On the Pyramid of Energy-Technology Cooperation within the Greater Eurasian Energy Space, BRICS+ and the GECF, and on Enhancing Russia's Competitiveness in Foreign Economic Cooperation in Energy
Andrey A. KonoplyanikScientific Council of the Russian Academy of Sciences on Systems Research in Energy
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Abstract
The talk proposes a three-level model (a "pyramid") of energy-technology cooperation between Russia and countries of the Global South within the Greater Eurasian Energy Space, BRICS+ and the Gas Exporting Countries Forum (GECF). The starting premise is that for most of these countries energy poverty means a lack of physical access to energy supply, and that overcoming it depends primarily on electrification.
The lower level of the pyramid consists of large projects: gas pipelines, nuclear power plants and gas-fired power plants. The upper level consists of individual renewable-energy installations, a segment dominated by China. The middle level is decentralised power supply for settlements based on small-scale LNG and micro gas turbine units, with fuel delivered in tank containers by ship and by cargo airship. This level is considered a niche for Russian equipment, in which serial deployment produces economies of scale.
The talk discusses obstacles that the speaker attributes to the level of the key interest rate and the taxation of new production, and possible ways to overcome them: state refinancing of the gap between the cost-plus price of Russian equipment and a price below that of foreign equivalents; non-inflationary project finance in GECF countries secured by the state's future share of production under production sharing agreements; and multilateral investment protection based on a modernised Energy Charter Treaty.
About the speaker
Doctor of Science (Economics), Professor. Member of the Scientific Council for System Research in Energy, Russian Academy of Sciences; Associate Member and Distinguished Fellow of the Institute of Energy for South-East Europe (IENE, Athens); Member of the Academic Board of the China Electricity Council – International Energy Charter Joint Research Center.
Deputy Minister of Fuel and Energy of Russia (1991–1993), head of the Russian delegation at the Energy Charter Treaty negotiations; Deputy Secretary General of the Energy Charter Secretariat, Brussels (2002–2008); Professor at the Chair of International Oil and Gas Business, Gubkin Russian State University of Oil and Gas (2008–2020); Adviser to the Director General of Gazprom export LLC (2013–2023).