Russia

RU-2:Federal target-oriented Programme “Energy saving and increase of energy efficiency for the period till 2020”

Policy Description

Russia’s federal programme for “Energy saving and energy efficiency improvement for the period till 2020” (Decree #2446-r) was introduced in December 2010 and is one of the main energy efficiency (EE) programmes in place. It implements Decree #899 from 2008 “Measures to improve energy and environmental efficiency of the Russian economy”, which included a target to reduce energy intensity of industrial production (per unit GDP) by 40% from 2007 to 2020. It is supported by RU-3 “Federal law on energy conservation and energy efficiency”, which shares some common goals and establishes specific timeframes, responsibilities and requirements etc.

Description

Russia’s federal programme for “Energy saving and energy efficiency improvement for the period till 2020” (Decree #2446-r) [1] was introduced in December 2010 and is one of the main energy efficiency (EE) programmes in place. It implements Decree #899 from 2008 “Measures to improve energy and environmental efficiency of the Russian economy”, which included a target to reduce energy intensity of industrial production (per unit GDP) by 40% from 2007 to 2020. It is supported by RU-3 “Federal law on energy conservation and energy efficiency” [2], which shares some common goals and establishes specific timeframes, responsibilities and requirements etc.

 

The goals outlined in the programme include:

  • Setting mandatory targets for energy savings in power, industry and other sectors. For the industrial sector the targets are [4]:
  • annual savings of primary energy of 34 million tonnes of oil equivalent (toe) by the end of Phase I (2016), and 51 million tonnes of oil equivalent by the end of Phase II (to 2020);
  • total savings of primary energy of 110 million tonnes of oil equivalent during Phase I (2011 - 2015) and 333 million tonnes over the life of the Programme (2011 - 2020).
  • Co-financing, (federal funds as well as non-government sources (*1)) of the best regional energy efficiency programmes
  • Guaranteeing to enterprises loans for projects in the field of energy efficiency to increase access to EE financing
  • Measures to improve the regulations on energy savings and energy efficiency
  • Creation of the State information and monitoring system for energy efficiency
  • Training for responsible personnel (executive authorities, budget and commercial organisations, public) [3]
  • Raising awareness

 

Major objectives outlined in the Programme include:

  • Significantly reduce specific energy losses
  • Reduce the energy intensity of produced goods
  • Increase the competitiveness of the Russian economy
  • Develop an appropriate infrastructure to coordinate EE management and monitoring resources. For example, training was conducted in December 2011 and involved more than 4500 employees of public sector organisations and institutions with EE responsibilities from 10 regions.
  • Marketing of ideas and mechanisms aimed to increase the implementation of EE opportunities
  • Stimulate the scientific and engineering communities to implement best available Russian EE techniques and technologies
  • Develop a mechanism for stimulating the activity of energy service companies.

 

Enterprises targeted within this programme (those with an annual fuel consumption more than 6000 toe) are required to:

  • Obtain an energy performance certificate (EE passport) as a result of an energy inspection (energy audit) conducted by an expert organization;
  • Implement identified measures in order to achieve required amount of energy savings (such as modernisation of processing equipment, system optimization, energy management system implementation and others);
  • Achieve certification to ISO 50001 on energy management systems and have a certified energy manager. At the time of the writing (May 2012), there is no deadline by which companies must be certified.  

In 2011 approximately 5 billion rubles were allocated across fifty-five regions for co-financing support. Priority areas included energy audits, metering, upgrading lighting systems, small-scale generation, utility subsidies for the poor (in cases where tariffs will increase), and educational programs [5].

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, Economic, Incentives & Subsidies, Information & Outreach

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2011

End Date: 2020

Policy Linkages

Complements Climate Change Doctrine of the Russian Federation for the period up to 2020 Effort Defining
Supported By Federal law on energy conservation and energy efficiency Effort Defining

Agencies Responsible

Ministry of Economic Development
Ministry of Energy
Russian Energy Agency (REA)

Primary Objective: Energy

Objective

­Energy efficiency improvement ­EE knowledge improvement

Target Group

Ultimately the power, industry and other key energy using sectors

Driver of energy consumption or emissions affected by policy: Specific energy consumption, Institutional capacity, Knowledge level.

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

Coverage

45 – 55% of total Russian energy consumption and nearly all energy intensive economic sectors in Russia.

Quantitative Target? yes

Target: The implementation of technical measures for energy conservation and energy efficiency in the industry sector is aimed at achieving: ­- annual savings of primary energy of 34 million tonnes of oil equivalent by the end of Phase I (2016), and 51 million tonnes of oil equivalent by the end of Phase II (to 2020); ­- total saving of primary energy of 110 million tonnes of oil equivalent during Phase I (2011 - 2015) and 333 million tonnes over the life of the Programme (2011 - 2020).

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Sanctions: Information not available

Requirements on the Target Group

  • Government side - Ministry of Energy and Ministry of Economics.
    • Develop sectorial EE benchmarks to be achieved by energy consumers
    • Coordinate the regional EE Programmes
    • Promotion of EE measures and best available technologies according to each sector
    • Establish frameworks that enable certification bodies to certify companies and organisations with the ISO 50001 standard for energy management systems.
  • Energy using sectors.
    • Obtain an energy performance certificate (EE passport) as a result of an energy inspection (energy audit) conducted by an expert organization;
    • Implement identified measures in order to achieve required amount of energy savings (such as modernisation of processing equipment, system optimization, energy management system implementation and others);

Achieve certification of ISO 50001 on energy management systems.

Support by Government

  • Co-financing (federal and regional budgets) of the best regional energy efficiency programmes;
  • Guaranteeing to enterprises loans and financing possibilities for EE projects.

Implementation Toolbox

  • State information and monitoring system for energy efficiency
  • Training for responsible personnel
  • Methodological support of energy efficiency

Complexity of Implementation

Government

­Significant efforts are required because EE programs have not yet been widely implemented.

Target Group

­Companies are not well informed or prepared to deal with financial aspects of EE project implementation. Limited amount of flexible and low-cost finance results in slow speed of EE financial market growth. The government EE co-financing institute has not been established yet.

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 targets ­ Not available
Estimated costs/benefits for industry Capital costs: • Total (for the whole Programme period 2011-2020) 8 837 bln. RUR (about 295 bln. USD); • 1st stage (2011-2015): 3 310 bln. RUR (about 110 bln. USD); • 2nd stage (2016-2020): 5 527 bln. RUR (about 185 bln. USD). Annual operating savings (annual savings for the purchase of energy resources for all consumers): • Total (for the whole Programme period 2011-2020) 2 543 bln. RUR (about 85 bln. USD); • 1st stage (2011-2015): 815 bln. RUR (about 27 bln. USD); • 2nd stage (2016-2020): 1 728 bln. RUR (about 58 bln. USD). na
Estimated cost for government Capital costs: Estimated costs for the state budget: • Total (for the whole Programme period 2011-2020) 70 bln. RUR (about 2,3 bln. USD); • 1st stage (2011-2015): 35 bln. RUR (about 1,15 bln. USD); • 2nd stage (2016-2020): 35 bln. RUR (about 1,15 bln. USD). Estimated costs for regional budgets:  Total (for the whole Programme period 2011-2020) 625 bln. RUR (about 21 bln. USD);  1st stage (2011-2015): 208 bln. RUR (about 7 bln. USD);  2nd stage (2016-2020): 417 bln. RUR (about 14 bln. USD). na

References & Footnotes

References

[1] http://rosenergo.gov.ru/upload/GP%20do%202020.doc Link to download the text of document in Russian

[2] http://www.rg.ru/2009/11/27/energo-dok.htm Supporting document Federal Law #261 – FZ, EE programme of RF

[3] http://help.15-51.com/ru/examples/energy_manager_e-leaning Description of training implementation practice and certification for 4500 EE responsible persons from 10 regions of RF. http://www.energystrategy.ru/projects/docs/ES-2030_(Eng).pdf Energy Strategy of Russia till 2030 (English)

[4] http://ruspromenergo.narod.ru/poryadok_vzaimodeistviya/termini/gosudarstvennaya_programma_rossiiskoi_federatsii_energosberezhenie_i_povishenie_energeticheskoi_effektivnosti_na_period_do_2020_goda_/ Cost estimates – see Programme Passport, sub items “Programme scope of finance” and “Programme expected results”.

[5] Caprio (2012). Improving Energy Efficiency In Russia: Real Progress and Present Challenges. Available at http://www.irex.org/sites/default/files/Caprio%20EPS%20Research%20Brief_0.pdf

Footnotes

(*1) Federal and regional budgets together with private funds, using energy service contract or government-private partnership mechanisms.