Energy Policy
Created by: George Wible
Kurgan is currently in a less than ideal financial situation and to move above and beyond this current economic low point, Kurgan’s energy production efforts are key to the nation’s economic upturn. Efforts include reorganization of energy sector components under state-run firms, infrastructure repairs and/or upgrades which provide a cost-effective return-on-investment, and a further developed global presence and reliance of other nations on Kurgan energy exports.
The Great Northern War against Amuria resulted in significant cost to Kurgan, with recovery and rebuilding efforts continuously vying for government funding. These costs have prevented Kurgan from developing its infrastructure and economy to a position that is acceptable to the leaders of Kurgan’s five regions. Regardless of such setbacks and delays, Kurgan oil and coal industries have achieved a status of being key players in the international energy market and are instrumental in the nation’s recovery and economy flourishing the way Kurgan deserves. It is crucial that such resources are further promoted in a manner which supports the repair and upgrading of energy producing systems, thereby increasing the wealth of Kurgan, and thus bringing greater respect to its leaders.
Currently, Kurgan’s energy originates from three primary sources:
1. Oil production in the Patin Sector
2. Nuclear energy production located in the Polyarny Base
3. Coal production out of the Ukugan Tribal Coast
Kurgan oil and coal industries have achieved a status of being key players in the international energy market and the criticality of maintaining this position cannot be overstated. As such, continued business practices will be carried out and refined in order to further create an environment results in a politically influential position for Kurgan among other nations of Zemia; dependency on Kurgan energy. The heads of each region will meet monthly in order to discuss, coordinate, and further develop appropriate business models to this end. In doing so, Kurgan fosters an environment of peace and an advantage in all future diplomatic affairs, as well as international influence, and of course, guarantees a continued source of revenue which is the requisite end state. This income may then be directed to the modernization of current infrastructure, primarily the Polyarny Base nuclear power plants, as well as manufacturing plants and ports within the Patin Sector. Studies may be conducted in pursuit of developing potential newer, sustainable energy sources or methods; however, at this time such “green energy” opportunities are not considered to be cost-effective and likely will not be in the near future.
Additionally, all energy infrastructure components will be acquired by state-run firms (Woehrel, 2009). This acquisition will allow for all energy infrastructure to me managed succinctly, thereby resulting in a more efficiently run system that sets the stage for appropriately meeting the objectives set forth in this policy. In the case of any energy infrastructure components unable to be acquired by the state or state-run firms, such components (i.e., pipelines, ports, storage facilities, and other key energy assets) will be bypassed to the greatest degree possible or cut off completely from use. It is likely that such components will then be available to be acquired by state-run firms and leveraged in support of this policy.
On the topic of green energy, Kurgan does currently benefit from hydroelectric power derived from the Rio Dam located on the Rio Border River; however, a shared power agreement with the nation of Prenza prohibits the Rio Dam from being considered a primary energy source for Kurgan outside of the fertile Rio Border River Valley. Furthermore, additional proposed studies on the development of additional hydroelectric energy-producing dams are not being considered at this time due to the clear lack of an acceptable return-on-investment. With that said, again, any additional “green energy” proposals will not be pursued by Kurgan for the same reason, a lack of return-on-investment make such endeavors fiscally irresponsible and counter-productive to the current regime.
As noted above, Kurgan’s energy sectors, although considered key players in the market, are in substandard condition. Kurgan’s energy resources are positioned to address their own problems while further increasing the nation’s financial reserves and overall status. Furthermore, the development of an energy dependency upon that which is produced and exported from Kurgan amongst other nations of Zemia is of absolute importance in order to reduce the potential for armed aggression against Kurgan, to insulate against potential adverse diplomatic actions (e.g., economic sanctions), provide Kurgan greater influence (Ozawa, 2020), as well as secure a revenue stream for the nation for decades to come. In order to most appropriately manage this, energy infrastructure will be acquired by state-run firms. This energy policy is to be incorporated into Kurgan’s foreign policy as the two complement one another.
Ozawa, M. (November 2020). Russia’s energy policy: Dependence, networks and special relationships. NATO Defense College, 13. Retrieved on 4 April 2022 from https://www.jstor.org/stable/resrep27709.7
Woehrel, S. (September 2009). Russian energy policy toward neighboring countries. Congressional Research Service, RL34261, Retrieved on 4 April 2022 from https://sgp.fas.org/crs/row/RL34261.pdf