Report - UNDP Russia

Chapter 4The Energy Sector and Public HealthBurgeoning demand for energy in thelate 20 th and start of the 21 st centuries has ledto a dramatic increase in crude oil & gasproduction, which, in turn, led to increasingdischarge of pollutants into the environment.Volumes of waste water created by theelectricity industry have been growing since2004, and atmospheric emissions from fuelfiredpower stations is growing faster than theirelectricity output. Decline of pollution levels inthe metallurgy and chemical industries hascaused the share of the fuel & energy sector inoverall pollution to rise by almost 10% in recentyears. Share of the sector in total industrialpollution is 56%, including 58% of solid wasteand 23% of waste water.Problems from use of coal top theagenda when assessing environmental impactsof the fuel & energy sector. Current nationalstructure of primary fuel use reflects theprolonged ‘gas pause’: the share of coal in thenational fuel balance is only 18%, while that ofoil is 21% and natural gas dominates with ashare of 52%. Annual consumption of coal bythe power industry is rising more slowly inRussia than in the rest of the world at present,but large increase in the share of coal in thenational energy balance is expected, reflectinghuge Russian deposits of coal, especially in theindustrially developed Kuznetsky Coal Basin(‘Kuzbass’) in Kemerovo Region. The NationalEnergy Strategy up to 2020, approved by theRussian government in 2003, calls for increasein the share of coal in the country’s energybalance from 19% to 20%. Greater use of coalshould be accompanied by application of newcoal processing technologies, which will enableit to be burnt more efficiently. Coal, as the mainalternative to natural gas, is the biggestfeedstock in US and Chinese power generating(50% and 80% of all fuel-fired inputs,respectively), and its share in Poland is as highas 96%. Such intensive coal use is possiblethanks to introduction and development of anumber of environment-friendly and efficientcoal combustion technologies.Coal extraction in Russia is growing fasterthan had been expected and rose by over 20%between 2000 and 2008 (from 258 to 314 milliontonnes). Further growth to 373-430 milliontonnes is expected by 2020. Coal will be the mainalternative to natural gas in the future,particularly in Siberia, where proximity of theKuznetsky and Kansko-Achinsk coal basinsreduces transport costs by several times.Development of the Yuzhno-Yakutsk basin inEastern Siberia is also proceeding rapidly. Growthof coal extraction is partly driven by depletion ofprofitable natural gas deposits and high exportvalue of gas.Growing power production and plannedincrease of the share of coal in the nationalenergy balance could aggravate public healthand environmental problems. Consumption ofcoal by power stations grew by 2.7% in 2008alone due to reduction in use of natural gas 1 , andfurther large increases of coal burning areplanned. It is too early to judge whether modernenvironmental requirements will be met, butWHO and European Commission directivesought to be taken into account as well as Russianenvironmental rules. Wide public discussion ofthe issues is desirable in regions affected bypower-station emissions.Russia’s Energy Strategy makesdevelopment of clean coal combustiontechnologies a condition for increase of coal useby power stations and other industrial facilities.Transition from direct coal burning to use of coalwaterfuel (CWF, made of various quality coals,including waste from coal concentrationprocesses) 2 will be an important part of thisprocess.The Energy Strategy sets generalindicators for development, but it does notcontain specific targets for reduction of pollution,suggesting that commitment to cleantechnologies may be less than complete.1I.S.Kozhukhovskiy, Situation Analysis and Development Forecast / Report presentation at the conference, The Power Industry – Risksand Growth Limits in Times of Recession – March 24th, 2009, http://www.e-apbe.ru/actions/09_03_24_Vedomosti_Kozhukhovsky.pps# .2A.P.Starikov, V.D.Snizhko, The ways of solving environmental problems at a modern coal-mining facility / Ugol – 2008, No.9 – pp.66-6774National Human Development Report in the Russian Federation 2009