Russia

RU-3:Federal law on energy conservation and energy efficiency

Policy Description

The Federal law on energy conservation and energy efficiency (# 261-FZ), which was adopted on 23 November 2011, aims to reduce the intensity of electricity, heat, water and gas consumption in order to help Russia approach European consumption levels by 2020. Different targets are applied to different types of users.

Description

The Federal law on energy conservation and energy efficiency (# 261-FZ) [1], which was adopted on 23 November 2009, aims to reduce the intensity of electricity, heat, water and gas consumption in order to help Russia approach European consumption levels by 2020. Different targets are applied to different types of users [2].

Energy intensive industrial companies are required to achieve energy savings by implementing energy management systems (certified to ISO 50001) as well as having a certified energy manager.

All groups of users are required to have meters to monitor energy and other resource consumption by 2012 and industrial companies are obliged to undertake audits and draw up a program to reduce consumption of resources before 2013. Inspections of enterprises can be made by accredited companies to obtain any relevant data on energy consumption and energy efficiency potential.

Under the law there are various economic instruments to encourage investment in energy efficiency, which include:

  • An investment tax credit, which should not exceed 30% of the enterprise net asset value
  • Accelerated depreciation for energy efficient technologies
  • Provision of state guarantees to ensure loans for energy efficiency projects.

A majority of the forty by-laws required for the Plan of Actions on Exercising of the Law 261-FZ (2009) have been prepared. The Plan of Actions was approved by the order of the Government of the Russian Federation of September 27, 2012 No. 1794-r and includes a range of measures across all sectors.

In some respects the requirements of this policy (RU-3) are similar to RU-2 (federal programme for “Energy saving and energy efficiency improvement for the period till 2020”), however RU-2 is a framework document whereas this is a concrete law, which includes specific implementation requirements.

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative, Standards, Information & Outreach

Position in the Pyramid

About Us

Participation: Mandatory

Policy Linkages

Supports Federal target-oriented Programme “Energy saving and increase of energy efficiency for the period till 2020” Effort Defining
Supported By Tax reforms for EE improvements (Federal Tax Code, Federal Law No. 132-FZ) Supporting Measure

Agencies Responsible

Ministries of Economic Development, Energy, Industry and Natural recourses
Eight ministries, amongst others: Natural Resources, Economic Development, Agriculture, Energy, and Industry and Trade

Primary Objective: Energy

Objective

­Energy savings from energy intensive industrial companies

Target Group

The requirements apply to all producers and importers of goods, appliances, heat and lighting units, and industrial facility owners (except temporary constructions, supporting constructions and small stand-alone buildings smaller than 50m2).

Driver of energy consumption or emissions affected by policy: Specific energy consumption, Total energy use, Relative Efficiency, Technology implementation rate.

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

90% of total industrial energy use.

Quantitative Target? yes

Target: Achieve the overall energy efficiency goal of reducing energy intensity of the Russian economy by a minimum of 40% by 2020 compared to 2007. See also RU-2.

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Sanctions: Fines are payable by any target company in case of non-preparation of energy audits and energy passports and non-achievement of energy consumption targets, defined specially depending on sector by specialized Ministry or responsible Department (Maximum fine is 710 000 RUR).

Requirements on the Target Group

  • Obtain an energy performance certificate (energy passport) as a result of an energy inspection (energy audit) conducted by a certified expert organization
  • Develop own EE program and implementation plan.
  • Meet the sector specific energy consumption targets [3]
  • Improve Energy Management Systems in order to meet higher standards, in line with ISO 50001.
  • Mandatory energy metering
  • Use low-cost process system optimization possibilities
  • Implement demand-side management programs

Support by Government

  • Provision of state guarantees to ensure loans for energy efficiency projects
  • An investment tax credit

Implementation Toolbox

  • State information and monitoring system in field of energy efficiency
  • Training for responsible energy management personnel
  • Methodological support of energy efficiency, incl. ENMS support including detailed guidance on how to conduct the energy inspections.

Complexity of Implementation

Government

There is a significant work to be done considering that EE policies have not been widely implemented in Russia.

Target Group

Lack of clarity of the mechanism for obtaining co-financing and guarantees.

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions ­See RU-2 ­N/A
Estimated costs/benefits for industry ­See RU-2 ­See RU-2
Estimated cost for government ­See RU-2 ­See RU-2

References & Footnotes

References

[1] http://www.energosovet.ru/npb1189.html Federal Law No. 261-FZ “On Energy Conservation and Increase of Energy Efficiency” (23 November 2009), (in Russian)

[2] http://minenergo.gov.ru/activity/energoeffektivnost/index.php The Ministry of Energy of the Russian Federation, Official Website

[3] http://www.energosovet.ru/dok/ensovmed.htm Presidential Decree N. 889 “Concerning some measures for improving the energy and ecological efficiency of the Russian economy”