Success stories

Norwegian - Russian Collaboration on Energy Efficiency

An extensive Norwegian - Russian collaboration in the field of Energy Efficiency has been going on since 1995. The objectives of the collaboration project are to:
Establishment of Regional Energy Efficiency Centres is considered to be a vital condition to reach the objectives of the project, and to ensure long-term results with continued activities at the end of the project period. Demo-projects, training and information are all vital elements in the project.

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.

  • Kirovsk Kindergarten no. 12 (50 % energy savings)external link
  • Utilisation of wood waste , Verkhnetulomskij, Kola Peninsula
  • Electric air heater - Reduction of steam loss to the ventilation system, Rasvumchorr mine
  • Test plant for unloading mazut from railway wagons, Kirovsk
  • Utilisation of bio-energy in the Archangelsk region
  • New local boiler at oil storage in village Titan

Please refer to project: http://www.neeg.com/projects.htmlexternal link 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.