ANATOLIY CHUBAIS AND SAPARMURAT NIYAZOV EXCHANGED LETTERS ON THE ISSUE OF ENERGY SYSTEMS INTEGRATION
Following are the texts of Chubais's letter to Niyazov and Niyzov's reply to Chubais
President of Turkmenistan
On the collateral work of the energy system of Turkmenistan with the integrated energy system of the CIS member states
Esteemed Saparmurat Atayevich,
Allow me on behalf of the members of the Energy Council, heads of power engineering sectors of the CIS member states to draw your attention to the issue of paramount importance both to Turkmenistan and the CIS as a whole.
Power engineering is an economic basis of any state, which defines social well-being of citizens in a radical manner. That is why one of the most important conditions of the CIS states' transformation to higher living standards is ensuring the reliable work of electric energy sectors.
The world experience in exploitation of electric energy systems has showed in practice that setting up large energy alliances through their collateral work is a more efficient way of increasing reliability and effectiveness of their work. With this in mind, the CIS member states signed an agreement on the establishment of the collateral work of energy systems of the CIS member states in November 1998. The CIS member states' practical participation in the agreement enabled them to make considerable use of economic and technological advantages of the integrated work of the national energy systems in the interest of each of the CIS member state.
Established de-facto in 2001, the integrated energy system (IES), in which energy systems of eleven CIS member states, including Turkmenistan, successfully worked in a collateral regime, had not only provided reliable electrical energy supplies to the population and businesses within CIS but also made it possible to get down to the fulfillment of strategically important tasks - the establishment of an integrated energy market of the CIS member states and preparation for the collateral work of the integrated energy system of the CIS and Organization of Economic Cooperation of Baltic States with the Trans-European Synchronized Integrated Energy System of Western, Central and Southeastern Europe (TESIS).
However, in June 2003 the collateral work of Turkmenistan's energy system with the IES of Central Asia and IES of the CIS member states was abruptly stopped. It had negatively affected the main criterion of the integrated work of energy systems of the CIS member states - its reliability. Besides, interruption of the established partnership relations contradicts the world trend of establishing global, transnational energy systems, currently existing virtually in every part of the world.
All member states of the CIS showed an increased interest to reports about great successes of Turkmen power-engineering workers in the implementation of the power-engineering sector's modernization program under your wise personal leadership. The Energy Council of the CIS sincerely believes that Turkmenistan, possessing strategic reserves of hydrocarbon resources and actively developing power generating and export potential of the country, has a real prospect of becoming one of the largest producers of electric energy in the region of Central Asia. At the same time, Turkmenistan, having a long border with its southern neighbors - Afghanistan and Iran - can become an effective energy bridge to transit electricity between the integrated energy system of the CIS member states and future energy alliances of Near and Middle East in the process of establishing an integrated energy system of the Eurasian continent.
In view of this and taking into consideration a role of the energy system of Turkmenistan as an important element of the CIS member states' energy network, I seek your assistance in resolving the issue of restoration of the collateral work of the energy system of Turkmenistan with the integrated system of the CIS member states.
Chairman of the Energy Council of the CIS
President of the Energy Council of the Commonwealth of Independent States
Mr Chubais A.B.
Esteemed Anatoliy Borisovich!
Let me express words of gratitude to you, all members of the Energy Council and heads of the power-engineering sectors of the CIS member states, for your high evaluation of the work of power-engineering workers of Turkmenistan in the field of modernization and future development of our country's electric energy sector and wish you, on our part, success in the fulfillment of the tasks of the energy sector.
In general, the establishment of large energy alliances for the purpose of achieving a steady supply of electric energy, the projects of integrating energy systems of the CIS member states and the integrated energy system of the Baltic States with the Trans-European Synchronized Integrated Energy System (TESIS) are the current tasks of modern energy development.
According to the approved program of development of our state until 2020 it is provided that a number of industrial facilities, along with using state-of-the-art technologies and building up the industrial potential of the country, are to be increased that is impracticable without stable and qualitative electricity supplies. At present, Turkmenistan carries out tremendous amount of work on the establishment of powerful domestic energy infrastructure capable of meeting increasing energy needs inside the country and ensuring stable exports of electrical energy. Along with implementation of projects on the enlargement of power generating facilities through constructing thermal power stations with limited capacities in different regions of Turkmenistan, the specific attention is paid to the construction of new and reconstruction of existing line parts of electric networks capable of providing a steady and reliable supply of electric energy.
Exports are an important direction of the country's power engineering, and we are interested in reliable cooperation with consumers of electric energy. The insolvency of the traditional consumers in the CIS member states, the imperfection in accounting for electric energy, the lack of precise regulations and obligations of the parties in the exchange and transit of energy and poor reliability of emergency systems have negatively affected the reliability of the energy system of Turkmenistan. Since 1996, 37 system failures had occurred, causing damage to the country's economy. Taking into account the existence of unresolved technical and legal issues needed to implement the principle of establishing an integrated energy system, we had to refuse to join the integrated energy system. As a result of this, we did not sign an agreement on the establishment of the collateral work of the electric energy systems of CIS member states in November 1998.
The continuous decrease and suspension in exports of electric energy forced us to find more beneficial sales markets by taking into account the supply and demand of the modern marketplace. At present, we provide Afghanistan, the Islamic Republic of Iran and Turkey with regular supplies of electricity on equal and mutually beneficial terms. After implementing projects on the establishment of a reliable energy system inside the country, resolving issues of technical nature and backing them by relevant agreements within the framework of the project of the collateral work of Turkmen energy system with the CIS member states, by adhering to the existing world trends of establishing global transnational electric energy systems, Turkmenistan will consider in future the issue of joining an emerging integrated electric energy system of the Eurasian continent.
In conclusion, let me wish you success in the fulfillment of tasks on the establishment of sustainable development of the economy of the Russian Federation as a whole, and of the electric energy sector in particular.
President of Turkmenistan