Energy Access Across Belarus: A Comprehensive Overview

Belarus is a net energy importer, relying on Russia to meet most of its energy needs. In 2018, only 15% of the country's energy demand was met by domestic production, making Belarus one of the least energy self-sufficient countries in the world. The country's energy profile is heavily dependent on natural gas, with nearly all electricity generation in 2018 coming from this source. Belarus is also one of the world's largest importers of natural gas, and it imports similar quantities of crude oil, although most of this is re-exported as oil products. The country has diversified its energy mix in recent years, with the addition of nuclear power and a growing focus on renewable energy sources.

Belarus's energy sector is dominated by state-owned companies

The Ministry of Energy also oversees the state-owned Belarusian nuclear power plant (NPP) and other state-owned organisations operating in the energy sector. It is in charge of implementing the Sectoral Programme of Electricity System Development for 2016-2020. The Ministry of Energy plays a crucial role in overseeing state-owned companies involved in electricity, gas, and heating. The tariffs are regulated, and households are cross-subsidised by industry and public organisations.

The approval of tariffs for legal entities is carried out by the Ministry of Antimonopoly Regulation and Trade, while the Council of Ministers is responsible for approving tariffs for the population. The gas transmission system is owned by the Russian state-owned company Gazprom, which also has a strong influence on the Belarusian energy sector. The gas distribution system is owned by Beltopgaz, which operates under the supervision of the Ministry of Energy.

The formation of policies related to energy savings and renewable energy falls within the purview of the Department of Energy Efficiency, which operates formally independently from the Ministry of Energy but remains fully dependent on the general national energy policy directions. Local councils, executive authorities, and administrative bodies implement state energy policy, and there are many public and non-governmental organisations active in the field of energy efficiency, renewable energy, and environmental protection in Belarus.

The country is one of the world's largest importers of natural gas

Belarus is one of the world's largest importers of natural gas. In 2018, the country imported about 17 million tonnes of oil equivalent (Mtoe) or 20 billion cubic metres (bcm) of natural gas. This made Belarus the leading importer among the EU4Energy countries: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

In 2018, almost all of the electricity generated in Belarus came from natural gas (97%, or 39 terawatt hours [TWh]). This is a notable increase from 1990, when natural gas constituted 52% of electricity generation, with oil generating the remaining 48%.

Belarus's total energy consumption (measured by total primary energy supply) in 2018 was 27.0 Mtoe, similar to the consumption levels of Norway and Hungary. The country's primary energy use in 2008 was 327 terawatt-hours (TWh) or 34 TWh per million persons. In 2009, primary energy use per capita in Belarus was 34 megawatt-hours (MWh), slightly more than in Portugal (26 MWh) and about half of the use in Belgium (64 MWh) or Sweden (62 MWh).

In 2021, Belarus consumed 18.64 billion cubic meters of natural gas, producing only 0.06 billion cubic meters domestically, and importing the rest. The country's natural gas reserves are very limited, with only 0.10 trillion cubic feet (Tcf) of proven gas reserves as of 2017, ranking 92nd in the world. Belarus's total gas reserves are less than the amount consumed in a single year, making the country highly dependent on natural gas imports to sustain its consumption levels.

Belarus is very dependent on Russia for energy imports

Belarus is a landlocked country in Eastern Europe with a modest natural resource endowment. It relies heavily on energy imports from Russia to meet its domestic energy needs. In 2018, only 15% of the country's energy demand was met by domestic production, making Belarus one of the least energy self-sufficient countries globally. The country's economy and energy sector are highly dependent on affordable energy supplies from Russia.

Russia has historically subsidised the Belarusian economy by providing low-priced gas and crude oil without re-export duties. This has been a significant factor in Belarus's heavy reliance on Russian energy sources. Belarus's largest gas company, Beltransgaz, was acquired by Russia's Gazprom through a share repurchase mechanism, becoming a fully-owned subsidiary. Additionally, Russia's energy company, Slavneft, holds majority ownership of Naftan, one of Belarus's two oil refineries. Russian companies are also seeking to acquire the other refinery, Mozyr, which would give Moscow control over two-thirds of Belarus's energy exports to the West.

The country's first nuclear power plant, Ostravets, which became operational in 2021 with $11 billion in loans from Russia, is another example of Russia's influence in Belarus's energy sector. The plant is expected to meet 40% of Belarus's domestic electricity demand when fully completed. Furthermore, Russian nuclear monopoly Rosatom is the principal contractor for the project, further solidifying Russia's role in Belarus's energy landscape.

While Russia's energy dependence on Belarus as a transit state has decreased due to the Nord Stream and TurkStream pipelines, Belarus remains a crucial route for delivering Russian gas and oil to European buyers. In 2019, 33 billion cubic meters of gas were transported to Europe through the Yamal-Europe pipeline crossing Belarus. Additionally, approximately 40 million tons of Russia's oil exports to Europe are transported through the Druzhba pipeline, which runs through Belarus.

Belarus has explored alternative energy sources and suppliers to reduce its dependence on Russian imports. In 2020, Belarus began importing oil from the US via the Lithuanian port of Klaipeda. However, the country's efforts to diversify its energy supplies have been met with resistance from Russia, which has emphasised the link between energy prices and the level of integration between the two countries.

The country's energy strategy is focused on reducing import dependency

Belarus is a net energy importer and is highly dependent on Russia for its energy supply. In 2018, only 15% of the country's energy demand was met by domestic production, making Belarus one of the least energy self-sufficient countries in the world. The country's energy strategy is focused on reducing this import dependency and improving energy sector financial stability.

To achieve this, Belarus plans to develop local energy sources, introduce nuclear power, decrease overall consumption, and reduce the amount of natural gas in its energy mix. The country has set strategic goals until 2035, including reducing Russian supplies from 90% to 70% of total energy imports and cutting the share of gas in electricity and heat energy production by half.

The government is considering power generation fuel diversification to include more coal and renewables. They have introduced a green feed-in tariff (FIT) to attract investment in renewables and are improving energy efficiency in electricity and heat production. Belarus is also phasing out subsidies for electricity, heat, and gas to make the energy sector more market-focused and attractive for private investment.

The country's energy sector is dominated by state-owned companies, and the government believes that having control over the entire sector will guarantee a secure and stable energy supply. However, little structural reform has occurred, and foreign investment is relatively low. Strong legislation and implementation tools are needed to support the country's energy policy.

Belarus is a large oil refiner

Belarus's oil shale reserves are extensive but remain largely untapped due to their high ash and sulphur content, low heat of combustion, and high extraction and processing costs. The country's fossil fuel extraction has therefore been limited to conventional oil and gas sources, which have been in decline since the 1970s.

Historically, Belarus has relied heavily on Russian oil imports, but in 2020, the country began to diversify its sources of crude oil, purchasing from Saudi Arabia, Norway, and Azerbaijan. This move was driven by a dispute with Russia over oil prices, which resulted in a partial suspension of Russian oil supplies to Belarus.

The Belarusian government has also shown interest in exploring oil shale development to improve its energy security and reduce its dependence on imported hydrocarbons from Russia. However, the financing of this project has been uncertain, with a Luxembourgian company withdrawing from the endeavour.

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