Energy balance is an indispensable tool for implementing of energy policies. It has to contain the minimum required detailed information at the national level (all forms of primary and final energy, data on transformation, sector consumers) for adjudging government decisions.
It is worth to emphasize that the energy balance simplifies understanding and communication between all government agencies and the private sector. It also promotes dialogue with international organizations and is the basis for forecasting.
Maintenance of energy balance is considered to be the issue of national standing, as is evidenced by a number of legal acts, including Concept of Energy Balance (of 28 November 2007 р. № 1058-p) and the Action Plan for implementation of the Concept of Energy Balance ( of 30 October 2008 р. №1376-p) approved by the decrees of the Cabinet of Ministers of Ukraine.
The task for forming real and forecast energy balance is defined by the Concept of Energy Balance. Real balance is annually constituted by the State Statistics Committee of Ukraine based on statistical and administrative information and data on supplies and flows of energy resources of all types from production (extraction), acquisition, transportation, storage and distribution to final consumption (use) energy (including costs and losses during their transportation, transformation , storage).
The Ministry of Economy, Ministry of Energy, Ministry of Coal and National Agency for Energy Resources develops forecast energy according to the data on real energy balance. It also takes into account the needs, forecasts of supply and consumption and the use of modern technologies forecasting economic and social development of the country in accordance with legislation.
Monitoring of (Agency for Energy Efficiency) energy balance ratios is also planned , which is the long-term process of system study on the dynamics of its data.
It should be determined that at present the task of forming the energy balance is only performed in the real balance, which is an important result of the State Statistics Committee of Ukraine.
There is no significant progress in formation of the forecast balance and monitoring of its ratios. Actions are both of departmental and segmental character. The Ministry of Energy makes forecasts for physical balance of coal production, purchase and sale balance of electricity on the wholesale electricity market of Ukraine.
Balance of natural gas is approved by the Cabinet decisions.
It is worthy of note that the formation of energy balance includes collecting and publishing of statistical data, such as:
— key energy and environmental indicators, including indicators of energy prices in different forms;
— information about the energy consumption of each sector (industrial, public, commercial and public sector services, transport, agricultural);
— energy balance in form of, for example, trade balance in physical units of production, supply and distribution of various forms of energy;
— energy data at the regional level;
— medium and long-term economic forecasts.
Forecast balance will unlikely be formed through the only efforts of the State Statistics Committee of Ukraine and specific data from the Energy Department. Approved methodological framework is required in working of the Ministry of Economy, which has not yet been observed. This task requires significant strengthening of organizational and institutional support for this work. However, despite all the difficulties of forming, it is in ability of the Ministry of Economy, and this work must be activated.
For example, similar work was done by a group of experts in the framework of the draft on the Energy Strategy of Ukraine till 2035 made by the National Institute for Strategic Studies (The draft of the Energy strategy of Ukraine for the period up to 2035. White book Energy policy of Ukraine "Security and competitiveness". Electronic resource]. - Mode of access: http://www.niss.gov.ua/articles/1717/) . Forecast energy balance is worked out in form of the real balance (balance in form of IEA), which provides planning and monitoring activities with reference to implementation of the Energy Strategy aims.
The mechanism for monitoring, control and correction of state bodies activities on achieving the goals of the energy sector is formed based on the draft of the Energy Strategy of Ukraine. In particular, it means:
— providing the development and monitoring of indicators of energy security (which are formed on the basis of the energy balance);
— making every five years a national report on the implementation of the Strategy objectives;
— following up consideration of the Strategy by business and government as well as publishing annual analytical reports;
— making proposals for adjustment of mechanisms for implementing the Strategy.
Thus, the very formation of the real and forecast balance sheets, monitoring of their ratios will act as the mechanism which has not been in public administration due to lack of relevant and available information.
In fact, due to the inclusion of the forecast energy balance to the Energy Strategy of Ukraine a tool for strategic planning of socio-economic development and, in particular, Ukraine's energy sector is introduced.
Author — Oleksandr Sukhodolia, Head of Energy, Transport,
Communication, Environmental and Technogenic Safety&Security
Department of the National Institute for Strategic Studies