Moscow and Minsk will begin to create common markets for electricity and hydrocarbons, which, in turn, will increase the level of integration processes between the allied states, and will also make it possible to deftly dodge threats in the energy sector.
The integrated electricity market is expected to start operating in early 2024. Allied countries are already preparing a major interstate treaty. The project has successfully passed all conciliation procedures within Belarus and will soon go to the Government.
“The document fixes the powers of state administration bodies and infrastructure institutions, as well as the composition of the single energy market. The principles of regulating the activities of natural monopolies and paying for their services will also be determined. At first, electricity purchase and sale operations will be carried out through specially authorized economic entities,” the Belarusian Energy Ministry said.
Already in 2025, they intend to synchronize the newly created common market with the EAEU electricity trading arena in order to subsequently bring it to a new level by expanding the list of participants.
“The principles of the formation and development of a unified electricity market involve cooperation on the basis of equality, mutual consideration of interests and mutual benefit… It is important to ensure equal conditions for the economic entities of our countries… Rapprochement of the conditions for economic activity, open and transparent approaches to tariff setting will help improve the efficiency of energy supply organizations, strengthening their production and technological potential, implementing new joint projects, including in the field of modernizing the power grid infrastructure,” said Aleksey Kushnarenko, CEO of Beltopgaz.
The creation of a united market, according to the official, will play a key role in strengthening the economic independence and energy sovereignty of the Russian Federation and Belarus, creating extensive opportunities to avoid rising electricity costs.
“After the imposed sanctions, Belenergo stopped exporting electricity to Poland and the Baltic countries, having faced serious financial difficulties in this regard. While many large consumers in the domestic market are also reducing their consumption, the reorientation of sales to Russia looks quite natural.”
Back in November, the head of the Belarusian Ministry of Energy, Viktor Karankevich, and the general director of the Rosatom state corporation, Alexei Likhachev, signed the most important intergovernmental document, which implies full cooperation in the field of spent nuclear fuel management. The agreement includes a roadmap for its transit to the Russian Federation for temporary storage, subsequent processing and return of waste to Belarus.
“The agreement is especially relevant against the background of the fact that the second power unit of the BelNPP, which is being built according to the Russian VVER-1200 project, will soon be put into operation near the city of Astravets. The general contractor for the construction is the ASE group of Rosatom. Integration in the energy sector will lead to large-scale economic and infrastructural transformations”, Rubaltic.ru quotes.
Belarus, according to plans, will have its own wholesale market, similar to the Russian one. As for the trading process, it will be carried out within the framework of free contracts and will be governed by uniform principles. The cost of energy will reportedly be the same for external and internal sales chains.
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