The Belarusian electricity sector is dominated by gas generation, making up over 98% of annual output. Renewable energy sources have only recently come into play. The country also serves an important role in transmitting electricity to other European countries, especially in the Balkans: over 7% of the electricity generated in the country is exported to other European countries. The country itself is highly reliant on Russian gas and oil to meet its primary energy consumption. It plans to reduce this reliance through energy efficiency measures and building new capacity, including a 2.4GW nuclear plant.

Electricity generation continues to be dominated by state-owned Belenergo, which effectively owns and operates the whole of Belarus’s market. This remains the case despite the fact that private companies have been able to build, own, and generate from their own facilities since 2012, either consuming their own generation in-house or selling directly to Belenergo.

Natural gas accounts for 98% of domestic generation capacity. As much of this gas is imported from Russia, diversifying the electricity mix is a key part of Belarusian energy security strategy. The government is currently constructing the nation’s first nuclear power plant, which would add 2.4GW of capacity, expected to be commissioned in a phased way between 2018 and 2020 (two reactors). Renewable energy is also a target, and Belarus has a goal to reach 6% generation from renewable energy sources by 2035 (compared to 0.41% in 2013). To support development, private sector developers are eligible for feed-in tariffs to support a wide range of renewable energy sources.

In 2015 the Council of Ministers introduced annual capacity addition limits for renewable energy in a sign that the government is more focused on its large commitments in the nuclear sector. Current quotas allow 56MW to be added annually split in 33MW for small hydro, 13MW for biomass, 5MW of solar PV, 2.7MW for biogas and 2.5MW for onshore wind.

Access to finance, red tape and high costs also continue to hold back Belarus’s renewable energy market, however there are EU programmes in place which seek to reduce these hurdles. In 2012, the European Bank for Reconstruction and Development (EBRD) established a dedicated credit line of $50m, called the Belarus Sustainable Energy Finance Facility (BelSEFF). The mechanism is designed for local partner banks to finance private and public Belarusian companies in eligible sectors, investing in renewable and energy efficiency projects. By early 2016, the EBRD had supported 47 projects worth $17.2m across the country. The United Nation Development Programme and the Global Energy Fund also launched an initiative to take a 25MW onshore wind project through all the required regulatory approval and tariff setting before handing it over to a developer in an attempt to jump start activity in the sector.

Belarus is facing concerns of a supply shortage in electricity due both to rising demand and historical underinvestment in supply. In the 3rd Edition of the Concept of Energy Security published in December 2015, Belarus lays out targets to see energy intensity fall 37% from 2010 levels by 2035. Energy efficiency is one means by which Belarus hopes to address its electricity shortages. Reducing overall energy demand is also expected to help reduce dependence on Russian imports: Belarus has adopted a target to import only 70% of primary energy consumption by 2035, down from 85% today.

On 25 September, 2015, the Government of Republic of Belarus submitted its Intended Nationally Determined Contribution (INDC) to the United Nations, committing to unconditionally reduce its emissions by 28% from 1990 levels by 2030. The country introduced a number of domestic legislation setting targets and regulation aimed at ensuring that it can meet its international commitments.

Score summary

Belarus scored 0.78 on Climatescope 2017 – its first year in the project – earning it 58th place among the 71 nations assessed worldwide. The country’s power sector is controlled by a state-owned monopoly and its subsidiaries, although private entities are allowed to operate. Its best performance, by a wide margin, was on Greenhouse Gas Management Activities Parameter IV.

On Enabling Framework Parameter I, Belarus scored 0.82 and was ranked 58th. This reflected a number of weaknesses, including the absence of a clean energy target, power auctions and net metering, and the continued state ownership of the large majority of the power sector. On the other hand, the presence of feed-in tariffs and tax incentives was supportive.

Belarus performed poorly on Clean Energy Investment and Climate Financing Parameter II, taking 66th place. The lack of local investment as well as loan and grant programmes was a downward factor. However, the $27m invested in solar projects in 2016, part of the $267m clean energy total since 2012, gave the score some support.

On Low-Carbon Business & Clean Energy Value Chains Parameter III, the country also performed poorly taking 61st position. This was a consequence of the absence of service providers and the low number of clean energy businesses active in the country.

In contrast, Belarus excelled on Greenhouse Gas Management Activities Parameter IV with a score of 1.85 that put in 8th place globally. This reflects its commitment to unconditionally reduce its greenhouse gases emissions by 28% below its 1990 level by 2030, and the introduction of domestic legislation in support of this goal.