Country Reports on Energyener2i Country Reports

INNOVER-EAST National StudiesMs Zsuzsanna Angyal (ener2i) - Regional Centre for Information and Scientific Development

Ms Renata Anna Jaksa (INNOVER-EAST)- ICEG European Center

EU-Eastern Partnership STI Cooperation in Addressing Energy

Policy Stakeholders Conference in Minsk, 12 - 13 October 2015

R2I Cluster –between research and innovation in

Eastern Partnership Countries• IncoNet EaP- STI International Cooperation Network for Eastern Partnership

Countries

• NoGAP - Knowledge Transfer Community to bridge the gap between research, innovation and business creation

• RERAM - Bridging Gaps in Research 2 Innovation in Resource Efficiency and Raw Materials

• SECURE- R2I - Reinforcing cooperation with Eastern Partnership countries on bridging the gap between research and innovation for inclusive and secure societies

• SUAFRI-EPC - Supporting the Uptake of Agri-Food Research Results into Innovation with EPC countries

• INNOVER-EAST

• ener2i - Energy to Innovation - Reinforcing cooperation with ENP countries on bridging the gap between energy research and energy innovation

EaP countries involved to the projects

ener2i

• Armenia

• Belarus

• Georgia

• Moldova

INNOVER-EAST

• Armenia

• Azerbaijan

• Belarus

• Georgia

• Ukraine

Thematic focus

ener2i

• Analysis on the local energy sector and the potential in energy efficiency and renewableenergy sources

• Identification of opportunities and barriers

• Identification of relevant stakeholders

INNOVER-EAST

• Focusing on energy efficiencyand innovation

• Presenting the socio-economicframework

• Analysing both the supply and the demand side of R&D&I in EE

Methodology used

ener2i

• based on a commonmethodology

• desk research

• interviews, expert workshops(in all partner countries, first draft versions were used for discussions with the stakeholders)

INNOVER-EAST

• based on a commonmethodology

• desk research

• interviews + online surveys

• Validation workshops beforefinalising the national studies

Current Status

ener2i

• Country reports are finalized, cross-country comparison is in pre-final stage

• Structure of the comparison:• General overview of energy situation in

the EaP countries

• Current EE / RES situation

• Innovation situation

• Cross-Country Comparison Analysis

• Reports and Cross-Country Analysiswill be updated by Spring 2016

• Policy recommendations and Roadmap will be drafted

INNOVER-EAST

• Validation Workshops conducted

• National Studies finalised (except forAZ)

• In-house Moldova report prepared

• Database of stakeholders

• Database of key data series

• Synthesis report under preparation

• Policy aspects: next steps

Socio-economic backgroundof the target countries

• Different economies with different conditions facing the same global economy

• Diversification of the economies, role of the various sectors (agr., manufact., low and high valueadded), outsourcing)

• Internationalisation

Real GDP growth, %:

Source: World Bank Development Indicators

-20,00%

-10,00%

0,00%

10,00%

20,00%

30,00%

40,00%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Armenia

Azerbaijan

Belarus

Georgia

Moldova

Ukraine

0 20 40 60

AR

AZ

BEL

GE

MD

UKR

GINI index, 2013

Energy Supply 1.

Total Primary Energy Supply is made up of

a) indigenous productionb) importsc) exports

- Regional Overview- Ukraine has the greatest TPES among EaP countries (four timesbigger than the second biggestBelarus) in terms of the absolutevalue of their TPES iit is difficult tocompare to other EaP countries

- AM, MD and GE: almost the samesize of TPES

Source: International Energy Agency(2012)

2971 3276 3706

13692

30499

123000

0

20000

40000

60000

80000

100000

120000

140000

Armenia Moldova Georgia Azerbaijan Belarus Ukraine

kto

e

EaP countries

Total Primary Energy Supply in 2012

Energy Supply 2

Different internal supply of natural resources, different energy policies and solutions and import-dependence. Azerbaijan: internal supply. Alternativesolutions: (Russian) gas, nuclear energy, and renewables.

Energy imports, net (% of energy use)

-500

-450

-400

-350

-300

-250

-200

-150

-100

-50

0

-20

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Armenia Belarus Georgia Moldova Ukraine Europe & Central Asia (developing only) European Union Azerbaijan

62%56,7%

65,9%

44,6%

70%

34,8%

11,9%

35,4%

32,3%

27,1%

23,2%

9,4%

2,5%

3%

3,4%

34,5%

19,4%

19,1%

6,4%1,1%

16,8%

0,7% 0,7%0,3%

5,4%0,7%

8,3%2,7% 1,4%0,3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Armenia Belarus Azerbaijan Georgia Moldova Ukraine

Share of Total Primary Energy Supply in 2012

Natural Gas Oil Coal Nuclear Hydro Biofuels/waste Geothermal/ Solar /Wind

- Natural gas plays a very significantrole in AM, BY, AZ and MD

- GE and UA more nuancedapproach

- Coal in UA is just as important asnatural gas

- Oil is the second most common(except for AM and UA)

- AM and UA: nuclear energyprovides almost 20% of their TPES (NPP is being constructed in BY)

- Renewables are also appear

Source: International Energy Agency(2012)

1,8 2,1 3,4 5,4 6,7

25,4

98,2 97,9 96,6 94,6 93,3

74,6

0

10

20

30

40

50

60

70

80

90

100

Azerbaijan Ukraine Moldova Belarus Armenia Georgia

Tota

l Pri

mar

yEn

ergy

Sup

ply

(TP

ES)

in%

EaP Countries

Renewables Energies Other

Share of renewable energies from the TPES in % (2012)

- Shares are in %

- all the RES areindicated withgreen, all otherswith orange

- in ascendingorder

Source: International Energy Agency(2012)

In 2012 (%):

- biofuels exclusivelyin BY

- biofuels in MD and UA predominantly

- Hydropower: vastmajority in AR and AZ

- GE: most balancedwhere solar/wind/ and geothermalappear

Source: International Energy Agency(2012)

20,6

33,3

61,166,1

95,5100,0

79,4

66,7

38,932,7

4,51,2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Belarus Moldova Ukraine Azerbaijan Georgia Armenia

Shar

e o

f d

iffe

ren

t R

ES (

in %

)

EaP Countries

Share of different RES from the Total RES Supply

Hydro Power Biofuels/Waste Geothermal/Solar/Wind

Energy Efficiency

• Issues of outdated agricult., GDP per unit of energy use (constant 2011 PPP $ per kg of oil equv.)

manufacturing and transport equipment

• Issues of household energy

efficiency (insulation, etc)

• The role of the public sector

as a regulator, as a demonstrator,

as a co-financer and as

a public procurer

• The role of R&D&I: finding the

appropriate local solutions0

2

4

6

8

10

12

14

2008 2009 2010 2011 2012

AR

AZ

BEL

Europe & CA

EU

GEO

MD

UKR

R&D&I

R&D&I expenditures in % of GDP (GERD) and Total R&D personnel /1000 labour force

Source: World Bank Development Indicators, UNESCO, UIS

0

0,5

1

1,5

2

2,5

2007 2008 2009 2010 2011 2012 2013

AR

AZ

BEL

GEO

MD

UKR

Europe & CA

EU

0

1

2

3

4

5

6

7

8

2007 2008 2009 2010 2011 2012

AR

AZ

BEL

MD

UKR

Bottlenecks of innovation -InnoverEast

• Unfinished legal and policy framework in some countries

• Lack of tradition of „Research @ University”, absence of universitystart-ups, spin-offs

• Lack of aggregation for local demand

• Lack of FDI to interact with local technology development

• Incomplete transparency on power business groups

• Unclear role of the public sector on setting the standards and procureinnovation

Bottlenecks of innovation– ener2i

• the ‚supply side’

• The problematic of general findings in the EaP countries

• 3 main groups of bottlenecks: legal, RTDI, financial (based on the ener2i country reports)

• 1.) Legal

• Absence/insufficiency of the legislation related to the development of EE/RES innovations:

esp. Georgia, however improvements BUT: First National Energy Efficiency Action Plan

which will be completed by the end of 2015

• Some legal initiatives in support of RES/EE can be found in various legal documents:

Moldova

• Recommendations and suggestions for legal interventions included in strategic documents

have not been considered or implemented in several cases

Bottlenecks of innovation– ener2i

2.) RTDI

• the lack of intermediary organizations – such as technology transfer centers, business incubators and technoparks aiming to foster cooperation between public RTD and business communities as well as to support knowledge commercialization activities - one of the major bottlenecks of the Armenian innovation system

• Obtaining permits and licenses for RES is still cumbersome, costs are high, requires long lead-time

• Coordination between permit giving authorities needs to be enhanced, transparency should be increased

• Public awareness on EE/RES innovations potential and opportunities is still low insome cases. There are no efficient information campaigns to promote EE/RES

Bottlenecks of innovation– ener2i

3.) Financial issues

• Low level of financial support for R&D in terms of gross expenditures on R&DUA: 0.8%, BY: 0.7%, MD: 0.4% while AM, AZ and GE: 0.2% (in 2015 according toGlobal Innovation Index)

• Absence and/or insufficiency of governmental financial support to research centers/institutions for developing EE/RES innovations

• Funding is problematic, support for private sector (business, SMEs) should be provided

• Access to finance is problematic

but there are good examples also, e.g. in Georgia, where local banks recently started financing EE in newly constructed buildings. Green loans for customers, who are willing to introduce EE/RES technologies in their homes or businesses are also available

Potentials of innovation

• Ongoing developments in scientific capacities and research skills of the R&D&I staff

• Economic and political trends highlight the value of reducing import dependency in energy

• Industrial and economic restructuring is in momentum

• Cooperation among the actors of the EPC countries

• Cooperation with non-EPC countries

• Potential in mobility, migration, knowledge transfer, remittances

Thank you for your attention!

Ms Zsuzsanna Angyal (ener2i) - Regional Centre for Information and Scientific Development, zsuzsanna.angyal@rcisd.eu

Ms Renata Anna Jaksa (INNOVER-EAST)- ICEG European Center, rajaksa@icegec.hu