ABSTRACT
Creating competition in the transition economies faced significant problems. First was a general lack of experience with privatization in the region and with competition elsewhere. Second, retooling the region's power systems for efficiency and environmental controls and replacing worn out capital could cost more than $100 billion. Improving energy efficiency, especially in district heating systems, is therefore a top priority for local and regional governments. The District Heating Initiative or Heat of Russia Program was introduced to increase the efficiency and reliability of Russian district heating systems. The region lacks advanced technology for power generation efficiency and is falling increasingly behind the west. Ukraine sought to combine western renewable energy technology with its military's engineering and manufacturing skills. Russian and Eastern European choices for power generation over the next decades include natural gas, coal, nuclear power, wind, and geothermal power systems. Utility reform has achieved minimal success in the transition economies.
