By Dale Gray
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Additional info for Reforming the energy sector in transition economies: selected experience and lessons, Parts 63-296
Source: PlanEcon Large Scope for Improving Energy EfficiencyEven though there has been a drop in the level of energy consumption, there is clear scope for big gains in energy efficiency. There has been a drop in energy efficiency as measured GDP has fallen faster than energy consumption. Also, there has not yet been a major phaseout of energy-intensive industries, and there is a lack of capital to replace worn out and inefficient plant and machinery. In the Page 5 residential sector energy efficiency improvements have also been modest primarily because of relatively low energy prices.
The widespread use of this coal harms peoples' health and damages forests across the region, particularly in the "Black Triangle" region of the Czech Republic, Poland, and eastern Germany. The demand for much of this coal and lignite has dropped sharply in most countries in the past few years, leading to extensive restructuring, downsizing, and problems related to laying off miners. Extensive Household Use of Low-Quality Coal and District HeatHouseholds in many CEE and FSU countries rely heavily on low-quality coal and district heat.
Energy prices assumed constant in 1994 terms. The drop in consumption in non-Russian FSU countries has been quite sharp, with a drop of 30 to 40 percent from 1990 to 1994. Forecasts are for further declines and then recovery between 2000 and 2005 to 1994 levels or above (Table 5). Table 5. Consumption in Other FSU Countries1988199019941995 (forecast)2000 (forecast)2005 (forecast)Ukraine10210066646873Belarus 9910061555761Other FSU100100 59*576164Kazakhstan 9810073738894* Preliminary estimate. Source: PlanEcon May 1995 Page 9 3 Major Energy Production Issues in Central and Eastern Europe and Former Soviet Union Decline in Russian Oil Output Crude oil output in 1994 was down 46 percent from its 1988 peak.