, Austria, Belgium, Canada, the Czech republic, Denmark,
Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, the Republic of Korea,
Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden,
Switzerland, Turkey, the United Kingdom, the United States. The European Commisions
also takes part in the work of the IEA.

43

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 43–58.
© 2005 Springer. Printed in the Netherlands.
44 ALICIA MIGNONE

i To promote rational energy policies in a global context;

i To operate a permanent information system on the international
oil market;
iTo improve the world’s energy supply and demand structure;
iTo assist in the integration of environmental and energy policies.
The shared goals adopted by the IEA Ministers at their June
3rd meting in Paris 1993 can be summarized by the so-called IEA “3Es”:
Energy Security, Environmental Protection and Economic Growth.
The development and deployment of cleaner, more efficient energy
technologies are fundamental requirements within any strategy to fulfill the
3Es. The text approved by the Ministers more than ten years ago, still valid
and relevant, contains a clear message on the need of clean energy
technologies: 2
- “More environmentally acceptable energy sources need to be
encouraged and developed. Clean and efficient use of fossil fuels
is essential. The development of economic non-fossil sources is
also a priority. A number of IEA members wish to retain and
improve the nuclear option for the future, at the highest available
safety standards, because nuclear energy does not emit carbon
dioxide. Renewable sources will also have an increasingly
important contribution to make.”
- “Continued research, development and market deployment of new
and improved energy technologies make a critical contribution to
achieving the objectives outlined above. Energy technology
policies should complement broader energy policies. International
co-operation in the development and dissemination of energy
technologies, including industry participation and co-operation
with non-Member countries, should be encouraged.”

1.2 The organization of the IEA

The fig. 1 shows the organization of the IEA: the blocks
represent the Governing Board, the maximum decision making body; the
Secretariat, comprising experts from Member countries and the three
Standing Groups and two Committees, that benefit from the participation of
delegates and experts from Member Countries.

2
For the complete version of the shared goals see: http://www.iea.org/dbtw-
wpd/Textbase/about/sharedgoals.htm
ENERGY TECHNOLOGIES RESEARCH AND DEVELOPMENT 45

Figure 1. The organization of the IEA

GOVERNING BOARD
The IEA main decision making body, composed of senior officials from Member
countries. It reviews the world energy situation and national energy policies, to
assess future energy supply and demand conditions and to recommend energy
policies to Member countries: Meetings at Ministerial level are held every two years

SECRETARIAT
Comprising experts from participating countries, the Secretariat
supports the work of the Governing Board and subordinated
bodies. It assists with the assessment of energy policies of
Member countries, publishes studies and projections and supports
the international collaboration network on energy technology.

Standing Committee on Committee on Standing Standing Group

Group on Energy Non-member Group on the on Emergency
Long-term Co- Research and Countries Oil Market Questions
operation Technology
(SLT) (CERT) (NMC) (SOM) (SEQ)

2. THE COMMITTEE ON ENERGY RESEARCH AND

TECHNOLOGY (CERT)
The Committee on Energy Research and Technology
established in the 1975 has the mandate to promote the research,
development and deployment (RD&D) of clean energy technologies through
international networking, co-operation, collaboration, analysis and policy
advice. The CERT objectives as established in the “Strategic Plan” 3 are to
encourage cost-effective energy technology collaboration; to produce high-
quality energy technology policy analysis; to cooperate with national
governments, the OECD and other international organizations and to keep
the Governing Board informed on its activities and progress.
A major component of the IEA’s International Energy
Technology Co-operation Program are the Implementing Agreements (IAs)

3
IEA, The First 30 years 1974-2004, Vol. 4, OECD/IEA 2004, Paris
46 ALICIA MIGNONE

that focus on fossil fuels, renewable energy, efficient energy end-use and
fusion power. Effective dissemination of results and findings is a crucial part
of each program’s mandate and in some cases, the sole activity. The IEA’s
Energy Technology Program as a whole is overseen by CERT. CERT
together with its working parties, identifies opportunities for cooperation and
it reviews the activities of the IAs regularly, using an agreed set of
evaluation criteria. There are 40 active Agreements, eight dealing with fossil
fuels technologies, eight with fusion power, eight related to renewable
energy, thirteen with energy end-use, one with hydrogen and four inter-
sectorial agreements. The CERT structure is presented in figure 2.

Figure 2. The IEA Energy Technology Network

THE IEA ENERGY TECHNOLOGY NETWORK

IEA GOVERNING BOARD

CERT - Committee on Energy Research and Technology

Fusion Power Fossil Fuel Renewable End Use

Co-ordination Working Party Working Party Working Party
Committee Hydrogen
Co-ordination
Group
IMPLEMENTING IMPLEMENTING IMPLEMENTING
IEA MEMBER COUNTRIES

IMPLEMENTING
AGREEMENTS AGREEMENTS AGREEMENTS

I EA SECRETARIAT
AGREEMENTS
Env. Aspects Fusion Hydrogen Adv. Fuel Cells
Clean Coal Centre
Fusion Materials Bioenergy Adv. Materials Trans. R&D Priority
Clean Coal Science
Large Tokamaks Geothermal Adv. Motor Fuels R&D Priority
Enhanced Oil Recovery Expert Group
Nuclear Tech. Fusion Hydropower Hybrid-Elec. Vehicles Expert Group
Fluidized Bed Conv.
Textor Ocean Energy Demand Side Mgmt.
Greenhouse Gas R&D
Rev. Field Pinches Photovoltaic Power Building Conservation
Multiphase Flow Science
Stellarator Solar Heating/Cooling District Heating/Cooling
ASDEX Upgrade SolarPACES Energy Storage Basic Science
Wind Turbines Heat Pumps Expert Group
Emissions/Combustion
Process Integration
Pulp & Paper
Superconductivity Oil & Gas
INTERSECTORAL IMPLEMENTING AGREEMENTS
Expert Group
- Climate Technology Initiative (CTI)
- Energy Environment Technologies Information Centre (EETIC)
- Energy Technology Systems Analysis Program me (ETSAP)
- Energy Technology Data Exchange (ETDE)

INDUSTRY NON-MEMBER COUNTRIES

3. THE IMPLEMENTING AGREEMENTS

The legal framework for the RD&D international
collaboration is constituted by the Implementing Agreements that offer a
flexible mechanism which accommodates various forms of energy
technology co-operation. The Implementing Agreements are a contractual
ENERGY TECHNOLOGIES RESEARCH AND DEVELOPMENT 47

relationship establishing the rights and the obligations of the participants

and the management structure to guide the work under each Implementing
Agreement.

3.1 Benefits
The benefits of the participation to the Implementing
Agreements are analogous to those offered by the participation to
international projects and partnerships. They can be summarized as follows:
to share costs and to pool technical resources; to have access to a network of
researchers and to avoid duplication of efforts; to reinforce national R&D
capabilities; to accelerate technology development and deployment; to better
disseminate information on improved energy technologies and to boost trade
and exports. In addition to the normal benefits of collaboration, it is worth
noting that the IEA links Europe, North America, Japan and Australia and
increasingly other non Member countries are participating to the R&D
activities, e.g. Russia, China, Brazil and South Africa. Moreover, the
Agreements involve governments and industrial partners, offering
intellectual property right protection, equal voluntary partnership and
flexibility.

3.2 Rules that apply

The rules that apply are the IEA Framework for International
Energy Technology Collaboration 4; the decisions of the IEA Governing
Board and of the Committee on Energy Research and Technology and the
decisions of the Executive Committee of the Implementing Agreement.
The framework has been approved by the IEA Governing
Board on April 3rd 2003 in replacement of the Guiding Principles for Co-
operation in the field of Energy Research and Development, aiming at
streamlining the structure of the IAs and at better responding to the realities
and the needs of today energy sector.

4
see www.iea.org/textbase/techno/index.asp
48 ALICIA MIGNONE

3.3 How activities are funded

The activities can be funded following different modalities5,
the more important being cost or task sharing, respectively. In the cost
sharing option, the participants contribute to a common fund; the project is
contracted out to a specific entity and the results are provided to all. In the
task sharing modality, the participants devote specified resources and
personnel. The project may be a common work program or just information
sharing.

3.4 Implementing Agreement - Players

Governing Board
Gives final approval to Implementing Agreements

Committee on Energy Research and Technology (CERT)

Approves new Implementing Agreements and the participation of Non-Member
countries and private entities

Implementing Agreement
Executive Committee
Develops strategy and research proposals. Represents participating countries.
Participants can be from government organizations, private entities and Non
Member countries

Operating Agent
Is responsible for co-ordinating the activities
of the annex and ensures that all participants Annex(s) or Task(s)
respect their obligations and receive the Tthe Specific research, Participants
benefits due to them. development and
demonstration projects

The Executive Committee (Ex-Co) defines the terms and

conditions of Contracting Parties and Sponsors, namely with regard to their
respective rights and obligations, subject to certain limitations set out in the
Framework; it defines the program of work; approves the budget and the

5
For more details. see “Overview of Financing modalities for selected Implementing
Agreements” by Peter Tulej ([email protected])
ENERGY TECHNOLOGIES RESEARCH AND DEVELOPMENT 49

management structure of the Implementing Agreement. The Ex-Co verifies

that the financial and/or in-kind contribution of Participants respects the
principle of equitable sharing and that an adequate protection of the
intellectual property rights is adopted. The Sponsors are from several OECD
member countries and non Member countries.

3.5 Admission to an Implementing Agreement

The minimum requirements set out by the Framework are the
following ones:
1. Unanimous decision by the Ex-Co to invite a government
(Contracting Party: CP) or a different entity (Sponsor) to join the
Implementing Agreement;
2. Acceptance of the terms and conditions of participation by the CP or
Sponsor (for the admission of Sponsors, the CERT approval is also
needed) and
3. Signature of the actual CP or Sponsor.

4. CURRENT IMPLEMENTING AGREEMENTS

The forty active Implementing Agreements deal with
renewable energy; energy technology modeling; efficient end-use
technologies; fossil fuel technologies and nuclear fusion science and
technology. There are approximately ninety tasks or annexes and ten
countries per agreement. The Participants belong to all OECD member
countries and from eleven Non-Member countries. The Non-Member
countries are Algeria that participates to two Implementing Agreement;
Brazil, to 3; China to 3; Croatia to 1 ; Egypt to 1; Israel to 4; Lithuania to 1;
the Russian Federation to 7; South Africa to 2; Ukraine to 1 and Venezuela
to 2.

5. IMPLEMENTING AGREEMENTS ON RENEWABLE

ENERGY TECHNOLOGIES
There are eight Implementing Agreements that deal with
renewable energy technologies. The subjects treated are: bio-energy;
geothermal energy; hydropower; photovoltaic power systems; solar heating
and cooling; solar power and chemical energy systems; wind energy and
50 ALICIA MIGNONE

ocean energy systems. The main activities of the IAs as well as the
participating countries are described below.

5.1 Bioenergy6
The bioenergy IA was set up in 1978, has twelve active tasks
and counts with the participation of twenty countries, including two Non-
member countries, plus the European Commission. The countries are the
following ones: Australia, Austria, Belgium, Brazil, Canada, Croatia,
Denmark, European Commission, Finland, France, Ireland, Italy, Japan,
New Zealand, Norway, South Africa, Sweden, Switzerland, The
Netherlands, United Kingdom.
IA on Bioenergy aims to accelerate the use of
environmentally sound and cost-competitive bioenergy on sustainable basis,
and thereby achieve a substantial contribution to future energy demands. The
scope of the work is to integrate research themes across the value chain.
The tasks deal with the Socio-economic drivers in
Implementing Bioenergy Projects; Short rotation crops for bioenergy;
Biomass production for energy from sustainable forestry; Biomass
combustion and co-firing; Thermal gasification of biomass; Pyrolysis of
biomass; Techno-economic assessments for Bioenergy applications; Energy
from integrated solid waste management systems; Energy from biogas and
landfill gas; Greenhouse Gas balances of biomass and bioenergy systems;
Liquid biofuels from biomass; Sustainable international bioenergy trade:
Securing supply and demand; Bioenergy systems analysis.

5.2 Geothermal Energy7

The Implementing Agreement on Geothermal Energy
commenced in March 1997. The objectives are the exchange of information,
the common development of new technologies, and the dissemination of
information on the environmental advantages of geothermal energy. Work
underway includes identification of, and the development of means to avoid
or minimize, adverse environmental impacts that can arise from the use of
geothermal energy; the development of hot dry rocks and other technologies
for commercial heat extraction; and the commercial development of deep
geothermal resources.

6
For more information, consult the website: www.ieabioenergy.com
7
Website: www.iea-gia.org
ENERGY TECHNOLOGIES RESEARCH AND DEVELOPMENT 51

The IA has five active tasks and ten participating countries

plus the European Commission. The countries are Australia, Germany,
Greece, Iceland, Italy, Japan, Mexico, New Zealand, Switzerland and the
United States of America.
The annex on Environmental Impacts of Geothermal Energy
Development is devoted to encourage sustainable development of
geothermal energy resources, quantify adverse or beneficial impacts and
identify means of avoiding, remedying or mitigating adverse effects.
The annex projects on Enhanced Geothermal Systems aim to
address new and improved technologies to artificially simulate a geothermal
resource to enable commercial heat extraction. The annex on Deep
Geothermal Resources addresses the issues necessary for the commercial
development of deep geothermal resources which prevail at depths of
approximately 3,000 meters and deeper.
The task on Advanced Geothermal Drilling Techniques
pursues advanced geothermal drilling research and investigate all aspects of
well construction.
The objectives of the Direct Use Annex are: to define and
characterize the direct use applications for geothermal energy, with emphasis
on defining barriers to widespread application; to identify and promote
opportunities for new and innovative applications; to define and initiate
research to remove barriers, to enhance technology and economics, and to
promote implementation tests, to standardize equipment and to develop
engineering standards.

5.3 Hydropower8
The IEA Hydropower Agreement is a working group of
governments and industry which intends to provide objective, balanced
information about the advantages and disadvantages of hydropower. It has
five active tasks and three under development with nine participating
countries, including one Non Member country, China. The other eight are
Canada, Finland, France, Italy, Japan, Norway, Sweden and the United
Kingdom.
The annexes deal with the following themes:
- The Hydropower Risk Management is aimed at bringing together
expertise from participating countries on the subject of upgrading
existing installations with capacities of more than 10MW, i.e.
intermediate to large size.

8
Reference: www.ieahydro.org
52 ALICIA MIGNONE

- The task on Small-scale hydropower addresses technological,

organizational and regulatory issues related to small hydro
projects (less than 10MW and more than 50KW).
- The purpose of the annex on Public awareness is to increase
global understanding of the current and future rolls and
importance of hydropower in the global energy portfolio.
- The objective of the Hydropower competence network for
educational training is to create a pilot version of an international
network for training of personnel in the hydropower industry.
- Finally the task on Hydropower good practices aims to develop
training materials in the areas of planning, operations and
maintenance of hydropower installations, making use of latest
information technologies to disseminate its results.

5.4 Ocean energy systems9

The Implementing Agreement on Ocean Energy Systems
commenced in October 2001. There are six participating countries plus the
European Commission: Canada, Denmark, Ireland, Japan, Portugal and the
United Kingdom.
The Agreement's mission is to enhance international
collaboration to make ocean energy technologies a significant energy option
in the mid-term future. Through the promotion of research, development,
demonstration and information exchange and dissemination, the Agreement's
objective is to lead to the deployment and commercialization of Ocean
Energy Technologies.
Current priorities are ocean waves and marine current systems
developed in two tasks. One task is devoted to collate, review and facilitate
the exchange and dissemination of information on the technical, economic,
environmental and social aspects of ocean energy systems. The other task
aims to the Development of recommended practices for testing and
evaluating ocean energy systems and, in this way, improve the comparability
of experimental results.

9
for reference: www.iea-oceans.org
ENERGY TECHNOLOGIES RESEARCH AND DEVELOPMENT 53

5.5 Photovoltaic Power Systems 10

The Photovoltaic Power Systems (PVPS) Program is a
collaborative R&D Agreement conducting projects on the application of
solar photovoltaic electricity since 1992. IEA - PVPS operates worldwide
via a network of national teams in member countries. There are twenty-one
participating countries plus the European Commission: Australia, Austria,
Canada, Denmark, Finland, France, Germany, Italy, Japan, Korea, Mexico,
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the
United Kingdom, the USA.
The mission of the PVPS program is “To enhance the
international collaboration efforts through which photovoltaic solar energy
becomes a significant renewable energy source in the near future.”
The underlying assumption is that the market for PV systems
will gradually expand from the present niche markets of remote applications
and consumer products, to the utility market, through building-integrated and
other diffused and centralized PV generation systems. This market expansion
requires the availability of and access to reliable information on the
performance of PV systems, design guidelines, planning methods, etc. to be
shared with the various actors defined above.
The PVPS program aims to realize its mission by adopting the
following objectives related to reliable PV power system applications for the
target groups: utilities, energy service providers and other public and private
users: to contribute to the cost reduction of their applications; to increase the
awareness of their potential and value; to foster their market deployment by
removing technical and non-technical barriers; to enhance technology co-
operation with non-IEA countries.
The activities (eight tasks) focus on the following subjects:
the exchange and dissemination of information about solar electricity; the
operational performance, maintenance and sizing of photovoltaic power
systems; the use of PVPS in stand-alone and island applications; the design
and grid interconnection of building integrated and other dispersed PV
systems; PVPS in the built environment; very large scale PV power
generation systems in remote areas; cooperation with developing countries
and upcoming urban scale grid-connected PV applications.

10
Website: www.iea-pvps.org
54 ALICIA MIGNONE

5.6 Solar Heating and Cooling 11

The Solar Heating and Cooling Implementing Agreement was
one of the first collaborative R&D programmes to be established within the
IEA, and, since 1977, its participants have been conducting a variety of joint
projects in active solar, passive solar and photovoltaic technologies,
primarily for building applications.
There are twenty participants and the European Commission:
Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany,
Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain,
Sweden, Switzerland, the United Kingdom and the USA.
A total of thirty-one Tasks (projects) have been undertaken
since the beginning of the Solar Heating and Cooling Programme.
In 2002, the Solar Heating and Cooling Programme celebrated
25 years of accelerating the solar market and contributing to the R&D of
solar technologies. The activities undertaken by the Programme ranged from
producing reports on the solar thermal collector market in IEA countries and
on solar energy activities in IEA countries to starting new work in the areas
of storage, industrial process heat, and building energy analysis tools.
The Tasks which were active in 2002 dealt with:
- Building energy analysis tool: aimed to creating standard methods
of testing building energy analysis software, which supports
implementation of national energy standards and use of renewable
energy.
- Active solar procurement: to form buyer groups to purchase
technologies, collect and analyse information on procurement,
and to create tools to facilitate it.
- Solar assisted air conditioning buildings: to define performance
criteria, develop methods for systems integration, develop
technologies for solar assisted cooling systems.
- Solar combined systems: to collect international expert knowledge
in the field of combined domestic hot water and space heating and
develop and optimise the system technique.
- Performance of Solar Façade Components: to determine the
performance of materials and components, such as advanced
glazing; and to promote increased their use by developing and
applying appropriate methods for assessment of durability,
reliability and environmental impact.

11
Solar Heating and Cooling Program website: www.iea-shc.org
ENERGY TECHNOLOGIES RESEARCH AND DEVELOPMENT 55

- Sustainable Solar Housing : To address cost optimisation of the

mix of concepts reducing energy losses, increasing useable solar
gains and efficiently providing backup in order to achieve the
same high performance.
- Solar Crop Drying: To address the barriers by providing technical
and commercial information and experience gained from the
design, construction and operation of full working demonstration
systems for a variety of crops and a number of geographical
regions.
- Daylighting in Buildings in the 21st Century: To make
daylighting the typical and preferred design solution for lighting
buildings in the 21st century by integrating human response with
the application of daylighting systems and shading and electric
light control strategies.
- Advanced Storage Concepts for Solar Thermal Systems in Low
Energy Buildings: The main objective of this Task is to contribute
to the development of advanced storage solutions in thermal solar
systems for buildings that lead to high solar fraction up to 100%
in a typical 45N latitude climate.
- Solar Heat for Industrial Process: The objective of this Task is to
improve conditions for the market introduction of solar heating
sys-tems for industrial applications in order to promote a
reduction of fossil energy consumption and thereby to develop an
environmentally friendly way of industrial production
- Testing and Validation of Building Energy Analysis Tools: this
task will investigate the availability and accuracy of building
energy analysis tools and engineering models to evaluate the
performance of solar and low-energy buildings. The scope of the
Task is limited to building energy simulation tools, including
emerging modular type tools, and to widely used solar and low-
energy design concepts. Activities include development of
analytical, comparative and empirical methods for evaluating,
diagnosing, and correcting errors in building energy simulation
software.
- PV/Thermal Solar Systems: The objectives of this Task is to
catalyse the development and market introduction of high quality
and commercial competitive PV/Thermal Solar Systems and to
increase general understanding and contribute to internationally
accepted standards on performance, testing, monitoring and
commercial characteristics of PV/Thermal Solar Systems in the
building sector.
56 ALICIA MIGNONE

5.7 Solar Power and Chemical Energy Systems12

Concentrated Solar Power (CPS) technologies use large, sun-
tracking mirrors to concentrate solar radiation. However, the final steps of
generating electricity using CSP systems is similar to conventional
electricity generation - the ultimate energy conversion process depends on
the use of steam or gas to rotate turbines, or move a piston in a Stirling
engine. In a CSP system, however, steam or hot gas is produced by the
concentrated solar radiation. CSP technologies have been constructed in
various sizes, from small multi-kW systems, to large power stations of
several MW. These power stations have provided the cheapest electricity to
be generated using solar power. The IA has three active tasks and fourteen
participating countries plus the European Commission: Algeria, Australia,
Brazil, Egypt, France, Germany, Israel, Mexico, Russia, South Africa, Spain,
Switzerland, the U.K. and the USA. The task on Concentrating Solar Electric
Power Systems deals with the design, testing, demonstration, evaluation and
application of solar thermal electric systems, including parabolic troughs,
power towers and dish/engine system. The task on Solar Chemistry Research
is devote to the development of engineering aspects of pre commercial and
demonstrational solar chemical systems projects, and basic research on solar-
specific chemical reactions and processes. Finally, the annex on
Concentrating Solar technology and applications is focused to develop/test
solar components and subsystems; to refine computation/measurement
techniques and facilities; to advance specific solar technology areas.

5.8 Wind energy 13

The mission of the Wind Energy Systems is to stimulate co-
operation on wind energy research and development and to provide high
quality information and analysis to member governments and commercial
sector leaders: addressing technology development and deployment and its
benefits, markets and policy instruments.
The Agreement has five active tasks plus one in preparation.
Nineteen countries plus the European Commission have joined it: Australia,
Austria, Canada, Denmark, Finland, Germany, Greece, Ireland, Italy,

12
www.solarpaces.org
13
IEA wind website: www.ieawind.org
ENERGY TECHNOLOGIES RESEARCH AND DEVELOPMENT 57

Japan, Mexico, Netherlands, New Zealand, Norway, Spain, Sweden,

Switzerland, the United Kingdom and the USA.
The Agreement has a purpose to produce objective
information and analysis that will inform government policy rather than
directly generating policy advice. The Wind Energy Systems Implementing
Agreement is expanding both internal and external information exchange. It
publishes newsletters presenting results from task work, joint actions,
recommended practices, analysis of implementation progress and policies
are published and described in some public conferences and forums. The
Wind Energy Implementing Agreement enables highly informed exchanges
on national government supported programmes and findings, and is ideally
placed to establish effective collaboration on basic research. As well as
government sponsored R&D, considerable effort and resources are spent
within the commercial sector through manufacturing industry, developers,
consultancy services and in providing the physical infrastructure. The
activities of the implementing agreement provides a means for international
co-operation that can only accelerate cost reduction and enable more rapid
deployment.
The on going and recently completed annexes deal with the
Base technology information exchange; the annual review of progress in the
implementation of wind energy; wind turbine round robin test program;
database on wind characteristics; enhanced field rotor aerodynamics
database; wind energy in cold climates; horizontal axis wind turbine
aerodynamics and models from wind tunnel measurements; dynamic models
of wind farms for power systems.

6. CONCLUSIONS

i The International Energy Agency, created in 1974 under the

OECD umbrella, has a program for international energy R&D co-
operation, that includes, inter alia, a legal mechanism called
Implementing Agreement.
i The seven-article Framework provides the legal commitments of
the participants and the management structure to guide the work.
i Participants to the IAs fall into two categories: Contracting Parties
and Sponsors.
i The financial arrangements for international co-operation through
the IAs fall into two broad categories: cost sharing, in which
participants contribute to a common fund to finance the work and
58 ALICIA MIGNONE

task sharing, in which participants assign specific resources and

personnel to carrying out their share of the work.
i The benefits of the International Energy Technology Co-operation
are:
- Shared costs and pooled technical resources;
- Avoided duplication of effort and repetition of errors;
- Harmonized technical standards;
- A network of researchers;
- Stronger national R&D capabilities;
- Accelerated technology development and deployment;
- Better dissemination of information;
- Easier technical consensus;
- Boosted trade and exports.

* Since February 2005 in ENEA, Italian National Agency for New

technologies, Energy and the Environment, 76 Lungotevere Thaon di
Revel, Rome, Italy
Chapter 5

MARKET DEPLOYMENT OF RENEWABLE

ENERGY IN CENTRAL ASIA:
IMPLICATIONS FOR ENERGY
DIVERSIFICATION

Teresa Malyshev, PhD

Renewable Energy Unit, International Energy Agency

Paris, France
[email protected]

The diversification of energy supply toward renewable energy

is economically attractive in Central Asia. Exploiting the cheapest
technologies would not add to costs but would save money. IEA countries
will pay for the research and development for high cost renewables. As
technologies develop and costs decline, other countries can cost-effectively
deploy them. Moreover, policies that have proven effective in IEA countries
can be implemented in Central Asian countries. The renewable energy
technologies that could be deployed on a larger scale include: biomass
heating; biomass electricity; solar thermal heating; solar hot water and
hydropower.
From 1990 to 2001, total primary energy supply in IEA
countries grew by 1.6% per year, while renewable energy supply grew by
2.2% per year (see Renewable Energy: Market and Policy Trends in IEA
Countries at www.iea.org). Most of the growth in renewables occurred in the
1970s and 1980s, as a result of R&D and policy support following the oil
price crises. Renewable energy grew from 142 Mtoe in 1970 to 281 Mtoe in
2001, but its share in total primary energy supply shrank from 6% to 5.5%
over the same period. The share in total electricity generation fell even
faster, from 24.1% in 1970 to 15.1% in 2001. From 1990 to 2001,

59

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 59–73.
© 2005 Springer. Printed in the Netherlands.
60 TERESA MALYSHEV

hydropower and geothermal exhibited limited growth, and biomass grew at a

rate one half of previous decades. Wind and solar, however, grew by 23%
per year. These growth rates mask trends among IEA countries, Austria,
Sweden and Denmark experienced rapid growth of renewables.
Policy instruments can be categorised into four quadrants,
based on the direction of their support. Policies can be directed towards
consumers (demand-side) or producers (supply-side). They can also be
directed towards capacity (i.e., the facility and/or its capital costs) or
generation (i.e., the product and/or the associated price to the customer). In
some cases, the same policy can appear in more than one quadrant. In
addition to these policy instruments, there are administrative or regulatory
procedures that are not financial in nature, but nevertheless contribute to the
market deployment of renewables. There are also public awareness
programmes that support market deployment.
Renewable energy policies in IEA countries exhibited a clear
evolution over the past three decades. Solar and wind technologies, as well
as modern forms of bioenergy, began to be introduced into the market in the
late 1970s after a period of research, development and demonstration that
started in 1970 and intensified as the impacts of the oil price crises mounted.
Denmark, Finland and Germany were the first countries to allocate RD&D
funding for renewable technologies. The United States, the United Kingdom
and Japan also funded renewable energy RD&D programs in the early
1970s. Except for a few countries, RD&D spending on renewable energy
represented the first tier of support to the development of renewable energy
markets. In the late 1970s and early 1980s, the United States, Denmark,
Spain, France and Italy instituted the first market deployment policies in IEA
countries.
The 1980s to the mid-1990s represented a period of
experimentation with market deployment strategies among IEA countries,
however, lower fossil prices reduced the urgency of the effort. Some
countries employed a wide range of policies, including new variations of
guaranteed prices such as feed-in tariffs combined with investment
incentives and tax measures. The late 1990s saw a number of countries
institute obligations and quota-based renewable energy policies as they
strived to open and widen renewable energy markets. The latest development
of renewable energy deployment policies is the introduction of tradable
certificates.
While a clear evolution of overall policies and measures in
IEA countries is evident from the figure, it does not necessarily denote a
single trend. Currently, there are two main schools of thought on market
deployment policies – guaranteed prices and obligations with certificates. In
establishing these strategies, policymakers are working to balance two
MARKET DEPLOYMENT OF RENEWABLE ENERGY IN CENTRAL ASIA 61

competing ideas – providing stable, attractive rates of return to attract private

sector investment, and maintaining flexibility to ensure that costs are
minimised and fall over time.
To identify and exploit real market opportunities, it is
necessary to assess the competitiveness of specific applications and services
in specific local circumstances. It is only by taking advantage of these
unique situations - be it large-scale on-grid applications or niche markets off-
grid, or in specific country situations - that renewable electricity can build a
vigorous and sustained market. (see Renewables for Power Generation:
Status and Prospects at www.iea.org ). Many best cases already show that
under optimal conditions - i.e. optimised system design, siting and resource
availability - electricity from biomass, small hydropower, wind and
geothermal power plants can be produced at low costs ranging from 2 to 5
USD cents per kWh. Cost competitiveness is then at its best, and renewable
power - even without adding environmental or other values that could be
attributed to certain kinds of renewable electricity generation - can compete
on the wholesale electricity market.
Renewable energy projects are often the most economical
choice because of their scale. Their smaller and modular nature means they
can be deployed and paid for as energy demand grows; and they can be
embedded within the existing energy supply networks, if they exist.
More needs to be done to diversify the global renewables
industry. Energy demand is set to grow over the long-term, but do
governments want fossil fuels to drive economic growth? In Central Asia,
renewable energy can play a role by: freeing up natural gas for export; by
improving the environment; by increasing energy efficiency through the
modernising and upgrading of obsolete production capacities; by creating
employment; and by enhancing energy security.
Policy makers in Central Asia could introduce specific
measures to enhance the development of renewable energy (see Renewables
in Russia at www.iea.org ). This will not necessarily require substantial
financial support because there are practical low-cost and often competitive
measures that would stimulate investment in renewable energy technologies
and could lead to considerable economic returns. In the short term, policy
makers could concentrate on measures that would enhance the use of
renewable energy systems that already have competitive advantages in
specific applications. As businesses become experienced with installation
and maintenance on a large scale, new markets for these technologies will
open up, creating even more competitive opportunities.
Growth in demand for renewable energy is highest in
countries that have made renewable energy development one of the focal
points of the national energy strategy. To attract private investment for the
62 TERESA MALYSHEV

implementation of this sub-programme (and more generally of other

renewable energy projects), it will be necessary to put in place a clear and
comprehensive legal and regulatory framework as well as specific policies
and measures to stimulate the renewable energy market diffusion. Many
countries have adopted specific laws that provide the legal basis for the
mechanisms that allow market players to develop a renewable energy
market. The renewable energy law or its equivalent usually specifies the
legal status of the producers of renewable energy technologies, their rights
and obligations. It also specifies the roles and responsibilities of the federal,
regional and local bodies regarding such functions as establishing
regulations, standards, licensing, taxation and other controls on project
development.
The next step in the renewable energy strategy would be
bringing into practice the mechanisms on the territorial, regional and local
levels. This will require adequate regulatory and institutional frameworks to
actually set the rules authorised under the national renewable energy policy.
A set of regional laws or regulations and local provisions are necessary to
guarantee the implementation of the national strategy.
Since renewable energy technologies are very site-specific,
the success of a project will depend on the exact resource conditions at the
specific site. For this reason preliminary local site monitoring is very
important to stimulate the development of renewable energy projects.
Regional atlases of renewable energy resources should be published and
disseminated for potentially interested parties, such as energy companies,
electricity utilities, local industries and authorities, and the general public.
Many countries have succeeded in building public awareness
through information campaigns to inform professionals and the general
public about the existing renewable energy resources, technologies,
applications and their environmental and public benefits. International
experience demonstrates that increasing public awareness of renewable
energy can lead to a significant increase in the use of renewable energy in
the residential sector, especially in the case of biomass and solar thermal.
Different means of disseminating information should be used: the mass
media, organisation of conferences and publication of outlets. Success
stories should be widely presented to the mass media. Joint ventures are also
an effective way of sharing technological expertise. Joint ventures also allow
companies to improve their managerial, financial and commercial skills,
while providing foreign companies with a highly-skilled, low cost partner.
Russia partnered with Denmark and with US for wind installations.
It is important to efficiently design financial programs,
including: reduced or zero VAT; investment tax incentives; accelerated
MARKET DEPLOYMENT OF RENEWABLE ENERGY IN CENTRAL ASIA 63

depreciation; favourable loans; demonstration projects; and environmental

funds.
Regulatory policy also has to be tailored to increase the
competitiveness of renewable energy. For example, Renewable Portfolio
Standards oblige power companies to supply or customers to buy a certain
percentage of electricity from renewable energy sources. Frequently, this
mechanism is combined with a national renewable energy target. For
example, in 2000, Poland adopted a regulation which requires all power and
heat companies to buy energy from renewable sources. To fulfill this
obligation, each power company had to provide at least 2.4% of total
electricity sales from RE sources in 2001.
Expanding grid-connected bulk power generation from
renewables depends to a large extent on the conditions and rates under which
independent power producers can gain access to the transmission system
Specific regulations and implementation frameworks are necessary to allow
IPPs to operate effectively in the market. The status and rights of
independent power producers have to be clearly defined. Industries which
produce their own electricity must have non-discriminatory access to the grid
to transmit the generated electricity for their own use or for sale.
Net metering is a policy for customers with small, grid-
connected renewable generating facilities. It allows the electric meters of
these customers to operate in reverse when the systems produce energy in
excess of the customer’s demand. This enables customers to use this
generation to offset their consumption over a longer period of time. Through
the offset, customers receive the full retail value for the excess electricity
they generate, similar to the value customers receive when they conserve
electricity.
Wholesale market competition, for which lowest-cost power
is generally the primary driver, may reduce incentives to develop renewable
energy because of the higher capital costs of many technologies. Also, the
inability to dispatch power on demand with some renewables is a drawback
in spot markets, in which a high premium is placed on generators that can
assure power availability during peak periods. Different countries have
adopted special regulations to guarantee that electricity and heat services are
provided in rural areas, where the cost of these services is generally higher
than in urban areas.
Diversifying energy supply with renewables can help to
achieve the three E’s (economic growth, environmental improvement and
energy security) in Central Asia. Policies in IEA countries are driving the
growth in renewable energy markets worldwide. And, today, there are many
cost-effective opportunities to exploit renewables in Central Asia.
64 TERESA MALYSHEV

Figure 1.

MAIN POINTS
i Why does diversifying energy supply
with RE help achieve 3Es?
i What’s happening in RE
markets?What policies are driving
growth?What are opportunities for
RE in Central Asia?What are
strategies for market deployment of
renewables?

Figure 2.

WHY DIVERSIFY TOWARDS

RENEWABLES?

i Cheapest energy source

i In certain locations
i For certain technologies
i Creates local jobs
i Improves environment
i Export potential
i Oil & gas revenue
i RE exports
MARKET DEPLOYMENT OF RENEWABLE ENERGY IN CENTRAL ASIA 65

Figure 3. IEA Total Primary Energy Supply 1970-2001

Mtoe
6000

5000

4000

Renewables
3000
Nuclear

Gas
2000
Oil

Coal
1000

0
70

72

74

76

78

80

82

84

86

88

90

92

94

96

98

00
19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

20
Year

Figure. 4

How Did Renewables Perform?

Good news:
i 142 Mtoe in 1970 to 281 Mtoe 2001

Bad news:
i share in TPES shrank from 6 % in 1992 to
5.5 % in 2001
i share in electricity production fell from
24.1% in 1970 to 15.1% in 2001
66 TERESA MALYSHEV

Figure. 5

MARKET DEPLOYMENT POLICY INSTRUMENTS

Generation

Bidding systems Net metering

Production tax credits Green pricing
Guaranteed prices/feed-in Voluntary programs
Obligations Government purchases
Tradable certificates Excise tax exemption
Supply Demand

Investment tax credits Consumer grants/rebates

Property tax exemptions Tax credits
Capital grants Sales tax rebates
Government purchases Third-party finance
Third-party finance

Capacity
MARKET DEPLOYMENT OF RENEWABLE ENERGY IN CENTRAL ASIA 67
68 TERESA MALYSHEV
MARKET DEPLOYMENT OF RENEWABLE ENERGY IN CENTRAL ASIA 69

Figure. 10

ROLE FOR RENEWABLES IN CENTRAL ASIA

Challenges:

i High dependence on fossil fuels

i Overcapacity in electricity production
i Inefficient energy use
i Low prices for conventional energy
i Lack of commercial know-how

Figure. 11

ROLE FOR RENEWABLES IN CENTRAL ASIA

Opportunities & Benefits:
i Diversification – regional dimension
i Diversification - economics
i Environmental implications
i Employment effects
i Aging electricity infrastructure
i Lower cost production of RES
70 TERESA MALYSHEV

Figure. 12

HIGHLIGHTING THE ROLE OF RENEWABLES:

4 KEY ISSUES
i Frees up oil and gas for export
i Substitutes for fossil fuels
i Reduces cost of supplying energy to some users
i Increases local employment

Figure. 13

(1) INCREASES GAS EXPORT POTENTIAL

i Uptake of renewables can free up gas for export

i EU gas imports expected to rise from 233 billion
cm in 2002 to 639 billion cm in 2030
i Import share (EU) – 81% in 2030

Figure. 14

(2) SUBSTITUTES FOR FOSSIL FUELS

i Biofuel District Heating in Lithuania
i Heat production costs down nearly 20%
i Local production of biofuel saved $624,000 in
avoided fuel imports
i Reduction in CO2, SO2, NOx emissions


MARKET DEPLOYMENT OF RENEWABLE ENERGY IN CENTRAL ASIA 71

Figure. 15

(3) REDUCES COST OF SUPPLYING ENERGY

i Off-grid solution
i Replaces diesel generators
i Avoids transport difficulties
i Heating and hot water solution
i Replaces conventional fuels
i Creates local industry

Figure. 16

(4) CREATES LOCAL EMPLOYMENT

Natural
Solar Solar Landfill
Wind Geothermal Gas
PV Thermal Gas
(PG)

Construction Jobs

2.57 4.00 7.14 5.71 3.71 1.02

Operation and Maintenance Jobs

0.29 1.67 0.12 0.22 2.28 0.13

72 TERESA MALYSHEV

Figure. 17

BUILDING RE MARKETSDeveloping national

strategy to encourage cost-effective solutions

i Stimulating demand and supporting domestic

industry
i Designing financing programs around specific
technologies
i Tailoring regulatory policies

Figure. 18

DEVELOPING A NATIONAL STRATEGY

i National Renewable Energy Strategy
i National legal framework
i Regional laws and regulations

Figure. 19

STIMULATING DEMAND
i Analysis of RE resources
i Public Awareness of ALL benefits
i International technology partnerships
MARKET DEPLOYMENT OF RENEWABLE ENERGY IN CENTRAL ASIA 73

Figure. 20

DESIGNING FINANCIAL PROGRAMS

i Reduced or zero VAT
i Investment tax incentives
i Accelerated depreciation
i Favourable loans
i Demonstration projects
i Environmental funds

Figure. 21

TAILORING REGULATORY POLICY

i Portfolio standards
i Grid access
i Net metering
i Power purchase agreements
i Energy supply in rural areas

Figure. 22

CONCLUSION
i lDiversifying towards renewables can help achieve
3Es
i Policies are driving growth in RE markets
worldwide
i There are cost-effective opportunities to exploit
renewables in Central Asia
Chapter 6

WORLD ENERGY OUTLOOK 2004: KEY

FINDINGS AND MESSAGES

Marco Baroni

International Energy Agency

Soaring oil and gas prices, the increasing vulnerability of

energy supply routes, massive investment requirements and increasing
emissions of climate-destabilising carbon dioxide keep characterising the
world energy context.
The Reference Scenario of the IEA’s World Energy Outlook
2004 depicts the future trends, from nowadays to 2030, of global energy
demand in the absence of new energy policies after those legally enacted by
mid 2004. In this scenario, world energy requirements in 2030 will reach
16.5 billion tonnes of oil equivalent, almost 60% higher than in 2002. The
average annual growth rate of 1.7% will be slower than the growth rate of
the last 3 decades of 2%.
In 2030, fossil fuels will continue to dominate the global
energy mix, accounting for 85% of the increase of the world energy demand
(see figure 1).
Oil will continue to be the largest fuel among the energy
sources, with a share slightly decreasing from 36% in 2002 to 35% in 2030.
In this year, the transport sector will require 54% of the 5766 million tonnes
of oil equivalent (Mtoe), accounting for about two-thirds of the global
increase of oil use.
Natural gas demand growth will be the strongest among all
fossil fuels, at an average of 2.3% per year over the projection period. The
share of natural gas in the total energy needs will increase from 21% in 2002
to 25% in 2030, overtaking coal as second largest energy source. The power
sector will be the main driver of gas consumption, accounting for 60% of the

75

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Economic, Environmental and Social Impacts, 75–85.
© 2005 Springer. Printed in the Netherlands.
76 MARCO BARONI

increase from 2002 to 2030, with its share rising from 36% in 2002 to 47%
in 2030 of the world gas market.

Figure 1: World Primary Energy Demand by Fuel

7 000

6 000

5 000

4 000
Mtoe

3 000

2 000

1 000

0
1970 1980 1990 2000 2010 2020 2030

Coal Oil Gas Nuclear Hydro Other

Coal will be the slowest-growing among the fossil fuels, at

1.5% per year, although continuing to play a key role in the world energy
mix. Its share will decline slightly from 23% in 2002 to 22% in 2030. The
power sector will be responsible for almost four-fifths of the global coal
demand in 2030, accounting for almost all of the increase over the next 3
decades. China and India will account for the majority of this increase over
the period 2002 to 2030, while demand growth in the OECD will be
minimal.
Nuclear energy will remain substantially stable over the
projection period, with its share falling from 7% in 2002 to 5% in 2030. The
rate of construction of new reactors is expected to keep pace with the rate at
which old reactors will be retired, with the majority of retirements in the
OECD countries and the bulk of the new additions taking place in Asia.
Hydropower production will expand by 1.8% per year over
the projection period, a slightly faster rate than that of global primary energy
demand, therefore maintaining constant, at about 2%, its share in the total
energy needs.
WORLD ENERGY OUTLOOK 2004 77

The role of biomass and waste, the use of which is

concentrated mainly in the developing countries, will gradually diminish
over the projection period. Globally, its share of primary energy demand will
decrease from 11% in 2002 to 10% in 2030, as it will be replaced with
modern fuels. In absolute terms, though, the consumption of traditional
biomass in developing countries will continue to grow over the projection
period.
The use of the non-hydro renewables (excluding biomass)
will increase fastest among all energy sources, at an annual growth rate of
5.7%, although its share in 2030 will still be small, at only 2%.
Renewable energy sources as a whole will increase their share
of electricity generation throughout the projection period. Although hydro
power generation will increase by over 60%, its share will fall, but the shares
of other renewables in electricity generation will triple, from 2% in 2002 to
6% in 2030. While hydropower will remain the largest source of electricity
generation by renewables in 2030, the contribution of wind and biomass will
also become quite substantial (see figure 2).

Figure 2: World Electricity Generation from Non-Hydro Renewable Energy Sources

2 000

1 600

1 200
TWh

800

400

0
1990 2002 2030

Biomass Wind onshore Wind offshore Geothermal

Solar PV Solar thermal Tide/wave
78 MARCO BARONI

Two-thirds of the increase in global energy demand between

2002 and 2030 will come from developing countries. By 2030, they will
account for almost half of total demand, in line with their more rapid
economic and population growth. OECD countries will account for 26% and
the transition economies for the remaining 8% of the demand growth.
Consequently, the current 52% share of the OECD in world demand will
decline to 43% in 2030, while that of the developing countries will increase,
from 37% to 48% (see figure 3). The developing countries’ share of global
demand will increase for all of the primary energy sources except non-hydro
renewables. Their share of nuclear-power production will increase fastest,
because of strong growth in China and other parts of Asia. Their share of
coal consumption will also increase sharply, mainly because of booming
demand in China and India.

Figure 3: Regional Shares in World Primary Energy Demand

2002 2030

43%
38%

52%
48%

10% 9%

10 200 Mtoe 16 325 Mtoe

OECD Transition economies Developing countries

The world’s energy resources are adequate to meet the

projected increase in energy demand until 2030 but serious concerns about
energy security emerge from the market trends projected here, as energy
production will be more and more displaced with respect to energy
consumption. The geographical sources of incremental energy supplies will
shift markedly over the projection period, mainly in response to cost factors
and the location of resources. From 2002 to 2030, more than 95% of the
WORLD ENERGY OUTLOOK 2004 79

increase in production will occur in non-OECD regions, against about 70%

from 1971 to 2002. Most low-cost fossil-fuel resources are located in non-
OECD countries. This situation will more and more increase energy trade
and will raise concerns about security of supply and vulnerability to supply
disruptions. Energy exports from non-OECD to OECD countries will
increase by more than 80%, from some 1 500 Mtoe in 2002 to over 2 700
Mtoe in 2030. Trade between countries within each grouping is also
expected to grow. As international trade expands, risks will grow of a supply
disruption at the critical chokepoints through which oil must flow. Traffic
through the Straits of Hormuz and Malacca, where currently a total of 26
million barrels pass through every day, is projected to more than double over
the projection period. A disruption in supply at any of these points could
have a severe impact on oil markets.
If current government policies do not change, energy-related
emissions of carbon dioxide will grow marginally faster than energy use.
CO2 emissions will be more than 60% higher in 2030 than now. Well over
two-thirds of the projected increase in emissions will come from developing
countries, which will remain big users of coal – the most carbon-intensive of
fuels. Power stations, cars and trucks will be responsible for most of the
increased CO2 energy-related emissions, which will increase by 1.7 % per
year over 2002-2030, reaching 38 billion tonnes in 2030, an increase of 15
billion tonnes with respect to the 2002 levels.
Over the past three decades, energy-related CO2 emissions
worldwide have grown less rapidly than has primary energy demand, as
carbon emissions grew by 1.7% per year, while energy demand grew by 2%.
Over the projection period, emissions and demand will grow at about the
same rate, 1.7% per year, (Figure 4). The average carbon content of primary
energy consumption will remain more-or-less constant at about 2.3 tonnes of
CO2 throughout the projection period.
80 MARCO BARONI

Figure 4: Average Annual Growth in World Primary Energy Demand and Energy-Related
CO2 Emissions

2.5%
average annual growth rate

2.0%

1.5%

1.0%

0.5%

0.0%
1971-2002 2002-2030
Primary energy demand Emissions

Developing countries will be responsible for about 70% of the

increase in global CO2 emissions from 2002 to 2030 (Figure 5). They will
overtake the OECD as the leading contributor to global emissions early in
the 2020s. OECD countries accounted for 54% of total emissions in 2002,
developing countries 36% and transition economies for 10%. By 2030, the
developing countries will account for 49%, the OECD countries for 42% and
the transition economies for 9%. Today, developing-country emissions are
two-thirds of OECD emissions. By 2030, they will be 16% higher.
WORLD ENERGY OUTLOOK 2004 81

Figure 5: World Energy-Related CO2 Emissions by Region

20 000

16 000
Mt of CO 2

12 000

8 000

4 000

0
1970 1980 1990 2000 2010 2020 2030

OECD Transition economies Developing countries

Converting the world’s resources into available supplies will

require massive investments. In some cases, financing for new infrastructure
will be hard to come by. Meeting projected demand will entail cumulative
investment of some $16 trillion (in year-2000 dollars) from 2003 to 2030, or
$568 billion per year. The electricity sector will absorb most of the future
energy investments: power generation, transmission and distribution will
absorb almost $10 trillion, or 62%, of total energy investment (see figure 6).
Of this, more than half of the investment in the electricity industry will go to
transmission and distribution networks. If we include the investment needed
in the fuel chain to meet the fuel needs of power stations, electricity’s share
rises to more than 70%. Total investments in the oil and gas sectors will each
amount to almost $3 trillion, or around 18% of global energy investment.
Exploration and development will take more than 70% of total investment in
oil, while the share is lower for gas (at 56%) because transportation
infrastructure needs for gas are bigger. Coal investment will amount to only
$400 billion, or 2.5% of the total. Coal is about a sixth as capital-intensive as
gas in producing and transporting a given amount of energy. Developing
countries, where production and demand are set to increase most, will
require about half of global energy investment. Those countries will face the
biggest challenge in raising finance, because their needs are larger relative to
the size of their economies and because the investment risks are bigger.
82 MARCO BARONI

Figure 6: Cumulative Energy Investment, 2003-2030

OECD North America

OECD Europe
OECD Pacific
Transition economies
China
Other Asia
Middle East
Africa
Latin America

0 500 1 000 1 500 2 000 2 500 3 000 3 500

billion $ (2000)
Coal Oil Gas Electricity

The World Energy Outlook 2004 presents also a World

Alternative Policy Scenario, which depicts a more efficient and more
environment-friendly energy future than does the Reference Scenario. It
analyses how global energy trends could evolve if countries around the
world were to implement a set of policies and measures that they are
currently considering or might reasonably be expected to adopt. These
policies would promote the faster deployment of more efficient and cleaner
technologies, reducing to 14.7 Gtoe the global energy demand in 2030, about
10% lower than in the Reference Scenario (see figure 7). Energy demand in
this scenario grows by 1.3% per year, 0.4 percentage points less than in the
Reference Scenario.
The fuel mix is markedly different, with a reduction of 14%
of fossil fuels, an increase of nuclear power (+14%) and a substantial
expansion of non-hydro renewable energy sources (+30%). By 2030, carbon-
free fuels account for 22% of global primary energy demand, four
percentage points higher than in the Reference Scenario.
Coal consumption sees the biggest reduction with respect to
the Reference Scenario, with a drop of almost a quarter, or 857 Mtoe, mostly
driven by lower demand from the power sector. This decrease would be
primarily due to increased efficiency of power plants – especially in
developing countries – and fuel-switching to less polluting energy sources.
WORLD ENERGY OUTLOOK 2004 83

The average annual rate of growth in coal demand would be 0.5%, down
from 1.5% in the Reference Scenario.
In the Alternative Scenario oil demand increases to just less
than 5 Gtoe in 2030, or 11%, lower than in the Reference Scenario. The
reduction of 12.8 mb/d is an amount equal to the current combined
production of Saudi Arabia, the United Arab Emirates and Nigeria. The
transport sector would account for almost two-thirds of the savings, thanks to
increased fuel efficiency and faster penetration of alternative-fuel vehicles
that would push demand down.
Natural gas demand is 10% lower in 2030 than in the
Reference Scenario. Again, the power sector accounts for most of the
savings, almost three-quarters by 2030. Consumption of traditional biomass
decreases, thanks to more efficient use in industrial processes and in
household cook-stoves, but it is offset by the increased consumption in the
power sector and by biofuels use in the transport sector, thus raising total
biomass consumption of 43 Mtoe with respect to the Reference Scenario.
Consumption of other renewables increases even more, adding 75 Mtoe in
2030 – a 30% increase compared to the Reference Scenario. Power
generation drives most of this increase, but solar water heaters and
geothermal energy also contribute.

Figure 7: Energy Demand in the Reference and Alternative Scenarios

17 000

16 000
15 000
Reference Scenario
14 000
13 000
Mtoe

12 000
Alternative Scenario
11 000

10 000
0 ˜
- 1 000
- 2 000
2000 2005 2010 2015 2020 2025 2030
Coal Oil Gas Nuclear Renewables
84 MARCO BARONI

As a result of the lower level of energy demand and of the

different fuel mix, energy-related CO2 emissions in the Alternative Policy
Scenario reach 31.7 billion tonnes in 2030, about 6 Gt, or 16%, lower than in
the Reference Scenario (Figure 8). They still increase at a global level by
37% from 2002 to 2030, but at a growth rate of 1.1% per annum with respect
to the 1.7% of the Reference Scenario. The gap is particularly wide in the
third decade, when the annual growth rate is halved, from 1.4% to 0.7%. The
reduction is comparable to the current combined emissions of the United
States and Canada.

Figure 8: Global Energy-Related CO2 Emissions in the Reference and Alternative

Scenarios

40 000

35 000
Mt of CO 2

30 000

25 000

20 000
1990 2000 2010 2020 2030

Reference Scenario Alternative Scenario

The difference between the growth rates of CO2 emissions in

the two scenarios is summarised in Figure 9. Measures to improve end-use
efficiency explain almost 60% of the difference worldwide. These measures
include more efficient vehicles, industrial processes and appliances, as well
as stricter building standards. In the transition economies and in the
developing countries, the role played by energy-efficiency measures is
particularly large, reflecting the huge potential for efficiency improvements
there. The other big contributor to lower emissions is the increased share of
renewables in power generation, accounting for 20% of the global reduction.
The increased role of nuclear power accounts for an additional 10% and fuel
WORLD ENERGY OUTLOOK 2004 85

switching in end-uses and switching from coal to natural gas in power

generation explain the rest.

Figure 9: Reduction in Energy-Related CO2 Emissions in the Alternative Scenario by

Contributory Factor, 2002-2030
100% 5% 4%
8%
5%
10% 21%
12%
80%
17%
20%
21% 15% 7%
7% 1%
60%
10%

40%
63% 67%
58%
49%
20%

0%
World OECD Transition economies Developing countries
End-use efficiency gains Fuel switching in end uses
Increased renewables in power generation Increased nuclear in power generation
Changes in the fossil-fuel mix in power generation
Chapter 7

MAIN ACHIEVEMENTS OF THE IEA

PROGRAMME ON HYDROPOWER
TECHNOLOGIES

Frans H. Koch

former Secretary
IEA Implementing Agreement for Hydropower Technologies and Programmes

1 INTRODUCTION
The International Energy Agency has set up more than forty
“Implementing Agreements” dealing with a wide variety of energy
technologies. One of these is the Implementing Agreement for Hydropower
Technologies and Programmes (Hydro IA). This chapter will describe what
the Hydro IA has achieved since its inception in 1995. During this period,
six task forces worked on the following subjects:
ƒUpgrading of hydropower plants
ƒSmall scale hydropower
ƒEnvironmental and social aspects of hydropower
ƒEducation and training of hydropower professionals
ƒPublic awareness and public acceptance of hydropower
ƒGood practices in hydropower technology

The countries that participated in the Hydro IA were: Canada,

China, Finland, Japan, Norway, Sweden, and the USA. The remainder of
this paper will describe the work and the findings or conclusions of each of
the six task forces mentioned above.

87

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 87–94.
© 2005 Springer. Printed in the Netherlands.
88 FRANS H. KOCH

2 UPGRADING OF HYDROPOWER PLANTS

2.1 Benefits of hydro upgrading projects

The upgrading of hydropower plants refers to the replacement
or rebuilding of turbines, generators, control equipment or hydraulic
structures. It results in adding to the plants power capacity, usually expressed
in Megawatts (MW), and/or to the amount of energy a plant can produce in a
year, usually expressed in Megawatt hours (MWh). Many of the older hydro
plants were built at a time when computers were not yet used for the design
of turbines and generators, and when automatic control systems were not
widely used. Modern turbines and generators may be from 2 to 5 % more
efficient, in other words they produce from 2 to 5 % more electricity from
the same amount of water. Upgrading projects generally cost only a small
fraction of the amount for new generation facilities, since only one or two
components of the total facility have to be re-built or replaced. For this
reason the upgrading of existing hydro plants is the cheapest form of
renewable electricity available, in some cases the cost was US $ 70 per kW
of capacity. A new facility would typically cost from $ 800 to $ 2000 per
kW of capacity.
There are several thousand hydro plants in the world with a
capacity of more than 100 MW, and several dozen with a capacity of more
than 2000 MW. Adding 2 % to the capacity of such plants through
upgrading projects represents 2 MW in the first case and 40 MW in the
second. Geothermal or bio-energy electricity generation plants can also be
in this size range of 2 to 40 MW. However, the typical size of other
renewable energy technologies tends to range from 0.01 MW to 2 MW.
Compared to these, upgrading of hydro plants is both large scale and low
cost.

2.2 Work done by the upgrading task force

The task force on upgrading produced three technical reports
in CD-ROM format to assist engineers and project managers. They are sold
through the publisher of Hydro Review Worldwide (March 2001, HCI
publications, Kansas City, MO USA). The titles are:
1. Guidelines on Methodology for Hydroelectric Francis Turbine
Upgrading by Runner Replacement.
2. Guidelines for Hydroelectric Generator Upgrading.
3. Guidelines on Methodology for Control Systems Rehabilitation
ACHIEVEMENTS OF THE IEA PROGRAMME ON HYDROPOWER TECHNOLOGIES 89

3 SMALL SCALE HYDROPOWER

3.1 Description of small scale hydropower

The term small scale hydropower is defined in widely
different ways in different countries. In some cases it means a capacity of
500 kW or less whereas in others it may be as high as 50,000 kW. Limits of
either 2 MW (2000 kW) or 5 MW are commonly used. About 20 to 30 years
ago many small hydro plants were abandoned because the cost of staffing
them 24 hours per day became prohibitive. The advent of automatic
supervisory and control systems in the last two decades has radically
improved the economics of small hydro plants; most of them now run
unattended and only need to be visited periodically for maintenance. In
addition some sophisticated computer software programs now make it much
easier to assess potential sites for small scale hydropower and to do some of
the preliminary design.
There is a widely held perception that small scale hydropower
is environmentally more benign than larger scale plants. In fact, this is
highly questionable if the environmental impacts per kWh of electricity
generated are considered. A large scale plant of, say 500 MW, may well
have considerably fewer impacts than 100 small plants of 5 MW each.
However, the perception is deeply rooted and many governments are
reluctant to explicitly support large scale hydropower while they actively
encourage the development of small scale hydropower.

3.2 Achievements of the small scale hydro task force

In most IEA countries small hydropower is developed by
small organizations, municipalities, or entrepreneurs. The task force has
produced reports and published them on the Internet (www.small-
hydro.com) to facilitate the work of developers. Firstly, they have produced
a global atlas that shows the location and parameters of existing small hydro
plants and potential sites for new plants. The Atlas contains data for some
countries (Canada, China, Norway, UK, USA) whereas others remain to be
done. All countries are invited to collect these data and publish them on the
Internet, either on the web-site of the task force or by borrowing the software
and making it available to the public in their own language.
Secondly, the task force has published a series of reports on
financing of small scale hydro projects, on planning, on environmental
aspects, etc. that should assist developers with the first steps of their projects.
90 FRANS H. KOCH

4 TASK FORCE ON ENVIRONMENTAL EFFECTS

4.1 Positive and Negative Effects of Hydro Projects

Any major infrastructure project or any electricity generating
plant has both positive and negative effects on the environment and on
society. This is also true for hydropower projects. One distinguishing feature
is the site specific nature of hydropower. Each project is on a particular river
within a specific ecosystem, landscape, and human settlement pattern. Some
are high up in the mountains, above the tree line. Others are on rivers that
flow through deserts or semi-deserts. Yet others are in the middle of large
cities. Because almost every hydro project is very different from every other
hydro project, the environmental and social effects are also very different.
For every new project, the government and the affected people have to make
a decision whether or not the benefits of the projects outweigh the adverse
effects. For projects that were built in the past, some have delivered
outstanding benefits with very few environmental or social disadvantages, in
other cases the benefits and costs were more equal, and a few projects have
become controversial because their disadvantages are considered to
outweigh their benefits.

4.2 Achievements of the Environmental Task Force

The aim of the environmental task force was to produce,
balanced, objective assessments of the positive and negative social and
environmental effects of hydropower and of the mitigation measures that can
be taken to counteract the negative effects. The task force consisted of 8
organizations from 7 countries, and over a 5 year period it held 12
international meetings and workshops in 8 different countries. In all, 112
persons from 16 countries contributed to the work and to the final reports.
Case studies that illustrated specific environmental or social
challenges and ways of mitigating them were collected for 46 projects. A
second part of the work was a life cycle analysis comparison of different
electricity generating technologies, including coal, natural gas, diesel, oil,
nuclear, hydro, biomass, wind, and solar photo-voltaic. A third part of the
work collected and compared the legal and regulatory framework for
environmental impact assessments in several countries. A fourth part of the
work specifically studied mitigation measures and their effectiveness.
Reports were published for each of these parts, and then a summary report
was prepared that gave an overview of all the information collected and
ACHIEVEMENTS OF THE IEA PROGRAMME ON HYDROPOWER TECHNOLOGIES 91

made recommendations to policy makers and managers of hydro projects.

All these reports are available on the web-site: www.ieahydro.org. The 5
main recommendations addressed:
1. The Energy Policy Framework
2. Decision making processes
3. Comparison of alternatives for planned Hydropower projects
4. The management of hydropower plants
5. Sharing benefits with local communities.

5. EDUCATION AND TRAINING

5.1 Overview of global education and training facilities

The largest share of potential hydro projects that remain to be
developed are in Asia and Africa where there are relatively few education
and training facilities for hydropower managers, engineers, and technicians.
On the other hand, some of the hydropower education facilities in IEA
countries have spare capacity because most of their hydropower potential is
already developed. A sufficient number of trained professionals is
necessary, of course, if the hydropower industry is to maintain itself and
grow. Meeting the education and training demand requires planning and
foresight.

5.2 Achievements of the education task force

The task force started by surveying the education and training
facilities that are available world wide. Based on this, it published reports
outlining program requirements in operation and maintenance training and
planning of hydropower projects.
The task force also worked on facilitating the exchange of
teaching materials between IEA countries and developing countries using the
Internet. It developed software that would safeguard the intellectual
property rights of those who had prepared teaching materials, such as
lectures, books, articles, designs, etc., and yet allowed the sharing of such
material over the Internet. To test this concept, links were established
among universities in Japan, Norway, and Sweden and Brazil, Thailand, and
Zambia.
92 FRANS H. KOCH

6 PUBLIC AWARENESS AND ACCEPTANCE

6.1 Public knowledge about hydropower

The public becomes involved at a local level when average
sized hydro plants are proposed, or their license needs to be renewed, and at
a national level for very large hydro projects. In such debates, there will
usually be proponents of the project who publish positive information, and
opponents of the project who publish negative information about the effects
on the community and the environment. This creates a need for reliable,
balanced, and objective information about hydropower. As mentioned
previously, hydro projects are very different one from the other. Some
projects consist of a large dam that creates a reservoir and floods a certain
area of land, whereas others don’t. Large dams and reservoirs were the
subject of a two year study conducted by the World Commission on Dams,
in which non-governmental organizations, governments, and the hydropower
industry participated. The report of this commission recognized that large
dams were necessary, and sometimes essential, for the social and economic
development of many countries. However, the decision making processes
involved and the treatment of people affected by dam projects should be
improved. More could also be done to mitigate environmental effects and to
safeguard cultural monuments. The United Nations Environment Program
(UNEP) has implemented a follow-up project to the World Commission on
Dams study, it is called the “Dams and Development Project” and aims to
provide governments and civil society with the information they need to
make sound decisions about projects involving large dams. In summary,
many organizations throughout the world are active in educating the public
about the issues relating to hydropower, and especially to large dams. These
efforts require the availability of reliable, balanced, and objective
information about hydropower.

6.2 Achievements of the public awareness task force

The Public Awareness task force cooperated with other
national and international hydropower organizations to produce and publish
objective information about hydropower. They jointly produced a white
paper on hydropower that is available on the web-site www.ieahydro.org,
and has been translated into German, Portuguese and Japanese. The same
web-site is also the home of the “Hydropower Information Network” that
provides extensive information and references on all aspects of hydropower,
ACHIEVEMENTS OF THE IEA PROGRAMME ON HYDROPOWER TECHNOLOGIES 93

and is addressed to a variety of target groups ranging from the interested

public to specialized hydropower managers and engineers. Another activity
was the publication of a special issue of “Energy Policy” that dealt entirely
with hydropower.

7 GOOD PRACTICES

7.1 Need for a report on hydropower good practices

Both hydropower professionals and the interested public need
better and more accessible information on good practices in hydropower.
The professionals need it because they may be faced with a particular
technical, environmental, or social problem in an existing or planned project.
They will want to see what has been done in other countries to deal with it.
The interested public needs it because opponents of hydropower put great
emphasis on the relatively few hydro projects that have experienced serious
environmental or social problems. In the technical literature and in the more
general media these same few projects are cited again and again. To restore
the balance, it would be useful to have a report where these problems were
successfully solved. The environmental task force identified ten “key
issues” related to hydropower as follows:
1. Resettlement and rehabilitation
2. Culturally vulnerable communities
3. Public health risks
4. Optimization of regional development benefits
5. Biological diversity
6. Modifications to hydrological regimes
7. Dams as obstacles to passage
8. Sedimentation in reservoirs
9. Modifications to water quality
10. Creation of reservoirs

A single, easily available, report that illustrates how these 10

key issues have been successfully addressed would fill a need for all those
who are interested in hydropower.
94 FRANS H. KOCH

7.2 Work of the task force on good practices

The Good Practices Task Force looks forward to completing
its report at the end of 2004, and publishing it in 2005. It has collected case
studies for the ten key issues listed above, and attempted to get good
geographic coverage by obtaining case studies from Asia, North America,
South America, Europe, Australia and Africa. In addition to the ten key
issues, there will also be case studies that illustrate the social, economic, and
environmental benefits that some hydro projects have brought to their
surrounding communities and to their countries.

8 SUMMARY
Hydropower is by far the largest source of renewable
electricity available today; it produces about 17 % of global electricity. This
is more than 20 times the amount produced by other renewable technologies.
The future development of hydropower will require its acceptance by
governments and the public, and this in turn will mean that social and
environmental effects will need to be carefully managed.
Hydropower is very site specific; each project is different
from most others and is situated in a particular landscape, climate, ecosystem
and human settlement area. This means that few general statements can be
made about hydropower, either good or bad, and each project has to be
judged on its own merits.
With good planning, good operation, and good mitigation
measures, hydropower can remain the principal source of renewable
electricity for many decades to come. It can make a valuable contribution to
our societies and to the environment.
Chapter 8

RENEWABLE RESOURCES TO HYDROGEN:

APPROPRIATED TECHNOLOGIES FOR
DEVELOPING COUNTRIES

V. Naso, E. Bocci, F. Orecchini, D. Marcelo

CIRPS, Interuniversity Research Center for Sustainable Development1

Piazza del Colosseo 9, 00184, Roma, Italy

1. RESEARCH FIELDS OF ENERGY AND

ENVIRONMENT GROUP ABOUT HYDROGEN
PRODUCTION FROM RENEWABLE RESOURCES
It's completely different having a certain efficiency, when the
resource is renewable or non renewable on Earth.
The goal is not only the increase of efficiencies but primarily
the indication of feasible cycles that, starting from a renewable resource, are
able to completely "close", with no resource consumption and no impact on
the environment. Renewable resources adoption as replacement of fossil
matter shows all its interest and potential, in a perspective of Closed Cycles.
So CIRPS has carried out studies focused on: electrolytic
(hydro, wind, PV) and thermal/biologic processes (biomass).

1
CIRPS was founded in April 1988 as a Common Research Centre of Italian Universities.
“La Sapienza” of Rome is the leading partner of the Consortium . Other Current members
are: University of Viterbo, University of Cassino, University of Perugia, University of
Torino, University of Sassari, University of Macerata, University of Palermo, University of
Lecce.

95

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 95–101.
© 2005 Springer. Printed in the Netherlands.
96 V. NASO, E. BOCCI, F. ORECCHINI, D. MARCELO

H2

2. PHOTOVOLTAIC, MINI HYDRO AND WIND

HYDROGEN PRODUCTION
One of the most promising methods of producing hydrogen in
an environmentally clean way is the so-called solar hydrogen cycle. A model
for a solar-hydrogen energy system for Angola has been developed by
CIRPS.
The system is constituted by a Photovoltaic Module Array
and a Fuel Cell Energy Storage Module.
There are the following characteristics: hydrogen production
through electrolysis during the day on the base of the energetic surplus; low
pressure hydrogen storage; use of hydrogen for electric power production
during the nocturnal hours.
The system is based on the following components:
Photovoltaic Module, Hydrogen Production Unit (electrolyser), Hydrogen
Storage Unit, Conversion Unit Hydrogen-Electric Power.
The solar hydrogen cycle is currently a real alternative to
fossil fuels, and its market penetration will require systems to be set up, such
as the one described here.
RENEWABLE RESOURCES TO HYDROGEN 97

Photovoltaic Module Array

Solar
Cells Array

M.P.P.T D.C.
link
DC/DC
Converter
Electric
360V DC
Power
Bi-directional
DC/DC
Converter

Battery
Electrolyser H2O

H2
Fuel
Air Cell

F.C. Energy Storage Module

Wind-powered water electrolysis is envisaged as an important

source of zeroemissions hydrogen in the future. Although it may appear very
costly at a first glance, the use of surplus wind power in scenarios, where
wind represents a large share of the electricity market or in off-grid systems,
points to a different outlook. Hydrogen systems can help to overcome the
problems arising in the electric system at high wind energy penetration or
where there isn’t a grid enable to cover wind uncontrollability. CIRPS
studies the viability of hydrogen production via electrolysis using wind
power in developing countries with high value of wind (like Peru: 5 to 6 m/s
annual average).
98 V. NASO, E. BOCCI, F. ORECCHINI, D. MARCELO

The potential benefits of hydrogen and its role in enabling a

large penetration of wind energy are assessed. The exploitation of this wind
resource may in the future give rise to great amounts of surplus wind
electricity, which could be used to produce hydrogen, the zeroemissions fuel
that many experts believe will eventually replace fossil fuels in the transport
sector.
The results reveal that, even allowing for relevant cost-
reductions in electrolyser and associated balance-of-plant equipment,
low average surplus wind electricity cost and a high hydrogen market
price are also necessary to achieve the economic viability of the
technology.
These conditions would facilitate the installation of
electrolysis units of sufficient capacity to allow an appreciable increase in
installed wind power.
The electrolysers require a constant minimum load, wind
turbines must be integrated with grid or energy systems to provide power in
the absence of wind. Perfecting sophisticated load balancing for wind
electrolysis represents a significant challenge to the wide-scale deployment
of renewable/sustainable energy infrastructure.

3. HYDROGEN PRODUCTION FROM BIOMASS:

SUGARCANE2
The sugar cane, is one of the most interesting biomass for
energy purposes because has high rate of energy produced per hectare (50-
100 t/ha, CV 8-20 MJ/kg); rich typologies of waste at high energy content
(leaves and tops, bagasse3, molasses, etc); no production and transport costs,
since the most of waste are produced and used in the factory: the only cost is
due to the collection of leaves and tops from the field; and favourable
characteristics of cultivation (warm-humid climates, small demand for
pesticides and chemical fertilisers but a lot of water: 2000 m/year).

2
COOPERATION ACTIVITIES CIRPS – PERU. General Framework Agreement
Cooperation between the University of Rome “La Sapienza” CIRPS – CIDES (University of
Chiclayo “Santo Toribio de Mogrovejo”) and with the University of Piura. Such cooperation
will be carried out on basis of equality and mutual advantage, reserving the possibility to
define further fields of activity
3
BAGASSE is the fibre of the cane obtained by milling and pressing the cane in sugar mills.
It is used marginally in the energy sector.
RENEWABLE RESOURCES TO HYDROGEN 99

CIRPS evaluated both the use of bagasse and barbojo4 in

order to produce hydrogen, and the environmental, social and economical
effects. The aim is to develop a technical guidelines for the design of a small
power plant (gasifier-fuel cells) with the highest efficiency, low cost and low
pollutant emissions. The case study is a sugarcane mills in the north zone of
Peru.
The power plant was assessed in the 2000; produces 905.300 t
(80 t/ha.y) of sugar cane, 633.724 t (187 t/ha.y) of worked cane, and 64.640 t
of sugar. The plant, situated near Trujillo on the coast in North of the Peru,
burns the barbojo in the fields and uses old low efficiency boilers; thus it is
not energetically self-sufficient, mainly for electric power.
The use of barbojo could became the power source for the
sugar factories in advanced integrated biomass technologies for new energy
carriers, like hydrogen. This can become one of the most promising and
cheap options when advanced gasification-fuel cell technology is used.

CO2 RICH

BARBOJO CYCLONE GAS

CYCLONE
SYNTHESIS

SAND SHIFT
CONVERTE

DRIEDBARBOJO Combustion EXHAUST DUST

DUST
Gasifier
Gasifier FILTER
Chamber FILTER
Chamber
Chamber

FUEL
SCREW AIR CATHODE
ANODE
MCFC
STEAMFROM MCFC

SUGAR HEAT TO SUGAR

4. CONCLUSIONS
The sustainable development strength is in the weakness of
current development:

4
BARBOJO is the sugarcane trash, the tops and leaves that are abandoned in the fields after
the harvesting
100 V. NASO, E. BOCCI, F. ORECCHINI, D. MARCELO

x Impossibility to answer of the even more explosive

environmental, economic and social problems.
x Finite (and now nearly achieved) environmental tolerance
capacity.
x Finite fossil resources.

The choice of instruments to solve this problems all around

the world represent the greatest opportunity for humane race.
This paper has shown that hydrogen production without
polluting emissions is feasible using a renewable source of energy and with
technical means that are currently available in the market.
Hydrogen has attractive features for renewables integration,
primarily on account of its multi-functionality. Hydrogen acts as a storable
‘energy carrier’ that can be either converted back into electricity thus
providing a balancing service to electricity generators and suppliers- or used
as a ‘zero emissions’ fuel for other applications, such as transport.
The use of renewables-generated hydrogen in the transport
sector will have a substantial contribution to the abatement of CO2 and other
emissions. Its competitiveness with other hydrogen sources like steam
reforming during the transition to a carbon-free hydrogen economy will also
be influenced by the evolution of the fossil fuels market and the reflection of
environmental costs.
RENEWABLE RESOURCES TO HYDROGEN 101

REFERENCES
[1] “Barbojo: a tool for greenhouse gases reduction”. Proceeding of Sixth International
Conference on Technologies and Combustion for a Clean Environmental, Clean Air. New
Customs House, Oporto, Portugal. July 2002. Naso, Orecchini, Arroyo, Santiangeli.
[2] “Utilizzo degli scarti della canna da zucchero per la produzione di idrogeno in Peru”.
Proceeding of X Convegno Tecnologie e Sistemi Energetici Complessi. Genoa 2001. Naso,
Orecchini, Arroyo, Santiangeli, Zuccari.
[3] “Produzione ed utilizzo energetico dell’idrogeno dagli scarti della canna da zucchero
in Peru”. Degree thesis – University of Rome “La Sapienza”. 2002. Bocci.
[4] “Hydrogen production in Peru based upon sugarcane waste”. Ph.D. Thesis. University
of Rome “La Sapienza”. 2002.Arroyo.
[5] The role of hydrogen in high wind energy penetration electricity systems: The Irish
case. A. Gonza´lez, E. McKeogh, B.O. Gallachoir. Department of Civil & Environmental
Engineering, UCC, College Road, Cork, Ireland, 29 July 2003.
Chapter 9

THE CONCEPTION OF THE USE OF

RENEWABLE ENERGY SOURCES AND THEIR
ROLE IN THE ENERGY BALANCE OF
UZBEKISTAN

T.P. Salikhov, T.H. Nasyrov

Institute of Power Engineering and Automation

of Uzbekistan Academy of Sciences
Akademgorodok, 29 Khodjaev str.
700125 Tashkent, Republic of Uzbekistan

Prominent international organizations in the energy field, such

as the International Energy Agency, the American Society of Electric
Engineers, predict wide involvement of renewable sources of energy in the
global energy balance already in the nearest future and state that their share
in energy balance can reach 40 % in 50 years. In this connection it seems to
be reasonable to analyze the present readiness of Uzbekistan for introduction
of renewable energy sources.
The Kyoto Protocol was ratified by Uzbekistan in 1999
approving the readiness to decrease the emission of greenhouse gases and
develop renewable energy. According to Kyoto Protocol Uzbekistan has no
quantitative restrictions on the greenhouse gas emissions and can only
participate in the activity within the framework of Clean Development
Mechanism. Uzbekistan maintains continuous monitoring over greenhouse
gas emissions in 21 economic sectors. The data on gas emissions with direct
greenhouse effects are presented in the Table 1.

103

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 103–121.
© 2005 Springer. Printed in the Netherlands.
104 T.P. SALIKHOV, T.H. NASYROV

Table 1.The dynamics of greenhouse gas emissions in Uzbekistan (in million tons of ɋɈ2
equivalent) [1]

1990 1999 2000 2000

Gas Share Share
Emission Emission Emission To 1990ɝ. %
% %
Carbon 114,6 70,2 104,7 65,3 109,5 95,5
dioxide
ɋɈ2
Methane 37,7 23,1 46,6 29,0 47,8 126,8
ɋɇ4
Nitrous 10,9 6,7 9,1 5,7 13,3 122
oxide
N2O
Total 163,2 100,0 160,5 100,0 170,6 104,5

The trend of declining combined emissions of greenhouse

gases in evidence in Uzbekistan over 1990-95 gave way in 1996 to increase
in total emissions. Emissions of not only methane, but also carbon dioxide
have begun to grow. In 2000, greenhouse gas emissions in Uzbekistan
worked out to 7.0 tons per capita, which was above the world’s average and
equal to comparable emissions in France and Spain. The exhaustion of
opportunities to diversify fuel consumption (with gas in Uzbekistan
accounting for 80 % of all fuels used) and the fact that emissions in 2000
were up on those in 1990 lend extra difficulty to the task of decreasing such
emissions, and imparts top priority to the program of measures to promote
energy savings and to steadily expand the share of renewables in the nation’s
energy mix [1-4].
The total potential of renewable energy sources in Uzbekistan
is almost 6.8 trillion toe and their technically feasible potential is estimated
at 179 million toe, of which only 0.6 million toe, or 0.33 % has been put to
use.

Table 2. Potential of renewable energy sources in Uzbekistan [2].

Energy, Mtoe
Parameter Total
Hydro Sun Wind
Technical potential, M 179,0 1,8 176,8 0,4
t.o.e.
Put to use 0,6 0,6 - -
ɋɈ2 emissions 447,5 4,5 442,0 1,0
potential,Mtoe
Put to use 1,5 1,5 0 0
THE CONCEPTION OF THE USE OF RENEWABLE ENERGY SOURCES 105

The above table makes it clear that if the technical potential of

renewable energy sources in Uzbekistan is tapped in full, it will replace
fossil fuels producing ɋɈ2 equal to 447.5 million toe when burnt. It is
apparent, that the potential for renewable sources of energy in Uzbekistan is
large and the opportunities for project realization within the framework of
Clean Development Mechanism are considerable. However they are only the
initial preconditions favorable for the development of renewable energy in
Uzbekistan. The full forecast of development of alternative energy is only
possible in the context of the energy policy of the country and its conformity
to the tasks of the development of the fuel and energy complex and the
national economy. Only having estimated the condition of the fuel and
energy complex and the problems of the energy policy, institutional and
legislative base for renewable energy sources and economic opportunities it
is possible to predict the development of alternative energy.
Uzbekistan is presently considered to be a country in
transition. The strategy of transition to a market economy has been
developed by its President, I. A. Karimov. It is based on five principles,
namely: a depoliticized economy, a regulatory role for the government, the
rule of law, efficient social policies, and consistent reforming on a phased
basis. The developed way of transition to market relations is aimed at
forming a socially - oriented market economy to adequate to the interests,
conditions and national features of the country.
Structural policies in the fuel and energy complex during
1991-2003 were pursued amid intensifying economic reforms and aimed to
achieve the priority objectives of the energy strategy designed:
i to create a reliable resource base and to support strategic
economic sectors;
i to increase the efficiency of energy resources usage and to
furnish essential conditions for the implementation of energy
saving measures as required in order to preserve the nation’s
energy independence and its export potential;
i to sustain the energy sector’s financial stability and to attract
additional investments in its development, to revamp the legal
and regulatory environment and upgrade the fiscal system with
due regard for the special aspects of pricing in the energy sector
and its relations with related sectors, to consistently cultivate the
competitive environment in the energy sector by creating full-
blooded market players and adequate market infrastructure.

According to the strategy for transition to a market economy,

as proposed by the President I. Karimov, realization of the energy policy in
106 T.P. SALIKHOV, T.H. NASYROV

Uzbekistan was carried out gradually. The primary tasks at the 1st stage of
the energy policy in Uzbekistan during the period of transition have
included:
a) maintenance of energy independence;
b) achievement of full scale access of the population to natural gas;
c) keeping energy prices low so as to maintain living standards and
the competitiveness of local producers at creditable levels.

Rich in primary energy resources, Uzbekistan has

successfully solved the above problems of the first stage of the energy
policy. Over the years of independence it has trebled its crude oil output
from 2.8 million tons in 1991 to 7.5 million in 2001, natural gas production
has gone 50 % up – from 41.9 billion cubic meters in 1991 to 63.1 billion in
2003. Uzbekistan turned into a net exporter of natural gas as early as in
1995, while its import of crude oil, which had amounted, in monetary terms,
to USD 485 million that year, dwindled to zero in 1996-97. At this stage the
gradual process of privatization of the energy sector started. Thus in 1994
the Resolution of the Cabinet of Ministers ʋ 290 of 09.07.1994 « On the
Experimental Privatization of Particular Petrol Stations Selling Petrol to the
Population in the City of Tashkent for Cash » was issued.
Both the annual generation and demand for electricity have
been on the increase since 1996. Table 3 below shows the development of
electric power supply and demand between 1995- 2001.

Table 3. Electric Power Generation and Consumption in Uzbekistan

1995 1999 2000 2001

Electric Power Consumption, GWh 42020 43015 44017 45011
Electric Power Generation, GWh 47453 45300 46840 47927
Source: Energy Balances of non-OECD countries 2000-2001, IEA Statistics, 2003 Edition

As can be seen from the above, Uzbekistan achieved self –

sufficiency in fuel in 1995 and became fully self – sufficient in energy in
1996-1997.
As far as the task of making natural gas supplies more readily
accessible to the population is concerned, it should be said that a really great
deal has been done towards this end over the years of independence, with
more than 3.5 million households, or 95% of the population, now enjoying
access to the natural gas distribution network and an extra 720000
households using liquefied gas these days as a result of those efforts. The
THE CONCEPTION OF THE USE OF RENEWABLE ENERGY SOURCES 107

Uzbek Government intends to get the remaining 5% of the population

connected to the gas distribution network as well within the next three years.
Efforts to keep energy prices low were required at the 1st stage
in the nation's energy policies, because Uzbekistan has decided against any
shock therapy during its transition to a market-based economy. Its
Government has opted instead for the evolutionary path of economic
reforming, the result being that the reform drive in the energy sector as a
basic national industry has proceeded gradually, on a phased basis. It is
planned that energy prices will rise as it makes further headway not only in
the energy sector, but in the economy as a whole.
The 2nd stage in Uzbekistan's energy policies has seen a plan-
based reforming of the various branches of the energy sector with a gradual
implementation of market-based mechanisms there. The reform in the oil
and gas industries started in 1998, in the power industry in 2001, and in coal
mining in 2002. The economic reform in the sector has been accompanied
by institutional change and the provision of the required legal and regulatory
framework. The institutional change started with the establishment of
Uzbekneftegaz National Holding Company in 1998, which was made
responsible under Presidential Decree No. 2154 dated November 11, 1998
for managing the country's entire oil and gas sector. The organization and
operations of Uzbekneftegaz were defined in Cabinet of Ministers
Resolution No. 523 dated December 15, 1998. The company has eight
subsidiaries.
The commencement of that kind of institutional change was
accompanied in the same year of 1998 by the launch of building work on the
Shurtan plant to produce polyethylene and liquefied gas, Central Asia's
largest facility of this kind. The factory, which went on stream recently, is
capable of annually producing 125,000 tons of polyethylene, 137,000 tons of
liquefied gas, and 37,000 tons of light gas condensate. Likewise in 1998,
reconstruction work went ahead in cooperation with the Japanese Mitsui on
the Fergana oil refinery, which manufactures gasoline, diesel fuel, and jet
fuel to world standards.
In order to ensure full and reliable supplies of natural gas to
industrial centers, an underground storage for 1,800 million cubic meters of
gas was built at Khodzhaabad in the Fergana Valley in Uzbekistan in 1999.
Therefore, the years between 1991-2000 saw the Uzbek oil
and gas industries fulfill the following three paramount tasks:
a) The nation's self-sufficiency in fuel was achieved;
b) A marked increase in the output of export-oriented products of
gas processing and oil refining operations and in natural gas
exports as a result of the sector's restructuring; and
c) A legislative basis put in place as required to attract foreign
investments in the oil and gas sector.
108 T.P. SALIKHOV, T.H. NASYROV

The Uzbek power grid has an installed capacity of 11.2

million kilowatts, and comprises 9 thermal power stations with 63 turbo-
generators having a total generating capacity of 9.8 million kilowatts (or
87.5% of the total), and 28 hydroelectric power stations with 67 hydraulic
turbine generators having a total generating capacity of 1.4 million kilowatts
(12.5%), as well as three departmental electric power stations with a total
generating capacity of 319,000 kilowatts. The power distribution network
totals 231,000 kilometers of lines, and has a transforming capacity of 44
million kilovolt-amperes.
Since developing a socially oriented economy is a priority
objective of the ongoing reforming, the projected reform of the existing
smooth running, but centralized power sector requires a balanced, consistent,
and prudent approach. Before 2001, the sector was called upon to provide
steady, uninterrupted supplies of electricity to all other branches of the
national economy by making use of its advantages as a vertically integrated
monopoly. However, with the reforming of all spheres of social and
economic life, the unduly centralized system for managing the generation,
transportation, and distribution of electric energy no longer makes it possible
to cope with the tasks of making such operations more efficient and cost-
effective. This is why economic reform went under way also in the power
sector in real earnest in 2001 in line with Presidential Decree No. UP-2812,
"On Furthering Reform in the Electric Energy Industry in the Republic of
Uzbekistan," dated February 22, 2001.
The Decree has set the following goals:
• advancement of market-geared reform in the sector;
• its demonopolization;
• higher economic efficiency of enterprises operating in the
industry;
• wider-scale privatization with the involvement of domestic and
foreign investors;
• improvement of quality and security of electricity supplies to
consumers.

The reform drive in the sector is to prioritize the following:

• consistent demonopolization of energy enterprises;
• looser government regulation, and better conditions for
competition among different electricity distributors;
• progressive fostering of wholesale and retail markets of electric
and thermal energy;
• equal opportunities for all competitors, including equal
THE CONCEPTION OF THE USE OF RENEWABLE ENERGY SOURCES 109

access to power transmission lines;

• implementation of efficient arrangements and methods for
developing coal fields, and broader reliance on coal as fuel in
power generation;
• extensive attraction of domestic and foreign capital in the
modernization and re-equipment of energy facilities;
• stage-by-stage transformation of thermal power stations,
combined heat and power plants, and regional power networks
into joint stock companies with the continued controlling equity
participation of the state-owned Uzbekenergo;
• transformation of construction, installation, and repair
enterprises into joint stock companies which will continue to be
at least 25% controlled by the state.

The Decree has also effected some institutional change by

way of demonopolizing and improving the management system in the sector.
The Uzbek Ministry of Energy and Electrification has been abolished, with
the state-owned Uzbekenergo public joint stock holding concern organized
on its basis to incorporate also the Ugol joint stock coal-mining company.
Other entities resulting from the measure have included a high-voltage
network subsidiary (Uzelektroset) to transmit, and regional distributors to
allocate, Uzbekenergo's electricity.
The Uzgosenergonadzor state agency for supervision over the
electric power sector under the Uzbek Cabinet of Ministers, initially
established as the government regulator for the electric and thermal energy
industries and coal mining, has been converted into the Uzgosenergonadzor
state inspectorate under the Uzbek Cabinet of Ministers in accordance with
the latter's Resolution No. 96 dated March 1, 2004. An immediate follow-up
on the above presidential decree, the Cabinet of Ministers' Resolution No. 93
of February 24, 2001, "On Measures to Organize the Operations of
Uzbekenergo State Joint Stock Company," has detailed practical measures to
implement that Resolution on power sector reform and presented further
steps to refurbish and privatize Uzbekenergo. They have included the
following:
1) Phased corporization of thermal power stations and regional
power distribution networks with 40% interests to be offered to
investors;
2) Sale of more than 75% of the shares to investors during the
privatization of design, construction, installation, and repair
enterprises;
3) Transfer of state-owned equities and shareholdings in thermal
power companies to appropriate utility and maintenance
110 T.P. SALIKHOV, T.H. NASYROV

associations for trust management; and

4) Privatization of Uzbekenergo social infrastructure facilities.

Step-by-step reforming is the leading principle of the nation's

energy policies. This is why the fulfillment of the overriding task - that of
becoming independent in the energy field - should be followed by the
attainment of national energy security. As already noted above, the share of
gas in the country's fuel budget is exceedingly large and this fact detracts
from its energy security. Therefore, fuel diversification is among the key
aspects of the energy security issue. It would be sensible for Uzbekistan,
which boasts ample reserves of brown coal, to expand the share of that
resource in the national fuel budget. For this reason, coal sector reform has
come as the natural next phase in the country's energy policies. Total coal
production at initial stages in the reform process tended to decline, but the
subsequent implementation of measures towards greater energy
diversification has made for further and steady gains in coal output. The
share of the power sector, namely: electric power stations, in the combined
consumption of coal as fuel has reached 80%, with other users accounting
for the remaining 20%.
The table below offers information about the production and
use of coal in Uzbekistan.

Table 4. Coal production and consumption in Uzbekistan over 1992-2000

1992 1995 1996 1997 1998 1999 2000

Production, Mtoe 1.66 1.08 1.00 1.04 1.03 1.05 0.91

Consumption, Mtoe 2.18 1.07 1.20 0.98 1.03 1.02 0.88

Sources: Energy Balances ofnon-OECD countries 2000-2001, IEA Statistics, 2003 Edition

The reform drive in coal mining commenced in 2002 with the

issue of Cabinet of Ministers Resolution No. 196 dated June 2002, which has
set out the Development Program for the Coal Industry in Uzbekistan for the
Years 2002-10. The Programme provides for stage increase in coal output
from 2.7 million tons in 2001 to 9.4 million in 2010 and in the share of coal
used for power generation in the national energy balance from 4.7% in 2001
to 15% in 2010. The aggregate output of primary fuel and power resources
remain very substantial, being increased by 14.3% from 1991 to 2003.
THE CONCEPTION OF THE USE OF RENEWABLE ENERGY SOURCES 111

Uzbekistan is among the principal producers of oil and gas in

the Central Asian region. Its fuel budget in 2000 consisted of 83.4% of
natural gas, 13.7% of oil and condensate, 2.2% of coal, 0.7% of hydropower,
and 0.03% of mine gas in coal mining.
Gas production in 2003 came to 58.1 billion cubic meters. It
is concentrated on 12 fields and is carried out primarily by the oil and gas
companies Mubarekneftegaz, Shurtanneftegaz, and Ustyurtgaz. Most of the
gas processing is done by two facilities - the Mubarek gas processing mill
and the newly commissioned Shurtan gas and chemicals complex. A total of
43% of all gas used is consumed by households, 30% is burnt to generate
electricity, and the remaining 27% is put to industrial uses. The growing
share of the population in the combined consumption of natural gas (with the
number of households with access to gas supplies over the years of reform
having almost doubled) demonstartes the social concern of Uzbekistan's
energy policies.
Oil and condensate output in 2003 amounted to 7.2 million
tons. Production operations are maintained by Uzgeoburneftegazdobycha,
Mubarakneftegaz, Shurtanneftegaz, Dzharkurganneftegaz, and
Mingbulakneftegaz. Following the construction of a new oil refinery in
Bukhara (capable of processing 2.5 million tons of crude oil per annum) and
the reconstruction of similar facilities hi Fergana and Altyaryk, Uzbekistan
has enough manufacturing capacity to refine 11 million tons of oil yearly.
The production of motor gasoline grew by 18% over 1995-2003. 65% of the
total amount of its consumption on the domestic market is realised by the
population, 12% by agriculture, and 23% by transport and other economic
sectors. More than 82% of the gross consumption of heavy fuel oil falls on
the power sector (i.e. electric power stations), with the other industries being
responsible for the remaining 18%. The largest user of diesel fuel is
agriculture (63.5%).
Coal mining in Uzbekistan, as already reported above, is done
by Ugol, a joint stock holding of five producing companies. Combined coal
production at the initial stages in the reform process tended to decline, but
the measures adopted to diversify the fuel budget as soon as possible have
reversed the trend, making for a steady growth of the output of this natural
asset. The power industry, namely: electric power stations, accounts for 80%
of the entire national use of coal fuel, with the other users consuming the
remainder. A factory having the rated production capacity of 200,000 tonnes
of coal briquettes per annum has been built at the Shargunskaya mine. The
binding agent employed in the manufacturing process there is petroleum
bitumen. Top-quality coal from Baisun can be used as a valuable chemical
starting material (in the production of coked briquettes, adsorbents, liquid
fuel, etc.).
112 T.P. SALIKHOV, T.H. NASYROV

The Uzbek power system has the potential to generate 56-58

billion kilowatt hours of electricity. Gross electricity generation in 2002
reached 49.3 billion kilowatt hours.
The power system in Uzbekistan is rallied round the Syrdarya,
Tashkent and Novosibirsk-Angren thermal power stations and the Navoi
district power plant. Together, they carry 37 generators with a unit power
rating of 150 to 300 megawatts each. Thermal power stations are responsible
for around 88% of the gross electricity output, while the rest comes from
hydroelectric power stations. Natural gas is the main component of the boiler
and furnace fuel balance. The Uzbekistan power system makes an element of
the Unified Energy Systems of Central Asia, which also incorporates the
power grids of Turkmenistan, Tajikistan, Kyrgyzstan, and Southern
Kazakhstan. Nearly one-half of the Unified Energy Systems' generating
capacity is found in Uzbekistan. Over 52% of all electricity is consumed by
industry, 25.6% by agriculture, and 12%-15% by households.
Uzbekistan also generates some 200,000 TJ of thermal energy
annually, and uses about 5 Mtoe, or 10% of the aggregate national fuel
consumption for this purpose. A total of 34% of the thermal energy output
goes to heat homes and supply them with hot water. Almost 17% is used for
the social sphere, with another 30% used by industry and 19% by the energy
sector.
Therefore, Uzbekistan has been able over a relatively brief
time to ensure the stable advancement of its vast fuel and power sector.
However, in order to sustain the country's self-sufficiency in energy and its
export potential, it is extremely important to improve the efficiency of
energy uses and set the necessary conditions for implementing the energy
conservation policy formulated by the Uzbek Government in 2002.
A comparison of energy/output ratios in Uzbekistan and
developed Western countries, which have been vigorously pursuing energy-
saving policies and providing clear-cut legislative regulation for the
production and use of energy resources, reveals that the specific energy
intensity of the Uzbek GDP is 2-2.5 times higher and stands at 1.05
kilograms of oil equivalent per US dollar (based on 1995 PPP). The principal
reasons why the energy/output ratio in the Uzbek GDP remains high include
the existing energy-intensive industrial production structure, and the
technological inadequacy of fixed production assets resulting in the amount
of energy required per unit of output in some processes in mechanical
engineering, metal-making, the chemical industries, and certain other sectors
being substantially larger than comparable figures in developed economies.
This makes energy-saving the top priority in the state's energy policies all the
way until 2010. According to expert estimates, it is technologically and
commercially feasible even under the existing pattern of energy consumption
THE CONCEPTION OF THE USE OF RENEWABLE ENERGY SOURCES 113

to cut the current use of energy by 15-18 million toe, or 23%-28% through
saving measures.
The largest savings can come from improvements in the
residential sector (51.2%), the power sector (8.5%), the oil and gas industries
(10.3%) and other economic sectors (30%).
The ongoing Program for Energy Conservation in the
Republic of Uzbekistan in the Years Until 2010 has been prepared in
accordance with Article 12 of the Uzbek Law "On Rational Energy Uses"
and Cabinet of Ministers Resolution No. 517 dated December 29, 2000, with
due regard for the latter's decisions of February 14, 2002 and with the
participation of national ministries and agencies, associations, unions, and
organizations, as. well as the Council of Ministers of the constituent
Republic of Karakalpakistan, regional hokimiyat administrations, and the
Tashkent city council. The relevant industrial and regional energy-saving
programs have been elaborated with the involvement of 48 national
ministries, agencies, companies, associations, and organizations and the
authorities of all of the 14 regions, including the regional hokimiyat
administrations, as well as the Karakalpakistan Republic Council of
Ministers and the Tashkent city council. Lists have been drawn up of basic
energy saving measures to be taken by the fuel and power sector and by the
end users, with the relevant computations made on the basis of the
corresponding repayment periods and specific costs required. Corresponding
saving priorities for the fuel and power industries have been set.
Under the National Energy Conservation Program, average
annual savings of fuel and power resources in the whole of Uzbekistan are
expected to total 11.08 million tons of oil equivalent (Mtoe).
The largest savings are anticipated to be made in the energy
sector, including Uzbekneftegaz (1.148 Mtoe) and Uzbekenergo (0.324
Mtoe). Industry is to save a total of 1.882 Mtoe (Uzkhimprom - 1.749 Mtoe).
Average annual savings in the agribusiness sector are to total 0.403 Mtoe.
Another 93000 tons of fuel and power resources in terms of their oil
equivalent are to be saved in the production of consumer goods .and the
trading industry. The comparable figures in the construction industry,
communications, and the utilities sector are 0.125 Mtoe. In the residential
sector, they amount to 6.067 Mtoe. Absolute priority among energy-saving
measures both in the fuel and power sector and among energy users goes to
the so-called no-cost measures, i.e. improvements to arrangements already
existing, introduction of incentives for energy efficiency, and efforts to
achieve elementary order in energy uses. Such measures can tap 5% of the
entire energy conservation potential at enterprises. Users' supply with gas
and electricity meters are important steps that pay back for themselves fast.
Non-centralized heating systems in the residential sector help to save a great
114 T.P. SALIKHOV, T.H. NASYROV

deal of thermal energy where inefficient boilers are currently used. While the
installation of meters cannot per se save any energy, this equipment makes it
possible to reduce commercial losses during the transportation and use of
fuel and power by identifying and locating the heaviest loss points. Where
meters are supplemented by energy use regulation systems and other energy-
conservative facilities and arrangements, the combined effects can account
for up to 50% of the entire energy-saving potential.
Emphasis in energy saving efforts is on low-cost activities
promising quick returns (with a payback of 2 years or less), measures fully
paying back for themselves within 3-4 years, and those with payback of 5-7
years. Low-cost activities include, for example:
• measures designed to cut back on idle runs by production
equipment;
• identification of optimal operating modes for technological
facilities, and other production mode rationalization;
• indoor temperature regulation depending on outside air
temperatures;
• development of regulations on financial incentives to employees
for higher efficiency and achievements in implementing energy
saving programs;
• energy audits with a view to devising rational energy use modes;
• elaboration of scientifically validated use tariffs for fuel and
power resources by the type of production manufactured;
• plotting of rational road haul and railroad itineraries;
• electricity savings by making the most of natural lighting;
• better insulation to decrease heat losses;
• market saturation with economy cars to save oil products in the
consumer sector;
• prevention of fuel and lubricant leaks from valves, painting of
fuel tanks, and mounting of breathers;
• use of distribution apparatus, and organizational measures to
improve energy efficiency (including personnel training, and
organizational streamlining).

Such low-cost activities are expected to yield 0.107 Mtoe in

fuel and power savings. Steps capable of paying back for themselves within
two years include, but are not limited to:
• installation of condensate discharge pipelines, and
implementation of computer-controlled energy use monitoring
and control systems;
• use of Alfa-type electric meters;
THE CONCEPTION OF THE USE OF RENEWABLE ENERGY SOURCES 115

• burning equipment modernization, and replacement of existing

boilers by more advanced facilities;
• preparation of optimum mode cards for boilers, and waste heat
recovery through the installations of heat-exchanging units at
medium- and low-pressure pipelines;
• installation of gas, heat, and other energy meters;
• automation of power units at pumping and compressor stations;
• change-over to local heating systems;
• use of variable-speed drives in engines;
• cuts in water losses during the watering of irrigable lands (through
such methods as gravity flooding, film-based technologies;
drip irrigation, etc.), and replacement of diesel pumps by
electrically-power pumps for intra-farm irrigation purposes;
• reduction of losses in farm produce (through the outfitting of
storage facilities, construction of refrigerators, and use of
specially-equipped vehicles);
• optimized operating modes for mills at flour milling enterprises,
and installation of extra condenser-type compensating units;
• increasing use of modern, lower-power lamps for lighting
purposes;
• maximum reliance on secondary thermal energy by rationally
using waste-gas heaters at superheaters, and switch-over from
“Vet" to "dry" production modes in the manufacture of cement.

Total savings from the above measures should add up to

1.528 Mtoe. Further steps along these lines which can bring full-scale returns
within three to four years include:
• construction of modularized gas-turbine thermal power plants of
the GTES-4 type, and reconstruction of GT- 750-6 Avrora gas-
pumping units with the replacement of centrifugal pumps by
double-stage pumps to increase the equipment's unit capacity to
8 megawatts and its performance factor to 34%
(Uzgeoneftegazdobycha and Uztransgaz);
• modernization and repair of thermal power plant facilities
Uzbekenergo), and replacement of Bratek and NR-18 type boilers
by more economical KV-0,25 and AO GV 46,5 facilities (Uzbek
State Committee on Geology);
• replacement of steam-operated facilities by water-driven ones
(Uzeltekhprom);
• reconstruction and modernization of heat use systems
116 T.P. SALIKHOV, T.H. NASYROV

(Uzkhimprom);
• better thermal insulation for buildings;
• modernization of a steel-making furnace, and installation of
automated drying stands (Uzmetkombinat);
• phasing in of electric drive frequency regulators at enterprises;
• reconstruction of steam conduits and heat supply networks;
• vehicle conversion to run on gas, and construction of solar power
plants;
• provision of consumers with cold and hot running water, heat, and
gas meters;
• pump replacement at water trunk pipelines.

The above measures with recoupment periods of three to four

years can save fuel and power amounting to 5.077 Mtoe. Energy-saving
measures capable of paying off within five to seven years include:

x modernization of GTN-6 and GT-6-750 gas turbines and their

replacement with gas pumping facilities having a performance
factor of 35%-37% (Uztransgaz);
x Angren mine modernization (Ugol);
x updating of production equipment, implementation of inter-
summer air conditioners and regulated electric drives, and
the own manufacture of electrically-powered compressor
stations to replace diesel compressors (Uzmashprom);
x installation of mini-boilers to heat four residential townships
(Uzeltekhprom);
x reconstruction and modernization of technological equipment
(Fergana-based Azot, and Navoiazot);
x construction of steam and gas turbine plant (Azot, Navoiazot,
EKhP, Ammofos, and Samarkand chemicals factory);
x implementation of non-centralized heat supply systems;
x compressor station modernization;
x transport converter implementation;
x construction of solar heaters;
x cotton mill modernization and new construction
(Uzkhlopkoprom), and reconstruction and retooling of existing
enterprises (Maslozhirtabakprom);
x pipeline replacement and heat supply pipeline insulation;
x implementation of a computer-controlled system for outdoors
lighting;
x replacement of deep-well pumps at water intake facilities;
THE CONCEPTION OF THE USE OF RENEWABLE ENERGY SOURCES 117

x vehicle conversion to run on compressed gas;

x implementation of a demonstration project providing for the
implementation of an energy-efficient zone for automated
control over heat uses.

All in all, energy saving measures with payback periods of

five to seven years can yield fuel and power savings amounting to 2.765
Mtoe. There also exist plans for measures with payback period of longer
than seven years, which can also be seen as indirect energy savers. They
include:
x implementation of cryogen-based technology for processing gas,
recycling associated petroleum gas and rock decay gas at the
Kokdumalak field (Uzgeoneftegazdobycha);
x updating of schemes for and construction of power and steam
supply systems (Uzneftepererabotka), and installation of a 5-10
kilowatt NW wind power plant (Uztransgaz);
x equipment modernization and repair (at the Syrdarya,
Novosibirsk-Angren, Takhiatash, and Navoi thermal power
stations and the Fergana, Mubarek, and Tashkent district electric
power plants);
x generator building and installation (Uzmashprom);
x production of frequency converters, and triple-phase active
energy meters, and an accumulated register for tariff regulation
(Saben);
x commencement of production operations to manufacture low-
power lighting lamps (Foton), and construction of small
hydroelectric power stations at water works (Ministry of
Agriculture and Water Management);
x increasing use of diesel and gas engines on motor vehicles;
x implementation of solar plants for hot water supplies;
x and harnessing of alternative and renewable energy sources.
As one can see, at a present stage of development of the fuel
and energy complex the state aims at introducing energy saving measures
and renewable energy sources in Uzbekistan. In other words, having
achieved sustainable functioning of traditional power, the state begins
supporting the development of non-traditional and renewable energy,
keeping to the main principle of gradual reforms. Until now the development
of renewable energy in the republic was carried out within the framework of
individual projects and limited by academic researches. There are a few
organizations in Uzbekistan specialized in the field of renewable energy
118 T.P. SALIKHOV, T.H. NASYROV

sources: the joint-stock company " Hydroproject ", Hydrometeorological

Institute, the Agency for the Transfer of Technologies, Institute of Power
Engineering and Automation, Physical Technical Institute of the Uzbekistan
Academy of Sciences, the Center of Scientific and Technical Marketing
Research, Tashkent State Technical University, the Center of Science and
Technologies. Within the framework of the project "INCO-Copernicus" of
the European Community with the participation of the Institute of Power
Engineering and Automation, the Center of Scientific and Technical
Marketing Research and specialists from France and Portugal, a pilot system
of power supply with wind energy device with a capacity of 3 kW and a
solar photo-electric unit with a capacity of 6 kW was created to supply
energy for a relay station in Charvak settlement. Research proved the
expediency and the efficiency of combined use of wind and solar energy in
Charvak area for power supply. Besides, the Institute of Power Engineering
and Automation carry out estimations of the energy potential of wind,
hydropower resources, solar energy in Uzbekistan. Also the
recommendations for use of various types of installations on the basis of
renewable energy sources are developed by the Institute for power supply of
consumers in various geographical zones of Uzbekistan. The firm "
Kurilishgelioservis" at the Physical Technical Institute produces solar
collectors for all-the-year-round hot water supply. Produced systems of hot
water supply are twice cheaper than foreign devices of the same
productivity. According to the estimations of the scientists of Power
Engineering and Automation and Physical Technical Institutes for
achievement of 10 % of economy of fuel and energy resources in hot water
supply systems it is necessary to reach operation of solar collectors with the
2
total area of 2 million in m and annual production of 200 thousand pieces.
It is to be noted that there is the experimental plant producing solar elements
from mono-crystal silicon up to 10 kW per year in Physical Technical
Institute. Also a solar energy system on the basis of Stirling engine with a
parabolic concentrator has been developed. The Agency for the Transfer of
Technologies is establishing solar photo-electric systems in a number of
farms in the Samarkand area, and is planning to create the combined
installation using wind and the sun energy for water desalination in
Karakalpakstan.
From the point of view of resource and ecology parameters
the solar energy should be involved in fuel and energy balance of the
republic. Unfortunately, from the economic point of view large-scale use of
solar energy will demand significant financial expenses. At the same time,
there is another argument for the benefit of solar energy development in
Uzbekistan. The share of gas is extremely high in the structure of the
THE CONCEPTION OF THE USE OF RENEWABLE ENERGY SOURCES 119

country’s fuel balance and forms 83 %. But relying on the only one energy
carrier weakens its energy safety. Therefore a question of diversification of
fuel is one of the major problems. In particular, it is expedient for
Uzbekistan to have significant stocks of brown coal and non-polluting solar
energy to increase their share in the structure of fuel and energy balance. It is
to be noted that Uzbekistan possesses a large total potential of solar energy
which by various estimations constitutes from 71362,2 million tons of
equivalent fuel (tef) up to 76459.5 million tef and its technical potential
ranges 247.52– 265,1 million tef a year. Taking into account, that the annual
need of the republic for energy resources makes about 65 million t.o.e , it is
apparent, that the technical potential of solar energy exceeds the demand
several times.
Use of solar energy for reception of thermal and electric
energy in Uzbekistan may be accomplished on several directions:
1) Reception of low-potential heat with its subsequent use in
systems of hot water supply, i.e. transformation of solar energy
into heat.
2) Direct transformation of solar energy into electricity with photo-
electric systems.
3) Thermodynamic transformation of solar energy into electricity
and high potential thermal energy. Here the issue is to create
solar-fuel power stations with a large number of distributed
parabalo-cylindrical receivers - converters of the concentrated
solar radiation into thermal energy of heat-carrier, which is then
used for producing steam with a view to receiving subsequently
the electric power or thermal energy. In such schemes 75 % of
the generated electric power is provided with solar energy and
only 25 % of electricity is due to the use of traditional fuel.
Application of similar technology in Uzbekistan could provide
significant economy of natural gas, lower environmental
contamination and increase the export potential of gas. Now the
cost of service and operation of traditional power stations is 1.5
cents for 1 kWh, and the cost of 1 kWh of the electric energy
generated by photo-electric devices is over 20 cents. But the cost
of 1 kWh of electricity produced on the basis of solar energy can
be reduced down to 8.7 cents. Therefore, it is necessary to
combine efforts of economists, scientists, engineers for counting
the economy of solar energy with all factors in view and then
make decisions on its development in Uzbekistan. At the same
time it is to be noted that the organization of solar collectors
production in the systems of hot water supply is already
economically expedient now.
120 T.P. SALIKHOV, T.H. NASYROV

There are good prospects for hydropower engineering in

Uzbekistan. The established capacity of hydroelectric power stations existing
in Uzbekistan makes 1700 MW. The average annual production of the
electricity on them is above 6 billion kW a year though hydro resources of
the republic allow increasing several times the production of the electricity
with hydraulic energy. The matter is that the technical potential of more than
650 rivers flowing on the territory of Uzbekistan allows one to build 1100
hydroelectric power stations with total capacity of 207 kWh and with total
production of electricity of 1532 million kWh a year. In addition using the
natural water-flows according to Hydroproject joint-stock company
estimations", it is possible to build 140 hydroelectric power stations on
artificial water-flows of Uzbekistan with the established total capacity of
1726 MW and with the total production of electricity of 7213 kWh a year. In
estimating the technical potential of artificial water-flows the creation of
hydroelectric power stations on them with capacity from 10 up to 30 MW
was proposed, however the creation of micro-hydroelectric power stations up
to 100 kW and small hydroelectric power stations from 100 up to 10 MW
practically was not taken into account even though such hydroelectric power
stations are widely used in the Western countries. The construction of micro
hydroelectric power stations is relatively inexpensive and there is no demand
for their expensive and skilled service. They also can be widely used in
Uzbekistan not only for electricity supply of rural areas, but also for their
heat supply, hot water supply and heating. In 1995 the Government Decree «
On the development of small and medium-sized hydroelectric power stations
in the Republic of Uzbekistan » was passed. According to the program it is
planned to construct 141 hydroelectric power stations including 15 till 2010
which after installation will generate 1300 million kWh of the electric
energy annually.
Thus an issue of development of alternative energy in
Uzbekistan is not technical, but an economic one. Despite the fact that the
cost of energy devices on basis of renewable energy sources at a level of
traditional power systems are expensive, the development of generating
capacities on base of renewable energy sources demands significant financial
expenses. Now, when the republic faces problems of further deepening of
the reforms in the fuel and energy complex, the large-scale development of
alternative energy in Uzbekistan with its further involvement into fuel and
energy balance of the country is not economically reasonable yet. At the
same time it is necessary to use actively small energy devices on the basis of
renewable energy sources for power supply of the countryside and remote
areas suffering the deficiency in electricity and heat. In order to support such
projects limiting greenhouse gas emissions it is expedient to find financial
means actively using the above mentioned Mechanism of Clean
THE CONCEPTION OF THE USE OF RENEWABLE ENERGY SOURCES 121

Development. On the other hand, it is necessary to prepare a society for the

perception of innovations, actively promoting energy saving technologies
including renewable energy sources. It will allow forming energy saving
culture in consciousness of people, realizing results of anthropogenic
influence and preparing the conditions for transition to energy saving way of
economic development.

REFERENCES
1. The Bulletin ʋ4 of Central Asian Hydrometeorological Research Institute named after
V.A.Bugaev « Priority technological needs of Uzbekistan in the field of reduction of
greenhouse gas emissions and mitigations of negative consequences of climatic changes »,
Tashkent, 2002.
2. « The First National Report of Republic of Uzbekistan on the United Nations Frame
Convention on Climate Change », Tashkent, 1999.
3. « The First National Report of Republic of Uzbekistan on the United Nations Frame
Convention on the Climate Change », the Phase 2, Tashkent, 2001.
4. The Bulletin ʋ2 of Central Asian Hydrometeorological Research Institute named after
V.A.Bugaev «The basic results of greenhouse gas emissions cadastre», Tashkent, 2002
5. Kenisarin M.M. « Power engineering of Uzbekistan: conditions and problems », Journal
of « The Central Asia and Caucasus » ʋ2 (32), 2004.
6. Salikhov T.P. «Energy Charter Protocol on Energy Efficiency and Related Environmental
Aspects. The Regular Review - Uzbekistan 2004», Secretariat of the Energy Charter,
Brussels, 2004.
7. Salikhov T.P., Abaturov V. « Stages and results of energy strategy realization in
Uzbekistan », Journal of « Economic Review », October, 2004.
8. Salikhov T.P. « Development of alternative energy in Uzbekistan is a question not
technical, but economic one», Journal of « Economic Review », November, 2004.
9. Zakhidov R.A. Renewable energy sources is a new turn in power », Geliotekhnika, ʋ2,
2002.
10. Energy Balances of Non-OECD Countries 2000-2001, IEA Statistics, 2003 Edition
Chapter 10

CURRENT STATE AND PROSPECTS OF

RENEWABLE ENERGY TECHNOLOGY IN
RUSSIA

Sergey Molodtsov

Centre for Energy Policy (Russia)

1. RESOURCE BASE OF RES

Along with vast proven recoverable fossil fuels reserves and
about 90% of technical capability of hydro power currently not in use,
Russia owns a unique energy potential of RES (Table 1).

Table 1 Energy potential of RES in Russia, mln tce/year

Economic
Source Gross potential Technical potential
potential
Small Hydro 360.4 124.6 65.2
Geothermal Energy 115
Biomass Energy 10000 53 35
Wind Energy 26000 2000 10
Solar Energy 2300000 2300 12.5
Low Potential Heat 525 115 36
Total 2340000 4592.6 273.7
Source: IEA, 2003

123

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 123–129.
© 2005 Springer. Printed in the Netherlands.
124 SERGEY MOLODTSOV

Speaking about statistical data presented above one has to

underline that economic potential of RES is a part of technical potential,
which can be realized at the present level of prices for fossil fuels, heat,
electricity and other externalities (equipment and materials, transportation
and wages). Economic potential of RES (273.7 mln tce/year) given in the
table 1 was evaluated in 1993. It is clear that everything is different now.
Taking into account constantly growing cost of traditional energy sources
and externalities this part of potential of RES in Russia should be much
higher.
Therefore, technical potential, taking into account relatively
high inertion of technological development, is more informative, especially
for the horizon of 40-50 years. The estimated technical potential of RES is
in 5 times higher than total primary energy consumption in Russia in 2002.
The availability of RES in each particular region of Russia
(like any other country) depends on the landscape, natural and climate
factors, in particular on wind speed, intensity of solar radiation, quantity of
small rivers, etc. That is why some Russian regions are more attractive for
deployment of RES-based technologies. The list of these regions related to
each particular kind of RES is given below (Table 2).

Table 2 Regions attractive for wide-scale RES utilization

RES REGIONS

Wind Energy Arkhangelsk, Astrakhan, Volgograd, Kaliningrad, Maga-dan,

Novosibirsk, Perm, Rostov, Krasnodar, Khabarovsk, Dagestan,
Kalmykia, Karelia.

Solar Energy The North Caucasus, the Black and Caspian Sea regions, Southern
Siberia, the Far East, some regions in the South-East.

Biomass Murmansk, Arkhangelsk, Karelia, Vologda, Komi, Pskov,

Novgorod, Leningrad Oblast.

Geothermal Energy Kamchatka, the Kuril Islands, The North Caucasus.

Small Hydro The Norht Caucasus, the Urals, Eastern Siberia.

Source: P. Bezroukikh, 2004
RENEWABLE ENERGY TECHNOLOGY IN RUSSIA 125

2. CURRENT STATE OF RES UTILIZATION

Despite of huge potential of RES, their current use in Russia
is very limited. The share of combustible renewables and wastes (crw) in
total primary energy supply and electricity generation in the country is about
1-1.5% (Figure 1).

Figure 1. Share of RES in TPES and Electricity Generation

TPES Electricity Generation

nuclear; coal; 19%

6%
gas; 52% hydro; 2%
nuclear; 15%
crw; 1%
hydro; 20%
petroleum
products; 3%

coal; 17%

renewables;
1%

gas; 42%
oil; 22%

It is much less than in the leading industrially developed

countries, dealing with wide-scale deployment of renewable energy
technologies (Figure 2). There are several main factors influencing on
limited use of renewables in Russia. The following ones are to be
emphasized:
x Consumers’ preference to traditional, conventional
technologies of energy production. There are several reasons of
this consumer’s behavior. First of all it is necessary to say about
existing lack of information and awareness of decision makers,
potential consumers and general public on renewable energy
technologies available at internal and international markets, their
technical and economic characteristics. One more reason is
limited governmental support (both financial and legislative) of
RES development. In its turn it is a negative signal for private
sector.
126 SERGEY MOLODTSOV

Figure 2. Share of Renewables in Electricity Generation in Russia and Foreign

Countries

16%

14%

12%

10%

8%

6%

4%

2%

0%
Iceland Finland Denmark Netherlands Russia

x Low activity in commercialization of renewable energy

technologies. Starting R&D aimed at creation of RES-based
equipment or technology, foreign (western) companies keep in
mind that final destination of their efforts is commercialization
(market promotion) of results achieved within implemented
scientific and research works. In Russia there is a huge time and
investment gap between R&D and market prospects of their
results. There is a number of very promising renewable
technologies developed by domestic scientists. Some of them
have already achieved demonstration stage.
Russian enterprises have the engineering and technical skill
sufficient for wide-scale production of renewable energy
equipment. Today, there are 100-150 Russian enterprises which
can manufacture small and large scale RE systems, in particular:
¾wind energy systems from 0.04 to 16 kW;
¾water pumping wind energy systems;
¾autonomous solar PV-systems of capacity from 0.06 to 1 kW;
¾solar collectors and water heating solar systems;
¾micro hydro electric stations of capacity from 4 to 100 kW;
¾small hydro electric stations;
¾individual biogas modules;
¾heat pumps.
RENEWABLE ENERGY TECHNOLOGY IN RUSSIA
127

However, very few of them are commercially active, because

there is no market demand for these systems in the country.
x Low economic competitiveness. One of the most serious
obstacles to the market penetration of renewables is the high
specific capital cost. One unit of installed capacity based on
renewable energy technology costs several times higher than the
same unit at coal or gas power plants. That’s why electricity
generated by renewables can not compete with electricity
produced by power plants based on fossil fuels.
Nevertheless, even now renewable energy projects could be cost
effective and economically competitive in many Russian regions.
First of all, it concerns regions with favorable natural conditions
for renewable energy technology deployment and high net energy
import dependency. These regions spend more than a half of their
territory budgets on imported fuels. High transportation tariffs
make imported fuels extremely expensive and create a serious
social problem of energy affordability for the poorest part of
population. It’s also worth mentioning that due to relatively low
installed capacity of electricity generating equipment renewable
energy projects have lower capital intensity than, for instance,
fossil fuel-based projects.

In order to make renewable energy technology competitive

throughout the country large scale investments in R&D (as well as in
commercialization activity) are needed. Leading industrially developed
countries have a large governmental R&D budgets for renewables. For
example, in 2002, United States invested in R&D in RES about 250 mln
USD, Japan – about 130 mln USD. Unfortunately, Russia can not boast of
comparable renewables R&D budget. It’s very important to add that foreign
private companies are also very active and that large scale investors of this
sector of research, often invest much more than governments. In Russia,
private investors practically ignore renewable energy sources development.

3. HOW TO OVERCOME EXISTING BARRIERS

Table 3 lists policy measures aimed at overcoming barriers
which impede expansion of the scale of development of RES in Russia.
128 SERGEY MOLODTSOV

Table 3 Barriers which impede expansion of the scale of development of renewable energy
sources in Russia and ways for overcoming

BARRIER WAYS FOR OVERCOMING

Consumers’ Investment tax incentives, favorable loans;
preference Accelerated depreciation of renewable energy equipment;
Non-discriminatory access to the grid for independent energy
producers using renewable energy equipment;
Legislative measures make it necessary to install renewable energy
equipment (in areas where favorable environmental conditions exist);
Information and education campaigns;
Demonstration project implementation
Low activity in Creating state body responsible for commercialization of renewable
commercialization energy technologies;
Application of advanced foreign experience
Low economic Financial support of the state for R&D and demonstration projects in
competitiveness the field of RES;
Attraction of the resources of international financial institutions,
funds and programs;
Introducing additional environmental payments and taxes for using
fossil fuels;
Reducing subsidies to the branches of conventional energy;
transferring to the users the burden of full costs in terms of prices for
fossil fuel, including the expenditures for environmental protection
measures;
Competitive price guarantee for independent energy producers using
RES

A set of measures aimed at overcoming consumers’

preference to conventional sources of energy includes financial, legislative
and information measures, in particular, providing legislative (non-
discriminatory access to the grid, obligatory installation of renewable energy
equipment), and information support, including awareness on technical and
economic characteristics of renewable energy installations available in the
market and demonstration of their advantages.
The same measures could be useful in the field of
commercialization of RES. It is also very important to create a state body
responsible for renewable energy development in the country and for
commercialization of RES in particular. Some foreign countries have already
achieved definite progress in the market penetration of RES (Figure 2).
Their experience could and should be applied in Russia. As far as low
economic competitiveness of RES is concerned it could be increased through
implementation of measures of direct financial support and measures
creating favorable conditions for market penetration of renewables.
RENEWABLE ENERGY TECHNOLOGY IN RUSSIA 129

One more very important measure related to overcoming

practically each existing barrier preventing market penetration of renewables
is to be named. This measure is improving the international cooperation of
Russia with foreign countries in the field of renewable energy development.
It is necessary to develop cooperation with CIS countries, countries of
Western Europe and other countries dealing with renewable energy
technology deployment. This cooperation could be realized through:
x Scientific research based on bilateral and multilateral agreements;
x Joint implementation of demonstration and commercial projects;
x Organization of international seminars and educational programs
on actual problems of current state and future development of
RES;
x Intensification of activities of existing international organizations
that are engaged in the development and advancement of
renewable energy technologies and creation of new organizations
of this kind that are capable of exerting a great influence to ensure
rapid development of positive trends in setting issues on the
greater utilization of RES.

REFERENCES
1. P. Bezroukikh. Present Day Situation and Prospects of Renewable Energy Sources in
Russia. Energy Policy. Vol. 1. Moscow. 2004, pp. 3-19.
2. IEA. Renewables in Russia: From Opportunity to Reality. Paris. 2003.
3. IEA. Energy Policies of IEA Countries. Paris 2003.
4. IEA. World Energy Outlook 2004. Paris 2004
Chapter 11

THE HYBRID SOLAR – WIND SOURCE OF THE

ELECTRO ENERGY AND PROSPECT OF ITS
APPLICATION

R.I. Isaev, D.A. Abdullaev

Scientific Engineering and Marketing Research Center

of the Communication and Information Agency of Uzbekistan

1. ABOUT THE EFFECTIVE UTILIZATION OF

RENEWABLE ENERGY
A great part of technical objects and small settlements located
in significant deserted and mountain territories, removed from an industrial
electric network, are not provided with electro supply sources. The use of the
renewable energy sources (RE) of solar radiation and air flows in the
conditions of Uzbekistan can promote the decision of this important
technical and social problem. On making the decision on the use RE on the
removed objects it is necessary to study and take into account the following
factors:
- The maximal capacity consumed by single or group of removed
consumers;
- Meteorological conditions of district;
- The intensity of solar radiation, hourly average speed of the wind
and the duration of these parameters during the day and months
which define the scheme of utilization of RE, depending on
requirements of the consumer;
- The operating mode of the consumer of the electric power -
sporadic or continuous.

131

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 131–139.
© 2005 Springer. Printed in the Netherlands.
132 R.I. ISAEV, D.A. ABDULLAEV

Among these factors the operating mode of the consumer is

the most essential. So, the sporadic mode is typical to the equipment of RE-
transformation, for the household requirements of illumination, water
purification, and to the using by information means. In such conditions
transforming of the one kind of RE is enough, for example, the energy of the
sun or the wind with storage battery (SB) of the corresponding capacity.
To the operative working belongs the removed objects of
telecommunication (the regenerators of the optical signals, base stations of
mobile communication, radio and TV – re-transmitters), the meteorological
posts, special objects of the control and safety concern. Even the short-term
break of the electro supply to these objects concerned with the large fine
sanctions and other technical and economic troubles: the use of the diesel
generators is connected with the big material expenses (expenses on
obtaining and on transportation of fuel), technical difficulties of service,
necessity of duplication by reserve energy sources. As not less serious factor
the problem of environmental contamination acts.
The territory of Uzbekistan is provided with high intensity of
solar radiation (700-1000 W/m²) in current of 2600-3000 hours in a year.
There are significant local territories where average annual speed of the wind
is 4-4,5m/s and more. In these territories the use of the hybrid solar - wind
systems (HSWS) in amount of the source of the electric power is capable to
solve the problem of sustainable energy supply of operative working objects,
reducing up to the minimum of capacity of storage batteries and the troubles,
having place at constant use of diesel generators polluting an environment.

2. ENERGY RESOURCES OF SOLAR RADIATION

Territory of the Republic of Uzbekistan belongs to the
category of countries with high solar radiation intensity. Gross potential of
solar energy is 50973•106 toe. Technically realizing potential is 176,8-ɘ6
toes. Unfortunately, this powerful energy source is still non-realized.
For effective transformation of solar energy into electric or
thermal one, first of all it is necessary to know the solar elevation in different
periods of year on given territory. On the most northern territories of
Uzbekistan (45°35' n.l.) the most height of Sun in summer solstice reaches
up to 68°, and on the most southern territories (37°10') is 76°. In winter
solstice is 21and 29°, accordingly [1].
Data of table 1 shows the high energy potential of solar
radiation on the whole territory of Uzbekistan and the necessity of regulation
of PV-arrays inclination angle against the angle of sunrays incidence.
THE HYBRID SOLAR – WIND SOURCE OF THE ELECTRO ENERGY 133

Considering data on winter and summer seasons we can

conclude that in conditions of Uzbekistan solar power engineering with
correct projecting can cover load demand up to 1/3 of summer and up to 1/6
in winter. Therefore, utilization of solar energy only is effective for energy
supply to small settlements in desert and mountain territories.
Energy supply to technical objects of permanent operation in
periods of absence of solar radiation is realized by use of additional energy
sources. This circumstance caused the necessity to use other kinds of
renewable energies, in particular, wind energy.

Table 1 Solar energy characteristics of Uzbekistan

Characteristics Winter Summer

1 Solar elevation
- north: 45° 35° n.l. 68° 21°
- south: 37° 10° n.l. 76° 29°
2 Daily sunshine duration, hours/day 3–5 10 – 13
in average 8 - 10
3 Days without sun, days/year
- north 45-50 10-15
- south 22-25 1-4
4 Average sunshine duration, hours/year
- north 2800
- south 3050
5 Direct solar radiation intensity (S), kW/m²
- on plains 0,80-94
- on high-altitude stations 0,94-1,06
- on Kyzylcha station, Smax 1,21

3. SHORTLY ABOUT WIND ENERGY RESOURCES

The gross potential of wind resources was defined 2,2-106 toe,
technical potential -0,4-106 toe, [I]. Average yearly wind speed on the whole
territory of Uzbekistan is 2-2,5 m/sec. This circumstance caused the opinion
on non-prospectiveness of wind power engineering in the country. At the
same time, research of many years conducted by CASRHI (Central Asia
Scientific Research Hydrometheorological Institute) specialists showed that
monthly, seasonal and yearly average wind speeds on the territory of the
Republic are different. For example in Aral Sea basin, Kyzylkum desert
territory and foothill zones of Tashkent region (Charvaq and Bekabad)
yearly average wind speed is 4-5 m/sec and more [2]. Taking into account
that these territories are remote to considerable distance from grid and on
134 R.I. ISAEV, D.A. ABDULLAEV

hard-to-reach desert, mountain and foothill regions, utilization of wind

energy in such regions looks economically expedient.
Average potential capacity of wind flow, on the most part of
the territory of Uzbekistan is 50-150 W/m². On the north, in Aral Sea basin
and foothill zone of Tashkent region, it exceeds 150-200 W/m2 [2].
Analyzing the given short information about wind energy
cadastre of Uzbekistan we can conclude that there are large local territories
with practically efficient average wind speeds. To utilize wind energy
resources of such zones in 2003 SEMRC and CASRHI have started detailed
study of wind regimes in a certain number of local zones. Results of these
researches will allow making a correct estimation of the wind energy
resources and will create a base for wide scale use of wind energy in
Uzbekistan.

3.1 Hybrid solar-wind system for TV-transmitter

Charvak, Uzbekistan
Complex of HSWS equipment was constructed and put into
experimental operation in 2000 under financial support of European
Commission in the frame of INCO-Copernicus Program (grant ICOP-
DEMO-4068-98). Executors of demonstration project were SEMRC
(scientific coordinator and principal investigator), firm Armines (project
coordinator, France) with the participation of specialists from Portugal (firm
F.F.Lda) and Uzbekistan (Institute of Power Engineering and Automation,
firm Bakht-Ener).
HWSW and exploitation results
HWSW consists of the following:
- Arrays of PV-modules (Total Energy, France) of 60 m2 total square
with 6 kW peak capacity;
- 3 kW wind turbine (Southwest Windpower Co., USA);
- 1525 Ah/48 V storage battery (Oldham, France);
- measuring and controlling equipment;
- 4.5 kVA bilateral inventor.

In normal conditions when wind speed is over 3 m/sec or sky

is clear or there are both factors together, energy produced by PV-arrays and
wind turbine goes to consumer and at the same time charges the storage
battery (SB). If charge of SB is full control system turns off the chain of
damp load resistance and excessive energy is transformed into thermal one.
THE HYBRID SOLAR – WIND SOURCE OF THE ELECTRO ENERGY 135

If both sources are absent (grey day or night and also there is
no wind) customer is provided by energy during the time At by SB
discharge. When SB is discharged till maximal allowed level, discharge
controller is activated and reserve electric grid is connected. Electricity
supply to the load and SB charging are made by grid. When wind or solar
radiation are enough to make consumer operation occur, external chain is
disconnected [3].
Measuring, scaling and recording the values of capacity
production by PV-arrays, WT and whole HSWS, temperatures, maximal
wind speed and number of other parameters characterizing modes of system
operation, is made by Enerpak block. Results of more than 30 measurements
are fixed in special tables.

3.2 Analysis of operation of hybrid solar-wind system

Average monthly meteorological data of Charvak site given
by CASRHI were used to calculate a theoretical productivity of HSWS (Ec).
Curves characterizing total productivity of PV-arrays and HSWS are given
on the fig.l and fig.2 accordingly. Here ȿɧɫ, ȿɧɝ are calculated and real
production of electric energy by whole HSWS, EL is energy consumed by the
load, AE is energy transferred to the external load. Analyzing these curves
we can notice that:
- Real productivity of PV-arrays Er in summer period essentially
less than calculated Ec;
- Average monthly and yearly real production of electric energy
{ȿɧr-12280 kWh) are less than calculated (EHc =1198 kWh and
14375 kWh). These facts are showing the decreasing of PV-arrays
productivity in summer hot periods;
- Energy produced by HSWS generally covers the load demand
during a year. At the same time, in winter periods of high
cloudiness and absence of wind during 2-3 days, sustainable
operation of TV-transmitter is provided by external source not
exceeding l 000 kWh a year;
- Average monthly overproduction by HSWS of load demand is E
-E 315 kWh monthly and 3830 kWh during a year. This energy
can be transmitted to external consumer.

Therefore, the assumption on high effectivity of combined use

of solar and wind energy has been confirmed, especially for energy supply of
remote sites.
136 R.I. ISAEV, D.A. ABDULLAEV

3.3 Analysis of stability operation of PV-arrays

Stability of PV-arrays in hot climate conditions on the basis of
3 years real exploitation data is discussed.
The energy production curves of HSWS EC, Er, Eav = f(T)
are demonstrated on fig. 3 Analysis of these characteristics shows that during
3 years of HSWS operation:
a) Value of E =f(T) in November-March differs from ȿɟ ~ f(T) not
essentially. This fact confirms that in considerably low
temperature conditions, transformation coefficient of PV-array is
up to 10%. The wind turbine in the good wind conditions covers
the less productivity of PV-arrays of HSWS in this period;
b) In April-October Er = f(T) gradually decreases reaching the
minimum in summer period. The temperature increase reaching
60°C on the PV-arrays' surface in June-August causes essential
lowering the transformation coefficient of PV-array;
c) Also gradual decrease of Er = f(T) year by year is observed.
This fact can be explained by changing of meteo-factors and
probably by worsening the quality of PV-arrays. This
phenomenon should be studied during a long time to
estimate reliability and lasting qualities of PV-arrays. As a
result of stated above factors, in hot period up to 1/3 part of
solar energy potential is not utilized.

To estimate the level of temperature influence to PV-arrays

productivity the indicator Ke = Er/ȿɟ is used. The curves Kec, Ker Keav
='f(T) are given on fig. 4. Analysis of these curves shows that transformation
coefficient of PV-arrays Ker significantly decreases in summer period,
lowering up to 1/2 from Kec. This fact once more time confirms the known
opinion, that the productivity of PV- arrays essentially depends on the
temperature on its surface.
Stated facts show the necessity to develop the researches in
such a direction to specify the influences of both temperature and
atmosphere conditions (cloudiness, rain etc.) on decreasing the PV-arrays
productivity. Therefore, creation of the variants of PV modules resistant to
temperature changes should be an important direction of investigations and
developments. Solution of this problem will allow more effective using of
PV-systems in all countries with hot climate and long duration of sunny
days.
THE HYBRID SOLAR – WIND SOURCE OF THE ELECTRO ENERGY 137

4. APPLICATION OF THE HYBRID SOLAR-WIND

SYSTEMS IN THE SPHERE OF COMMUNICATION AND
INFORMATION OF THE REPUBLIC OF UZBEKISTAN
In the sphere of communication and information numerous
objects requires the presence of guaranteed, reliable and highly stable
sources of the electric power. It is connected with the use of the high
technical and sensitive to non-standard fluctuations of the electric power of
the informational – communication technologies in this sphere.
Power consumption of the electric power of the objects is
various, from 3 up to 300 kW. Approximately the general power
consumption is about 30 – 40MW.
The introduction of hybrid solar - wind systems should be
carried out in three stages and in two operating modes:
- The first stage – the hybrid systems should be used in objects
remote and removed from an industrial electric network. The
example of such objects are the TV and radio-transmitters, located
in the mountainous and deserted districts of more than 20 places
in Tashkent, Samarkand, Navoi and other areas, the base stations
of the companies of mobile telecommunication on the preliminary
data more than 50 objects of companies Uzdunrobita,
DaewooUnitel, Coscom and others. Power consumption of these
objects changes in limits from 3 up to 15 kW. On separate objects
achieves more than 100 kW. The hybrid systems can work mainly
as the basic source of power supplies, and in some cases, as
reserve.
- In the second stage – will be started the works on the use of
hybrid systems on objects of the stationary type - in the post
offices of communication and units of telecommunications with
power consumption in limits from 5 up to 150 kW. Their
approximately amount is about – 4000. In connection with the
forthcoming program of large-scale introduction of electronic
document circulation and electronic commerce are showed even
more rigid requirements to objects of telecommunications,
accordingly and to system of electro supply.
- The third stage - provides the use of the renewable sources of the
electric power on objects where power consumption will exceed
more than 150 kW. These are large units of telecommunications
in the regional and regional centers, on cities, in objects special
importance and in others. Above mentioned stages will promote
138 R. I. ISAEV, D. A. ABDULLAEV

achievement of maintenance by reliable, stable and guaranteed

power supplies of objects of telecommunications at economy of fuel
and energy resources spent for development of the electric power of
industrial purpose, the economy of diesel fuel spent by diesel
generators used as reserve and emergency sources, and also
reduction of emission of harmful gases in an atmosphere.

5. CONCLUSION
Experience of creation and exploitation of HSWS completely
confirmed the high efficiency of combined use of solar and wind energies in
the conditions of Uzbekistan.
Principles of combined use of renewable energies, results of
HSWS exploitation were discussed at International Workshop "Hybrid-
2002" organized by NATO grant EST-ARW-977881 (May 22-24, 2002,
Tashkent). Workshop participants highly appreciated the results of made
elaborations and investigations and recommended HSWS for wide scale
implementation.
It is necessary to organize an investigations of diverse types
of PV-cells and modules in real meteoconditions similar to Charvak sites
ones, that allows estimating their
quality and stability and to recommend them for application
in Central Asia region.
Authors note with the pleasure that this report is a result of
generalized researches made in the frame of European Commission grant
ICOP-DEMO-4068-98.

REFERENCES
1. Initial Communication of the Republic of Uzbekistan under the United Nations Framework
Convention on Climate Change, Tashkent, 1999. p.p. 106
2. Rudak M.S. Wind-Helioenergy Cadastre of the Republic of Uzbekistan (in Russian),
Tashkent, 2003, p.p. 147
3. Abdullaev D.A., Isaev R.I. Hybrid Solar-Wind System for Power Supply to Remote Sites,
Proceedings WREC-1998, part IV, p.p.2697-2700
4. Abdullaev D., Isaev R., Mayer D. Operational Results of Hybrid Solar-Wind System in
Charvaq, Uzbekistan, NATO International Workshop Hybrid-2002. 22-24 May, Tashkent,
Uzbekistan, p. 5
THE HYBRID SOLAR – WIND SOURCE OF THE ELECTRO ENERGY 139
Chapter 12

NEW METHODS FOR IMPROVEMENT OF

EFFICIENCY OF SOLAR CELLS ON THE BASIC
Si-MONOCRYSTALS

R.A. Muminov, O.M. Tursunkulov

Physical-Technical Institute, Scientific Association “Physics-Sun”, Academy of Sciences

Republic of Uzbekistan, G.Mavlyanov Str.2B, Tashkent, 700084, Uzbekistan,
[email protected]

The alternative and renewable energy sources, like a wind

power and a sunlight, hydro- and geothermal energy is of intense interest all
over the world. And it is clear that limitation of traditional fuel-energy
resources becomes obvious on the one hand and on the other hand the
specified renewable energy sources mean ecological consideration. Among
alternative and renewable energy sources a special place is occupied by
direct transformation of sunlight to electric energy by means of
semiconductor crystals. This method is the most convenient at the same
time technological developed. The successes in the field of direct
transformation of the solar energy in electric one by semiconductor crystals
are determined by the creation of cheap and efficient technological ways of
producing highly effective solar cells. Therefore there is a constant search of
the new physical, technical and technological ways which studying should
successful promote the production of effective semi-conductor photo-
converters. In this connection crystalline silicon takes a special place. It is
characterized by significant achievements in the scientifically substantiation
essentially of new scientific, technical and technological approaches in
perfection of production of solar cells on crystalline silicon. In particular we
develop the new approaches to increasing of efficiency of solar cells (SC) on
the basis of crystalline silicon.

141

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 141–148.
© 2005 Springer. Printed in the Netherlands.
142 R.A. MUMINOV, O.M. TURSUNKULOV

1 THE METHOD OF DIFFUSION OF IMPURITY

THROUGH THE OXIDE COVERING FOR FORMATION
OF THE STRUCTURE OF SOLAR CELL.
Due to process of diffusion of the impurity in oxide covering
this method allows to receive of the effective area of a the bulk charge in the
structure of the solar cells. This method is in principle new in the world
practice.
What feature consist of the given method?
It is known that it is necessary to formation shallow-lying p-n-
junction for increase of the efficiency silicon SC. We developed the method
of carrying out of process of diffusion of impurity through various oxide
coverings for formation p-n-junction in mono-crystal silicon. In result the
method has allowed to receive the positive features, in particular:
1) It is preliminary protection of the face surface of SC against
erosion before formation p-n-junction.
2) At the formation of the face layer on a way of doping impurity
the oxide covering provides a role of potential barrier. These
barriers provide not only an opportunity of controlling junction
depth and impurity concentration but also play a role of a
filtration of foreign atoms.
Beforehand of the process of receiving of diffusion of SiOx oxide
layer is resulted to reduction of diffusion depth of an impurity
hence to improve of functional characteristics of SC (table 1).

Table 1.

Thickness Thickness Thickness Thickness of

The structure Without of oxide of oxide of oxide oxide layer
of SC n+np+ oxide layer layer layer layer more than
300-350 ǖ 600-650 ǖ 900-950 ǖ 1000 ǖ
The depth of
0,60r0,06 — — — <0,35r0,03
p-n-junction

Photoresponse 0,12 from 0,15 from 0,25 from 0,31 ɨɬ 0,32 from
at O=0,4 micron maximum maximum maximum maximum maximum

Short-circuit
920 mA 950 mA 980 mA 990 mA 1000 mA
current
NEW METHODS FOR IMPROVEMENT OF EFFICIENCY OF SOLAR CELLS 143

2 CREATION ON BASE OF COMPOSIT

MATERIALS OF ANTIREFLECTION COATINGS ON
THE SURFACE SILICON SC ALSO IS IN PRINCIPLE
NEW APPROACH AND PROVIDES HIGH EFFICIENCY
FOR ABSORPTION OF THE MAXIMAL REGION OF
THE SOLAR SPECTRUM IN BULK OF THE SOLAR
CELLS AND INCREASE OF ITS POWER
PERFORMANCE PARAMETER.
We solved such question by the creation on base composite
materials antireflection coatings on the surface of SC silicon. The structure
of silicon nano-supplement in SiOx matrix as the specified coating were
considered. It allowed to block all range of reflection coefficient and
transmission for composite with film thickness 750 Å on basis Si/SiOx with
the various contents of silicon nano-supplement. The similar effect provided
traditionally used film of nitride of silicon Si3N4 with thickness 750 Å. The
spectral dependencies of reflection coefficient and transmission for the
above mentioned coatings in silicon SC are shown in figure 1.
The other dependencies for silicon SC covered antireflection
films are shown in figure 2,3.
144 R.A. MUMINOV, O.M. TURSUNKULOV

Figure 1. The spectral dependence of reflection coefficient (a) and transmission (b) solar
cell, covered with antireflection coating with thickness 750 Å: 1- Si3N4, 2-4 Si-SiO2 with
silicon containing; 2- 0; 3-0,25 (SiO); 4-0,28; 5-without antireflection coating

Re50
fle ɚ
cti 40 5
on
, 30 4
2
%
20

10
3
1

0
0,4 0,6 0,8 1,0 1,2
100 O , Pm
Tr
90 2
an
sm 80 ɛ
iss 70 3
io 60
n,
% 50 5
40
4 1
30
20
0,4 0,6 0,8 1,0 1,2
O, Pm

Figure 2. The spectral dependence ampere-watt sensitivity of solar cells covered with
antireflection coatings with thickness 750 Å: 1- Si3N4, 2-4 Si-SiO2 with silicon containing;
2- 0; 3-0,25 (SiO); 4-0,28; 5-without antireflection coating

Pe0,7 1
rc
0,6
ep
tivi0,5
ty, 0,4 5
A/
0,3
W 2
0,2
4
0,1 3
0,0
0,4 0,6 0,8 1,0 1,2
O, Pm
NEW METHODS FOR IMPROVEMENT OF EFFICIENCY OF SOLAR CELLS 145

Figure 3. The dependence of density of output current of solar cell from composition of
antireflection coating on the basis Si/SiO2

32

31
J,
30 Si 0.46 -(SiO 2 ) 0.54
2m
A/c 29 SiO 2
m SiO
28
Si
27

26

25
0,0 0,2 0,4 0,6 0,8 1,0
SiO 2 x Si

The analysis of the specified dependences shows, that

composites on basis Si/SiOx allow to achieve characteristics of SC close to
characteristics SC with coverings film of Si3N4. However the creation of
composite coverings are ecologically favorably and technologically more
effective.

3 THE THIRD METHOD DEVELOPMENT LOW

TEMPERATURE TECHNOLOGICAL PROCESSES LIKE
DIFFUSION, DRIFT, ANNEALING AND DEFECTS
ELIMINATION OF THE CRYSTALLINE LATTICE IN
CONDITIONS OF INFLUENCE OF ULTRASOUND
WAVE TO A CRYSTAL ALSO HAVE NO ANALOGUES
IN THE WORLD.
We made certain successes in this direction for last 10-15
years. The value of this approach is caused by the following reason: at high
temperatures in the crystal bulk, surface and the metal - semiconductor
border generate significant number of defects of a crystal lattice. It has
strong influences on efficiency of the solar cells. At low temperature were
carried out of the above-mentioned processes which provided full absence of
the above-stated defects that considerably improves performance
characteristics of solar cells.
Influence of the ultrasound wave (USW) on semiconductor
crystals has three tendencies. The first includes preliminary influence of
146 R.A. MUMINOV, O.M. TURSUNKULOV

USW field on semiconductor crystals with the purpose of ordering its initial
defective structure and it has activation character. The second results to low
temperature processes such as diffusion, drift, annealing and improvement
of quality of a surface of p-n-junction border and p-n-junction itself. The
third is acoustic-stimulated kinetic processes in the sensitive area of
semiconductor devices when USW influences during operational mode of
the device. The change of the energetic state of a crystal lattice of the
semiconductor in USW influence is the general physical mechanism of the
above-stated processes when as result of such influence there is a warming
up of the charge carriers and phonons take place and also is observed their
mutual moving.
The investigation of USW influence on the reverse current of
saturation was carried out that the same SC was exposed in series to different
processing.
We investigated acoustic-stimulated adhesive effect in
semiconductor (figure 4) which means the changing of adhesive properties
of metal films on semiconductor surfaces and increase in their adhesive
strength after the ultrasonic treatment of the metal - semiconductor
structures.

Fig. 4. The dependence of adhesive strength of the copper films on silicon substrate from
the ultrasound treatment time. (sample Si-n ʋ2,N(O2)=4˜1017 cm-3, f=15 MHz, Ɋ=0,5 Vt/cm2,
Ɍ=293Ʉ)
NEW METHODS FOR IMPROVEMENT OF EFFICIENCY OF SOLAR CELLS 147

The investigation of the behavior of the reflection coefficient

of optical irradiation R (O) from a semiconductors surface subjected by
ultrasound influence (figure 5). It is established that a degree of changing of
R (O) dependence determined by power, frequency and duration of USW
influence. The acoustostimulation change of subsurface layer of the
semiconductor crystal occurs with the diffusion impurity atoms from
subsurface region of crystal in its depth, and also disintegration of some
type congestion.
The efficiency of solar cells is defined by many factors and in
particular the drift of carriers through a sample after generation of electron-
hole pairs under sunlight. In this process for the value of signal amplitude is
important the losses of carriers by traps. It is established that if the sample
treat with USW then the dependence of signal amplitude on the drifting field
will be vary from USW value.

Fig. 5. Spectral dependences of the reflection coefficient R with different degrees of doping
of the n+-Si layer of silicon measured before and after ultrasound treatment capacity Pm d1
W/cm2; frequency f = 15 MHz; Si-sample ʋ1: N = 1,75˜̓1020 cm–3; before (curve 1) and
after (curve 4); Si- sample ʋ 2, N2 = 4,5 ˜̓1019 cm–3 ; before (curve 2) and after (curve 5);
Si-sample ʋ 3, N3 = 7,8 ̓1018 cm–3 before (curve 3) and after (curve 6); t > 60 min
148 R.A. MUMINOV, O.M. TURSUNKULOV

Thus the certain new step in the development and creation of

highly effective solar cells on the basis of crystalline silicon is made in
present paper. These achievements are directly applied in development of the
real self-contained module power systems for example: the various type and
purpose portable installation of electric illumination; self-contained
photoelectric installation for power supply of incubators.
The certain achievement of our scientists, as a whole work, in
development and investigation of renewable energy sources is presented in
this paper.
Chapter 13

DESIGN OF SEMICONDUCTOR
NANOSTRUCTURES FOR SOLAR CELL
APPLICATION

L. Nosova1, 4, S. Gavrilov1, 2, I. Sieber3, A. Belaidi1, L. Dloczik1,

Th. Dittrich1, A.A. Saidov4, P.K. Khabibullaev4
1
Hahn-Meitner-Institute Berlin, Abt. SE 2, Glienicker Straße 100, D-14109 Berlin, Germany;
2
Moscow Institute of Electronic Technology, Moscow, 124498, Russia;
3
Hahn-Meitner-Institute Berlin, Abt. SE 1, Kekuléstr 5, 12489 Berlin, Germany;
4
Heat Physics Department, Katartal str. 28, 700135 Tashkent, Usbekistan;
Corresponding e-mail: [email protected].

1. INTRODUCTION
Last decades one-dimensional materials have been a focused
research field both because of their fundamental importance and the wide-
ranging potential applications in various electronic and electrochemical
systems to be used in solar cells, catalysts, chemical sensors and many
others.1-3 One of the factors driving current interest in nanotechnological
research is the perceived need for the further miniaturization of both optical
and electronic devices.4 There are many experimental approaches to
fabricate nanowires, utilizing a variety of nanofabrication techniques5,6 and
crystal growth methods.7,8 Because the growth is controllable almost
exclusively in the direction normal to the substrate surface, electrochemical
synthesis in a template is taken as one of the most efficient methods in
controlling the growth of nanowires and has been used to produce a variety
of metal nanowire arrays.9 However, studies on the preparation of
semiconductor nanowires by electrodeposition using templates are still
scarce.

149

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 149–155.
© 2005 Springer. Printed in the Netherlands.
150 L. NOSOVA ET AL.

Thus, we have used anodic alumina as a template material.

Nanoporous anodic alumina has many favorable characteristics as a template
material for nanoparticle array fabrication because the template formation
process is very simple and results in high density of parallel pores. The pore
diameter can be tuned from ~10 nm to several hundred nm by varying the
anodization conditions. Due to cylindrical pore geometry and monodisperse
diameters, corresponding cylindrical and well-distributed nanostructural
materials are obtained.
Semiconductor nanowires are of considerable interest as they
are capable of being used in optical devices and microelectronic
technology.10 Cadmium sulfide is a typical wide band gap II-VI
semiconductor having a band gap of 2.42 eV at room temperature. It has
many commercial or potential applications in light-emitting diodes, solar
cells or other optoelectronic devices. The synthesis and study of cadmium
sulfide nanowires should stimulate much research and technological
applications. In this study we fabricated metallic (Cd, Cu) nanowires into
porous anodic alumina by using electrochemical deposition and then
converted them into their chalcogenides by using sulfurization in H2S.
However, the electrochemical deposition of these materials on an insulating
and rather thick barrier layer at the pore tips is not straightforward. High
potentials are required for the tunneling of the electrons through the barrier
layer. Electrodeposition on the barrier layer by direct current is very unstable
and uniform filling of the pores cannot be achieved. This is due to a cathodic
side reaction, which leads to a partial removal of the barrier oxide, formation
of holes in the barrier layer, and local deposition in these pores. We have
developed the electro-prethinning of the barrier layer to make
electrodeposition possible and effective. CdS and CuxS nanowires were
obtained as a result of ac electrochemical deposition of Cd and Cu into pores
of anodic alumina and their subsequent sulfurization. CdS/CuS
heterostructure based on porous alumina is proposed for solar cell
application.

2. EXPERIMENTAL SECTION
Pure (99,99%) aluminum foils were rinsed in acetone and
annealed in vacuum at 400oC for 1 hour in order to recrystalize the samples,
enhance the grain size in the metal and therefore to get homogeneous
conditions for pore growth on larger areas. Then aluminum foils were
polished chemically by dipping them at first to the aqueous solution of
NaOH (100g/l) for 0,5-1 min. at 50-60oC, short rinsing with distilled water
DESIGN OF SEMICONDUCTOR NANOSTRUCTURES 151

and then dipping to the aqueous solution of HNO3 (350-450 g/l) for 0,25-0,5
min. at 18-25oC, and then Al foils were washed with distilled water again.
Porous alumina films were formed by using two-step
anodization process.11 The anodization was performed under galvanostatic
conditions 10mA/cm2 at room temperature with vigorous stirring. Three
kinds of electrolyte 1.2M sulfuric, 0.3M oxalic, and 0.3M phosphoric acid
solutions were used to obtain the pore diameter of 10, 60, and 120 nm,
respectively.
The first oxide layer was dissolved in a solution of 6 wt %
H3PO4 and 1.8 wt % CrO3 at 60oC. The second anodization was performed
under the same conditions as the first one.
There is always dense insulating so called barrier layer
between porous part of alumina and Al substrate. It creates difficulties for
charge transfer in electrolyte/substrate system during electrochemical
deposition into pores. The thickness of the barrier layer strongly depends on
voltage applied during anodization process. The porous alumina grown in
phosphoric acid solution has the thickest barrier layer (about 130 nm thick),
for porous alumina obtained in oxalic acid electrolyte the barrier layer
thickness is about 65 nm, in sulfuric acid solution – about 10 nm. To reduce
the thickness of the barrier layer we have used the following procedure.
When the anodization was complete, the current density was stepwise
decreased (10, 5, 2.5, 1.2, 0.6 mA/cm2) over a period of 5 min while
anodization voltage falls till 4-5V. This procedure leads to reduction of the
barrier layer until 5-7 nm. At the end of anodization and prethinning
processes porous anodic alumina films kept on aluminum substrate with
quite uniform, parallel, and opened only at oxide electrolyte interface pores
are obtained. These regimented nanoporous alumina templates were used for
ac electrochemical fabrication of the CdS and CuxS nanowires.
The electrochemical deposition of Cd and Cu was performed
in a pulsed voltage regime with rectangular pulses. Cu nanowires were
fabricated by pulsed electrodeposition from a mixture of 35 g/l CuSO4 and
20 g/l MgSO4 aqueous solution, pH=1,3 was reached by adding of sulfuric
acid solution. For Cd nanowires an aqueous solution of CdSO4 was used as a
source of Cd ions. Cathodic potential of -10 V was applied for 1 ms. Anodic
waiting pulse (potential +3 V) was applied for 100 ms. The barrier layer is
discharged during the anodic waiting pulse and metal cations diffuse to the
electrolyte/electrode interface. Electrochemical deposition was performed
until the metal reached the sample surface. After electrochemical deposition,
the samples were rinsed in distilled water and dried in N2-stream. The
samples were sulfurized in a quartz tube furnace in Ar/H2S (5%)-atmosphere
(pressure 0.1 MPa) at 500o C for 3 h.
152 L. NOSOVA ET AL.

The cross sections of the samples were investigated by

scanning electron microscopy (SEM, JEOL 4100). Phases were analyzed by
x-ray diffraction by using the Cu KD line of a Bruker Axs D8 advanced
diffractometer. Photovoltage spectra were measured in the capacitive
arrangement. The excitation was performed with a Xe-lamp and a quartz-
prism monochromator. The photovoltage was measured as the signal in
phase and phase shifted to the modulated light (chopping frequency 16 Hz)
as well as the amplitude.

3. DISCUSSION
Figures 1a and 1b present SEM images showing the cross-
section of PAA/Al after 2 step anodization process in 0,3M oxalic acid
solution. Pore diameter is about 60 nm, the interpore distance is about 100
nm, and the thickness of the barrier layer is nearly equal to the wall size.
SEM image (1a) shows that pores form well-defined hexagonal honey comb
structure. The barrier layer after prethinning procedure is presented in
Fig.1b. During prethinning procedure a lot of narrow pores are formed and
the barrier layer becomes like tree-root net.

Figure 1. SEM micrographs of cross section of porous anodic alumina grown in 0,3M
oxalic acid solution top part (a); bottom part after prethinning of the barrier layer (b); CdS
(c) and CuxS (d) nanowires grown into porous alumina matrix.
DESIGN OF SEMICONDUCTOR NANOSTRUCTURES 153

The two-step anodization method was used to make the

porous structures more regular and uniform. During the first anodization step
a self-ordering takes place. It was suggested that the repulsive forces
between neighboring pores caused by mechanical stress at the metal/oxide
interface promote the formation of hexagonally ordered pore arrangements.
After removing of the porous alumina layer formed in the first anodization
the information about self-ordering still occurs on Al surface. Thus,
anodization of the remaining aluminum layer under the same conditions
resulted in anodic aluminum oxide nonporous arrays of better uniformity and
straighter pore channels. Pores grow perpendicularly to the Al substrate
(Fig.1b). Straight pores are desirable for the electrodeposition of materials at
the bottom of every pore. Pretreatment, such as annealing and
electropolishing, plays an important role to obtain such well-ordered
nanopore array.12, 13
After Cu deposition into pores the barrier layer is not
observed any more, Cu is penetrated everywhere in PAA/Al interface (Fig.
1d). Similar results are obtained on ac electrochemical deposition of Cd into
pores of PAA (Fig.1c). After sulfurization CuxS and CdS nanowires were
fabricated. In the SEM images the nanowires are often interrupted and many
pores are empty. It causes due to the cracking procedure of the sample which
is needed for cross section preparation.
Figure 2 shows the spectrum of the photovoltage amplitude of
the CdS/PAA/Al sample. The photovoltage amplitude starts to increase at
about 1 eV and a second sharp increase appears at about 2.4 eV. The sharp
increase at about 2.4 eV corresponds to the onset of optical absorption near
the optical band gap. The presence of the low-energy photovoltage signal in
the range from 1.0 to 2.4 eV is caused by a high concentration of defect
states in the band gap. The origin of these states is not clear yet. To our
opinion, mechanical stresses should play an important role for the formation
of defects.
Figure 2. Photovoltage spectra of the CdS/porous alumina structure.

CdS / por-Al2O3 halogen lamp

Photovoltage amplitude (V)

-3 fmod = 16 Hz
10

-4
10

-5
10

1 2 3 4
Photon energy (eV)
154 L. NOSOVA ET AL.

We propose to use porous alumina matrix kept on Al substrate

as a template for fabrication of semiconductor nanostructures with p-n
junction for solar cell application. The scheme presented on Fig.3 includes
several processes: preparation of porous alumina with prethinned barrier
layer, deposition of metal (for example, Cu), dissolving of alumina (it could
be done in 1M NaOH at 25 °C) to get free-standing metallic nanowires on al
substrate. Then one can make electroplating of the same metal to cover the
aluminum. After that the metallic nanowires could be sulfurized by
annealing in H2S, as it was described previously, to convert the metal into its
chalcogenides (in our case, into CuxS). CdS could be directly deposited onto
CuS surface or deposition of metallic Cd with its subsequent sulfurization
could be performed to obtain the heterostructure with p-n junction.

Figure 3. Scheme of solar cell fabrication

(a) (e)
Porous anodic alumina Electroplating of metal

(b) (f)
Pre-thinning of the Sulfurization
barrier layer

(c) (g)
Deposition of metal
Deposition of metal
or semiconductor

(d)
Dissolving of alumina

4. CONCLUSION
In our study the highly ordered porous alumina structures
with pore size of 10 until 150 nm were fabricated. The diameter of the
nanowires can be controlled by the pore diameters of the template. An
DESIGN OF SEMICONDUCTOR NANOSTRUCTURES 155

advantage of proposed technology is that porous aluminum oxide layer is

kept on Al substrate and becomes more suitable for the fabrication of
photoelectrical nano-devices. Porous anodic alumina serves as a nice
template for nanowires fabrication and investigation of their physical
properties.
Developed approach gives opportunity to deposit a number of
other materials: metals, their oxides, sulfides, chalcogenides, and
hydroxides, into porous alumina matrix. The suggested procedure of
nanostructure fabrication is relatively cheap, efficient, well-controlled, and
easy for realization.

5. ACKNOWLEDGEMENT
L.N. is grateful to Duetscher Academischer Austauschdienst
and Fundamental research Foundation of the Science and Technology of the
Republic of Uzbekistan (grant FFI-2.1.41) for financial support.

REFERENCES
1. Xu, D. S.; Guo, G. L.; Gui, L. L.; Tang, Y. Q.; Shi, Z. J.; Jin, Z. X.; Gu, Z. N.; Liu, W. M.;
Li, X. L.; Zhang, G. H. Appl. Phys. Lett. 1999, 75, 481.
2. Chen L., A.J. Yin, J.S. Im, A.V. Nurmikko, J.M. Xu, J. Han,. Physica Status Solidi A 2001,
188, 135.
3. Mozalev A., S. Magaino, H. Imai, Electrochim. Acta 2001, 46, 2825.
4. Stroscio, J. A.; Eigler, D. M. Science 1991, 254, 1319.
5. Ono, T.; Saitoh, H.; Esashi, M. Appl. Phys. Lett. 1997, 70, 1852.
6. Namatsu, H.; Horiguchi, S.; Nagase, M.; Kurihara, K. J. Vac. Sci. Technol., B 1997, 15,
1688.
7. Morales, A. M.; Lieber, C. M. Science 1998, 279, 208.
8. Martin, C. R. Science 1994, 266, 1961.
9. Foss, C. A.; Gabor, Jr.; Hornyak, L.; Stockert, J. A.; Martin, C. R. J. Phys. Chem. 1994, 98,
2963.
10. Pandey, R. K.; Mishra, S.; Tiwari, S.; Sahu, P.; Chandra, B. P. Solar Energy Mater. Solar
Cells 2000, 60, 59.
11. Masuda, H.; Fukuda, K. Science 1995, 268, 1466.
12. Li, A. P.;Mu¨ller, F.; Birner, A.; Nielsch, K.; Go¨sele, U. J. Vac. Sci. Technol. A 1999, 17,
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13. Xu, T.; Zangari, G.; Metzger, R. M. Nano Lett. 2002, 2, 37.
Chapter 14

UTILIZATION POSSIBILITIES OF
RENEWABLE SOURCES OF ENERGY IN
SOUTHERN KAZAKHSTAN BY THE EXAMPLE
OF KARATAUSKO-UGAMSKI ENERGY
COMPLEX

T.K. Koishiyev

Head of Renewable Energy Sources Department of Kazakh State Univertisy

In the future renewable sources of energy (RSE) will play

remarkable role in energy supply.
Even today RSE can play substantial role in power supply of
decentralized consumers. This field of power engineering needs to be
developed first of all in regions with abundant renewable resources and
insufficient fossil fuel or absence of the latter.
Today utilization of solar, wind and hydroelectric power
stations of modular type combined into single energy complex proved to be
technically and economically more expedient.
Many foreign projects, which are intensively developed by
specialists from USA, Japan, Italy, Spain, French and other countries, apply
such combined schemes.
The basic purpose of pilot combined electric power stations
operating on RSE is to supply electricity and provide opportunity for
conduction of experimental researches and comparison of various
technologies. Such opportunity allows accumulating of scientific data, which
is vital for creation of more powerful and more effective combined electric
power stations.
Favorable conditions in Kazakhstan allow utilization of RSE
for the purpose of production of electricity and highly potential heat. Taking
into account RSE when forming regional energy balance provide remarkable
157

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Economic, Environmental and Social Impacts, 157–162.
© 2005 Springer. Printed in the Netherlands.
158 T.K. KOISHIYEV

reduction in consumption of traditional fossil fuel and substantially decrease

pollution.
Harmonious combination of different kinds of RSE in general
energy balance in Kazakhstan is the problem of primary importance.
In the present work questions related to construction of
Karatausko-Ugamski energy complex of capacity of 170 MW operating on
ecologically clean sources of energy of southern regions of Kazakhstan have
been considered and the question, concerning development of general
methods of modeling of operating mode of single subsystems of energy
complex, has been formulated.
Construction of combined energy complex on the basis of
RSE (solar, wind and hydro energy) in spurs of Karatau mountains near the
Urgam river is the prototype of future complex utilization of RSE.
Following parts are included into composition of the
complex:
1. Construction of two wind power stations (WPS) of capacity of 20
and 40MW;
2. Construction of complex of solar photoelectric stations (SPS) and
solar collectors (SC) at the basic energy power stations aw well as
at remote sparsely populated regions of total capacity of 10 MW;
3. Construction of complex of hydroelectric power stations on the
Urgam river of capacity of 50 MW;
4. Construction of thermal electric power stations (TEPS) operating
on gas with exhaust-heat boilers with capacity (3x17) MW in
Turkistan.

Combined WPS and SPS –WPS-SPS are planned to be

constructed at “Chayan” platform of capacity of 20 MW and at “Baizhansai”
platform of capacity of 50 MW. SPS and SC with capacity 10 MW are also
planned to be constructed.
Wind platforms for WPS are selected basing on the data
concerning wind potential from weather stations. Average annual speed of
wind on these platforms exceeds 5.5 m/s, which allows construction of two
WPS.
On the territory of Kazakhstan the amount of solar energy that
falls upon the surface per year in the form of solar radiation ranges from 4 to
7 thousands MJ/m2 of intensity up to 700-800 W/m2 depending on the
region.
Duration of solar radiance on the territory of Kazakhstan is
remarkably high (up to 3100 hours). At that the territory where solar
radiance is observed during 2800-3100 hours is equal 1900,5 thousands of
km2 that makes up 70% of total area of the territory of Kazakhstan.
UTILIZATION POSSIBILITIES OF RENEWABLE SOURCES 159

Consequently, long duration and substantial height of midday

sun is typical to 2/3 of the territory of Kazakhstan.
Qualitative estimation of possible utilization of solar energy is
determined by the ratio of the power of the solar station to the area under
that installation.
Complex of hydro electric stations (HES) – on the Urgam
river construction of hydro electric stations of total capacity of 50 MW is
planned. The river basin is located on the territory of Kizgurtsk district of
Southern Kazakhstan region.
Total effective volume of all reservoirs of cascade of Urgam
River is equal to 136.3 mln. m3 that is nearly 24% of average annual volume
of the water flow of the river. This allows full regulation of seasonal flow of
water. Specific water content is sufficiently high and up to six HPS can be
constructed with total capacity of 50MW.
Turkestan TEPS – construction of three TEPS on the basis
diesel-generators of total capacity of 17 MW equipped with exhaust-heat
boilers is offered. To select suitable diesel-generator, which is the basic
piece of equipment, several kinds of generators of various manufacturers
were considered. In accordance with technical features generator
manufactured by Finnish company “Vyartsilya” appeared to be the most
suitable one.
Karatausko-Ugamski energy complex is a complicated and
large scaled project, on different stages of its construction and exploitation
many problems of theoretical and experimental nature might occur, which
would require corresponding solutions.
The spectrum of intended researches is extremely wide
because of the scale of the project and diversity of offered technical solutions
concerning various techniques of energy transformation.
Successful accomplishment of the project requires deep
theoretical investigations and creation of specific kind of mathematical
models. Moreover a complex of experimental investigation is urgent.
We have developed general functional structure of multifactor
mathematical model of operation of basic subsystems of Karatausko-
Ugamski energy complex (KUEC), which operate on the basis of RSE .
It includes following models of operation of basic subsystems
of the station:
I Model of formation of energy resources of RSE in the KUEC
region;
1) Sun movement and solar resources model;
2) Wind resources formation model;
3) Hydro resources formation model;
160 T.K. KOISHIYEV

II Functioning of solar photoelectric stations (SPS) and solar

collectors (SC) model.
III Wind power station functioning model;
IV Hydro power station functioning model.
V Thermal electric power stations functioning model (diesel-
generator);
VI Mathematical multifactor model of optimization of KUEC
operation mode:
4) Model-project;
5) Model-experiment.

In general this kind of problem is rather difficult and a

multifactor one. At present time there are no mathematical models which can
solve such kind of problems in “corpore”.
When developing mathematical models of single subsystems
each of this models was divided into series of sub-models aimed to solve
specific task.
Calculation algorithm is build in form of hierarchy of
repeating cyclic subsystems inserted one into other. External cycles organize
the sequence of searches of considered versions of calculation and can be
altered depending on the task given at a certain stage of investigation.
The model of formation of energy resources of RSE in the
KUEC region in general is the model designed to get primary information
(total solar radiation, speed of wind and speed of water flows). Sun
movement model fixes the sequence of determined relations describing the
movement of the Sun in the sky. Sun movement model determines the most
probable operation mode of the system and tracks dynamics of total solar
radiation received by effective area of basic subsystems during working day.
In general “The model of formation of energy resources of
RSE in the KUEC region” covers processing of climatic data of the region
where stations are location. Primary information is processed and is
displayed in the form which is convenient for calculation of energy resources
of a given region.
Models of operation of solar, wind and hydro power
stations analyze the influence of climatic, constructive and arranging
parameters on the operation mode of single energy installations from point
of view concerning reliability of functioning of the complex as whole.
Multifactor mathematical model of optimization of
operation mode of KUEC (model-experiment and model-project)
accomplishes selection of optimal and arranging solutions of single
subsystems in accordance with system consistency of parameters of single
modules of energy complex.
UTILIZATION POSSIBILITIES OF RENEWABLE SOURCES 161

This large and difficult problem is solved by means of solving

of questions such as creation of working model. Criterion function of the
optimization problem is included in the values of average-exploitation power
and effective thermal flow.
Multifactor mathematical model of KUEC will provide
comprehensive investigation of energy and exploitation features and assess
the efficiency of functioning of some single modules and the whole complex.
Preliminary estimations indicate that expenses required to
accomplish the construction of KUEC of total capacity 170 MW are nearly
200mln. $ US and the production of power requires 8-10mln. $US.
Production of electrical energy will be nearly 858mln.kWh and thermal
energy 194350Gcal. Average annual prime cost of electrical energy during
utilization period would not exceed 0.9 cents per 1kWh and the payback is
estimated to be 5-6 years.
Developed agriculture and industry of the region and high
population density allow quickly return of invested means.
Combination of various kinds of energy resources provides
stable supply of electricity and thermal energy to consumers.

CONCLUSION
1. Realization of Karatausko-Ugamski energy complex of capacity
of 170 MW is offered.
2. It is worth noting that given economical estimation is a
preliminary one and bears conditional character since the
dynamics of tariff and possible quota on releasing of greenhouse
gases is not taken into account.
Moreover, social aspects related to realization of the project are
also not taken into account. However, such estimation indicates
the possibility of accomplishment of the project under soft credit
even with today’s cost of electricity.
3. The work development and optimization KUEC needs to be
continued and technical and economical assessment, which
requires 40-60 mln. tenge (national currency) must be
accomplished.
4. Direct benefits from realization of the project:
i reduction of pollution;
i development of additional sources of energy in energy
deficient region;
162 T.K. KOISHIYEV

i utilization of HPS and TEPS to cover demands of energy

systems during rushhours;
5. Indirect benefits:
i reduction of CO2;
i Solving of social questions and the problem of energetic
independence of the Republic of Kazakhstan.
Chapter 15

RENEWABLE ENERGY: ENVIRONMENTAL

AND NATURE PROTECTION ASPECTS

Kulsina Kachkynbaeva

CAREC Kyrgyz Branch Director

People from time immemorial are using energy as force of

wind, falling stream of water, heat of the sun, burnt up organic fuel (wood,
pressed dung, coal, gas, oil products) to satisfy permanently extending
personal and social needs. The more developed social society had become,
the more energy it needed in. The more advanced social society had become,
the more knowledge and means people spent to find more powerful and
effective kinds of energy.
Getting mechanical, thermal energy was continued by getting
electric power. Electric power fundamentally changed people’s overviews
concerning possibilities of utilizing energy to satisfy their economic, social
and cultural needs. If at the end of the XIX century electric power played, in
general, an auxiliary and insignificant role in global balance. In 1930 about
300 billion watts - hours of the electric power were produced in the world.
But in 2000 30 thousand billions watts - hours were already produced. Huge
figures, huge rates of growth in presence of one or two generations of
people!
And still, even with inventing of electric power, there weren’t
enough energy to satisfy people’s needs. Together with inventing atomic
energy, power rate of which was incomparably more then of those sources of
energy used before, people did not only continue to open up the Earth, her
ground, underground, water and air riches but they started to investigate the
space.

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Economic, Environmental and Social Impacts, 163–173.
© 2005 Springer. Printed in the Netherlands.
164 KULSINA KACHKYNBAEVA

And all the same there was no enough energy. The need in
energy is growing faster, and the population is growing more and more.
Huge power programs are working out, realization of which will demand
enormous effort and great expenses.
It is obvious, that the level of material life, and, finally, of
mental culture of people is in direct dependence on quantity of the
energy available at their disposal.
Energy resources are any sources, which produce energy.
They are classified according to their sources, dislocation, speed of use up,
possibility to self-rehabilitation and other characteristics.
Primary power resources as a rule are divided into:
inon-renewable ones (coal, oil, slates, natural gas, uranium ore);
irenewable ones (wood, water-power, wind power, energy of the
sun, geothermal energy, peat, biomass).

Usually people use energy sources available at their disposal

by three ways.
1. First, they get thermal energy by burning ground and fossil fuel or
catching energy of solar beams, and directly use this energy to
heat various premises, including houses, and also to prepare food.
2. Second, they transform thermal energy contained in fuel or
mechanical energy of falling water or wind into some work, for
example, use it for starting to work various equipment, machines,
cars, trains, etc.
3. Third, they transform mechanical, thermal energy and energy,
liberated from nuclear disintegration, into electric power, and then
they use it to produce heat or to do wide spectrum of works.

Any kind of energy resource is a part of the environment,

surrounding a human being.
But when a human being for the first time seriously began
to think over the phenomenon of interrelation and interdependence
between energy and environment protection? May be when the forests
began catastrophically to thin out, and then disappeared on the vast territory
of the planet and that led to desertification? May be when struggle for
owning oil and gas deposits in increasing frequency was resulted in
destructive wars? May be when people, having possessed enormously
powerful source of energy as atom, did not think over up to details of an
opportunity to control it in case of running away as it was with the
Chernobyl atomic power station?
RENEWABLE ENERGY 165

In fact, it is impossible to get a simple answer to this question.

For a long time the mankind was keen on utilizing energy to satisfy its
growing needs, first of all in economic sphere, that very often it was luxury
to think seriously over environmental protection. Even then, when on some
continents the environmental problems were quite obvious, for example,
mass ruthless cutting down of woods in Africa during many years without
any reforestration activity, which led to desertification of a significant part
of the continent, sharp reduction of the biodiversity and climate change, the
mankind kept Olympic composure.
And only when environmental problems became so obvious
and menacing in a global scale, when it was already impossible to hide from
them because they began to threaten all animate nature on the Earth; when it
became obvious, that burying in oblivion the principle «Protect the
Nature!» as a boomerang reflected on a well-being of our planet and people
living on it; only then people really seriously began to think over solving
environmental issues, including power supply ones.
Beginning from the ‘80s of the twentieth century the world
community started to declare openly that the environment protection issues
were the issues of global concern priorities to achieve sustainable
development. The new readout of time began from that period concerning
interrelation and interdependence between energy and environment
protection.
In 1982, on June, 5-16, in Stockholm at the UN Conference
on Environment Surrounding Human Being the UN member-countries
agreed that it was necessary to take urgent measures to solve issues of
environment degradation.
In ten years, in 1992, on June, 3-14, at the UN Conference on
Environment and Development, which was held in Rio de Janeiro, the UN
member-countries agreed that environment protection and social and
economic development played a great role in sustainable development. The
Principle 4 of the Rio de Janeiro Declaration on Environment and
Development says: «To achieve sustainable development, the environment
protection must be the integral part of the process of development and it
cannot be rated in isolation from that».
And in ten years on September, 2-4, 2002, at the World
Summit on Sustainable Development in Johannesburg, South Africa, the first
problem, which participant-countries were facing to, was pointed out as
following: «We recognize, that poverty extermination, modification of
consumption and producing models, as well as protection and rational
utilization of natural resources in the interest of social and economic
development are the most important aims and basic needs of sustainable
development». And further among the problems, the countries of the world
166 KULSINA KACHKYNBAEVA

community were facing to, it was marked that: «It is doing damage to the
global environment so far. Loss of biodiversity and exhaustion of fish
resources are in process of continuing, desertification are embracing more
and more fertile lands, fatal consequences of climate change are quite
obvious, natural disasters are becoming more and more frequent and more
destructive, developing countries are becoming more and more vulnerable,
and pollution of air, water and sea environment is stripping millions of
people of a worthy life».
As it has been underlined above, the level of a material life,
and, finally, of mental culture of people are in direct dependence on quantity
of the energy, available at their disposal, so far as the quantity of energy,
which people can get only from environment resources, will depend on, as
far as the environment is favorable and rich in energy sources. Hence,
dependence and interrelation between quantity of energy which people can
get to satisfy their all growing needs, and well-being of environment,
surrounding people, are quite direct.
Therefore people, being concerned about searching for more
powerful, more effective energy sources must always remember, how their
utilization will be reflected on environment and themselves, because they are
part of the environment. They should take care of that that this reflection has
positive character, but by no means negative one, causing damage to the
environment and therefore to them.
In the environment, surrounding people (environment for
living and industrial activity of people), as a rule, the following basic
components are pointed out:
iair environment (atmosphere);
iwater environment (hydrosphere);
ifauna (human being, domestic and wild animals, including fishes
and birds);
iflora (cultural and wild plants, including growing in water);
iground (vegetative layer);
ibowels (top part of the earth's crust within the limits of which
mining operations are possible);
iclimatic and acoustic environment.

Not long ago it was considered that the most vulnerable

components, without which the human being could not live and which were
damaged greatly due to people’s activity, connected with industry
development and urbanization, were air environment (atmosphere) and
hydrosphere. But today, together with development of new technologies and
constantly growing demands to satisfy people’s needs in energy,
RENEWABLE ENERGY 167

considerable damage is causing to all spheres of environment. For example,

burnt fuel (fire wood, coal, black oil, gasoline, etc.) evolves huge quantity of
persistent organic pollutants into the air environment, which with
precipitations and wind are distributed to extensive territories, polluting
ground, water, flora and fauna.
How to mitigate the impact on the environment,
surrounding people, and whenever possible to make the utilization of
energy sources safe – this idea must be in our mind every minute and
correct our activity when we aspire to satisfy our needs in energy.
The world history of energy was developed unfortunately in
such a way that people, after having exhausted wood stocks, discovered
more high-calorie kinds of fuel as coal, oil and natural gas, and staked on
them. In other words they staked on fuel reserves in the interior of the Earth.
But, on the one hand, the reserves of oil, gas, coal are not at all endless. To
compose all these reserves, nature has needed millions of years, but they will
be utilized within hundreds of years. At a modern level of energy resources
consumption, oil will last 50 years, natural gas – 73 years, coal – 170 years,
brown coal – 500 years. Today people in the world have begun to think more
seriously about how to prevent injurious plunder of the Earth riches. We
know that the reserves of fuel will last for many centuries if only people act
in such a way.
But ecologists are uneasy not because of the reserves of fuel,
though it is also of great importance, but because of mining and incineration
of them are causing colossal damage to the environment. Vast territories
quite suitable for agriculture are becoming unfit for usage at a long date. In
spite of the fact that methods of fuel incineration have become much more
complex and perfect, the increasing demands to environment protection
demand new ways of looking at energy.
The Central Asia countries, including Kyrgyzstan, are among
those countries, which actively use mineral fuel for power supply. It is
paradoxical, but, fortunately, in the Central Asian region there is no much
forest, so that it is not substantial recourse of energy. For example, in
Kyrgyzstan only about 4 percent of the territory is covered with woods.
About the same situation is in other countries of CA. In their arsenal there
are coal, oil and natural gas. Hence, the Central Asia region is experiencing
great impact on the environment from products of organic fuel incineration.
But, being the developing countries, they cannot spend enough money for
working out and application of more perfect, less harmful methods of fuel
incineration.
Let's give one simple example. In Kyrgyzstan there is no
enough high-calorific coal, and the need in it is great. But there are sufficient
deposits of low-calorie coal, which produced much ash after incineration.
168 KULSINA KACHKYNBAEVA

Furnaces, which are used for incineration, are out-of-date design and do not
allow to apply more perfect methods. There are special furnaces designed for
low-calorie coal, which allow reduction of emissions in the atmosphere and
quantity of ashes. They are being produced at one plant not far from Moscow
in Russia. But the Kyrgyz Government has no money to buy them and install
instead of the old furnaces in all public establishments of Kyrgyzstan.
Therefore they will probably shed harmful substances into atmosphere and
pollute land with ashes for a long time.
The second most popular energy source in the Central Asia
countries is waterpower. Kyrgyzstan and Tajikistan are among the first ten
countries of the world concerning waterpower resources. In these countries
the hydro-power engineering, especially big one, has developed greatly in
the ‘70s and in the first part of the ‘80s the last century. The Government of
the Soviet Union (these two Republics formed part of the SU) was concerned
about how to supply with energy the region and the whole country, but
thought very little about ecological consequences of huge transformations in
that region. Thousand and thousand hectares of the fertile lands had been
flooded under water basins. The climate in the big areas around the hydro-
power stations had changed because new big water reservoirs had been built.
Many animals and birds had migrated, the biodiversity had been reduced.
Along the whole extent of high-voltage network’s lines there was steady
electric field which made pernicious impact on the whole alive nature.
In the world up to the midst of the ‘80s years of the last
century the atomic engineering was developing dynamically. And it was
considered that it would become the basic alternative to the energy produced
by organic fuel incineration. This process actively affected the Central Asia
countries, especially Kyrgyzstan. Kyrgyzstan is rich in uranium ores. They
began to be extracted and processed into fuel for Soviet atomic power
stations, military-industrial complex and space industry’s needs, but uranium
wastes were stored in tailing dumps on the territory of Kyrgyzstan. Today in
different parts of the country there are tens and tens tailing dumps with
uranium wastes, which are representing enormous threat to the environment
not only in Kyrgyzstan, but also in the whole Fergana valley and far more
then the valley. The tailing dumps management, re-vegetation are needed in
much sum of money, but the country does not have it.
According to the premises it is obvious that the most
popular energy sources, which are the most popular in the Central Asia
countries, prove to be not in big friendship with environment protection.
How should the situation be changed? How should constantly
growing needs in energy be adjusted with environment protection concern?
RENEWABLE ENERGY 169

How can we minimize the negative impact of producing and utilization of

energy for people’s needs on the environment?
The progressive mankind has found the answer to these
questions in utilization of renewable sources of energy (RSE). They are:
a. solar energy;
b. wind power;
c. energy of the small springs and currents;
d. geothermal energy;
e. biomass (household, agricultural wastes, wastes of live-stock
breeding, poultry farming, wood, wood processing industry, etc.);
f. low-potential heat (diffused heat of air, ocean water, seas and
reservoirs).

All variety of RSE is produced from three global kinds of

sources: sun, heat of the Earth and energy of orbital movement of planets.
The sunlight capacity surpasses all others sources of more than 1000 times.
It is known, that practically all kinds of RES but deep
geothermal energy and biomass, alongside with obvious advantages, have
essential lacks: low specific potential (dispersed) and the irregularity of
receipt which depend on climatic conditions, daily and season cycles.
Therefore to utilize them effectively it is necessary to solve a number of
engineering tasks on creation of economical and reliable equipments and
systems which can take in, concentrate and transform these kinds of energy
into thermal, mechanical and electric energy adequate to the consumer’s
needs.
But in this case we are interested not in the technical issues of
the question though it is also of great importance, but in the ecological
issues. The basic advantages of the RES are inexhaustibility and ecological
cleanliness. Their utilization does not change power balance of the planet, it
considerably reduces pollution of atmospheric air, ground and water basins,
essentially softens impact on animate nature. These very qualities have
served as the reason of rapid evolution of renewable energy in the developed
countries and are drawing increasing attention of developing states.
Let's consider in short ecological advantages of some RES,
which are relevant to people living in the Central Asia countries.
Solar energy. The potential opportunities of the power
engineering, based on utilization of sunlight, are extremely great. It must be
noted that if we use only 0, 0125 % of the quantity of solar energy we can
satisfy all modern needs in energy of all people in the world, and if people
use only 0,5 % of it they can satisfy their needs in energy for the perspective
future.
170 KULSINA KACHKYNBAEVA

Unfortunately, we doubt whether we can manage to realize

these great potential resources in a big scale. One of the most serious
obstacles of such realization is, as it is already marked above, low intensity
of sunlight.
The leading countries to use solar energy are Japan, the USA,
Switzerland, Germany and Israel.
Today among the main ecological advantages of solar energy
utilization there are:
- utilization of solar energy considerably saves other traditional
kinds of energy resources (organic fuel), which are used for
heating buildings, houses, etc. and supplying with hot water
economic needs;
- opportunity of independent power supply, which is especially
important for places of incompact residing of the population, for
example in mountain areas when the solar energy, transformed
into electric energy, does not require in electric line system for
long distances not doing damage to landscape and biodiversity;
- solar installations practically do not need operating costs, are out
of fix and demand expenses only for construction and
maintenance in cleanliness, they can operate extremely
indefinitely, hence, it is possible to get economy of other natural
resources, which are necessary to produce energy.

The deficiency in utilizing solar energy today, negatively

reflecting on environment protection, so far is that that solar energy belongs
to the most raw material intensive industry, hence it requires much
aluminium, for example. Large-scale utilization of solar energy will lead to
great use of raw materials, and, therefore manpower for mining raw
materials, enriching, getting necessary materials, constructing heliostats,
collectors, other equipment, their transportation.
Wind energy. There is a large amount of moving air. Reserves
of wind power are more than a hundred times exceed reserves of water
power of all rivers on our planet. Why so plentiful, accessible and
ecologically clean source of energy is utilized so little? Today the engines
using wind power cover only one thousand global needs in energy.
In the countries, where there are natural steady winds, the
target of utilizing wind energy has become different. It is for producing
electric power, and it has developed greatly as, for instance, in the
Scandinavian countries and some other countries of the continental Europe.
In the Central Asia countries this source of energy is used
comparatively very little. For example, in Kyrgyzstan in the places where
wind potential is 10-12 m/sɟc, there is no consumer. It is in high-
RENEWABLE ENERGY 171

mountainous passes, canyons and very remote places. Utilization of wind

energy in such conditions is economically and socially unprofitable. But
where there is a consumer, the speed of wind does not exceed 3-5 m/sɟc. To
use it, is also unprofitable from economic point of view.
The main ecological advantage of wind energy is that it is a
non-polluting energy source, which is transformed into either mechanical or
electric power. In some cases its mechanical power can be used to save
electric power. For example, we can utilize a simple wind wheel with blades
to get water from rivers and other relevant water reservoir for irrigation
instead of using electric pump.
But there are some ecological interdictions in utilizing energy
of wind. Wind installations, especially big ones and if they are many in one
and the same place, make significant noise. The acoustic environment, as it
has been marked above, is one of the components of environment,
surrounding the people. Excessive noise is the considerable factor, which
negatively affects human people and animals’ health. The experiments have
proved the fact that increased noise adversely affects even the plants. It is
known, that in radius up to ten kilometers from wind turbines biodiversity
gradually disappeared. And people felt bad living near to wind turbines.
Noise and vibration of air disturbed people when they worked, rested, slept.
Scientists are working hard on designing new wind turbines
which can considerably reduce noise but how to get rid of vibration of air
streams – that is a problem.
Energy of small rivers and water-currents. For mountain areas
power of small rivers and water-currents are the most accessible and
effective energy sources. Taking into account that mountains occupy one
fifth of the land, one can assert that it is potentially accessible and effective
energy source for great number of people living on the Earth and that means
for those who do not utilize much energy resource because they live far from
centralized systems of power supply. They need energy mainly for
household demands and manufacture. They are shepherds, geologists,
beekeepers, farmers, workers of forest reserves, etc.
Ecological cleanliness of this energy source is blameless.
Practically there is no ecological interdiction for its utilization. Utilization of
small water-currents energy transformed into electric power with capacity 1,
5, 16, 22 kilowatts allows to reduce cutting down of woods and utilization of
wood as fuel, to mechanize significant part of economic works at farms, to
develop family life culture in the remote mountain areas.
In Kyrgyzstan, for example, small-lot production of micro-
hydroelectric power stations with the capacity of 1, 5, 16 kw has been
arranged. A micro-hydroelectric power station is a small portable flexible-
hose equipment for energy supply of seasonal consumers and cattle breeders.
172 KULSINA KACHKYNBAEVA

Stationary micro-hydroelectric power stations and small hydroelectric power

stations are also utilized.
Biomass energy. Special ecological value is represented with
utilization of energy of biomass. One can dedicate odes to biomass as energy
resource. Biomass is organic wastes of animal industry, agriculture,
household, wood industry, etc.
Marsh-gas extracted from biomass according to well known
technologies is an excellent, non-polluting fuel, which is used:
- first, to get thermal energy that is used for heating premises,
houses, preparing food, heating hot water, etc;
- second, to transform and produce electric power;
- thirdly, to use as fuel for cars and other automobiles that allows
significantly to reduce persistent organic pollutions into the
atmospheric air in comparison with utilization of oil products.

But the utilization of biomass for producing energy has not

only direct ecological power effect. This is only one advantage of biomass
ecological value.
People can get highly effective organic, non-polluting
fertilizer – methanoic fluent. It is the result of cattle-breeding, poultry-
farming and other similar agriculture waste products and effluents of city
water drains fermentation and gathering marsh-gas. The fertilizer is used
according to very simple technology - together with irrigation. It essentially
raises productivity of agricultural crops, improves land structure. Hence, we
can reduce fuel utilization by tractors, machines, etc. to process fields and
applying other fertilizers.
With reference to the Central Asia countries biomass can be
used as an energy source almost everywhere, both in cities and in
countryside, including the remote mountain areas. For example, in
Kyrgyzstan, there are several experimental biogas reactors: small ones for
two-three houses, a bit bigger ones for one street in a village and one
comparatively big one at a pig farm. They are successfully approved.
Information and educational activity were done among villagers. This
initiative has very good prospects. Some projects on using biomass as energy
source are under consideration.
As for the geothermal energy it should be noted that there
are many places in the Central Asia countries with geothermal resources.
The geothermal energy mainly is used in the form of geothermal water. In
many places with geothermal water health resorts and sanatoriums were
built. These health resorts and sanatoriums, as well as local people who live
there, are using geothermal water as medical treatment to restore health. But
it is also used to heat premises, houses, as hot water for household needs.
RENEWABLE ENERGY 173

They say that it is one of the wonderful presents of the God.

Concerning utilization of low-potential heat (diffused heat of
air, ocean water, seas and reservoirs) it is obvious that for developing
countries of Central Asia it will be rather distant future. As for the scientific
investigations this theme can be developed, but as for practical realization it
is a dream so far.
In conclusion it should be underlined that there are very
optimistic prognoses concerning the utilization of renewable energy
resources in the Central Asia as well as in the other parts of the world. It
is promoting the solving of three global problems mankind is facing
today – energy safety, environment protection and food safety.
Chapter 16

TO THE PROBLEM OF PRODUCTION AND

USING OF BIOFUEL IN CONDITIONS OF
UZBEKISTAN

O.V. Lebedev, R.K. Musurmanov, K.A. Sharipov, A.S. Azizov

Academy of Sciences of the Republic of Uzbekistan

For last hundred years not times were expressed opinion on

production opportunity of fuel on the basis of reprocessing biological
materials. During the years repeatedly came back to this problem. Various
periods experts give their conclusion on exhaustion of natural stocks of
liquid hydrocarbons. Within the last several decades use of ethanol and
vegetable oils was propagandized as fuel for engines of internal combustion.
However, attempts of production of stocks of soil that reduced the value of
such experiments.
It is obviously that, on account of energy and fuel, produced
from biomass it is impossible to satisfy completely energy needs of the
advanced industrial countries, however even that small share of energy
(about 6-15%) which can be covered on accound of biomass is worthy for
attention. Various kinds of biomass in all regions are practically available,
and almost in each of them it is possible to produce energy and fuel from
biomass.
It is solved energy and ecological problems at application
biofuel on the basis of bioethanol as motor fuel.
Ethanol possesses a number of positive qualities: it is not
toxic, manufactured its production, some qualitative characteristics of
ethanol are higher than other kinds of liquid motor fuel.
It is pointed by foreign scientists, who engaged in fuel
saturated with oxygen, spirit can mix up or turn into emulsion (also with
diesel fuel) with high quality of ignition. Pure ethanol completely mixs up

175

A. Iacomelli (ed.), Renewable Energies for Central Asia Countries:

Economic, Environmental and Social Impacts, 175–182.
© 2005 Springer. Printed in the Netherlands.
176 O.V. LEBEDEV, R.K. MUSURMANOV, K.A. SHARIPOV, A.S. AZIZOV

with diesel fuel at the certain temperature. In conditions of low temperature

or when the water content exceeds the determined level by us miscibility is
limited.
Methanol, even when it is dry, not completely mixs up with
diesel fuel and can be corrosive.
Global manufacture of ethanol as fuel was doubled in 1996
and can be doubled again by 2010. For last years consumption of has
essentially increased, but in comparing with oil it still remains low. The
greatest manufacture and use of ethanol belongs to the USA and Brazil –
where volumes of use are many times higher than in any other country. But
even in the USA ethanol represents less than 2% of transport fuel (while in
Brazil ethanol makes approximately 30% of for gasoline).
The increase in use of biofuel solitarily influences ecology
and hotbed effect, reduces issue of.
As fuel ethanol produces from grain (in the USA and Europe),
waste products of sugar production (Europe), from sugarcane, from biomass
of waste products of animal industry and fruit-and-vegetable growing ( the
countries of the European Community).
Biofuel is less poisons than usual fuel of an oil origin, but it
can sometimes result in issue of aldehyde from use of ethanol. Ethanol can
be used as additive to increas octan number of gasoline. In some countries of
Europe before to be mixed with gasoline is transformed to tertiary bulyl-
ethyl ether.
Biofuel can be easier in the commercialization process than
other alternative fuel. Therefore its use increases in today’s vehicles, with
the purpose of decreasing of global consumption of oil by 10%. For this
purpose, for example. In the USA the subsidy is entered at a rate of 0,14$ per
liter to support production and sale of ethanol obtained from grain. Also the
marked of biofuel in Canada is supported.
Biofuel represents fuel ethanol, biogas or hydrogen, which
produces from consecutive circuit of production, transportation to the
pumfying plant, transformation into final fuel and transportation to the filling
station.
In 2004 in the USA produced more than 10 billion litres (2,6
billion gallons) fuel ethanol. All gasoline sold in Brazil, contains 22-26% of
ethanol.
Development or world production of ethanol for the period
1975-2004 is shown in the following figure:
TO THE PROBLEM OF PRODUCTION AND USING OF BIOFUEL 177

30000

25000

20000
Million liter

15000

10000

5000

0
1975 1980 1985 1990 1995 year 2005

Figure 1. World production of ethanol.

High solar radiation conditions in Uzbekistan and good

productivity promotes to produce high crops of fruit-and-vegetables at low
expenses. Therefore, from the waste products of these products (tomatoes,
apples, grapes, etc) it is possible to produce cheap fuel ethanol.
Ethanol can be formed of any biological raw material for the
industry which contains considerable amounts of sugar or materials capable
to be transformed to sugar, such as starch or cellulose.
The fermentation is transformed sugar with six atoms of
carbon (mainly glucose) into ethanol. With this purpose, millions dollars are
spending for researches on improvement et fermentation processes of
hydrolysis. From a ton of sugarcane waste it is possible to produce 360-470
litre of ethanol and 346-385 litres from grain. (Wang, Levy, Marland,
Levington).
The American Energy Ministry has more than 100 million
dollars from the budget under program FY 2003 on processing biomass into
fuel.
In Canada scientific researches on ethanol are successfully
carried out according to the program of technologies of renewed energy
sources. (RETP)
One litre of ethanol equivalent to gasoline is equal on energy
of oil of 0,85-0,88 litres: Achievement in the field of production and use of
biofuel in the world are coordinated by the international Energy Association
178 O.V. LEBEDEV, R.K. MUSURMANOV, K.A. SHARIPOV, A.S. AZIZOV

(IEA), including the USA, Canada, twenty European countries, Japan, South
Korea, Australia and New Zealand.
Production costs of ethanol from sugarcane in Brazil are
much lower than manufacture of ethanol from grain in other countries.
Mixes of ethanol of the low percentage, for example, marks
E-10 (10% ethanol mixed with traditional fuel) are available on sale in many
countries of the organization of economic cooperation and development. So,
45% of fuel in France, 7% of fuel in Germany, 20% of fuel in the USA
represent additives of ethanol in diesel fuel or gasoline (biofuel). This fuel is
more favorable for a climate than oil fuel, have lower issue CO2 and other
gases creating hotbed effect. Biofuel can be used in system of a diesel engine
as 5%, 10% or 20% a mix of ethanol with diesel fuel.
In agriculture of the Republic of Uzbekistan it is possible to
count a prime source of production of fuel ethanol from waste products of
food manufacture.
Being large branch of production of goods, the food-
processing industry processes a significant amount of grapes, fruits,
vegetables, sugar beet, grain and other agricultural raw material which
predetermines the further development of reprocessing branch.
By preliminary calculations at processing agricultural
products on canning and wineries in Republic is accumulated more than 300-
350 thousand tons of waste products. By additional reprocessing these waste
products, in the incorporated devices, offered by authors, it is possible to
produce 20-25 thousand tons biofuel or additives to traditional fuel can be
solution of power and ecological problems of the Republic.
The basis stage in production of bioethanol is the process of
fermentation, in which, productivity of bioethanol completely depends on
this process.
The process of fermentation depends on following factors:
temperature, concentration of carbohydrates, time, pH of media, existence of
oxygen, complex of yeast bacteria. Controlling the pH of the media plays an
important role in production of bioethanol.
For decrease pH of biomass, which contains carbohydrates it
is offered to add the waste of tomato reprocessing production.
Produced raw bioethanol is dehydrated with the help of new
technology-evaporation through membranes, mixtures, such as, high spirits
(fusel oils), methyl spirit and complex ethers remain in structure of
bioethanol. There fore, bioethanol received such way cannot be used for the
food purposes.
The analysis of spirit was carried out for analysing of
micropurity and results are given in the table 1: acetealdehyde, ethers,
TO THE PROBLEM OF PRODUCTION AND USING OF BIOFUEL 179

methyl spirit and sum of high spirits in correspondence with GOST-5962

“Ethyl spirit food, rectified with extra purifying”, “Extra”, and “Lux”.

Table 1. Micropurity content of bioethanol

Compound A unit of measurements Content

Acetealdehyde mg/l 373,6
Total ethers mg/l 66,3
Methanol % total 0,22
Total high spirits mg/l 396,9

Solutions of diesel fuel with bioethanol (ethyl spirit) are

investigated in various concentrations: 1%, 2%, 3%, 4%, 5%, 6%, 7%, 8%,
9%, 10%.
Researches are carried out in laboratories of FCI I
«UZLITINEFTGAZ».
Diesel fuel with bioethanol forms emulsion, which with rising
of temperature is stratified, and then forms true solutions. The output of
water in a mix changed depending on concentration of bio ethanol in diesel
fuel: from traces up to the 1%.
Results of research are showed in a graphical form:
1% - m ixture 4% - m ixture 5% - m ixture
8% - m ixture 10% - m ixture

120

100

80
Ɍ, ɋ 0

60

40

20
0 5 10 15 20 25 30 35 40 45 50 55
t, s e c

Figure 2. Dependence of temperature of miscibility on line.

180 O.V. LEBEDEV, R.K. MUSURMANOV, K.A. SHARIPOV, A.S. AZIZOV

Results of research of these mixes in a graphic form are

submitted in figure 3. As shown in figure 3 density and viscosity of solutions
of mixes decreases with increase in temperature.

Figure 3. Dependences of temperature of miscibility T, density ȡ and viscosity ȣ from

various concentrations of bioethanol.

However, it is necessary to remember that increasing of

amount of bioethanol in diesel fuel results in increase of water content (on
GOST requirement presence of water is in admissible) as it renders corrosive
attacks on metal.
In connection with arisen problems, speed of corrosion of
metal with 4% and 8% solutions of spirit in diesel fuel investigated, tests for
speed of corrosion of diesel fuel for steel CT-20 also carried out.
As researches showed, speed of corrosion of steel in pure
diesel fuel was equal to 0,070 g/m2·hour, with 4% solutions of spirit in
diesel fuel – 0,084 g/m2·hour, with 8% solution – 0,091 g/m2·hour. Speed of
TO THE PROBLEM OF PRODUCTION AND USING OF BIOFUE 181

corrosia in diesel fuel was equal to 0,064 mm/year, in mixture – 0,079

mm/year.

Table 2. the comparative characteristic standard of diesel fuel with a mix “diesel fuel :
bioethanol”

Diesel fuel:
Diesel fuel
Parameters On STATE THAT Bioethanol
(analyzed)
of 8 %
1. The maintenance{contents} of Absent Absent Traces
water, %
2. The density, kg / m ³ at 20 °ɋ Is not normalized 811 810
3. Viscosity, ɫɋɬ at 1,8 – 3,2 2,9 3,0
20, °ɋ
4. Temperature of flash in open cup - 64 53
5. Acidity of mg ɄɈɇ on 100 m ɥ No more 2,1 0, 403
fuel 5
The fractional structure is overtaken
at Ɍ°ɋ
Not above 250 250 255
50% 340 340 340
96% 95%
7. Speed of corrosion - 0,07 0,091
Steel ɋɌ of-20 ɝ/mm ² * hour

Tests of diesel engine Ⱦ-21 for fuel mix “diesel fuel:

bioethanol” were carried out according to the method which we are
described. From operational parameters of diesel engine Ⱦ-21 in figure 4
change of capacity from concentration of bioethanol in mixture of “diesel
fuel : bioethanol”.
182 O.V. LEBEDEV, R.K. MUSURMANOV, K.A. SHARIPOV, A.S. AZIZOV

20
N, kVt

15

10

0
900 1050 1200 1350 1500 1650 1800
-1
n, min

- diesel fuel, - 4 %- mix, - 8%- mix

- 10%- mix

Figure 4. Dependences of power from revolving frequency at various mixtures of

bioethanol.

As shown in the schedule with increasing of concentration of

bioethanol capacity decreases. But, bioethanol has very high latent heat of
evaporation (1100 kDj/kg) in comparison with diesel fuel (210 kDj/kg).
With a view of wide use of biofuel it is necessary to stimulate
manufactures in Uzbekistan giving them state grant.
Besides, it is necessary to begin sale of automobiles designed
exclusively on biofuel and prices for them must artificially reduce