
The Norwegian philosophy is to support the framework for the creation of the Energy Efficiency Centre“s and to co-finance the establishment and the first years of operation of the centres, together with the Russian founders. After this initial period, the regional centres should be self-financed through commercial services, energy tariffs and founders support.
The first Centre established, KEEC, has had a very positive development, and in spite of the difficult economic situation in Russia, fees for services and membership from international companies and organisations covered 40 % of the total expenses in 1998.
In the frame of the program at the moment implemented several demonstration projects.

Please refer to project: http://www.neeg.com/projects.html
for details.
Limitations
The projects implemented in past years placed too much emphasis on energy efficiency and other technological changes, given the existing structural framework.
Primarily the fundamental drivers of effective energy management, economic energy and fuel pricing, legislation and Regulation are not yet in place and the sector is struggling with the issues of tariffs and non-payments. As a consequence, investment is not available and the sector faces considerable problems, technical and organisational inefficiencies as well as a difficult financial situation. The difficulties are further exacerbated by the need for restructuring in the utilities industry, particularly in the electricity and coal sub-sectors.
Recommendations
The trend in the Russian Federation is towards decentralisation and there are several regions that are willing to start implementing a new sectoral reform framework and testing pilot approaches at federal level. On this basis, greater emphasis should be placed on the technique of demonstration, dissemination and replication.