Energy Relations and Policy Making in Asia
This collection of essays from leading energy, strategic, and economic policy think tanks focused on how energy relations are forming in the 21st century offers energy scholars and policy makers answers to what these increasingly close relationships mean for international politics and trade.
The chapter explores the structural shift in Russia's oil trade in Asia in the context of international competition
The comparative analysis presents the first comparative study of the government procurement of French and Russian petroleum products with an in-depth review of foreign legal sources and national policy instruments. Based on the findings, this research led to the conclusion that public procurement of hydrocarbons is an extremely sensitive matter in the geopolitical, political and institutional sense. Despite some similarities in the general concept of French and Russian legislation in public procurement, the analysis revealed a substantial difference in the implementation of public procurement policies. Russia is characterized by a predominance of electronic auctions where the evaluation is based solely on the price whereas France uses a wide variety of different criteria to evaluate procurement offers.
Studies rarely focus on the double interplay between the innovation potential of a company, its business model and the structure of the market faced by the company. This interplay is especially important to Russian companies working in various industries of the energy sector. Multiple initiatives launched by the Russian authorities have been intended to foster innovation in technological sectors of the Russian economy. These initiatives are often based on one or another preconceived notion of a fundamental structural framework expected to produce the best result. Focus on mergers and acquisitions is a major part of this framework in both public and private organizations. This chapter shows that mergers and acquisitions per se have little influence on innovation potential of the resulting organization. Vice versa, a proper strategy based on the clear-cut competitive advantage and the specialization corresponding to this advantage is more productive way to foster innovation in an energy company. Such a specialization can be later followed by a series of mergers and acquisition. But if this initial step has been ignored or neglected, the subsequent mergers cannot start corporate innovation. This thesis is illustrated with three cases (Eurasia Drilling Company or EDC, TGT and Rosgeologiya) described below.
Purpose – The purpose of the study is to show the technical potentials of a variety of renewable energy sources in Russia, as well as benefits from their deployment including hydrocarbon savings, emission reduction and lower energy cost. Design/methodology/approach – In the paper, Russia is compared with other countries in terms of actual installed capacity and its dynamics, actual and projected share of renewables in the energy mix. The authors offer calculations of the technical potentials (fuel, heat energy, electrical energy, resource saving and environmental) of renewables (solar PV, wind, biomass, geothermal, low-grade heat, small hydro), identify social and economic preconditions and key effects of their deployment. Findings – The paper features calculations on the renewable energy technology potential, based on the data by Andreenko et al. (2015), authors’ calculations and statistical data. This study proves that the cumulative technical potential of the renewables in Russia amounts to 133,935 million units of oil equivalent. This study also offers assessments of oil fuel, black coal and natural gas savings that may be achieved by replacing fossil fuels with renewables; assessments of avoided air pollution calculated as CO- and CO2-equivalents. Originality/value – The paper fills in the gap of comprehensive assessments of renewable energy potentials in Russia and a variety of effects that their deployment may entail, based on a single integral methodology. The authors offer a new evaluation of existing and future renewable energy potentials, overcoming the methodological and data constraints faced by previous similar studies. The up-to-date, comprehensive and accurate data will help make the right investment and policy choices.
After analyzing the characteristics and pricing models on the Russian wholesale electricity market, some important features for econometric modeling are introduced. This paper suggests econometric forecasting models developed to predict daily and hourly electricity prices on the day-ahead market for two price zones in Russia: European and Siberian ones. A set of 24 models, which are similar in nature but different in included regressors, are introduced. On the basis of the actual database for 2014, different modifications of price formation are offered and analyzed with the help of the Eviews econometric package. Dynamic forecasts on various distances (day, week, and month) are conducted and the most suitable models from the point of minimizing the norms of the vectors residuals are chosen. Constructed ARMA models have high predictive power and are able to reflect the price trend on the base of exogenous factors and the previous price values.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.