National Interests: Priorities and Security

Lack of investment as a strategic threat to Russia's energy security

Vol. 14, Iss. 7, JULY 2018

Received: 1 March 2018

Received in revised form: 25 March 2018

Accepted: 18 April 2018

Available online: 16 July 2018

Subject Heading: ENERGY SECURITY

JEL Classification: Q43, Q47

Pages: 1305–1318

Loktionov V.I. Melentiev Energy Systems Institute of Siberian Branch of Russian Academy of Sciences, Irkutsk, Russian Federation

Mazurova O.V. Melentiev Energy Systems Institute of Siberian Branch of Russian Academy of Sciences, Irkutsk, Russian Federation

Importance Insufficient investment resources entail negative implications for the national economy. Scarce finance of the national power engineering is one of such issues. It may hinder the pace of energy capacity renewal and cause a lack of energy, which will undermine the national energy security.
Objectives The research is an attempt to develop the theory and practice of evaluating strategic threats to Russia’s energy security.
Methods The research relies upon general scientific methods of analysis and synthesis, formalized methods for modeling the operation of energy systems. As part of the research, we applied the macroeconomic model designed by the Melentiev Energy Systems Institute, which describes dynamic relationship among twenty five sectors of the economy.
Results We unravel the mechanism reflecting the way a lack of investment influences the national energy security, quantify macroeconomic implications caused by a 5–15 percent decrease in investment. We also analyzed consequences of energy supply cuts due to insufficient investment in the energy and fuel sector.
Conclusions and Relevance A lack of investment poses a serious strategic threat to the national energy security. Therefore, to prevent such insufficiency of energy resources at the national level, it is necessary to undertake measures for encouraging investment in the economy and power engineering by improving the investment climate.

Keywords: energy, adaptivity, analysis, energy security


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