Regional energy development and its problems

The activity of the Laboratory of Regional Energy Development (Laboratory of Energy Technology Processes till 2000) at LEI is directed towards solving of the problems of local energy sector since retaining of independence. Participating in the activities of the Commission on Removal of the Consequences of Energy Blockade, creation of the fist National Energy Efficiency Program, active participation in establishment of national legal framework for energy sector, including concept for decentralization of energy sector management, as well as research on further development of local energy sector and participating in various international programs formed specific attitude towards existing problems. The paper shows the importance of elaborating methodologies and criteria's for economic assessment of local energy systems for further regional energy development concept, as these criteria will assist in decision making process on optimization of existing systems to economic range. The paper also discusses the possibilities to use dynamic modeling principles for solving existing problems in energy sector.