Energy Prices Are Rising, While the Ministry Still Fumbles in the EAEU Market: June 2025 Energy Digest 

Energy Prices Are Rising, While the Ministry Still Fumbles in the EAEU Market: June 2025 Energy Digest
Photo: sb.by

Download .PDF (194,15 Kb)

Key events

Starting from June 1, Belarus has eliminated export duties on petroleum products exported outside the customs territory of the Eurasian Economic Union (according to the Resolution of the Council of Ministers dated May 30, 2025, No. 299). Previously, the export duty rates for liquefied hydrocarbon gases were $0.9, and for ethane, butane, and isobutane — $0.8. Export duty rates for crude oil and all major petroleum products remain at zero.


At the Gomel CHP-2 branch of the state enterprise Gomelenergo, preparations have begun for the major overhaul of power unit No. 3, scheduled as part of the preparations for the 2025–2026 autumn-winter period.


In June, hydro unit No. 3 at the Grodno HPP was shut down for scheduled maintenance. The plant is equipped with Mavel KR3000K4 hydro units, produced by the Czech-American company Mavel. It is stated that the main spare parts for the equipment are manufactured at plants in China and Russia, as well as at the company’s own production facilities.


Throughout the entire month, blasting operations were carried out in the Gomel region as part of seismic exploration at new sites, including in the Rechitsa district.


An oil leak was detected through an impulse tube connected to the main DN 800 oil pipeline. The emergency was promptly addressed by the company’s emergency response and recovery service. Oil pumping was restored within 50 minutes.


Following a large-scale reconstruction, the «Marmovichi» substation has been reopened. During the works, both the capacity and voltage class were increased to 110 kV. A three-phase 110/35/6 kV transformer with a capacity of 10 MVA was installed. A 110 kV transformer bay was built, and other transformer and line bays were also upgraded.


During the night of June 8, a powerful thunderstorm front swept across the entire territory of the Republic of Belarus. Starting at midnight, power outages were reported in 112 settlements in the Minsk region. As of 15:22, electricity supply was fully restored in all affected areas.

On the night of June 9, strong winds with gusts up to 20 m/s, heavy rain, and thunderstorms caused power outages in 72 settlements in the Gomel region. As of 13:15, electricity supply had been fully restored across the region. The average outage recovery time was 1.19 hours.

In the Brest region over the weekend, 40 overhead power lines were disconnected, 367 transformer substations were affected, and electricity supply was disrupted in 52 settlements and at 28 farms.


In the Grodno region, the reconstruction of the 330 kV «Lida» substation is ongoing.

Dismantling of outdated equipment is being carried out both at the 330 kV and 110 kV outdoor switchgear (OSG). Simultaneously, foundations are being laid for the installation of new modern modular equipment with SF₆ (sulfur hexafluoride) insulation, which features minimal maintenance requirements and high operational reliability.


At the Gomel CHP-1 (a branch of “Gomel Heat Networks” of RUE “Gomelenergo”), an inspection of the H-25 gas turbine unit manufactured by Mitsubishi Hitachi Power Systems (Japan) has been completed.

Statistics and data

In 2024, more than 450 thousand tons of peat briquettes and dried peat were supplied to cement plants, accounting for 52% of total sales.


In May, the drilling of four wells at the Rechytsa field was completed.


By the Resolution of the Government of the Republic of Belarus dated June 9, 2025, No. 313, tariffs for electricity, heat energy, and gas for the population have been changed. The increase in tariffs for various types of energy and fuel reached up to 10%.

The tariff for heat energy for heating and hot water supply needs rises from 24.7187 to 27.2323 BYN (an increase of 10.2%).

The tariff for natural gas increases to 0.2125 BYN per cubic meter (an increase of 3.1%) for consumers with gas heating appliances.

Tariffs for electricity for consumers using it for heating purposes (without separate meters) increase slightly. The single-rate tariff increases to 0.1179 BYN (an increase of 0.2%), and similarly, time-of-use differentiated tariffs rise accordingly.

For electricity consumers using it for heating and equipped with a separate meter, tariffs increase to 0.0454 BYN (an increase of 1.1%).

The largest tariff increase is observed for heat energy, which is logical considering that subsidies for its consumption amount to 80%.

It is also noteworthy that the tariff increase for electricity applies only to consumers using it for electric heating. These tariffs are also subsidized at 80% and were aimed at facilitating the integration of the nuclear power plant into the energy system by encouraging consumption. It seems that the need for such stimulation has passed, and now this group of consumers will pay more.


In May, 35 new electric vehicle charging stations were put into operation. The number of registered electric vehicles increased by 1,792 units.


Over the past five years, the fuel and energy resource savings achieved through the implementation of energy-saving measures by RUE «Grodnoenergo» have exceeded 37,000 tons of standard fuel equivalent.


The electrical capacity of Mogilev CHPP-2 is 317.5 MW, and the thermal capacity is 1,175 Gcal.


Statements

«Belarus has created the necessary potential for electricity export,» said Energy Minister Denis Moroz on the sidelines of the Eurasian Economic Forum on June 26.

This phrase now describes the creation of surplus capacities in the energy system, some of which remain idle, while to load the other part it is necessary to allow consumption of energy at prices five times below cost.

«There are both technical and economic possibilities,» noted the head of the Ministry of Energy, speaking about the construction of the new nuclear power plant.

It seems that the created potential for electricity export is insufficient. Unfortunately, the opportunities to realize this potential are not visible, while the costs of its creation are already reflected in the tariffs.

Topic of the Issue: The Common Electric Power Market of the EAEU

On June 25–26, the Eurasian Economic Forum was held in Minsk, which included an event on electric power — “The Common Electric Power Market of the EAEU: A Look into the Future.”

The organizers announced a large number of topics for discussion, among which were progressive and unusual themes for the Belarusian authorities, such as competition between renewable energy sources and traditional generation, trading of green certificates, as well as discussion of the level of competition and organization of trading on the common market. Unfortunately, none of these issues were addressed.

After the opening remarks, the first question was addressed to Denis Moroz, Minister of Energy of the Republic of Belarus:

“How do you see the benefits for the Republic of Belarus from the functioning of the common electric power market and the readiness to create a wholesale market in Belarus?”

In response, the minister began describing the general characteristics of Belarus’s energy system, emphasizing that the country has ceased to be an electricity importer and now has surplus capacity that can be used for export. However, he did not mention that there are no export opportunities either technically — with Lithuania, Latvia, Poland, Ukraine — or economically — with Russia.

«However, Belarus approaches any sharp changes very cautiously, including in the electric power sector. And until we have formed a clear understanding of what the next steps of transformation will bring us, we need to preserve the functionality that we currently have…,» the minister noted.

Although plans to create an electricity market were included in the energy system development program even before 2015, it seems that over 10 years there has been no clear understanding of what these transformations might achieve. At the same time, the minister noted that Belarus is now ready to form a wholesale market within the country.

The minister then revealed what kind of electricity market is planned to be created in Belarus. It is expected to be a new form of relations between six regional energy organizations (RUE «Oblenergo»). Each of these organizations is a vertically integrated company engaged in all types of activities related to electricity supply—both monopolistic and competitive. Since these organizations are not balanced with each other, they conclude agreements to supply electricity among themselves to maintain balance.

Denis Moroz provided no additional details, which allows us to conclude that the electricity market will exist only among these six organizations, which will retain their vertical integration without separation by types of activity. Similar conclusions were drawn from the minister’s speech by the moderator Vadim Zakrevsky (former Deputy Minister of Energy), who reminded that if the country wants to participate in the common electric power market of the EAEU, it is required to unbundle vertically integrated companies by January 1, 2027.

In response to these remarks, Denis Moroz spoke more frankly and openly: when building the common market, it is necessary to consider national interests and ensure a balance of interests. (This means that the common electric power market of the EAEU does not align with Belarus’s national interests, and a compromise must be sought.) Furthermore, he explicitly stated that a common wholesale market, where consumers in Belarus could see offers from all EAEU producers and Belarusian producers could offer electricity to all wholesale consumers in the EAEU… Such a market will not exist.

Download .PDF (194,15 Kb)

Материал доступен на русском языке: Энергия дорожает, а Минэнерго всё ещё теряется в рынке ЕАЭС. Энергетический дайджест за июнь 2025

08.07.2025