Renewable Energy Sources Implications in Russia - Case Study Example

Renewable Energy Sources Implications in Russia Name: Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 Strength Analysis 3 3.0 Weakness Analysis 4 4.0 Wind Power Policy Development Challenges 5 4.1 Technology Needs 5 4.2 Loss of Regional Control 6 5.0 Opportunities and Potentials for Wind Exploration 6 5.1 Sustainable Development 6 5.2 Environmental Conservation 7 5.3 Technology Application 8 6.0 Threats Analysis and Evaluation for Wind Energy Exploration 8 6.1 Lack of Human Capital 8 6.2 High Infrastructure Requirement 9 7.0 Conclusion 10 References 11 1.0 Introduction The global nations are experiencing a growing energy challenge. In this regard, Russia as a leading global oil and energy provider has over the years developed oil policies to mitigate and overcome the existing conventional oil and gas provision and drilling. One such case in Russia was the development of the 2020 energy policy approved in 2003. Aslund (2006, p.322) stated that in its endeavor, the policy sought to overcome and streamline a series of challenges facing the energy provision industry. In this evaluation essay, the current energy provision situation will be established based on its key strengths. Moreover, problems and weaknesses in the current situation will be discussed, as well as opportunity solutions through the offered opportunities by wind energy sourcing. Finally, the evaluation focuses on a critical evaluation of the implications through developing an analysis of the potential threats for the establishment of wind energy source. Therefore, the essay applies the SWOT (strength, weakness, opportunities and threats) analysis tool. 2.0 Strength Analysis In its current state, Russia relies mainly on energy drilling and oil market as its basic economic development and revenue generation source. In this regard, the nation has minimal other resources besides the vast oil deposits in the region. As such, the advent and contracting of both multinational foreign and local oil companies into the economy has over the years raised the nation’s economic growth rates. In addition, the current energy policy has enabled Russia acquire not only economic superiority and control in the region, but also increased political influence. As Kreutz (2007, p.150) noted, this can be evidenced in the case of its role in the BRICS alliance. In this alliance, each of the nations offer their unique contributions with Russia serving the rule of a strategic geological leader in the Asian and Middle East region. Therefore, it is imperative to note that its current control of the conventional energy sources offers Russia an added geopolitical control merit. In this regard, the discovery and addition of wind energy on its power grid would further enhance and increase the Russian economic and political influence in the region 3.0 Weakness Analysis Despite the discussed merits and advantages of the current Russian energy policy, the policy has its wide range of negative implications on the nation. Therefore, this is evaluated under the key policy existing weaknesses. One of the fundamental weaknesses of the current policy is the environmental implications on the nation as well as the globe. In its current form, the oil and energy sources in Russia are all non renewable. As such, this exposes the policy and the nation at large to the risk of resources depletion. Moreover, the oil drilling process is a risky process that risks polluting the environment, a move that would derail economic and social growth in the region. Moreover, an additional weakness in the current Russian energy policy is its sustainability. In this case, the regulated energy sources as already discussed are non-renewable. Therefore, there is no guarantee of the future effects and implications on the nation economy and social implications into the future especially beyond 2020 that is the current policy limit (Hardt, 2003, p.214). In this regard, the development and sourcing of wind energy in Russia would play and serve a crucial role in stabilising and overcoming the current policy weaknesses. For instance the existing environmental pollution challenges in the Russian energy 2020 policy would be overcome similar to the energy source sustainability as wind energy is renewable and cannot be depleted. 4.0 Wind Power Policy Development Challenges Although as discussed above, there is the eminent need and potential merits of the invention of renewable and non conventional gas as energy sources, the invention execution would face a series of challenges. In this evaluation section, the respective potential implementation and acceptance challenges are listed and described in details. 4.1 Technology Needs The current energy sourcing and drilling process applies the traditional technology approach to drill and acquire gas and oil as well as purify and refine it. On the other hand, the invention and discovery of wind energy would necessitate the development and adoption of alternative energy tapping and harnessing technology. As such, this would include the development of enough infrastructures as well as enough and qualified human resource base for wind energy generation. The Russian government initiated the inclusion of the local communities and workforce by the multinational organisations to ensure representation and participation (Walker and Simmons, 2008, p.28). Therefore, the development of wind energy source would create local human capital availability challenges thus forcing the multinational organisations to apply and use the expatriates’ services in the market to fuel and enhance the energy and unconventional gas drilling process. Therefore, such a discovery would reduce the employability of the Russian community and workforce that in turn would imply that the current energy policy regulations on inclusion and active participation of the local community would be guaranteed. 4.2 Loss of Regional Control As already discussed, the Russian market economy and regional political influence as depicted in the energy policy 2020 is majorly derived in the sense that the Russian society derives its basic influence for control of the oil and other energy sources in the market. Therefore, a discovery of wind energy sources would reduce the government control as well as the significance of the energy sector in the nation’s economy. In this regard, the potential for other nations in the region to tap and harness this energy would in turn lead to a political lack of goodwill in rolling out the project. 5.0 Opportunities and Potentials for Wind Exploration Despite the challenges facing the establishment and invention of wind energy policy inclusion, the inclusion offers a wide range of opportunities to the Russian energy sector through filling in on the existing challenges as enumerated in the Russian energy policy 2020. The invention and use of these energy sources would have a direct impact in resolving the changes facing the Russian energy sector as outlined in the nation’s 2020 energy policy. This section develops a review of the available opportunities that use of wind energy would allow in the Russian and global energy market. 5.1 Sustainable Development A critical review of the Russian energy policy 2020 reveals that key among the important considerations is the aspect of sustainable development in the nation and across the globe. In this regard, sustainable development is defined and described as the process through which development approaches and initiatives adopted are affordable into the long run. In this respect, the adopted strategies are not only reliable and useful in the short run, but also into the long run period. In this regard, sustainable development is attained through the process in which applied resources and practices are available and applicable into the future without the threat of depletion (Bochkarev, 2006, p.8). In this regard, the adoption and use of wind energy would enable Russia achieve this strategic need. In this case, wind energy would eliminate the threat of oil well depletion into the future, a risk that will be eliminated in the new dispensation. Therefore, this confirms that indeed the use of wind energy would enrich the nation’s sustainability policy concerns into the future. 5.2 Environmental Conservation As Godzimirski (2013, p.72) stated, an additional opportunity presented by the invention of the unconventional gas and especially the renewable energy sources such as wind provide an opportunity for resolving the environmental conservation challenges as outlined in the Russian energy policy 2020. In this case, the policy outlines that the current energy sourcing system pose environmental challenges through natural resources depletion and pollution across the globe. As such, the policy has dedicated an increased funding in the development of appropriate regulatory framework to reduce the environmental pollution. Therefore, use of wind energy would support this environmental conservation policy endeavour. In this regard, the development would allow for increased environmental conservation as use of wind has no direct or indirect pollution of destruction effects on the environment. In this case, the risk of resources depletion in the Russian oil wells would be substantially reduced allowing for both sustainability and efficiency in the energy production process. In turn, this would have a refocus effect on the 2020 energy policy. As such, funds dedicated to control environmental pollution and conservation would be effective re-channelled to other energy industry promotion areas such as in wind energy production efficiency enhancement projects. 5.3 Technology Application Alternatively, the adoption and use of wind energy and would allow for increased technology application and adoption in the Russian energy industry. In the energy policy 2020, Russia outlines the application and use of modern technology in oil drilling and purification as one of the key fundamental approaches. In this case, wind energy tapping requires innovative and modern technology application. Moreover, sourcing and tapping wind especially in the open fields along wind lines, calls for the adoption of modern technology harnessing tactics application, unlike the conventional oil drilling that applies the traditional drilling practices (Aalto, 2009, p.169). Therefore, based on this analysis, it is apparent that the discovery of the wind energy source in the Russian economy would boast and enhance the application and use of modern technology to facilitate industry efficiency as stipulated in the energy 2020 policy. 6.0 Threats Analysis and Evaluation for Wind Energy Exploration The invention and use of wind energy source in Russia though offering strategic resolutions to the gaps enumerated in the nation’s 2020 energy policy, faces arrange of threats. This section evaluates the various threats to the new energy policy in Russia. As such, it evaluates the potential threats as well as offering viable recommendations for each. 6.1 Lack of Human Capital One of the key threats the new policy development and execution will face is the lack of enough human capital. Although the Russian society is among the G20 nations, it has minimal qualified human resource and capital. As such, the current societal and labour force presence and society inclusion in oil and energy production process has been a long term initiative by the government. Therefore, the change process will create a human resource gap. In this case, Russia lacks enough human capital to implement and successfully harness and tap the wind energy source posing a threat in the successful adoption and harnessing of wind energy in Russia. However, this challenge can be overcome through the use of expatriates. In this regard, the multinational organisations seeking to exploit and tap into the renewable energy sources can source experts from across the globe to initiate the process. However, this should only be applied and used on a short term basis (Garbuzova and Madlener, 2012, p.388). On the long term planning, the organizations should offer support both technical and financial to allow the training and development of the relevant human capital in Russia. This would allow for the incorporation and community participation in energy production as regulated and advocated for by the Russian government. 6.2 High Infrastructure Requirement As opposed to the conventional energy sources such as oil drilling, wind energy exploration requires a completely new set of infrastructure ranging from capital equipments to technology application. Therefore, this exposes the energy industry stakeholders in Russia to the threat of capital insufficiency and shortage, thus posing a failure threat in the exploration of new renewable energy sources. Nevertheless, the challenge can be overcome through a series of alternative approaches including capital infrastructure leasing. In this case, if it is relatively expensive for organizations to acquire capital, such infrastructure as wind propellers can be leased in the short run period. Moreover, an alternative would be experts and technical support sharing in the energy sector. As such, this would ensure reduced technical costs for the operating organizations, a measure that would make the process relatively affordable to the respective stakeholders. However, the respective wind energy harnessing organisations in the Russian energy sector should strive to develop relevant technology and infrastructure to enhance efficiency in renewable and unconventional gas tapping. 7.0 Conclusion In summary the essay offers critical evaluation on the likely changes in the Russian energy policy upon the establishment and discovery of wind energy sources, a renewable energy source. In this case, the essay the essay argues on the strengths of the current Russian policy such as community representation and a comprehensive regulation system. However, a weakness analysis in the current policy that could be resolved by the discovery include environmental and sustainability challenges. As such, under the opportunities presented by wind energy inclusion in the Russian energy policy, the essay establishes the opportunities for the alternative energy sources discovery including sustainability and environmental conservation. Finally, a threats evaluation establishes that lack of enough human capital and infrastructure could derail the wind energy harnessing and policy development success. References Aalto, P., 2009, The EU-Russian energy dialogue: Europe's future energy security, Ashgate, Farnham. Åslund, A., 2006, Russia's energy policy: a framing comment. Eurasian Geography and Economics, vol. 47, no. 3, pp. 321-328. Bochkarev, D., 2006, Russian energy policy during President Putin's tenure: Trends and strategies, GMB, London. Garbuzova, M. & Madlener, R. 2012, "Towards an efficient and low carbon economy post-2012: opportunities and barriers for foreign companies in the Russian energy market", Mitigation and Adaptation Strategies for Global Change, vol. 17, no. 4, pp. 387-413. Godzimirski, J. M., 2013, Russian energy in a changing world: What is the outlook for the hydrocarbons superpower?, Farnham Surrey, Burlington, VA, USA. Hardt, J. P., 2003, Russia's uncertain economic future, Sharpe, Armonk, NY. Kreutz, A., 2007, Russia in the Middle East: Friend or foe?, Praeger Security International, Westport, Conn. Walker, G. P. M., & Simmons, J. S. G., 2008, University theses in Russian, Soviet and East European studies, 1907-2006: A centennial bibliography of research in the British Isles, Modern Humanities Research Association, London. Read More