Systems analysis of reform in Russia’s energy industry

Stennikov Valery,Golovshchikov Vladimir,F.-J Lin,A.M Foley,Y Sun,N Voropai,C.-I Chen,A Kler,K Suslov,D Sidorov,P Lombardi

doi:10.1051/e3sconf/202128901019

Abstract

The paper presents the results of a systems analysis of the reform of Russia’s electric power industry. The analysis has revealed the main problems of the industry and the causes behind them. It has also shown that many of the negative outcomes of the reform are due to the lack of a systems approach to the formulation of the reform goals and objectives and the assessment of their implementation consequences. The lack of a systems approach to crucial problems of the electric power industry in the context of the actual situation and the lack of reasonable development forecasts have led to directive management methods. This significantly reduces the efficiency of the development of the electric power industry in Russia in the medium and long term. The analysis allowed us to propose some priority measures that will not require fundamental changes in the electric power industry but can improve the situation in the medium term.

Highlights

The radical transformations of the entire economic, political and social system of the country, which began in Russia in the 1990s, affected the national energy industry
Most of the analytical studies did not pay due attention to a systems approach to solving the problems of energy reforming in the Russian Federation both at the federal and regional levels, which include the interconnection of economic, financial, organizational, technological, and socio-political factors
Liquidation of JSC "UES of Russia", which controlled more than 70% of the country's electric power industry; the subsequent division of the industry into a large number of energy companies with different financial, economic, and technological indices; and the lack of real competition between the entities of the industry led to inefficient management of the country's electric power industry

Summary

Introduction

The radical transformations of the entire economic, political and social system of the country, which began in Russia in the 1990s, affected the national energy industry. They had an effect on the energy consumption towards its reduction, the level of functioning of systems, the economic viability of the industry, the changes in the forms of ownership, and influenced the quality and reliability of energy supply. Infrastructure industries, including energy machine-building, electrical engineering, and others, have undergone significant changes. The need to reform the electric power industry providing the country with electric and thermal energy became increasingly more pronounced over time. The reform was planned in the framework of the implementation of the law "On Electricity."

Systems analysis of reform

Findings

Conclusion