Foresight Services for Tekes Russia Russia 360° Weak Signals Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Freelance jobs & downshifting are becoming popular among Russians Increasing number of people “living alone” Neuro-diseases become common Rise of private healthcare system in Russia Preventive medicine becomes widespread Stronger pharmaceutical industry emerges in Russia Customised primary/secondary education within public schools Russian higher education system will be challenged by the open/distant education programmes in the world (S) Emergence of ICT-enabled communities and social groups Import substitution in Russia Tax incentives for innovation in Russia Development of innovative SMEs and emergence of a new middle class Russian ICT sector becomes globally competitive Privatization of the space industry New funds and investment models for infrastructural development in Russia Re-discovery of the Arctic Application of “best available technologies” in Russia The rise of “Green Economy” Waste recycling and disposal gain momentum in Russia (including Electric and Electronic Waste) Potential disruption in the nuclear fuel industry with the introduction of the full cycle technology Possible boom in non-traditional oil and gas extraction due to state tax policy Rapid advancement of renewable energy technologies and decentralization of power generation Growing potential for conflict between water consumption and energy generation 1. Freelance jobs & downshifting are becoming popular among Russians Socio-economic and technological transformations have started influencing peoples’ lifestyles and working practices to a large extent. Whilst, a number of people move out of cities by taking the opportunities of remote working and freelancing, there is also a greater willingness for “an intentional downgrade of living standards”, which is defined as downshifting. Remote working prevents a squashed, squeezed and stressed working condition in cities. Meanwhile, downshifting represents a more fundamental change of lifestyle. On the one hand wealthy people leave their businesses at the peak of their careers for a simpler and stress-free life; on the other hand poor people in cities face the difficulty of maintaining their lives due to increasing costs and difficulty to access goods and services, thus prefer moving to smaller towns and villages. Russia has a large number of underpopulated ecologically clean territories, like Karelia, Altai, Kamchatka or small villages in central Russia. Evidence for occurrence • The Russian President has April 8, 2013 signed into law amendments to the Labour Code • introducing a new chapter On Remote Work. • Government programmes that support farmers, self-employers and young professionals who decide to live and work in the country • Examples of popular people “downshifting” to a countryside living • Increasing of interest to spiritual sports (yoga), vegetarian movement, natural products; reincarnation of “eco-defending” religion and social groups Opportunities for Russia • Increasing environmental awareness and greater appreciation of nature and clean environment • Establishment of higher number of eco-villages • More balanced development across the country and smaller difference in the distribution of wealth between cities and rural areas Threats for Russia • Decline of cities • Damage for businesses and business community • Lack of legislative support for remote working Further indicators References Russia has 9% of all croplands in the world, 20% of drinking water and 52% of black soil. Eco-oriented youth may bring Russian countryside with new technologies and vision. More than 200 eco-villages have already been founded in Russia since the beginning of the downshifting movement. 1. 2. 3. 4. Anticipated impacts Value Social 5 4 3 2 1 0 Policy Technological Economic Environmental Market size According to Public Opinion Fund (2012), almost one fifth of all Russian citizens are ready to move to the countryside for remote working or simpler and organic living. Related Technologies • Sports and leisure equipment • Environnmentally friendly construction materials for countryside construction • All terrain vehicles, bikes, motorbikes • Agricultural and farming equipment http://voiceofrussia.com/2012_07_03/80134831/ http://runet.fom.ru/ http://www.down-shifters.ru/ http://www.themoscowtimes.com/business_for_business/article/national-features-of-remote-workregulations/470325.html 2. Increasing number of people “living alone” The traditional family structure has deteriorated dramatically in recent years due to social, technological, economic and political changes. Self-development, career goals, other egocentric values are becoming the first priorities nowadays, mostly in big cities like Moscow. Despite of an active use of social networks, it seems that digital era is more likely to distant people from each other. People feel more comfortable living an independent life. Recent tendencies towards the decreasing number of marriages, and lower birth rates, coupled with increasing divorce rates indicate that there will be a higher number of people living alone in the near future. Especially considering the elderly people, there will be less and less care available from their families. This will eventually bring increasing load on the health and social security system. There will also be an increasing need for assistive health and care technologies and Personal Health Systems [1] Evidence for occurrence • A sharp rise in percentage of divorces per 1000 since 1990. More people want to achieve personal goals before having children, so they get married only in their 30s and 40s. Many women, able to have children, do not want to have them • Official statistics and population census display the rise of people living alone • Increasing number of pet ownership for elderly people [2] Anticipated impacts Value Social 5 4 3 2 1 0 Policy Technological Economic Environmental Market size Opportunities for Russia • It is good for employment as people without family are ready to devote their time and energy for work • Advantage for social networks, as people get used to surfing the Internet communities when they feel lonely • Emergence and development of a new market for assistive health and care technologies Upon to the statistics every second couple get divorced, among 1000 marriages 700 do not live a long time. Related Technologies • Threats for Russia • Drop of the birth-rate and population • Dissatisfaction in life, increased level of aggression • Stratification of society Further indicators • Even if number of divorces seems to decline, the number of marriages do not go up either. • • Social networking technologies supplemented with joint real-life activities for people living alone Robotics for supporting elderly Life assessment and advice technologies, wearable devices References 1. http://www.phsforesight.eu/ 2.https://www.google.ru/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&ved=0CD0QFjAG&url=http%3A%2F%2Fwww.springer.com% 2Fcda%2Fcontent%2Fdocument%2Fcda_downloaddocument%2F9781461444381-c1.pdf%3FSGWID%3D0-0-45-1351111p174512857&ei=KOpRVO7AFePhywO2_ILIDg&usg=AFQjCNFhQzm9s3lIMJUKpclCyLzeBoPP5g&sig2=E85992s8ZeseAdPnzgKQA&bvm=bv.78597519,d.bGQ&cad=rjt 3. http://www.gks.ru/bgd/regl/b14_12/IssWWW.exe/stg/d01/05-07.htm 3. Neuro-diseases become common Neurological disorders are currently estimated to affect as many as a billion people worldwide, and Russia is not an exception. Along with the increasing pace of digital era and technology products, informatization of society humans must overcome much more stressful circumstances than ever before. More and more people become physically inactive because of modern gadgets and new working conditions. People suffer from informational overloads, number of neuro-disease complaints is increasing. People of young age (13-20) have become more vulnerable and more exposed to these health issues. The most typical sicknesses are headaches, weakness, problems with spine among the others. There are also more and more advertisements about stress reducing drugs now. While transforming lifestyles and working conditions, technologies appear to have negative influences on humans, who are not prepared for such challenges. Evidence for occurrence • Informatization, “computerization”of society, new working and studying conditions in stressful world everyday brings new problems to the nervous system • Hospital visitors with first-time detected neurodiseases increased from 7% to 10% since 2002 by 2012 Opportunities for Russia • Inexpensive but effective interventions for neurological disorders that could be applied on a large scale through primary care are becoming available • Increasing awareness of health problems related to changing lifestyles and technologies • Rehabilitation programmes for people in all ages Anticipated impacts Social Value Policy Market size Children (<15) Threats for Russia • Increasing dependency on anti-depressants • Declining personal and social state-of-mind, mood and well-being • Social and economic costs due to higher number of people become unhealthy and ineffective Further indicators References • 1. 2. 3. Computer adherence alone inevitably causes several problems with health. Considering the fact that there will be more applications of Internet resources and computer technologies, new challenges are likely to cause more stress and consequently more diseases. 5 4 3 2 1 0 Technological Economic Environmental Teenagers (15-17) Adults (>17) Neuro-diseases by age groups (per 100K people) [1] Related Technologies Neuro-imaging; Neuro-recovery; Gene therapy; Stem cell technology; Central nervous system technologies; Laser; and Virtual Reality technologies http://vestnik.mednet.ru/content/view/383/30/lang,ru http://demoscope.ru/weekly/2014/0593/barom01.php http://www.gazeta.ru/science/2012/09/26_a_4788801.shtml 4. Rise of private healthcare system in Russia Currently, public healthcare services in Russia are not so strong and effective as they were during the Soviet Union times. Even in the years of crisis (2008-2009) people in Russia preferred to visit private health practitioners and clinics, whose prices are far from cheap. Recently, governmental programs have been enacted to contribute to the development of a private medicine sector in order to enhance the healthcare services delivered by the state. Complexities and under-budgeting of the national healthcare industry forces people to find the alternative sources for help. In society, the commercial medical centers are considered to be a high-quality, personoriented and reliable institutions. In parallel to increasing wealth in society, people demand more and easy access to high quality healthcare services. Insufficiency of public medical care, low standards of management and increasing dissatisfaction with the public services create opportunities for the private market to grow. Evidence for occurrence • Private medical and educational institutions have been exempted from income tax • Government has adopted several programmes in order to develop a private medicine market, for example, the Moscow State Programme “Doctor is near” allows to establish a medicine room in a simple living house • Increasing attendance to private hospitals and clinics and in parallel increasing investments in the sector Anticipated impacts Social Value 5 4 3 2 1 0 Policy Market size Technological Economic Environmental Opportunities for Russia • Rising of effectiveness of the national medical aid in Russia • Opportunities for creating new private-publicpartnerships in healthcare • More possibilities for R&D in medicine through private laboratories Growth of the private healthcare market [2] Threats for Russia • Appearance of the “black market” in private medicine sphere • Free health services might disappear affecting poor negatively • If not inspected properly, health risks may arise due to irresponsible players in the sector Further indicators References • 1. 2. 3. 4. The Doctor is Near programme is implemented in to provide residents with affordable medical care at health centres conveniently located near their place of residence, work or study. The programme is gaining momentum, and more investors are willing to participate [1] Related Technologies Electronic patient records; Managerial decision support systems; Neural networks and pattern recognition; Smart cards; Telehealth and telemedicine http://www.mos.ru/en/authority/activity/healthcare/index.php?id_14=28315 http://marketing.rbc.ru/reviews/medicine2013/chapter_1_1.shtml http://www.techart.ru/files/publications/publication-588.pdf http://usib.ru/text/chto_zhdet_medicinskij_biznes_v_2013_god 5. Preventive medicine becomes widespread Preventive medicine is widely accepted as a way to create healthier societies with minimum health expenditures and higher quality of life of people as socially and economically active citizens. Preventive medicine is becoming to be recognised in Russia too. The state policy of the Russian Federation relating to healthcare and the health of the nation is geared at preventive medicine and also at preventing the spread of socially dangerous illnesses [1]. Besides the state, the other leg of the preventive medicine is the society itself. It is important to increase the awareness of society so that the individuals take better care of for their health, diet and physical and psychological activities. There are greater opportunities for the use of Personal Health Systems and making them more accessible for citizens. Among the policy measures, tax incentives and insurance premium reductions can be applied for citizens who keep their health at a good level. Evidence for occurrence • Increasing R&D work dedicated to the early detection of diseases • Rising awareness of people regarding health, lifestyles, physical exercise and nutrition • Social advertising about preventive health measures are becoming more and more popular • Emergence of many innovative health care communities where preventive medicine is the core approach Anticipated impacts Social Value 5 4 3 2 1 0 Policy Market size Technological Economic Environmental Mobile-health projects by categories, 2013 [2] Opportunities for Russia • Development of new competitive medicine technologies for preventive medicine • Citizens build healthy habits • Less costly treatment for society and the state • Declining levels of incidence in Russia Related Technologies Threats for Russia • Preventive medicine programmes may be costly especially at the early stages of development • Insufficiency of preventive medicine could cause high level of false predictions • People, who are aware that they are exposed to a risk of some illness may intentionally or unintentionally harm themselves Further indicators References • 1. 2. Agashin simulator is a medicine-free cure aid. It is based on a rhythmic wave motion of the body (e.g., jumping, hitting or shaking on object). During jumping muscles are contracted, causing the blood rushes to all of their groups. It can cure or prevent heart and vascular disease [3] 3. Devices, to improve diagnosis and treatment; some are drugs and other pharmacological agents, for prevention and treatment; and some are information science tools, to improve the coordination, analysis and dissemination of preventive health information http://rustrans.wikidot.com/russia-s-national-security-strategy-to-2020 http://www.json.ru/en/poleznye_materialy/free_market_watches/analytics/rynok_mobilnoj_mediciny_v_ro ssii_i_v_mire_osnovnye_tendencii_i_prognozy/ http://agashin.ru/ 6. Stronger pharmaceutical industry emerges in Russia Amid ongoing political and economic crisis, supplies of some drugs to Russia have been interrupted. This brought the urgency for action to upgrade the national pharma industry more than ever. Actually, the former President in 2009 defined the pharmaceutical and medical spheres as the main priorities for development of the Russian economy. Furthermore, the recent Foresight study organised by the Higher School of Economics [1] for the Russian Federation towards 2030 identified medicine as one of the seven priority areas for Russia. Since then many state programs have been established to hasten this process, and a lot of shortcomings of legislation have been overcome. The pharma industry gives signals of recovery. However, this appears to be due to Foreign Direct Investments. The Government strives to support the Russian manufacturers . Among top 10 manufacturers, Pharmstandard continued to be the only Russian company with a market share of 4% [2]. Evidence for occurrence • Pharma and medical industries were given priority in the "Development of pharmaceutical and medical industry of the Russian Federation until 2020“ programme, which was approved by the Government Decree on 17 February 2011. Anticipated impacts Value Social 5 4 3 2 1 0 Policy Opportunities for Russia • Emergence of the strong national pharma market, reducing of the potentional risk of consuming “generics”. The process of launching drugs will be quicker • Independence from the international suppliers • Growth of national health and wellbeing, opportunities for accessible prices for all • Growth of the competitiveness on global market with new drugs and medical products Technological Economic Environmental Market size According to Pharma 2020, the Russian Federation aims at producing at least 50% of drugs in Russia and 25% made by Russian companies [2]. Related Technologies Threats for Russia • Possibility of stagnation on the pharma market without international competition • Lack of time to elaborate the proper national pharma industry • Lack of particular medical drugs on the Russian retail market in the first years. Consumers may suffer from the absence of cancer drugs, drugs for transplantation, the insulin preparations and cardiotropic treatments Further indicators • Russian Government aims to increase the volume of domestic critical drug production to 90% by 2018 and the total share of domestically-produced drugs and medical products consumed in the country to 48% by 2020 [3] 1.The company NPO "Microgen" presented the most recent and already proven market bacteriophage preparations 2.Portfolio company of Maxwell Biotech "OncoMax" fund is preparing for clinical trials of its drug, which is capable killing cancer cells while minimizing adverse effects on the patient References 1. 2. 3. http://www.hse.ru/data/2014/08/13/1313910581/%D0%9F%D0%9D%D0%A2%D0%A0%20203 0.pdf http://crm.cegedim.com/Docs_Whitepaper/Industry/Emerging-Markets-Whitepaper-2012.pdf http://www.ihs.com/products/global-insight/industry-economic-report.aspx?id=1065985325 7. Customised primary/secondary education within public schools Russia traditionally inherited an individualised education system from the Soviet times for pupils in need of pedagogical and therapy support. however, this practice seems to have ended and created some negative consequences. The decentralization and under-funding of the Russian education system in the 90s resulted in a growing inequity of ICT availability across the education system. However, demand for customised education is growing again. This time the expectations go beyond the special physical and psychological assistance, but towards an ICT-enabled more individualised curriculum. Increasing number of state schools have started upgrading the standard curriculum and provide additional and more up-to-date content in their programmes. Further advancements are expected in the development of learner profiles, flexible program delivery methods, technology infusion, social construction, and individualised student learning plans [1]. Evidence for occurrence • The Federal Target Program for the Development of Education in 2011-2015 was developed to ensure access to quality education that meets the requirements of innovative socially-oriented development of Russia. • In addition to government programmes, there are several community initiatives, including “the school of the digital age,” which aims at providing educational institutions subjectteaching materials for all academic disciplines and areas of school life with an address delivered on modern media [2] Opportunities for Russia • Fostering of a collaborative partnership between the teacher, parent, student and school to designs tailored learning programs • Students are taught according to their individual curriculum and a specially designed learning path that better suits their needs and abilities Threats for Russia • Implementation of ICT methods requires some time and skills to adopt • Personalized learning could diminish the relational and ethical dimensions of education. It should not be taken to the extremes to become self-learning Further indicators • Through the new personalized education approach, the average test pass rate is almost 10% higher and positive evaluation of the education program is around 84% higher Anticipated impacts Value Social 5 4 3 2 1 0 Policy Market size Technological Economic Environmental In 2012-13 alone, more than $10m (£6.3m) was invested in education technology companies in Russia [3] Related Technologies • E-books, tablets and laptops • Online lectures and Internet-based tests and supporting cloud technologies • Gamification technologies for education • Electronic records of perfomance References 1. 2. 3. http://iite.unesco.org/pics/publications/en/files/3214716.pdf http://www.media-etc.fr/economie/the-marketing-strategy-of-russian-education.html http://www.telegraph.co.uk/sponsored/rbth/society/10340850/education-online-russia.html 8. Russian higher education system will be challenged by the open/distant education programmes in the world Development of ICT and growing Internet coverage of various regions in Russia creates an opportunity for students all over the country to use distance learning solutions. It has a potential for a huge market for many people that live far from huge cities in Russia and would like to get specific education in the field they prefer. A number of distant education programmes are delivered across the world. Particularly, the ones delivered by Harvard, MIT and other leading universities in the US and in Europe are becoming popular across the world. Among the popular subjects for study are law and business, with growing interest for online MBA programmes by particularly early and mid-career business professionals, who looking for further qualifications for progressing in their career. While giving people opportunities to access high quality content and degree delivered by those leading institutions, the distant programmes challenge for universities in the rest of the world including in Russia. Evidence for occurrence • • • The top university searches worldwide are for are for universities which offer online courses, University of Phoneix as a US for-profit institution being number 1 [1] Popularization of distance learning programs in Russia (such as Coursera) Order of Ministry of Education and Science of Russia about specialties that are banned from distant learning including most areas of engineering, medicine and vocational education such as health and other public services Opportunities for Russia • It will lead to the spread of educated people around the country as there will be no need to travel to big cities only to study the majority of professions • Improvement of Russian higher education system to include distance learning and to compete globally by following international standards • Higher level of migration to other countries for job opportunities Threats for Russia • Choice of international distance learning programs instead of Russian education • The majority of international educational programs will not take into the account Russian demand for specialists in specific areas Further indicators References • 1. 2. 3. If Russian education system ensures “educational sovereignty” and enables local content providers to develop customised programmes, particularly for the distant regions of the country, then greater opportunities can be generated for the exploitation of this Weak Signal. Anticipated impacts Social 5 4 3 2 1 0 Value Policy Technological Economic Environmental Market size The number of distance learning students in Russian higher education programmes increased by more than 50% from 2000 to 2010. Related Technologies • Distant learning information technologies • Learning management systems • Communication technologies • High speed Internet http://www.bbc.com/news/business-29240959 http://www.science-education.ru/25-996 http://vfmgiu.ru/sovremennie_tendencii_v_visshem_obrazovanii_506/sayti_distancionnogo_o brazovania_551/vliyanie_interneta_na_obrazovanie_632/index.html 9. Emergence of ICT-enabled communities and social groups ICTs technologies make considerable impacts for transformations in the Russian society. An increasing number of social networks provide platforms for online discussions and exchange of ideas and content, and eventually create opportunities for the generation of communities and organisation of events. This communities not only involve people from inside the country, but also attract attention from all over the world and create possibilities for the diffusion of ideas, ideologies and culture with eventual positive and negative impacts. Besides its benefits for a creative exchange, a number of illegal communities have emerged. There is a growing need for more effective monitoring systems and anticipatory analytics to understand the dynamics of online exchange and what positive as well as negative consequences it may create. Whilst doing that it is also becoming increasingly important to protect basic human rights such as privacy and freedom of speech. Evidence for occurrence • Live events and meetings of groups created in the Internet • Online and offline master-classes and lectures • Anti-social movements and charity activities • “Movement of Russian car-owners” occurred in the Internet. The group dealt successfully with increasing of taxes, car accidents and some general car etiquette policies Opportunities for Russia • Community purposes are achieved faster because of online collaboration, and open information sharing • Increasing national and multinational interactions, sharing of new ideas, trends, events for enhancing of different social, cultural, and science communities Threats for Russia • Emergence of illegal communities, social protests, revolution • Increasing aggression and miscommunication within different levels of social groups • Decline of importance of the real communication, living illusive life Further indicators • A wide variety of communities have been established including thematic, geographic, consumer, professional, gender, protest and marginalised as well as communities of direct communication [1] Anticipated impacts Value Social 5 4 3 2 1 0 Policy Market size Technological Economic Environmental Top 5 Social Networks in Russia [2] Related Technologies Intelligent social networking; big data analysis; web-mining; semantic web; fuzzy networks; security & privacy applications References 1. 2. 3. http://www.moluch.ru/archive/28/3133/ http://etc-digital.org/digital-trends/social-networking-and-ugc/social-networking/regionaloverview/europe/ http://infoculture.rsl.ru/donArch/home/news/dek/2005/12/2005-12_r_dek-s3.htm 10. Import substitution in Russia Being a natural resources exporter and importer of the majority of consumer products and technologies from partner countries, Russia is the country that is overly dependent on international trade, which made it difficult for national enterprises to compete with international ones on the national markets and led to obsolescence of Russian technological base and infrastructure particularly in manufacturing sectors. The most import dependent sectors are machine tools (>90%); heavy machinery (60-80%); light industry (70-90%); electronics (80-90%); pharmaceutical and medical industry (7080%); machinery for the food industry (6080%). While governmental programs are being developed to restore and upgrade the manufacturing base, the latest political tensions increased the urgency of actions. Particular priority is given to the import substitution in military-industrial sectors as part of national security. Evidence for occurrence • Embargo on food imports • Official news and interviews of Russian industrialists and entrepreneurs • Messages and orders from President and Government of Russian Federation to encourage import substitution Social 5 4 3 2 1 0 Anticipated impacts Value Policy Opportunities for Russia • Employment growth, improvement of living standards • Increase of the level of scientific and technological progress and the level of education • Decrease of cost and availability of products and technologies • Attraction of foreign companies for operation within Russia and with national industries Threats for Russia • Lack of financial resources for total import substitution • Old industrial infrastructure for implementation of new technologies • Increasing of political tensions and sanctions in all spheres of live Further indicators • In order to substitute military import materials Russia will have to spend 50 billion rubles initially [1] Market size Technologica Economic Environmental Specialisation of technoparks in Russia [2] Related Technologies Machine tools; Heavy machinery; Light industry; Electronics; Pharmaceutical; Medical industry; Machinery for the food industry and agriculture References: 1. 2. 3. http://newsruss.ru/doc/index.php/%D0%98%D0%BC%D0%BF%D0%BE%D1%80%D1%82%D0%BE%D0%B7%D 0%B0%D0%BC%D0%B5%D1%89%D0%B5%D0%BD%D0%B8%D0%B5_%D0%B2_%D0%A0%D0%BE%D1%81%D1 %81%D0%B8%D0%B8 http://www.pravda.ru/news/economics/11-08-2014/1220770-opk-0/ http://www.rg.ru/2014/08/05/zameshenie.html 11. Tax incentives for innovation in Russia The changing business environment in Russia is bringing new opportunities for investors. Tax incentives help to increase business profitability and thus maximise investment potentials. Recently the Government adopted several federal programs aiming at restructuring of the Russian economy. Nowadays federal policy and legislation hamper the development of the comprehensive and effective economy environment to boost innovation processes. The recent “Strategy for innovative development of the Russian Federation by 2020” raises the importance of SME empowerment along with effective labour policy, and implementation of new technologies in public domains. Tax incentives are considered to be crucial instruments for stimulating innovation. Recently there have been steps towards reductions of taxes for companies which use eco technology and produce lower emissions than the standards defined by the authorities. Evidence for occurrence • Tax policy in the Russian Federation for 2011 and the planning period of 2012 and 2013 promote innovation and support innovative activities • Tax exemption for inventions and industrial designs and support for the registration of patents and utility models • Considerable tax incentives have been offered for the Skolkovo innovation center Opportunities for Russia • Greater opportunities for national and foreign investments • Increasing amount and pace of business and innovation processes within companies with increased R&D • Increasing of development of important aspects of life such as energy efficiency, IT, medicine, life sciences, etc. Threats for Russia • Complicated processes for tax incentives and returns may hamper innovation • Indirect tax revenue losses may occur, if investment crowds out other more highly taxable investment • Cost-benefit studies of tax incentives are difficult to make and may be misleading if they systematically exclude general equilibrium effects Further indicators References • 1. 2. 3. There is an import VAT exemption for technological equipment that has no equivalent produced in Russia (normally 18% VAT applies). Exemptions also apply for import customs duties in respect of goods imported by a foreign investor as a capital contribution to its Russian subsidiary [3] Anticipated impacts Social Value 5 4 3 2 1 0 Policy Technological Economic Environmental Market size Tax benefits available in the special economic zones. There are 16 special economic zones (SEZs) in Russia. They are split into industrial production SEZs, tourism and recreation SEZs, technology development SEZs and port SEZs. There is also a SEZ with separate tax treatment Kaliningrad SEZ. Related Technologies Tax incentives for application of energy-efficiency technologies within enterprises, for sales of nationalproduced EE instruments. http://elibrary.unecon.ru/materials_files/412438469.pdf http://opec.ru/1333025.html https://www.deloitte.com/assets/DcomRussia/Local%20Assets/Documents/Tax%20&%20Legal%20services/Tax_incentives_in_Russia.pdf 12. Development of innovative SMEs and emergence of a new middle class The SME sector in Russia has steadily grown since 2005, both in terms of SME number and turnover. New governmental programs support innovative startups that have potentials to turn into perspective businesses. Some of these micro businesses merge into SMEs or are bought by bigger companies. Innovation institutions and clusters are slowly starting to develop in Russia to attract more innovation in SMEs. The rise of entrepreneurship and innovative SMEs will speed the emergence of the middle class in Russia. Eventually, these changes will attract more foreign capital into the country; however at the same time the growth of middle class will also bring a lot of international products and services to provide for the new demand and opportunities of the society which may create a big competition with local suppliers. Evidence for occurrence • Since 2010 support of innovative SMEs has been one of the most priorities of the State Program for Finance Support of SMEs in Russia • Establishment of a network of development institutions for innovations (the Technology Fund, the Russian Venture Company, the Development Bank and others) • Tax incentives for R&D and innovation Social Anticipated impacts 5 Value 4 3 2 1 0 Policy Technological Economic Environmental Market volume Opportunities for Russia • Increase of the amount of R&D and innovations in the country • Decreasing rate of unemployment • Attraction of Foresight Direct Investment into the country Threats for Russia • Russian higher education may not meet the requirements of innovative business • Attraction of big amount of foreign suppliers to compete with local businesses • Innovative SMEs will primarily be concentrated in the wealthier regions of the country, which may cause further income disparities Further indicators • Rise of GDP per capita, spending on luxury goods, tourists travelling abroad, private housing, internet users and other economic metrics show the growth of the middle class [2] SME Production Volume for Different Branches of Russian Economy [1] Related Technologies High technology equipment; industrial design and prototyping; manufacturing systems; marketing; training; and capacity building References 1. 2. 3. 4. http://www.fp6-creation.ru/win/smeinrussia.html http://www.isras.ru/analytical_report_sredny_klass_10_let_spustya.htm http://www.wipo.int/export/sites/www/econ_stat/en/economics/gii/pdf/chapter6.pdf http://www.apecscmc.org/files/11.1.6%20Support%20of%20Innovative%20SMEs.pdfl 13. Russian ICT sector becomes globally competitive Russia has always been a very advanced country in terms of inventions. However, the disability to protect the ideas and commercialize them resulting in some innovations has always been a weakness for the country. On the governmental level, the ICT sector is one of the priority areas of development of Science and Technology for long run perspectives. At the same time it is one of the main drivers of the economy after natural resources. The volume of the sector grows annually. Having adopted clientoriented approach of developing and implementing new ideas, technologies and solutions in ICT sphere and a huge support on governmental level, Russia now has a high potential to catch up with the rest of the countries and even become a leader in some spheres of information technologies. The government forecast predicts growth of the ICT sector 5% in 2014, before climbing slightly from there to 5.3% in 2015 and 5.5 percent in 2016 [1] Evidence for occurrence • Annual rise of ICT sector’s volume • ICT – is one of the Russia priority areas for development of Science and Technology • Rising number of IT-related faculties in Russian education system and the amount of employees and freelancers in the sphere software engineering • ICT startup initiatives and financial support by the government • • • • • • • • • Social 5 4 3 2 1 0 Policy Technological Economic Environmental Governance of various spheres with the help of ICT solutions Capitalization on ICT software solutions, gathered knowledge and services Huge market for ICT goods and services, especially electronic-business Transformation to knowledge economy Appearance of knowledge intensive business services Better ways to monitor social activities by collecting personal data Huge territory to spread a lot of data processing centers Threats for Russia • Value Market size Opportunities for Russia • Anticipated impacts Pollution caused by the increased demand for computing power Lack of a sufficient number of professionals in ICT Openness of all information Increasing dependency to imported hardware Further indicators • According to the Strategy for the Development of Russia’s Information Society, approved in 2007, ICT is a second driver of economic growth after natural resources. Ranking of ICT areas by importance for Russia[2] Related Technologies “Big data” technologies; Wireless sensor networks; Smart grid; Ubiquitous computing and Advanced manufacturing among the others References 1. 2. 3. http://www.software-russia.com/why_russia/industry_overview http://foresight.jrc.ec.europa.eu/fta_2011/documents/download/PAPERS/THEME%201/1b%20 Innovation%20and%20Sustainability/Shashnov.doc http://www.crn.ru/news/detail.php?ID=68520 14. Privatization of the space industry Moving out into space appears to be an inevitable future for human. Besides wellknown Moon and Mars missions, recently non-traditional space initiatives have been emerging. These mainly stem from the private sector such as space tourism and asteroid mining. Recent political and economic context between Russia and the West suggest that the privatisation process in the space might be accelerated. NASA has granted Boeing and SpaceX contracts for manned space flights to become independent from Russia, where travels to the international space station are undertaken. Whether the space endeavors should be funded privately or publicly is debated. Privatising space may cause science to follow profit. However, there is a fact that industry has been responsible for a number of scientific advancements. While entrepreneurs may be concerned with financial, operational and market viability, governments must be ready to deal with legal and regulatory issues [1]. Evidence for occurrence • First manned commercial flights planned for 2017 • Cygnus and Dragon private cargo spacecrafts by Orbital Sciences corp. and Space X accordingly are already being utilized by NASA • Arianspace SA, a French commercial launch service provider, reconsiders its pricing policy due to Space X market pressure Anticipated impacts Value Social 5 4 3 2 1 0 Political Opportunities for Russia • A new and prospective market emerges for Russian high-tech companies • Russia could concentrate its efforts on noncommercial activities such as deep space exploration • Increased competition if properly addressed could foster technological development not only in Russian space industry but also in the supporting ones Threats for Russia • Russia holds a significant market share only within a small niche of the global space services market, which it may lose • Lack of nation-wide experience in organizing a successful private high-tech companies prevents smooth substitution of government-related entities in space industry Further indicators Boeing has already received more than $570m to develop CST-100 in the three phases of the programme before today, while SpaceX has received $515m for Dragon. Market size Technologi cal Economic Environme ntal The global space economy amounted to over $314 billion in 2013, including $240 billion on commercial space products, services, infrastructure and support industries Related technologies • • • • Rocket engines New materials ICT New launch technologies References 1. 2. 3. 4. http://www.rast.org.tr/docs/RAST2015_CFP.pdf http://www.space.com/22989-private-cygnus-spacecraft-space-station-arrival.html http://www.space.com/27543-spacex-dragon-cargo-spaceship-splashdown.html http://www.thespacereview.com/article/2628/1 15. New funds and investment models for infrastructural development in Russia In Russia water, energy and transport networks are getting older and will need a major overhaul and modernization in the near future. New funding schemes are being considered for infrastructural upgrading through state programmes and regional funding schemes along with various types of public-private-partnerships. Built-OperateTransfer contacts also are promising and would encourage the attraction of Foreign Direct Investments in the future. Consequently, the modernization process is expected to take place at the national and regional levels and with the involvement of domestic and international private companies, including venture capitalists and wide variety of foreign investors. The infrastructural upgrading and investment on new projects, such as the new high speed railway line planned to connect China to Europe will require the latest technologies with minimum environmental impact while complying with the highest safety standards. Evidence for occurrence • Federal programs for transport, energy and water infrastructures development • Programs to encourage public-private partnership models, which have been applied successfully in 2014 Winter Olympics in Sochi and 2014 Formula 1 Grand Prix in Sochi; and are expected to be used in 2016 Ice Hockey World Cup; and 2018 FIFA World Cup, which are large developments requiring both capital and technological investments Opportunities for Russia • Quality improvements of Russian roads, water and energy • Improvement of road capacity to solve traffic jams problems • Implementation of latest “green” technologies to decrease environmental pollution, increase safety and efficiency of energy and water systems (e.g. “smart grid”) Threats for Russia • Total costs for infrastructural development • Prolonged disruptions in the work of the essential elements of transport, water and energy systems during upgrade process • Possible money flow leaks because of the large scale of the modernization projects Further indicators References • 1. 2. Priority areas of PPP investments in Russia: Transport (airports, highways, bridges), Environment (water and waste management), Social infrastructure (sports, education and healthcare), Territorial development (e.g. industrial parks, Energy efficiency (e.g. district heating), IT&Government (e-government, broadband) [2] 3. Anticipated impacts Value Social 5 4 3 2 1 0 Policy Market size Technological Economic Environmental No. of infrastuctural projects with estimated completion times [1] Related Technologies Material technologies Energy generation, transfer and storage technologies Smart grid; Smart transport http://www.ey.com/Publication/vwLUAssets/EY http://www.unece.org/fileadmin/DAM/ceci/documents/2013/PPP/Highlevel_Consultations/11_Russia.pdf http://www.eriras.ru/files/manjevich-programma_modjernizacii.pdf 16. Re-discovery of the Arctic Arctic is strategically important region of Russia. It is proved to have traditional largescale oil and gas fields that can be exploited in a short term. It is also a non-conventional source of hydrocarbons – gas hydrates which can be used in a long run. Furthermore Arctic is the shortest waterway transport corridor from Europe to Asia making it attractive for international trade in oil, liquefied natural gas and iron ore. Finally Arctic region is planed to be used for the deployment of new satellite geo-positioning systems and communication. Russian companies and foreign partners have already started the exploration and deepwater drilling in Arctic shells. Due to political tensions and desire of European countries to become independent from Russian gas resources, foreign countries actively try to claim for Arctic areas [1]. Preserving and exploiting Russian territory of Arctic will boost Russian economy and strengthen its position in the global market. Evidence for occurrence • A growing number of missions to explore Arctic potentials in relation to natural resources • Russian oil platforms in the Murmansk region • Official news and statements by Russian industrialists, entrepreneurs and governmental bodies about the importance of Arctic exploitation Opportunities for Russia • New sources of oil and gas • Sources of gas hydrates that can be used for methane extraction in long term and desalination • The shortest transport corridor for international trade between Europe and Asia • Platform for new satellite geo-positioning systems and communication Anticipated impacts Value Social 5 4 3 2 1 0 Policy Market size Technological Economic Environmental The Arctic could hold about 13% of the world’s undiscovered oil reserves and approximately 30% of natural gas reserves. Russia controls the biggest part of the Arctic [2] Related Technologies Threats for Russia • Claims for the neutral Arctic water territory by U.S.A., Norway, U.K., Canada and Denmark • Ecology preservation campaigns (such as “Save the Arctic” and “Green Peace” supported by 2 million people and Finland government) infiltrating Russian oil platforms and ships • Potential environmental disasters because of deep-water drilling in Arctic waters Further indicators • In 2015 Russian defense ministry is beginning the reconstruction of the Arctic Tiksi aerodrome, which will host the permanent basing of frontline aircraft and interceptors Offshore ice-resistant platforms for oil and gas extraction in the Arctic shelf; new types icebreakers for the development of commercial navigation in the Arctic ocean; technology of methane recovery from gas hydrates [3] References 1. 2. 3. 4. http://expert.ru/dossier/story/arktika/ http://www.ey.com/Publication/vwLUAssets/Arctic_oil_and_gas/$FILE/Arctic_oil_and_gas.pdf http://issek.hse.ru/trendletter/news/133987697.html http://expert.ru/russian_reporter/2013/39/v-chuzhuyu-arktiku-so-svoim-ustavom/ 17. Application of “best available technologies” in Russia Concerns about ecology and environmental pollution caused by huge corporations has been a hot topic in Russia for more than a decade. Best available technology (BAT) in Russia is a term that is used to express technologies that are economically efficient and are designed both to increase energy efficiency and reduce environmental pollution from waste disposal and other dangerous processes. In 2012, Prime Minister of the time, Vladimir Putin, ordered companies to start forming “environmental programs”. Currently standards, norms and regulations are being developed along with instruments to stimulate the technological transformation of enterprises during 2015-2022. In order to monitor and control the amount of produced waste, smart meters and sensor devices are being developed and implemented in large industrial enterprises. Eventually such devices will cover most of the environmentally harmful waste in large Russian cities. Evidence for occurrence • Federal laws and corrections to them have been introduced • Russian BAT book for waste management is published • Environmental programmes in enterprises begin • Stimulation programmes for BAT implementation are planned Anticipated impacts Value Social 5 4 3 2 1 0 Policy Market size Technological Economic Environmental Opportunities for Russia • Minimisation of environmental pollution due to industries and better quality of environment • Reduction of resource use with opportunities for cost saving • Improved recycling and reuse of waste Threats for Russia • • • Lack of incentives for Russian enterprises to implement BAT Regulations might be in place earlier than the standards for firms to meet the regulations are available Costly requirements may cause companies to bankrupt Further indicators • Wastewater discharge regulations will start working from January, 2015 forcing all related companies to use BAT in order to avoid sanctions Shares of polluting industries in Russia[1] Related technologies Waste management; ferrous metals processing industry; energy efficiency; manufacture of ceramic products [2] References 1. 2. 3. 4. http://www.dishisvobodno.ru/promishlennoe_zagryaznenie.html http://www.mnr.gov.ru/activities/list.php?part=1551 http://www.rg.ru/2014/07/25/eco-dok.html http://www.kommersant.ru/pda/power.html?id=2184631 18. The rise of “Green Economy” Although Russian economy is greatly dependent on conventional resources, there are signals indicating that the concept of “green economy” is becoming an emerging topic. It agglomerates principles of reducing environmental risks and ecological scarcities in all spheres of our lives: from “green” economy, technology and product development to “green” construction and use of “best available technologies” (BAT) in environmentally harmful enterprises to regulate and control the amount of waste and pollution produced by them. In Russia this process started with the development of Federal Laws, “Green standards” and other regulatory documents for environmental preservation and the construction of the Sochi Olympic infrastructure in 2014 where the concept of “green technologies” was first implemented. Evidence for occurrence • “Green standards” for ecological certification of enterprises • Grants and awards for implementation of “green” technologies and solutions • Development of Moscow Ecology strategy for 2030 • Temporary elimination of customs duties for import of electronic cars within Eurasian Customs Union Anticipated impacts Social Value 5 4 3 2 1 0 Policy Technological Economic Environmental Opportunities for Russia • Long run cost saving for manufacturing, energy production, waste management and other spheres • Reduction of resource use with opportunities for cost saving with increased quality of environment • Environmental monitoring of natural resources across the country Threats for Russia • • • Increasing total costs for “green development” in companies and governmental bodies may create obstacles Emergence of “green barriers” for newly entering companies Necessary green technology support might not be available to implement the green economy Further indicators • Implementation of “green technologies” for the Sochi Olympic infrastructure in 2014 [1} Market size It is predicted that the full transformation to “green technologies” will take place in Russia in 2050. 50% of energy will be renewable, 30% from natural resources, 20% - nuclear energy [2] Related Technologies Smart sensors; LED lighting; fuel cells; electric cars; green building; solar batteries; green IT; modular nuclear power; smart infrastructures [3] References 1. 2. 3. 4. http://www.ivt.su/news/zelenye-tekhnologii-posle-olimpiady-v-sochi/ http://www.rg.ru/2014/09/23/ofis.html http://www.icsgroup.ru/library/publications/detail.php?ID=83495 http://greenevolution.ru/2013/12/27/zelenye-texnologii-rossii-5-vazhnyx-itogov-2013-go-goda/ 19. Waste recycling and disposal gain momentum in Russia (including Electric and Electronic Waste) Municipal solid waste (MSW) management system is one of the key components of a country’s overall environmental and resource efficiency framework. The volume of MSW in Russia has been steadily increasing in recent years: more than 48 million metric tons of municipal solid waste was generated in the Russian Federation in 2010, 95% of which was sent for disposal, mostly in landfill sites. In contrast to most countries in the EU, which typically recover around 60% of municipal waste, in Russia, most of it is just thrown away. Inefficient MSW treatment in Russia today is causing both negative environmental impact and results in suboptimal use of raw materials and energy. Currently recycling waste is significantly less profitable than landfills in Russia. It is expected that incentives will be created to facilitate the development of waste recycling and disposal industry in order to adverse the negative impact on environment Evidence for occurrence • Till the end of 2014 Russian parliamentarians are going to adopt amendments to the bill on waste introducing the utilization fee • Youth Business International Environmental Entrepreneur of the Year prize in 2012 went to the founders of one of the first waste collection and recycling companies in Russia Opportunities for Russia • If Russia optimized its MSW management policy and implements modern technologies, by 2025 it could fully shift towards environmentally friendly MSW management system and recover up to 45% of waste • Decreasing toxic substances that accumulate in a landfill and infiltrate the soil and groundwater and pollute the air. • Lower risk of landfill fires Threats for Russia • If waste recycling policy fails to start functioning properly, the costs of establishing new landfills and addressing their negative externalities would rise substantially Further indicators: References • 1. 2. 3. 4. Engineers at the Kuzbass Techno Park in Kemerovo (Western Siberia) have developed a technology to commercially recycle Ewaste. The annual output from discarded devices amount to 700 kgs of silver, 8 kgs of palladium and 4 kgs of gold [1] Anticipated impacts Social Value 5 4 3 2 1 0 Political Technological Economic Environmental Market size Experts estimate that the Russian waste market has a potential value of US$3.5 billion Related technologies • • • • Irrigation Desalination Water purification Water storage and distribution http://voiceofrussia.com/2012_11_03/Kemerovo-to-recycle-E-waste/ http://www.rbcdaily.ru/industry/562949986334712 http://theenergycollective.com/charles-arthur/314891/good-business-karton-chernozemie http://www.ifc.org/wps/wcm/connect/a00336804bbed60f8a5fef1be6561834/PublicationRussi aRREP-SolidWasteMngmt-2012-en.pdf?MOD=AJPERES 20. Potential disruption in the nuclear fuel industry with the introduction of the full cycle technology Rosatom State Atomic Energy Corporation has started a project to develop the new generation of fast neutron reactors and establish technologies for looping the nuclear fuel cycle. In 2011, the site location and specifications were endorsed. In 2012, a special entity within Rosatom has been established to run the project. News in 2013 and 2014 indicate that the project is on the run. The main purpose is to close the loop for the nuclear fuel cycle by 2025. It means that the waste fuel from traditional thermalneutron reactors will be used as a fuel for fast-neutron reactors, while the nuclear waste of the latter is reprocessed, blended with other nuclear fuel components and used again in thermal-neutron reactors. Over 40 years, a number of technical issues hindered the implementation of this idea around the globe. The fact that Rosatom has started such an ambitious project hints that its scientists may have resolved those issues and may introduce a disruptive process next 20 years. Evidence for occurrence • State strategies and programs in atomic energy • Rosatom R&D programs and announcements • New 800 MWT fast neutron reactor put into operation in Beloyarsk recently Opportunities for Russia • Global challenge of uranium-235 depletion will be addressed and much more abundant uranium-238 will be rendered usable for energy generation. This can dramatically reduce nuclear fuel consumption per kilowatt-hour of electricity produced, and alleviate the environmental consequences of nuclear waste disposal • Russia can significantly reduce its dependence on external sources of uranium (Kazakhstan, Uzbekistan, Ukraine) • Rosatom can disrupt global markets and create a global monopolistic niche for itself in the future. • Gas consumption for domestic electricity generation can be reduced allowing Russia to export more gas Threats for Russia • • Dependence of R&D sector on federal budget which is highly vulnerable to oil market prices Possibility that the EU and the US will start their own ambitious programs in the field and threat the global market position of Rosatom in the future Further indicators • The new nuclear facility will feature two reactors: 1200 MWT fast neutron reactor with sodium heat carrier and a demonstrational BREST-OD 300 MWT fast neutron with liquid lead heat carrier Anticipated impacts Social Value 5 4 3 2 1 0 Policy Market size Economic Environmental According to statistica.com, global market of the “front end of fuel cycle” is more than 17 billion dollars today and can reach 26 billion dollars by 2030, while spent nuclear fuel reprocessing and secondary fuel market is more than 3 billion dollars today and will reach 9 billion by 2030. Related Technologies • • • • • • Breeder reactors Heat-neutron reactors Thorium fuel cycle Plutonium production, transportation, and storage Radioactive waste disposal technologies Uranium in-situ recovery (lixiviation) References: 1. 2. 3. Technological http://www.atomic-energy.ru/tema/zamknutyi-yadernyi-toplivnyi-tsikl http://www.niirosatom.ru/wps/wcm/connect/nii/mainsite/about/proriv/ http://programs.gov.ru/Portal/programs/passport/22 21. Possible boom in non-traditional oil and gas extraction due to state tax policy On July 23, 2013 the Federal Law N213 has been endorsed by the President of Russia allowing the Government to differentiate rates of tax on the extraction of minerals and providing a framework for setting differential tax formulas based on hydrocarbons collector properties and degree of depletion of a deposit. The law set zero tax for hydrocarbons extracted from Bazhenov, Abalak, Khadum, and Domanik formations (large potential sources of shale/tight oil, which is technically difficult and costly to extract). News continue to appear in the media on efforts of the Government and oil companies to strike a balance between sustaining budget income from oil industry and stimulating oil production. Policy options include taxing companies depending on their financial results instead of amount of crude oil produced. Considering the deteriorating size and quality of current oil deposits, additional tax deductions may provide companies to continue their efforts in extracting tight oil. Evidence for occurrence • High officials of the Government and of the Ministry of Energy continue to make statements on the issue • News in media refer to a number of reforms, including tax incentives and stimulation of exploitation of depleted deposits after large companies by the medium enterprises Anticipated impacts Social Value 5 4 3 2 1 0 Policy Opportunities for Russia • Increasing the oil reserves by decades at current levels of production • Developing and exporting advanced shale oil extraction technologies Threats for Russia • New geopolitical reality forces Russian companies to develop tight oil extraction technologies and equipment in-house instead of buying them abroad; it can dramatically increase the costs • A number of environmental issues will arise if shale/tight oil production grows quickly Further indicators • Data on Rosneft technological capacity and development level shows that it is one of the most advanced oil companies in the world: http://www.rosneft.com/attach/0/02/99/cera_week_en.pdf Market size Technological Economic Environmental Now, less than a million tons (0.2 per cent of Russian oil) is extracted from Bazhenov formation deposits. It can increase to 5-6 million tons by 2020, according to experts Related Technologies Directional drilling Multistage hydraulic fracturing Synthetic drilling fluids Arctic shelf drilling Water-efficient methods of increasing the oil recovery factor References: 1. 2. 3. http://www.klerk.ru/buh/news/331001/ http://izvestia.ru/news/564521 http://expert.ru/2014/10/25/slantsevuyu-revolyutsiyu-v-rossii-hotyat-sdelat-rukamichastnikov/?ny 22. Rapid advancement of renewable energy technologies and decentralization of power generation The deployment of solar and wind power has increased substantially over the last decade both in the world and in Russia. Typically, production and installation costs have decreased dramatically, but the picture is not always clear. Investment costs depend heavily on project characteristics such as the construction location. For instance, new offshore wind turbines have larger capacities but are constructed on increasingly deeper sea beds, which is more costly. At the same time remoteness from the power transmission grid is favorable for the economic competitiveness of photovoltaics. Although, traditional energy sources remain high in the energy mix and nuclear energy still remains as one of the primary electric energy sources, the demand for safer alternative energy generation technologies is expected to rise in Russia due to the possibilities for power generation decentralisation and increasing concerns for environment. Evidence for occurrence • Californian startup EnerVault developed a unique battery technology which may replace natural gas “peaker plants” and provide roundthe-clock power from wind and solar farms through grid stabilization services • Installed solar jumped 26 per cent - from 31 Gigawatts in 2012 to a record 39 GW in 2013 even as investment in solar capacity decreased 23 per cent from US$135.6 billion to US$104.1 billion. • In 2013 for the first time China invested more in renewable energy than Europe Opportunities for Russia • Renewables may enable decentralization of power generation, especially in terms of supplying energy to far and remote parts of the country • The continuation of the trend may lead to reassessment of alternative energy sources significance within Russia in general Threats for Russia • Substantially raising competitiveness of solar and wind power unavoidably lowers global demand for oil, gas and coal, the main Russian export goods Further indicators References • 1. 2. Russia held its first ever state-backed renewable energy source investment project auctions in September 2013, giving out subsidies for 39 sustainable power projects with a combined capacity of 504 MW. 3. Anticipated impacts 5Social Value 4 3 2 1 0 Political Market size Technological Economic Environmental Value of renewable energy capacity by 2030 [1] Related technologies • Energy conversion • Electric power transmission and distribution • Energy storage http://about.bnef.com/ http://spectrum.ieee.org/energywise/energy/the-smarter-grid/new-flow-battery-aims-toreplace-gas-plants http://www.iea.org/publications/TCEP_web.pdf 23. Growing potential for conflict between water consumption and energy generation Energy is considered more and more widely as a factor contributing to the drinking water shortages in some regions of the world. For instance, coal power plants are the most water-intensive, while the governments realize more and more clearly that coal share in energy generation not only will stop falling but will, most probably, rise in the future because of the lack of oil and gas resources and a number of issues with alternative energy. Current water consumption structure would lead to water crises in various regions of the world. Demand has been increasing for water-free cooling technologies in the energy sector and alternative heat carriers at convectional power plants. Disruptive technological innovations in energy industry, primarily in the fields of cooling systems, alternative heat carriers, and co-generation technologies may emerge soon. Russia has strong technological potentials in this area as well as potentials for creating a new export niche for Russia in drinkable water export. Evidence for occurrence • Discussions of the necessity for Russia to be in line with the newest technological trends, including, water-efficient technologies (e.g. http://www.rg.ru/2014/05/30/sberezenie.html) • The Federal Law is enacted in 2014 that lays framework for the use of the best available technologies principles in industrial policy (see http://www.kremlin.ru/news/46298) Opportunities for Russia • Exports of the “electricity-heat” and “electricityheat-cooling” generation technologies and equipment to the developing countries • Advancing liquid-metal heat-transfer circuits technologies • Developing large-scale wind energy generation in the Arctic and exporting electricity to Middle Asia, Mongolia, and China Threats for Russia • No direct threats due to the abundance of water resources and advanced energy generation technologies Further indicators References: • 1. 2. 3. 4. Patents: “Gas turbine engine with liquid metal cooling” (USA, 2013); “Auxiliary heating system of liquid heavy metal cooling natural circulating pool-type reactor” (China, 2014); “One energy conservation cold heat source water supply system” (China, 2013) Anticipated impacts Value Social 5 4 3 2 1 0 Policy Market size Technological Economic Environmental According to the thewatercouncil.com, the world water market outreaches 400 billion US Dollars Related Technologies Water desalination Water condensation Liquid-metal heating circuits Co-generation of energy Triple-generation of energy Coal gasification / liquefaction Communal services Water consumption accounting http://www.shapingtomorrow.com/g/insights/270523 http://www.rg.ru/2014/07/25/eco-dok.html http://www.alrc.doe.gov/technologies/coalpower/ewr/water/pp-mgmt/pubs/desalination_paper.pdf http://www.thewatercouncil.com/wp-content/uploads/2012/04/EDA-Report.pdf Contact Dr. Ozcan Saritas Research Professor, HSE [email protected] Acknowledgements: The project team is grateful to the following colleagues for their valuable comments and contributions: • Professor Leonid Gokhberg (HSE) • Dr. Tatiana Kuznetsova (HSE) • Dr. Galina Kitova (HSE) • Ms. Elena Nasybulina (HSE) • Ms. Svetlana Malchenko (HSE) • Mr. Paval Bakhtin (HSE) • Ms. Alexandra Zimireva (HSE) • Mr. Ilia Kuzminov (HSE) • Mr. Sergey Bredikhin (HSE) and all other colleagues who have taken part in the workshops organised for the Russia 360° theme during October 2014.
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