Regional Energy Saving Program Development: Comprehensive Approach

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IFC

2121

Pen

nsyl

vani

a Av

enue

, NW

W

ashi

ngto

n, D

C 2

0433

USA

Te

l.: +

1 (2

02) 4

58-0

917

Fax:

+1

(202

) 974

-431

2 w

ww.

ifc.o

rg/p

ep

Ackn

owle

dgem

ents

This

docu

men

t w

as p

repa

red

by t

he W

orld

Ban

k G

roup

(W

BG)

expe

rts

unde

r th

e gu

idan

ce o

f M

s. O

lga

Punt

us

(IFC

). Th

e tea

m o

f exp

erts

incl

uded

Mr.

Yuri

Miro

shni

chen

ko

(WB)

, K

seni

ya M

okru

shin

a (W

B),

Boris

Nek

raso

v (I

FC)

and

Suvi

Mon

ni (

Benv

iroc

Ltd,

Fin

land

). Th

e au

thor

s w

ould

lik

e to

exp

ress

spe

cial

tha

nks

to t

he fo

llow

ing

man

ager

s an

d em

ploy

ees

of O

AO1

VN

IPIe

nerg

opro

m A

ssoc

iatio

n: M

r. V

icto

r Sem

enov

, Mr.

Yuri

Tik

hone

nko,

Mr.

Yevg

eniy

Gas

ho,

Mr.

Vita

ly P

apus

hkin

, Ms.

Yeka

terin

a Rep

etsk

aya,

Mr.

Rom

an

Oze

rov,

Mr.

Vadi

m B

andu

rist,

et a

l. V

NIP

Iene

rgop

rom

’s w

ork

on p

repa

ratio

n of

ene

rgy

savi

ng a

nd e

nerg

y effi

cien

cy

impr

ovem

ent

prog

ram

s fo

r a

num

ber

of R

ussia

n re

gion

s an

d th

eir i

nter

med

iate

resu

lts a

nd re

com

men

datio

ns g

reat

ly h

elpe

d in

the

prep

arat

ion

of th

is m

etho

dolo

gy.

Spec

ial t

hank

s to

Ms.

Snez

ana

Stoi

ljkov

ic (

IFC

Dire

ctor

for

Eu

rope

and

Cen

tral

Asia

) fo

r he

r as

sista

nce,

as

wel

l as

to t

he

WBG

exp

erts

for t

heir

reco

mm

enda

tions

.

In a

dditi

on,

the

auth

ors

wou

ld l

ike

to e

xpre

ss g

ratit

ude

to

the

follo

win

g ex

pert

s: M

s. Ya

dvig

a Se

mik

olen

ova

(WB)

, M

s. Br

yann

e Ta

it (I

FC),

Ms.

Kris

tina

Turil

ova

(IFC

), M

r. M

ikha

il Po

stel

nik

(Bel

goro

d St

ate

Uni

vers

ity),

Mr.

Vya

ches

lav

Puza

kov

and

Mr.

Rom

an R

azor

enov

(Hea

t Sup

ply

Sect

or N

ews,

a te

chni

cal

mag

azin

e),

Ms.

Tatia

na G

usev

a (M

ende

leye

v U

nive

rsity

of

Che

mic

al T

echn

olog

y of

Rus

sia),

Mr.

Vla

dim

ir Le

ksin

(R

ussia

n A

cade

my

of S

cien

ces),

Ms.

Laris

a G

rishi

na,

Mr.

And

rey

Shm

itko,

Mr.

Vita

ly V

oron

ov

(Ene

rgy

Sect

or M

oder

niza

tion

Cen

ter),

Mr.

Nik

olay

Ant

onov

(E

nerg

y Ba

lanc

es F

orec

astin

g A

genc

y (A

PBE)

), M

r. Ig

or

Gol

ubev

, M

r. D

mitr

y G

avril

ov (

Gip

roko

mm

unen

ergo

), M

r. M

ikha

il Sl

obod

in (K

ES-H

oldi

ng),

Mr.

Boris

Por

tyan

kin

and

Mr.

Yevg

eniy

Zhu

kov

(Int

er-s

ecto

ral A

naly

tical

Cen

ter),

Mr.

Vla

dim

ir K

limen

ko, M

r. V

yach

esla

v Ry

zhen

kov,

Mr.

Ana

toliy

Va

kulk

o, M

r. A

lexa

nder

Spiri

dono

v, M

r. A

lexa

nder

Bob

ryak

ov,

Mr.

Ale

xand

er Z

lobi

n, M

r. V

ladi

mir

Aga

babo

v (M

osco

w

Pow

er E

ngin

eerin

g In

stitu

te),

Mr.

Yuri

Tabu

nsch

ikov

(N

on-

com

mer

cial

Par

tner

ship

Rus

sian

Ass

ocia

tion

of E

ngin

eers

fo

r H

eatin

g,

Vent

ilatio

n,

Air-

Con

ditio

ning

, H

eat

Supp

ly

and

Build

ing

Ther

mal

Phy

sics

(NP

AVO

K),

Mr.

Ale

xand

er

Mar

tyno

v an

d M

r. V

ladm

ir A

rtyu

khov

(I

ndep

ende

nt

Ecol

ogic

al R

atin

g A

genc

y (N

ERA)

), M

r. Ya

kov

Sche

loko

v, M

r. N

ikol

ay D

anilo

v, M

r. Va

leriy

Nau

men

ko a

nd M

r. Va

dim

Ye

rem

eyev

(R

egio

nal

Ener

gy

Savi

ng

Cen

ters

), M

s. Ir

ina

Zad

irako

(Rus

sian

Ener

gy A

genc

y), M

r. Ig

or B

ashm

akov

and

M

r. O

leg

Lebe

dev (

CEN

Ef),

and

Mr.

And

rey M

inen

kov (

Stat

e D

epar

tmen

t for

Ene

rgy

Effici

ency

of t

he R

epub

lic o

f Bel

arus

).

The

Stud

y w

as fi

nanc

ed jo

intly

by

IFC

and

the

Min

istry

of

Fore

ign

Affa

irs o

f Fi

nlan

d. A

ll st

atem

ents

inc

lude

d in

thi

s m

etho

dolo

gy e

xpre

ss th

e po

int o

f vie

w o

f the

wor

king

gro

up,

and

do n

ot n

eces

saril

y co

inci

de w

ith f

orm

al o

pini

ons

of

the

WB,

IFC

, affi

liate

d or

gani

zatio

ns,

and

mem

bers

of

the

Boar

d of

Exe

cutiv

e D

irect

ors

or c

ount

ries

they

rep

rese

nt.

The

mat

eria

ls in

clud

ed i

n th

is do

cum

ent

shal

l re

mai

n th

e pr

oper

ty o

f IFC

. The

docu

men

t was

pre

pare

d in

the

Rus

sian

and

Engl

ish la

ngua

ges.

Plea

se d

o no

t hes

itate

to c

onta

ct I

FC

with

que

stio

ns r

elat

ed to

the

con

tent

s of

the

met

hodo

logy

or

to re

ques

t a p

erm

it to

repr

oduc

e its

par

ts o

r obt

ain

addi

tiona

l co

pies

.

1 O

AO –

Ope

n Jo

int-s

tock

Com

pany

(tra

nsla

tor’s

not

e)

Con

tent

s

– a

chie

vem

ent o

f ec

onom

ical

ly so

und

effici

ency

of

use

of e

nerg

y re

sour

ces i

n th

e con

text

of t

he c

urre

nt le

vel

of e

ngin

eerin

g an

d te

chno

logy

de

velo

pmen

t as w

ell a

s com

-pl

i anc

e with

envi

ronm

ent

prot

ectio

n re

quire

men

ts.

– a

docu

men

t re

fl ec t

ing

the e

nerg

y re

sour

ces

cons

umpt

ion

bala

nce,

effi

cien

cy

para

met

ers i

n te

rms o

f ene

rgy

reso

urce

s use

with

in th

e fra

me-

wor

k of

bus

ines

s act

iviti

es o

f an

entit

y, en

ergy

savi

ng p

oten

tial

as w

ell a

s dat

a on

ener

gy sa

ving

ac

tiviti

es.

– c

on-

sum

p tio

n of

ene

rgy

reso

urce

s by

con

sum

ers,

indi

vidu

al

entr

epre

neur

s, an

d le

gal

entit

ies f

or th

eir i

nter

nal n

eeds

in

depe

nden

t of t

heir

form

of

inco

rpor

atio

n.

– an

abs

olut

e or s

peci

fic v

alue

of

cons

umpt

ion

or lo

ss o

f ene

rgy

reso

urce

s for

any

-pur

pose

pro

-du

cts s

et b

y na

tiona

l sta

ndar

ds,

entit

ies’

stan

dard

s, an

d vo

lunt

ary

cert

ifica

tion

syste

ms. –

ener

gy

car r

ier w

hich

is b

eing

cur

rent

ly

used

or m

ay b

e use

d be

nefic

ially

in

the f

utur

e.

– im

plem

enta

-tio

n of

lega

l, or

gani

zatio

nal,

scie

n tifi

c, p

rodu

ctio

n, te

chni

cal

and

econ

omic

mea

sure

s aim

ed a

t effi

cien

t use

of e

nerg

y re

sour

ces

and

invo

lvem

ent o

f RES

in b

usi-

ness

act

iviti

es.

– a

set

of w

orks

and

(or)

serv

ices

whi

ch

perf

orm

ance

wou

ld e

nabl

e sa

ving

s of m

onet

ary

fund

s via

effi

cien

t use

of e

nerg

y re

sour

ces. –

a l

egal

ent

ity p

rovi

ding

serv

ices

an

d (o

r) pe

rfor

min

g w

orks

on

the

basis

of c

ontr

acts

for i

mpl

e men

-ta

tion

of e

nerg

y sa

ving

pro

ject

s.

–

an e

ntity

whi

ch se

lls g

ener

ated

or

pro

cure

d el

ectr

ic a

nd (o

r) th

erm

al e

nerg

y to

con

sum

ers.

– a

surv

ey

of c

onsu

mer

s and

pro

duce

rs

of e

nerg

y re

sour

ces w

ith th

e pu

rpos

e of e

stab

lishi

ng e

ffici

ency

pa

ram

eter

s of e

nerg

y re

sour

ces

gene

ratio

n, d

istrib

utio

n an

d us

e as w

ell a

s ene

rgy

savi

ng

pote

n tia

l and

dev

elop

men

t of

eco

nom

ical

ly so

und

mea

sure

s ai

med

at t

heir

impr

ovem

ent.

– in

this

met

ho-

dol o

gy th

e ter

m m

eans

pro

ven

patte

rns o

f att

ract

ing

and

re pa

y ing

fina

ncia

l res

ourc

es fo

r im

plem

enta

tion

of e

nerg

y sa

ving

pr

ogra

ms.

– a

syste

m o

f ind

icat

ors

refle

ctin

g a q

ualit

ativ

e rat

io

bet w

een

gene

ratio

n (su

pply

) and

co

nsum

ptio

n of

ene

rgy

reso

urce

s in

the c

ount

ry, r

egio

n, a

rea.

– a u

nive

rsal

indi

cato

r w

hich

cha

ract

eriz

es th

e clim

ate

seve

rity

leve

l; it

is a b

asic

cal

cu-

latio

n va

lue t

o id

entif

y he

at

tran

sfer r

esist

ance

of f

acili

ties;

it in

dire

ctly

cha

ract

eriz

es th

e en

ergy

con

sum

ptio

n le

vel

requ

ired

for m

aint

enan

ce o

f co

mfo

rt p

aram

eter

s.

– in

this

met

hodo

logy

th

e ter

m m

eans

a pa

rt o

f a te

r-rit

ory

of th

e cou

ntry

with

in th

e bo

rder

s set

in c

ompl

ianc

e with

a d

omin

ant f

eatu

re; m

ost o

ften,

ju

risdi

ctio

n of

regi

onal

or l

ocal

au

thor

ities

is a

ccep

ted

as su

ch

a fea

ture

(the

adm

inist

rativ

e-te

rrito

rial b

orde

r).

– re

new

able

ener

gy so

urce

s. –

lega

l, or

gani

zatio

nal,

finan

cial

an

d ec

onom

ic re

gula

tion

of

activ

ities

in th

e fiel

d of

ene

rgy

savi

ng.

Term

s and

Defi

nitio

ns

This

prac

tical

met

hodo

logy

is t

he o

utco

me

of s

ever

al y

ears

of w

ork

by a

han

dful

of e

xper

ts in

th

e de

velo

pmen

t of

reg

iona

l and

mun

icip

al e

nerg

y sa

ving

pro

gram

s. Th

is do

cum

ent

pres

ents

th

e pr

inci

ples

and

met

hods

for t

he d

evel

opm

ent o

f reg

iona

l ene

rgy

effici

ency

pro

gram

s with

in

vario

us se

ctor

s bas

ed o

n th

e Rus

sian

econ

omy

exam

ples

. In

addi

tion,

the m

etho

dolo

gy o

ffers

the

prin

cipl

es a

nd e

xper

ienc

es o

f sim

ilar p

rogr

am fr

om o

ther

cou

ntrie

s.

One

of

the

key

adva

ntag

es o

f a

com

preh

ensiv

e re

gion

al e

nerg

y sa

ving

and

ene

rgy

effici

ency

im

prov

emen

t pr

ogra

m is

tha

t su

ch p

rogr

ams

offer

a p

latfo

rm f

or a

n en

ergy

effi

cien

t re

gion

al

deve

lopm

ent s

trat

egy.

Furt

her,

the c

ombi

natio

n of

thes

e reg

iona

l str

ateg

ies h

elps

form

an

over

all

stat

e st

rate

gy a

nd im

prov

ed e

nerg

y effi

cien

cy b

oost

s eco

nom

ic d

evel

opm

ent i

n ea

ch re

gion

and

, co

nseq

uent

ly, a

cros

s the

cou

ntry

as a

who

le.

The

pres

ente

d m

etho

dolo

gy is

one

of m

any

poss

ible

opt

ions

for

a pr

ogra

m d

evel

opm

ent,

and

shou

ld b

y no

mea

ns b

e tr

eate

d as

the

only

one

.

Mai

n C

onclu

sions

The f

ollo

win

g ty

pes o

f pro

gram

s may

be s

ingl

ed o

ut d

epen

d-in

g on

issu

es w

ith re

gion

al e

nerg

y su

pply

and

ene

rgy

savi

ng

pote

ntia

l:

1. P

rogr

ams r

equi

red

by fe

dera

l or l

ocal

legi

slatio

n.

2. In

vest

men

t pro

gram

s with

lim

itatio

ns, b

ased

on

prio

r-ity

and

ava

ilabi

lity

of fi

nanc

ial r

esou

rces

.

3. P

rogr

ams f

ocus

ed o

n ce

rtai

n ar

eas,

such

as c

oord

ina-

tion

of e

nerg

y sa

ving

s by

end

cons

umer

s.

4. P

rogr

ams a

ddre

ssin

g sp

ecifi

c iss

ues,

targ

etin

g ke

y re

gion

al g

oals

such

as e

nerg

y se

curit

y, ab

ando

ning

ex-

pens

ive

fuel

s, or

incr

easin

g us

e of

rene

wab

le an

d lo

cal

ener

gy so

urce

s.

In p

ract

ice,

the

pro

gram

s m

ay b

e co

mbi

ned

and

inte

grat

-ed

. The

mai

n ob

ject

ive

is to

ens

ure

the

prog

ram

refle

cts t

he

over

all e

nerg

y st

rate

gy. Th

us, p

rogr

am ty

pe sh

ould

be c

hose

n as

ear

ly a

s pos

sible

.

The e

nerg

y sa

ving

and

ener

gy effi

cien

cy im

prov

emen

t pro

gram

de

velo

pmen

t pro

cess

has

six

mai

n st

ages

:

Stag

e 1.

Col

lect

initi

al d

ata,

defi

ne a

pro

gram

form

at.

Rev

iew

and

com

pare

ide

ntifi

ed r

egio

nal s

peci

fics

and

defin

e th

e pr

ogra

m t

ype:

the

firs

t st

age

enab

les

deve

lope

rs t

o cr

eate

an

acc

urat

e pi

ctur

e of

issu

es re

late

d to

regi

onal

ene

rgy

supp

ly

effici

ency

.

Stag

e 2.

Dev

elop

a re

gion

al fu

el a

nd e

nerg

y ba

lanc

e,

defin

e en

ergy

savi

ng p

oten

tial a

nd e

nerg

y re

serv

es a

cros

s th

e ec

onom

y.

Prep

are a

regi

onal

fuel

and

ener

gy b

alan

ce a

nd e

valu

ate e

nerg

y sa

ving

pot

entia

l in

all s

ecto

rs o

f the

regi

onal

eco

nom

y.

Stag

e 3.

Sel

ect p

riorit

y ar

eas o

f ene

rgy

savi

ng, d

evel

op a

pr

ogra

m st

ruct

ure.

Dev

elop

an

ener

gy s

avin

g pr

ogra

m c

once

pt (

i.e.,

devi

sing

a pr

ogra

m s

truc

ture

on

the

basis

of p

riorit

y en

ergy

sav

ing

and

ener

gy e

ffici

ency

impr

ovem

ent c

hoic

es).

Stag

e 4. S

elec

t mai

n pr

ogra

m a

ctiv

ities

to a

chie

ve p

riori-

ties,

sele

ct m

ost e

ffici

ent a

ctiv

ities

and

alig

n th

em w

ith

each

oth

er.

Cho

ose

the

mos

t effi

cien

t an

d fa

st-tr

ack

activ

ities

am

ong

all

prog

ram

act

ions

.

Stag

e 5.

Sel

ect m

otiv

atio

n m

echa

nism

s to

help

impl

e-m

ent t

echn

ical

mea

sure

s.

Dev

elop

the

fina

l, co

mpr

ehen

sive

regi

onal

ene

rgy

savi

ng

prog

ram

, whi

ch w

ill d

efine

requ

ired

mot

ivat

iona

l mec

hani

sms

depe

ndin

g on

regi

onal

spec

ifics

.

Stag

e 6.

Mon

itor e

nerg

y sa

ving

and

ene

rgy

effici

ency

im

prov

emen

t pro

gram

s dur

ing

thei

r dev

elop

men

t and

im

plem

enta

tion.

With

in th

e fr

amew

ork

of th

e re

gion

al e

nerg

y sa

ving

pro

gram

, m

onito

r ene

rgy

cons

umpt

ion

para

met

ers.

Thus

, an

effi

cien

t co

mpr

ehen

sive

ene

rgy

savi

ng p

rogr

am

enab

les:

a c

ompr

ehen

sive

pict

ure

of e

nerg

y sa

ving

pot

entia

l in

the

regi

on, c

osts

for f

ulfil

lmen

t of t

his p

oten

tial a

nd e

xpec

ted

mon

etar

y sa

ving

s as a

resu

lt;

com

preh

ensiv

e m

onito

ring

of e

nerg

y co

nsum

ptio

n in

the

regi

on (v

ario

us c

orre

ctiv

e m

easu

res w

ill b

e ev

alua

ted

in

para

llel).

The

impl

emen

tatio

n of

a c

ompr

ehen

sive

ener

gy s

avin

g an

d en

ergy

effi

cien

cy im

prov

emen

t pro

gram

will

prim

arily

ena

ble:

im

prov

emen

t of

ene

rgy

secu

rity,

a de

crea

se i

n en

ergy

int

en-

sity

in th

e reg

iona

l GD

P, av

oida

nce o

f add

ition

al c

osts

and

the

savi

ng o

f reg

iona

l int

erna

l and

bor

row

ed fu

nds.

The

stat

e en

ergy

sav

ing

polic

y, w

hich

inv

olve

s a

bala

nced

sy

stem

of m

easu

res,

is im

plem

ente

d in

seve

ral s

tage

s – d

urin

g w

hich

a s

et o

f m

otiv

atio

nal

mec

hani

sms

grad

ually

em

erge

. R

igid

pro

hibi

tive

mec

hani

sms

prev

ail i

n th

e ea

rly s

tage

s (re

-qu

irem

ents

, sta

ndar

ds, r

ules

), w

hile

as t

hey

are i

ntro

duce

d an

d a

new

inst

itutio

nal e

nviro

nmen

t is c

reat

ed, s

ofte

r mec

hani

sms

(priv

ilege

s, ou

trea

ch a

ctiv

ities

, etc

.) m

ay b

e ad

ded.

The

crea

tion

of a

n effi

cien

t reg

iona

l ene

rgy

infr

astr

uctu

re th

at

supp

orts

sus

tain

able

reg

iona

l cha

nges

(fo

r ex

ampl

e, t

he c

on-

stru

ctio

n an

d de

mol

ition

of

hous

ing,

ind

ustr

ial

plan

ts,

etc.)

is

cruc

ial,

and

requ

ires

an e

ffici

ent

syst

em o

f reg

iona

l ene

rgy

man

agem

ent.

Such

a s

yste

m s

houl

d be

the

res

ult o

f a c

onsis

-te

nt,

bala

nced

ene

rgy

savi

ng p

olic

y th

at c

ompl

ies

with

the

sp

ecifi

c ne

eds

and

stra

tegi

c ob

ject

ives

of

the

regi

on. I

ndee

d,

its c

reat

ion

is on

e of

the

obj

ectiv

es o

f ene

rgy

savi

ng p

rogr

am

deve

lopm

ent.

The p

rese

nted

met

hodo

logy

atte

mpt

s to

com

bine

inte

rnat

iona

l pr

actic

es a

nd R

ussia

n ex

perie

nce

with

ene

rgy

savi

ng p

rogr

ams

in a

n eff

ort t

o pr

esen

t gen

eral

pra

ctic

al p

rinci

ples

and

met

hods

fo

r the

dev

elop

men

t of r

egio

nal e

nerg

y sa

ving

pro

gram

s.

The

expe

rienc

e of

Rus

sia a

nd a

num

ber

of o

ther

cou

ntrie

s sh

ows

that

act

ions

and

obj

ectiv

es

shou

ld b

e sp

ecifi

c to

eac

h re

gion

and

prio

ritie

s sho

uld

be d

eter

min

ed b

y lo

cal s

peci

fics.

Ener

gy s

avin

g m

ay b

e vi

ewed

as

a m

eans

to im

prov

e re

liabi

lity

of e

nerg

y su

pply,

esp

ecia

lly in

la

rge

citie

s tha

t exp

erie

nce

ener

gy c

apac

ity p

robl

ems d

urin

g pe

ak p

erio

ds. E

nerg

y sa

ving

is n

ot

an is

olat

ed p

roce

ss; i

t sho

uld

be v

iew

ed o

nly

in c

onne

ctio

n w

ith o

ther

pro

cess

es in

volv

ed in

the

deve

lopm

ent o

f citi

es, r

egio

ns a

nd c

ount

ries.

The

era

of in

expe

nsiv

e hy

droc

arbo

ns h

as p

asse

d; fo

r m

any

coun

trie

s it

ende

d w

ith t

he g

loba

l en

ergy

crise

s of t

he 1

970'

s. In

rece

nt d

ecad

es m

any

deve

lope

d co

untr

ies –

whi

ch im

port

the b

ulk

of n

atur

al fu

els –

laun

ched

ene

rgy

effici

ency

impr

ovem

ent a

ctiv

ities

in v

ario

us s

ecto

rs o

f the

ir ec

onom

ies a

s wel

l as m

easu

res a

imed

at e

nerg

y an

d re

sour

ce sa

ving

at t

he re

gion

al a

nd n

atio

nal

leve

ls. M

ost s

uch

prog

ram

s con

tinue

to th

is da

y.

Wha

t is

the

purp

ose

of a

com

preh

ensiv

e en

ergy

sav

ing

and

ener

gy e

ffici

ency

im

prov

emen

t pr

ogra

m? F

irst o

f all,

it se

eks t

o es

tabl

ish a

n ac

cura

te p

ictu

re o

f the

situ

atio

n in

rega

rds t

o en

ergy

co

nsum

ptio

n –

with

out a

ny d

istor

tion.

Fur

ther

, it p

rovi

des a

sum

mar

y of

the

terr

itory

’s cu

rren

t co

nsum

ptio

n of

fuel

, the

rmal

pow

er, e

lect

ricity

and

wat

er in

var

ious

sect

ors,

whi

ch g

ives

pol

icy-

mak

ers a

cle

ar u

nder

stan

ding

of t

he si

tuat

ion

and

enab

les e

asy

iden

tifica

tion

of p

riorit

ies.

How

ever

, the

impl

emen

tatio

n of

suc

h a

prog

ram

req

uire

s a si

gnifi

cant

fina

ncia

l inv

estm

ent a

s w

ell a

s com

mitm

ent f

rom

the

sta

te, w

hich

wou

ld in

the

end

be

com

pens

ated

via

the

pro

gram

re

sults

. As a

rule

, the

hig

her t

he p

rice

of fu

el a

nd e

nerg

y re

sour

ces i

n th

e re

gion

, the

shor

ter t

he

payb

ack

perio

d of

an

ener

gy sa

ving

activ

ity. Th

eref

ore,

ener

gy sa

ving

is o

ften

the c

heap

est e

nerg

y re

sour

ce in

ene

rgy

depe

nden

t co

untr

ies.

For

inst

ance

Rus

sia, t

akin

g in

to a

ccou

nt it

s re

serv

es

of p

rimar

y fu

el re

sour

ces,

is a

strik

ing

exam

ple

of a

cou

ntry

for w

hich

ene

rgy

depe

nden

cy w

ill

neve

r be a

pro

blem

. But

at th

e sam

e tim

e ene

rgy

savi

ng a

nd en

ergy

effici

ency

impr

ovem

ent i

ssue

s re

mai

n an

urg

ent a

nd c

ritic

al n

eed.

The

grea

t div

ersit

y of

regi

ons a

nd si

tuat

ions

in th

e w

orld

requ

ires t

he u

se o

f rev

iew

met

hods

and

sp

ecifi

cally

adap

ted

mod

els d

urin

g th

e dev

elop

men

t of e

nerg

y sa

ving

pro

gram

s. R

egio

ns, b

oth

in

Rus

sia a

nd in

oth

er co

untr

ies,

are c

hara

cter

ized

by

not o

nly

quan

titat

ive p

aram

eter

s (po

pula

tion,

te

rrito

ry, c

onsu

mpt

ion

of fu

el a

nd en

ergy

reso

urce

s, in

dust

rial p

rodu

ctio

n st

ruct

ure)

, but

also

by

qual

itativ

e ch

arac

teris

tics.

Rec

ogni

zing

the

nee

d fo

r im

plem

enta

tion

of c

ompr

ehen

sive

ener

gy

savi

ng a

nd e

nerg

y effi

cien

cy im

prov

emen

t pr

ogra

ms,

regi

ons

toda

y of

ten

enco

unte

r pr

oble

ms

rela

ted

to t

heir

prac

tical

dev

elop

men

t and

(and

thi

s is

char

acte

ristic

for

Rus

sia)

the

lack

of a

n eff

ectiv

e m

etho

dolo

gy.

The

obje

ctiv

e of

this

met

hodo

logy

is to

pre

sent

suc

h a

prac

tica

l-le

vel m

etho

dolo

gy.

Intro

duct

ion

Ener

gy S

avin

g Pr

ogra

ms

as B

asis

for R

egio

nal

Ener

gy E

ffici

ency

Ener

gy s

avin

g is

ofte

n se

en a

s in

depe

nden

t fro

m m

ain

regi

onal

dev

elop

men

t pro

gram

s, bu

t in

real

ity it

is a

n in

tegr

al p

art,

and

ofte

n a

basic

ele

men

t, of

regi

onal

dev

elop

men

t as a

who

le. Th

e in

tegr

atio

n of

ene

rgy

savi

ng w

ithin

the

gen

eral

reg

iona

l dev

elop

men

t pol

icy

shou

ld b

e ca

rrie

d ou

t as f

ollo

ws (

Figu

re 1

):

dev

elop

an

ener

gy sa

ving

pro

gram

alig

ned

in te

rms o

f its

obj

ectiv

es a

nd ta

sks w

ith th

e ge

nera

l reg

iona

l dev

elop

men

t con

text

;

per

form

des

ign

activ

ities

to su

ppor

t the

impl

emen

tatio

n of

the

deve

lope

d se

t of p

rogr

am

activ

ities

and

mec

hani

sms;

im

plem

ent t

echn

ical

solu

tions

stim

ulat

ing

regu

lato

ry, fi

nanc

ial a

nd e

cono

mic

mec

hani

sms;

mon

itor e

nerg

y effi

cien

cy o

utco

mes

;

rev

iew

the

obta

ined

resu

lts a

nd a

djus

t the

pro

gram

bas

ed o

n th

e re

view

.

The

rece

nt e

nerg

y effi

cien

cy p

olic

ies o

f Sw

eden

and

Can

ada

are

good

exa

mpl

es o

f con

sist

ent e

nerg

y effi

cien

cy im

prov

e-m

ents

.

The

curr

ent

ener

gy p

olic

y of

Can

ada

is ba

sed

on

mar

ket p

rinci

ples

. It i

s foc

used

on

the

sust

aina

ble

de-

velo

pmen

t an

d no

t lim

ited

(as

in t

he p

ast)

to e

nerg

y ge

nera

tion

and

cons

umpt

ion.

Rat

her,

ener

gy s

avin

g in

Can

ada

is co

nsid

ered

in

two

inte

rrel

ated

sph

eres

: co

nser

vatio

n of

min

eral

ene

rgy

reso

urce

s and

effi

cien

t us

e of

ene

rgy.

Offi

cial

s dev

elop

ed a

nd a

dopt

ed se

vera

l spe

cial

fede

ral

regu

lato

ry a

cts

aim

ed a

t co

nser

ving

min

eral

ene

rgy

reso

urce

s. In

add

ition

to

fede

ral

law

s, lo

cal

offici

als

adop

ted

ener

gy e

ffici

ency

leg

islat

ion

at t

he r

egio

nal

and

prov

inci

al le

vels.

In 2

005,

the

Swed

ish

Gov

ernm

ent s

et a

new

pro

gram

ob

ject

ive:

to

elim

inat

e th

e co

untr

y’s d

epen

denc

e on

ca

rbon

-bas

ed f

uels

by 2

020.

A n

atio

nal

prog

ram

to

over

com

e oil

depe

nden

ce w

as p

rese

nted

by t

he S

wed

ish

Gov

ernm

ent

in O

ctob

er 2

005.

It

focu

ses

on R

ES,

tran

spor

t and

cen

tral

ized

hea

t sup

ply,

and

incl

udes

:

Tax

ben

efits

for i

ndus

try

in c

ase

of re

plac

emen

t of

oil w

ith o

ther

type

s of f

uel t

o en

cour

age

conv

ersio

n fr

om o

il he

atin

g to

RES

-bas

ed h

eatin

g;

Inc

reas

e in

the

volu

me

of R

ES, t

o en

sure

rene

wab

le

fuel

s bec

ome

the

basis

of t

he e

ntire

ene

rgy

supp

ly;

Act

iviti

es a

imed

at u

sing

RES

in th

e tr

ansp

ort

sect

or;

Sci

entifi

c re

sear

ch in

RES

;

Con

tinuo

us in

vest

men

t in

cent

raliz

ed h

eat s

uppl

y an

d cl

ear fi

nanc

ial s

timul

i for

the

use

of b

iofu

el

and

envi

ronm

enta

lly fr

iend

ly h

eatin

g in

cas

es

whe

n th

ey a

re e

cono

mic

ally

soun

d.

The

spec

ific

stra

tegi

c ob

ject

ives

and

task

s of r

egio

nal d

evel

op-

men

t and

the

cha

lleng

es o

f eac

h un

ique

ene

rgy

syst

em d

eter

-m

ine t

he ac

tions

, goa

ls an

d co

rres

pond

ingl

y th

e typ

e of e

nerg

y sa

ving

pro

gram

to b

e us

ed.

Seve

ral t

ypes

of

ener

gy s

avin

g pr

ogra

ms

may

be

singl

ed o

ut

(Fig

ure

2):

Pro

gram

s req

uire

d by

fede

ral o

r loc

al le

gisla

tion.

Inv

estm

ent p

rogr

ams w

ith li

mita

tions

, bas

ed o

n pr

iorit

y an

d av

aila

bilit

y of

fina

ncia

l res

ourc

es.

Pro

gram

s foc

used

on

cert

ain

area

s, su

ch a

s coo

rdin

atio

n of

en

ergy

savi

ngs b

y en

d co

nsum

ers.

As

of 2

010,

ove

r 60

0 en

ergy

sav

ing

prog

ram

s ha

ve b

een

de-

velo

ped

in 7

8 re

gion

s of

the

Rus

sian

Fede

ratio

n, i

nclu

ding

: 50

reg

iona

l pro

gram

s, 93

pro

gram

s fo

r in

divi

dual

sec

tors

of

the

econ

omy

(fuel

and

ene

rgy

com

plex

, ho

usin

g an

d ut

ility

se

ctor

, edu

catio

n, e

tc.)

and

462

mun

icip

al a

nd c

ity p

rogr

ams.

How

ever

, so

me

of t

heir

achi

evem

ents

wer

e ov

ersh

adow

ed

durin

g a

com

preh

ensiv

e ev

alua

tion

of th

e re

duct

ion

in e

nerg

y in

tens

ity o

f the

Reg

iona

l Dom

estic

Pro

duct

and

Rus

sia’s

GD

P.

One

of t

he re

ason

s for

this

is th

at a

syst

emat

ic, c

ompr

ehen

sive

appr

oach

was

not

app

lied

whe

n de

velo

ping

the

se p

rogr

ams.

Such

an

appr

oach

wou

ld p

rovi

de a

com

plet

e pi

ctur

e of

the

re-

gion

's en

ergy

effi

cien

cy a

nd e

nerg

y sa

ving

pot

entia

l.

Pro

gram

s add

ress

ing

spec

ific

issue

s, ta

rget

ing

key

regi

onal

go

als s

uch

as e

nerg

y se

curit

y, ab

ando

ning

exp

ensiv

e fu

els,

and

incr

ease

d us

e of

rene

wab

le a

nd lo

cal e

nerg

y so

urce

s.

In p

ract

ice,

the

pro

gram

s m

ay b

e co

mbi

ned

and

inte

grat

ed.

The m

ain

obje

ctiv

e is t

o en

sure

the p

rogr

am re

flect

s the

ove

rall

ener

gy st

rate

gy. Th

us, p

rogr

am ty

pe sh

ould

be

chos

en a

s ear

ly

as p

ossib

le.

The

prog

ram

can

be

devi

sed

as a

set o

f mec

hani

sms a

nd p

roj-

ects

in v

ario

us se

ctor

s and

sub-

sect

ors o

f the

eco

nom

y, ta

king

in

to a

ccou

nt t

heir

inte

rcon

nect

ion

and

appl

icab

ility

. Alm

ost

like

Lego

bric

ks, t

hese

blo

cks

can

be p

lugg

ed i

n as

nee

ded.

M

echa

nism

sel

ectio

n is

guid

ed m

ainl

y by

loca

l spe

cific

s an

d re

leva

nt e

nerg

y iss

ues.

The

ener

gy s

avin

g pr

ogra

m d

evel

opm

ent

proc

ess

incl

udes

sev

eral

key

asp

ects

tha

t de

term

ine

prog

ram

stru

ctur

e: p

rogr

am o

bjec

tives

and

task

s, re

gion

al sp

ecifi

cs, t

he d

evel

opm

ent h

istor

y of

th

e re

gion

's en

ergy

infr

astr

uctu

re, a

nd th

e re

gion

's en

ergy

cha

lleng

es a

nd st

rate

gic

obje

ctiv

es.

The

ener

gy s

avin

g an

d en

ergy

effi

cien

cy i

mpr

ovem

ent

prog

ram

is

impl

emen

ted

in s

ix m

ajor

st

ages

(Fig

ure

3):

1. C

olle

ct in

itial

dat

a, d

efine

a p

rogr

am fo

rmat

.

2. D

evel

op a

regi

onal

fuel

and

ene

rgy

bala

nce,

defi

ne e

nerg

y sa

ving

pot

entia

l and

ene

rgy

rese

rves

acr

oss t

he e

cono

my.

3. S

elec

t prio

rity

area

s of e

nerg

y sa

ving

, dev

elop

a p

rogr

am st

ruct

ure.

4. S

elec

t effi

cien

t tec

hnic

al so

lutio

ns a

imed

at e

nerg

y sa

ving

and

ene

rgy

effici

ency

im

prov

emen

t and

alig

n th

em w

ith e

ach

othe

r.

5. S

elec

t mot

ivat

ion

mec

hani

sms t

o im

plem

ent t

echn

ical

mea

sure

s in

the

field

of e

nerg

y sa

ving

and

ene

rgy

effici

ency

impr

ovem

ent.

6. M

onito

r ene

rgy

savi

ng a

nd e

nerg

y effi

cien

cy im

prov

emen

t pro

gram

s dur

ing

thei

r de

velo

pmen

t and

impl

emen

tatio

n.

Each

sta

ge s

houl

d re

sult

in a

spec

ific

outc

ome,

but

the

sta

ges

can

occu

r sim

ulta

neou

sly a

nd c

an o

verla

p. F

or e

xam

ple,

whe

n th

e fir

st s

tage

is

half

com

plet

ed, p

rovi

ding

an

initi

al u

nder

-st

andi

ng o

f the

regi

on, t

he id

entifi

catio

n of

ene

rgy

savi

ng p

o-te

ntia

l – st

age

2 –

can

begi

n.

Gen

eral

Algo

rithm

of R

egio

nal

Ener

gy S

avin

g Pr

ogra

m

Dev

elopm

ent

1.

Reg

iona

l th

erm

al e

nerg

y an

d el

ectr

icity

con

sum

ptio

n ba

lanc

es (a

s wel

l as a

sum

mar

y fu

el a

nd e

nerg

y ba

lanc

e)

shou

ld b

e de

velo

ped

on t

he b

asis

of s

tatis

tical

info

rma-

tion

and

othe

r dat

a ta

ken

from

the

repo

rts o

f sta

te st

atis-

tical

age

ncie

s and

the

refe

renc

e no

tes o

f ene

rgy

firm

s.

2. T

otal

val

ues o

f ene

rgy

cons

umpt

ion

(ther

mal

ene

rgy

and

elec

tric

ity c

onsu

mpt

ion)

sho

uld

be d

eter

min

ed b

y m

ain

stru

ctur

al s

ub-d

ivisi

ons

of t

he c

ity e

cono

my

with

in t

he

regi

onal

fuel

and

ene

rgy

bala

nce

(indu

stry

, pub

lic se

ctor

, tr

ansp

ort,

hous

ing

and

utili

ty se

ctor

, con

stru

ctio

n, tr

ade,

po

pula

tion,

oth

er c

onsu

mer

s).

3.

Rel

ativ

e co

nsum

ptio

n pe

rcen

tage

s sh

ould

be

iden

tified

ba

sed

on a

ggre

gate

ene

rgy

cons

umpt

ion

data

(th

er-

mal

ene

rgy

and

elec

tric

ity).

Thes

e pr

opor

tions

pro

vide

gu

idel

ines

for t

he c

reat

ion

of sa

ving

ass

ignm

ents

for c

on-

sum

ers.

4.

Ann

ual f

uel a

nd e

nerg

y sa

ving

s (th

erm

al r

esou

rces

and

el

ectr

icity

) sho

uld

be id

entifi

ed b

ased

on

gene

ral r

ecom

-m

enda

tions

. Th

erm

al e

nerg

y an

d el

ectr

icity

sav

ing

as-

signm

ents

shou

ld b

e di

strib

uted

in p

ropo

rtio

n to

gen

eral

co

nsum

ptio

n w

ithin

the

fue

l and

ene

rgy

bala

nce

stru

c-tu

re.

5.

Ener

gy c

onsu

mpt

ion

(ther

mal

ene

rgy

and

elec

tric

ity) b

y th

e soc

ial s

pher

e (ed

ucat

ion,

pub

lic h

ealth

, cul

ture

, soc

ial

prot

ectio

n, s

port

) sh

ould

be

divi

ded

into

reg

iona

l an

d m

unic

ipal

. Fue

l and

ene

rgy

reso

urce

savi

ng a

ssig

nmen

ts

for m

unic

ipal

faci

litie

s (ed

ucat

ion,

pub

lic h

ealth

, cul

ture

, so

cial

pro

tect

ion,

spor

t) sh

ould

be r

e-as

signe

d to

mun

ici-

palit

ies.

6.

Gen

eral

the

rmal

ene

rgy

and

elec

tric

ity s

avin

g as

sign-

men

ts fo

r the

pop

ulat

ion

shou

ld b

e dist

ribut

ed b

etw

een

mun

icip

aliti

es in

pro

port

ion

to p

opul

atio

n. M

unic

ipal

-iti

es’ r

espo

nsib

ilitie

s sho

uld

also

enc

ompa

ss e

nerg

y sa

v-in

g in

trad

e, th

e m

unic

ipal

-leve

l soc

ial s

pher

e, in

dust

ry

and

popu

latio

n.

7.

Req

uire

d ac

tiviti

es s

houl

d ta

ke i

nto

acco

unt

curr

ent

and

futu

re e

nerg

y sa

ving

pro

gram

s (c

over

ing

fuel

and

en

ergy

com

plex

fac

ilitie

s, tr

ansp

ort,

hous

ing

and

util-

ity se

ctor

, rec

omm

ende

d lis

ts o

f act

iviti

es a

nd d

atab

ases

on

adv

ance

d te

chno

logi

es)

in o

rder

to b

est i

mpl

emen

t en

ergy

and

reso

urce

sav

ing

reco

mm

enda

tions

.

8.

The

mos

t ad

vant

ageo

us a

ctio

ns s

houl

d be

sel

ecte

d fo

r in

clus

ion

in th

e pr

ogra

m. M

ainl

y, te

chno

logi

es c

hara

c-te

rized

by

thre

e- t

o fiv

e-ye

ar p

ayba

ck a

re a

ccep

ted

for

the

purp

ose

of im

plem

enta

tion

with

in t

he f

ram

ewor

k of

the

targ

eted

city

ene

rgy

savi

ng p

rogr

am.

9.

The

succ

ess,

or

profi

tabi

lity,

of

prog

ram

ac

tiviti

es

shou

ld b

e defi

ned

base

d on

cost

par

amet

ers,

taki

ng in

to

acco

unt e

xpec

ted

ener

gy re

sour

ce sa

ving

s.

10. C

onso

lidat

ed p

rofit

abili

ty p

aram

eter

s of

the

pro

gram

ar

e de

term

ined

by

sum

min

g up

all

prog

ram

cos

ts a

nd

savi

ngs.

11. M

otiv

atio

nal

mec

hani

sms

(tariff

in

cent

ives

, en

ergy

sa

ving

out

reac

h, re

gula

tory

and

lega

l doc

umen

ts, s

tan-

dard

s) sh

ould

be

deve

lope

d.

12. R

egio

nal

and

mun

icip

al l

evel

pro

gram

con

trol

and

m

onito

ring

mec

hani

sms s

houl

d be

iden

tified

.

The

mai

n ob

ject

ive

at t

his

stag

e is

to id

entif

y re

gion

al c

har-

acte

ristic

s th

at m

ost

influ

ence

ene

rgy

cost

and

con

sum

ptio

n.

Reg

ions

in v

ario

us c

ount

ries m

ay d

iffer

sign

ifica

ntly

rega

rdin

g th

e num

ber o

f qua

ntita

tive a

nd q

ualit

ativ

e par

amet

ers.

For a

ll,

the

follo

win

g sh

ould

be

incl

uded

(Fig

ure

4):

eco

logy

and

clim

atic

con

ditio

ns;

key

geo

grap

hic

data

such

as a

rea,

pop

ulat

ion,

and

con

-su

mer

dist

ribut

ion;

reg

iona

l ene

rgy

supp

ly a

nd in

fras

truc

ture

(ene

rgy

sour

ces

and

netw

orks

, pea

k el

ectr

icity

out

put);

dyn

amic

s of e

nerg

y co

nsum

ptio

n by

sect

or a

nd su

b-se

ctor

;

misc

ella

neou

s fac

tors

such

as i

ndus

tria

l bas

e an

d R

egio

nal

Dom

estic

Pro

duct

.

In a

dditi

on to

the

prim

ary

spec

ifics

ther

e ar

e ot

her i

mpo

rtan

t re

gion

al p

aram

eter

s th

at i

nflue

nce

ener

gy s

avin

g pr

ogra

m

form

at:

geo

grap

hica

l spe

cific

s (la

ndsc

ape,

coa

stal

or c

ontin

enta

l lo

catio

n);

are

a of

the

regi

on;

pop

ulat

ion

dens

ity, s

hare

of u

rban

pop

ulat

ion;

con

sum

ptio

n of

fuel

and

ene

rgy

reso

urce

s, st

ruct

ure

of

indu

stria

l pro

duct

ion

and

Reg

iona

l Dom

estic

Pro

duct

.

Rel

iabl

e da

ta m

ay b

e ta

ken

from

var

ious

sour

ces (

Tabl

e 1)

:

geo

grap

hica

l and

clim

atic

map

s;

gov

ernm

ent s

tatis

tics a

nd re

port

s;

sur

veys

and

que

stio

nnai

res;

rep

orts

issu

ed b

y or

gani

zatio

ns, i

nstit

utio

ns, t

hink

tank

s;

oth

er so

urce

s of i

nfor

mat

ion.

The

mai

n ou

tcom

e of

the

firs

t st

age

of t

he r

egio

nal

ener

gy

savi

ng p

rogr

am d

evel

opm

ent

shou

ld b

e a

set

of id

entifi

ed r

e-gi

onal

spec

ifics

as w

ell a

s a re

view

of t

hose

cha

ract

erist

ics a

nd

a pr

elim

inar

y de

finiti

on o

f the

pro

gram

type

.

Not

e, th

e pro

gram

type

(see

abov

e) m

ay ch

ange

sign

ifica

ntly

in

the p

roce

ss o

f the

pro

gram

’s de

velo

pmen

t. Fo

r exa

mpl

e, d

urin

g th

e de

velo

pmen

t of

Mos

cow

’s en

ergy

sav

ing

prog

ram

, th

e

prog

ram

type

was

cha

nged

from

“pr

ogra

m fo

cuse

d on

cer

tain

ar

eas”

to “

inve

stm

ent p

rogr

am w

ith li

mita

tions

” bec

ause

of t

he

glob

al fi

nanc

ial c

risis.

Ther

efor

e, th

is st

age p

rovi

des a

snap

shot

of

cur

rent

regi

onal

ene

rgy

supp

ly a

nd e

ffici

ency

issu

es, w

hich

m

ay c

hang

e ov

er ti

me.

Each

regi

on h

as it

s ow

n en

ergy

savi

ng p

oten

tial.

The t

erm

itse

lf re

flect

s the

diff

eren

ce b

etw

een

the

curr

ent l

evel

of e

nerg

y effi

-ci

ency

and

resu

lts d

emon

stra

ted

by o

ptim

al p

ract

ices

and

stan

-da

rds.

Ther

e ar

e tw

o m

ain

grou

ps o

f ene

rgy

savi

ng p

oten

tials:

1) im

prov

emen

t of e

ffici

ency

of n

on-r

enew

able

fuel

s usa

ge

via

ener

gy sa

ving

tech

nolo

gies

and

act

iviti

es.

2) d

ecre

ased

usa

ge o

f non

-ren

ewab

le fu

els v

ia a

n in

crea

se

in th

e sh

are

of re

new

able

ene

rgy

usag

e.

The

two

grou

ps a

re re

pres

ente

d sc

hem

atic

ally

in F

igur

e 5.

The

cont

ribut

ion

of t

he fi

rst

and

seco

nd g

roup

s to

ove

rall

ener

gy sa

ving

pot

entia

l diff

ers d

epen

ding

on

regi

onal

spec

ifics

. In

the

maj

ority

of

case

s th

e va

lue

of t

he fi

rst

grou

p sig

nifi-

cant

ly e

xcee

ds t

hat o

f the

sec

ond

grou

p. I

n th

e ex

perie

nce

of

deve

lope

d co

untr

ies,

the

first

gro

up p

oten

tial i

s acc

ompl

ished

fir

st, a

nd o

nly

then

do

rene

wab

le e

nerg

y so

urce

s (se

quen

tially

or

con

curr

ently

-seq

uent

ially

) beg

in to

repl

ace t

radi

tiona

l typ

es

of fu

el.

The

optim

izat

ion

of t

he f

uel

bala

nce

in S

wed

en f

rom

198

0 to

200

3 (F

igur

e 6)

is

one

of t

he m

ost

succ

essf

ul e

xam

ples

of

ful

fillm

ent

of c

ombi

ned

pote

ntia

ls of

the

firs

t an

d se

cond

gr

oups

.

Ove

r the

last

twen

ty ye

ars S

wed

en h

as su

cces

sful

ly m

oved

away

fr

om d

epen

denc

e on

its p

rimar

y fo

ssil

fuel

, oil.

Tod

ay it

s ele

c-

The

aggr

egat

e re

gion

al e

nerg

y sa

ving

pot

entia

l and

its

stru

c-tu

re sh

ould

be

dete

rmin

ed fo

llow

ing

the

defin

ition

of e

ffici

en-

cy p

aram

eter

s (sp

ecifi

c va

lues

) al

ong

the

entir

e ch

ain

– fr

om

prod

uctio

n/ge

nera

tion

to c

onsu

mpt

ion.

Not

e: in

dica

tors

bas

ed o

n th

e en

ergy

effi

cien

cy o

f bes

t av

ail-

able

pra

ctic

es i

n th

e sa

me

sphe

re m

ay d

iffer

sig

nific

antly

in

diffe

rent

reg

ions

. Te

rrito

rial

spec

ifics

of

the

regi

on,

clim

ate,

re

gula

tory

and

lega

l fra

mew

ork

and

a nu

mbe

r of o

ther

asp

ects

ca

n ha

ve a

signi

fican

t im

pact

. For

exam

ple,

cons

umpt

ion

of si

x to

ns o

f fue

l per

per

son

is ac

cept

able

for n

orth

ern

regi

ons w

ith

min

ing

indu

stry

, but

is a

bsol

utel

y un

acce

ptab

le f

or s

outh

ern

regi

ons w

ith to

urism

as a

prim

ary

activ

ity.

tric

ity a

nd th

erm

al en

ergy

are

gen

erat

ed v

ia th

e use

of b

iom

ass,

indu

stria

l was

tes,

ther

mal

pum

ps a

nd se

cond

ary

ener

gy.

Ener

gy sa

ving

pot

entia

l may

be e

valu

ated

with

the u

se o

f gro

ss

para

met

ers

(for

exam

ple,

the

agg

rega

te v

olum

e of

sav

ings

of

en

ergy

re

sour

ces

cons

umpt

ion:

el

ectr

icity

(M

Who

ur/

annu

m),

ther

mal

ene

rgy

(Gca

l/ann

um),

wat

er (

m3/

annu

m),

and

spec

ific

para

met

ers (

ref.

Tabl

e 2)

).

It is

nece

ssar

y to

use

cur

rent

leve

ls st

ipul

ated

by

stan

dard

s as

wel

l as

the

best

ava

ilabl

e gl

obal

pra

ctic

es to

acc

urat

ely

eval

u-at

e th

e re

gion

al p

oten

tial.

The

ener

gy sa

ving

pot

entia

l sho

uld

be d

eter

min

ed o

n th

e ba

sis o

f th

e da

ta c

olle

cted

dur

ing

the

prev

ious

stag

e.

Sour

ce: S

wed

ish A

ssocia

tion

of C

entra

lized

Ther

mal

Sup

ply

The

fuel

and

ene

rgy

bala

nce

is th

e ba

sic d

ocum

ent f

or d

eter

-m

inin

g en

ergy

savi

ng p

oten

tial.

Its m

ain

task

is to

show

tota

l av

aila

bilit

y an

d us

e of

ene

rgy

reso

urce

s in

the

reg

ion.

It m

ay

also

be

deve

lope

d at

the

coun

try,

regi

on, c

ity o

r per

sona

l lev

el.

Prim

ary

info

rmat

ion

need

ed t

o bu

ild t

he b

alan

ce i

nclu

des

ener

gy a

udits

, en

ergy

sup

ply

data

, en

ergy

firm

s' ou

tput

s, re

port

s fr

om l

ocal

aut

horit

ies

and

othe

r st

atist

ics.

The

fuel

an

d en

ergy

bal

ance

dev

elop

men

t sho

uld

resu

lt in

dat

a on

gen

-er

atio

n an

d co

nsum

ptio

n of

ene

rgy

reso

urce

s, lo

sses

, en

ergy

sa

ving

pot

entia

l and

spar

e ca

paci

ties.

The e

nerg

y ba

lanc

e may

be c

ompi

led

both

for t

he en

tire e

nerg

y co

mpl

ex o

f the

regi

on a

nd fo

r its

indi

vidu

al co

mpo

nent

s – p

ro-

duct

ion,

gen

erat

ion,

pro

cess

ing,

con

vers

ion,

tra

nspo

rtat

ion/

tran

smiss

ion,

sto

rage

and

use

of a

ll ty

pes

of e

nerg

y. Th

erm

al

ener

gy b

alan

ces,

elec

tric

ity b

alan

ces,

gas f

uel b

alan

ces,

liqui

d fu

el b

alan

ces,

solid

fue

l ba

lanc

es,

rene

wab

le a

nd s

econ

dary

en

ergy

sou

rce

bala

nces

and

sol

id d

omes

tic w

aste

bal

ance

s sh

ould

all

be c

ompi

led

with

in th

e fra

mew

ork

of a

cons

olid

ated

fu

el a

nd e

nerg

y ba

lanc

e.

The c

onso

lidat

ed re

gion

al fu

el an

d en

ergy

bal

ance

is a

bala

nced

sy

stem

of

indi

cato

rs r

epre

sent

ing

the

mak

e-up

of

the

ener

gy

com

plex

at a

cer

tain

poi

nt in

tim

e. R

ecom

men

datio

ns re

gard

-in

g effi

cien

t use

of i

ndiv

idua

l ene

rgy r

esou

rces

, the

repl

acem

ent

of e

nerg

y ca

rrie

rs, e

lect

rifica

tion

and

fuel

supp

ly sp

ecifi

cs a

nd

the l

ocat

ion

of en

ergy

inte

nsiv

e ind

ustr

ies s

houl

d be

dev

elop

ed

on th

e ba

sis o

f the

fuel

and

ene

rgy

bala

nce

revi

ew.

2 W

hen

eval

uatin

g po

pula

tion’

s nee

ds fo

r ele

ctric

ity, b

oth

coun

try

diffe

renc

es

in e

lect

ricity

con

sum

ptio

n an

d av

aila

bilit

y2 of e

lect

ric h

ouse

hold

app

lianc

es

in h

ouse

s/ap

artm

ents

shal

l be

take

n in

to c

onsid

erat

ion

Base

line

valu

es o

f ene

rgy

effici

ency

impr

ovem

ent r

eser

ves

are

iden

tified

. The

ener

gy sa

ving

pot

entia

l str

uctu

re is

cla

rified

at

the

leve

l of

the

cons

olid

ated

fue

l and

ene

rgy

bala

nce

on t

he

basis

of t

he re

view

of e

nerg

y effi

cien

cy in

maj

or se

ctor

s.

For

exam

ple,

for

a m

egal

opol

is lik

e M

osco

w, w

hich

is a

n in

-di

vidu

al r

egio

n of

the

Rus

sian

Fede

ratio

n, t

he e

nerg

y sa

ving

po

tent

ial s

truc

ture

was

dist

ribut

ed i

n su

ch a

way

(Fi

gure

7)

that

the

bul

k of

it (a

ppro

xim

atel

y 63

%) f

ell o

n ul

timat

e co

n-su

mpt

ion

(34%

) ta

king

int

o ac

coun

t th

e en

ergy

sav

ing

out-

reac

h am

ong

the

popu

latio

n (2

9%).

Whe

n de

velo

ping

a s

et a

nd s

eque

nce

of p

rogr

am a

ctiv

ities

it

is ne

cess

ary

to re

mem

ber t

he fo

llow

ing

clas

sifica

tion

of p

oten

-tia

ls:

Tec

hnic

al (t

echn

olog

ical

) pot

enti

al is

eva

luat

ed

proc

eedi

ng fr

om a

n as

sum

ptio

n th

at a

ll ob

sole

te a

nd

ineffi

cien

t equ

ipm

ent w

ill b

e re

plac

ed im

med

iate

ly w

ith

the

best

in c

lass

ava

ilabl

e al

tern

ativ

es, r

educ

ing

ener

gy

cons

umpt

ion

from

the

aver

age

regi

onal

leve

l to

a ne

ar-

min

imum

leve

l. C

osts

and

lim

itatio

ns w

ith re

spec

t to

its

impl

emen

tatio

n ar

e no

t tak

en in

to a

ccou

nt d

urin

g th

e ca

lcul

atio

n of

this

pote

ntia

l.

Eco

nom

ic p

oten

tial

is a

par

t of t

he te

chni

cal p

oten

tial

fulfi

llmen

t, w

hich

is e

cono

mic

ally

soun

d if

the

mai

n ec

onom

ic e

ffici

ency

crit

eria

are

app

lied:

disc

ount

ing

rate

s, op

port

unity

cos

t (ex

port

pric

e of

nat

ural

gas

), en

viro

nmen

tal a

nd o

ther

indi

rect

effe

cts a

nd e

xter

nal

fact

ors.

Fin

anci

al p

oten

tial

is a

par

t of t

he e

cono

mic

pot

entia

l th

at sh

ould

be

fulfi

lled

with

in th

e fr

amew

ork

of th

e cu

rren

t mar

ket c

ondi

tions

, pric

es a

nd li

mita

tions

if th

e in

vest

men

t dec

ision

crit

eria

are

use

d.

Stru

ctur

ing

the

ener

gy sa

ving

pot

entia

l per

the

abov

e cl

assifi

-ca

tion

enab

les a

n op

timal

org

aniz

atio

n du

ring

the

impl

emen

-ta

tion,

fulfi

lls av

aila

ble r

eser

ves a

nd en

sure

s the

ir ab

ility

to ro

ll ou

t the

ene

rgy

savi

ng p

olic

y in

the

regi

on.

The

mai

n ou

tcom

e of

the

sec

ond

stag

e of

the

regi

onal

ene

rgy

savi

ng p

rogr

am d

evel

opm

ent s

houl

d be

the d

evel

opm

ent o

f the

in

tegr

ated

regi

onal

fuel

and

ene

rgy

bala

nce

and

eval

uatio

n of

en

ergy

savi

ng p

oten

tials

in v

ario

us se

ctor

s of t

he e

cono

my

and

with

in th

e re

gion

as a

who

le.

A se

t of p

riorit

y are

as o

f ene

rgy e

ffici

ency

impr

ovem

ents

shou

ld

be d

evel

oped

bas

ed o

n th

e re

gion

's po

tent

ial.

Whe

n de

velo

p-in

g th

e se

t it i

s nec

essa

ry to

take

into

acc

ount

the

pote

ntia

l of

syst

em s

olut

ions

. In

man

y ca

ses,

impl

emen

ting

syst

em m

ea-

sure

s may

hav

e a m

uch

grea

ter i

mpa

ct th

an in

divi

dual

opt

imi-

zatio

n so

lutio

ns.

The

impl

emen

tatio

n of

com

preh

ensiv

e so

lutio

ns a

t a

high

er

syst

em le

vel m

ay im

pose

cer

tain

lim

itatio

ns, b

oth

on th

e co

n-su

mer

s’ op

erat

ion

regi

me (

ener

gy so

urce

s) an

d on

thei

r com

po-

sitio

n an

d st

ruct

ure.

Inde

ed, w

hen

an e

xces

s of p

oten

tial c

om-

preh

ensiv

e so

lutio

ns a

re a

vaila

ble

they

sho

uld

be p

riorit

ized

, w

hile

indi

vidu

al p

oten

tials

of o

ptim

izat

ion

shou

ld b

e co

nsid

-er

ed o

n a

seco

ndar

y ba

sis.

The

impl

emen

tatio

n of

com

preh

ensiv

e so

lutio

ns a

ligne

d w

ith

optim

izat

ion

at t

he s

ecto

r le

vel s

uppl

emen

ts a

nd s

tren

gthe

ns

thei

r im

pact

and

can

in id

eal c

ases

lead

to sy

nerg

etic

, cum

ula-

tive

solu

tions

. To

a la

rge

exte

nt t

he u

ltim

ate

type

of

the

re-

gion

al e

nerg

y sa

ving

pro

gram

is d

eter

min

ed a

t thi

s sta

ge a

s a

resu

lt of

acc

urat

e hi

ghlig

htin

g of

ene

rgy

effici

ency

im

prov

e-m

ent p

riorit

ies f

or th

e re

gion

.

Reg

iona

l ene

rgy

savi

ng p

rogr

ams s

houl

d in

clud

e ta

rget

ene

rgy

savi

ng a

nd e

nerg

y effi

cien

cy im

prov

emen

t ind

icat

ors:

a) e

ffici

ency

of e

nerg

y re

sour

ce u

se in

the

hous

ing

sect

or

and

in u

tility

infr

astr

uctu

re sy

stem

s;

b) re

duct

ion

in e

nerg

y lo

sses

whe

n tr

ansm

ittin

g en

ergy

, use

of

equ

ipm

ent w

ith e

nerg

y re

sour

ces c

onsu

mpt

ion

met

erin

g an

d re

gula

tion

devi

ces;

c) in

crea

se in

the

num

ber o

f hig

h-le

vel e

nerg

y effi

cien

cy

faci

litie

s;

d) in

crea

se in

the

num

ber o

f fac

ilitie

s usin

g lo

cal t

ypes

of

fuel

, sec

onda

ry a

nd re

new

able

ene

rgy

sour

ces;

e) in

crea

sed

use

of fu

el-e

ffici

ent t

rans

port

veh

icle

s (na

tura

l ga

s and

hyb

rid);

f) d

ecre

ased

bud

get f

or e

nerg

y su

pply

to p

ublic

sect

or

orga

niza

tions

and

incr

ease

d fu

nds t

o co

mpl

ete

prog

ram

ac

tiviti

es.

As n

oted

abo

ve, t

he d

iver

sity

of r

egio

ns li

mits

uni

vers

al s

olu-

tions

: eac

h ca

se re

quire

s a u

niqu

e set

of m

easu

res.

For e

xam

ple,

le

t us l

ook

at th

e tw

o R

ussia

n re

gion

s of V

orku

ta, i

n th

e nor

th,

and

Kra

snod

ar, a

sout

hern

regi

on.

The

revi

ew c

arrie

d ou

t in

Vor

kuta

defi

ned

a se

t of

suffi

cien

t-ly

sim

ple

and

unde

rsta

ndab

le t

echn

ical

sol

utio

ns (

Figu

re 8

): flu

shin

g an

d re

trofi

t of

intr

a-bu

ildin

g ut

ility

sys

tem

s, ad

just-

men

t of n

etw

orks

, ins

talla

tion

of v

aria

ble s

peed

driv

e pum

ps at

ce

ntra

l hea

t sup

ply

stat

ions

, and

ther

mal

insu

latio

n of

bui

ldin

g en

velo

pes,

whi

ch a

re a

imed

at

mak

ing

the

ener

gy in

effici

ent

hot

wat

er b

oile

r ob

sole

te. I

n th

e ca

se o

f Vo

rkut

a, w

here

the

po

pula

tion

is dw

indl

ing

and

is co

ncen

trat

ed, t

he h

igh

ener

gy

savi

ng p

oten

tial i

s rep

rese

nted

by

the r

ebui

ld o

f ene

rgy

sour

ces

(Vor

kuta

CH

PP-1

and

CH

PP-2

) an

d by

im

plem

enta

tion

of

circ

uit d

esig

ns re

late

d to

load

ing

of C

HPP

turb

ines

.

For

the

disp

erse

d po

pula

tion

of K

rasn

odar

reg

ion

(Fig

ure

9),

mos

t ene

rgy

savi

ng p

oten

tial i

s in

the i

mpr

ovem

ent o

f effi

cien

-cy

of

gas

use

for

dom

estic

pur

pose

s an

d pr

o-ac

tive

deve

lop-

men

t of R

ES.

Targ

et i

ndic

ator

s of

agg

rega

te e

nerg

y co

nsum

ptio

n ar

e se

t by

all

EU m

embe

r st

ates

with

in t

he f

ram

ewor

k of

the

ir na

-tio

nal e

nerg

y effi

cien

cy a

ctio

n pl

ans.

At le

ast

thre

e co

untr

ies

(Den

mar

k, R

oman

ia a

nd L

atvi

a) s

et t

arge

t in

dica

tors

at

the

leve

l of

the

pro

pose

d an

nual

tar

get

(ene

rgy

cons

umpt

ion

redu

ced

by 1

.5%

; the

gen

eral

EU

obj

ectiv

e is

20%

red

uctio

n by

202

0). Th

e La

tvia

n en

ergy

effi

cien

cy s

trat

egy

of 2

000

in-

clud

es a

targ

et in

dica

tor o

f 25%

redu

ctio

n in

con

sum

ptio

n of

pr

imar

y en

ergy

reso

urce

s per

one

uni

t of G

DP

by 2

010.

The

Rom

ania

n st

rate

gy e

nvisa

ges a

3%

red

uctio

n pe

r an

num

. In

Rus

sia th

e tar

get i

ndic

ator

of G

DP

ener

gy in

tens

ity re

duct

ion

is 40

% b

y 20

20 (f

rom

200

7 le

vel).

The

mai

n ou

tcom

e of

the

thi

rd s

tage

of t

he r

egio

nal e

nerg

y sa

ving

pro

gram

pre

para

tion

shal

l be

the

deve

lopm

ent

of t

he

ener

gy s

avin

g pr

ogra

m c

once

pt, i

.e. t

he d

evel

opm

ent

of t

he

prog

ram

str

uctu

re o

n th

e ba

sis o

f se

lect

ion

of p

riorit

y ar

eas

and

mai

n re

gion

al e

nerg

y sa

ving

and

ene

rgy

effici

ency

im

-pr

ovem

ent i

ndic

ator

s.

inf

orm

atio

n m

ater

ials

prov

ided

by

fabr

icat

ors o

f ene

rgy

effici

ent e

quip

men

t pro

ven

by e

xper

ienc

e of

its a

pplic

atio

n;

doc

umen

ts fr

om sp

ecia

list e

xhib

ition

s, w

orks

hops

, co

nfer

ence

s and

oth

er re

leva

nt e

vent

s;

sec

tora

l and

gen

eral

refe

renc

e gu

ides

on

best

ava

ilabl

e en

ergy

effi

cien

t tec

hnol

ogie

s – B

REF

(ref

. App

endi

x B)

;

pro

posa

ls fr

om e

xper

ts.

At th

is po

int,

the

mos

t app

ealin

g ac

tiviti

es (f

rom

the

poin

t of

view

of p

ayba

ck ti

mef

ram

e, p

roce

ss fe

asib

ility

, env

ironm

enta

l re

quire

men

ts, o

ther

pre

set p

aram

eter

s and

lim

itatio

ns) s

houl

d be

cho

sen.

The

mai

n te

chni

cal

activ

ities

bro

ken

dow

n by

en

ergy

savi

ng a

reas

are

repr

esen

ted

in T

able

3.

Prel

imin

ary

tech

nica

l an

d ec

onom

ic e

valu

atio

ns f

ocus

ed o

n th

e fe

asib

ility

of

impl

emen

ting

sele

cted

act

iviti

es w

ithin

the

fr

amew

ork

of t

he r

egio

nal r

egul

ator

y en

viro

nmen

t sh

ould

be

carr

ied

out a

t thi

s sta

ge. Th

en th

e se

lect

ed a

ctiv

ities

shou

ld b

e al

igne

d w

ith f

acili

ties,

sub-

prog

ram

s, im

plem

enta

tion

time-

fram

es, a

nd re

sour

ces,

taki

ng in

to a

ccou

nt th

e in

vest

men

t at-

trac

tiven

ess.

The

impa

ct o

f eac

h pr

ogra

m ta

sk sh

ould

be

para

-m

ount

whe

n al

igni

ng, p

lann

ing

and

inte

rfac

ing

the

activ

ities

.

One

of t

he m

ain

task

s of t

he p

rogr

am p

repa

ratio

n is

the d

evel

-op

men

t of a

n ac

tiviti

es im

plem

enta

tion

stru

ctur

e tha

t inc

orpo

-ra

tes t

he fo

llow

ing

crite

ria:

str

uctu

re a

nd e

xten

t of t

he e

nerg

y effi

cien

cy im

prov

emen

t re

serv

e;

am

ount

of a

ttra

cted

fina

ncin

g;

pay

back

per

iod;

fav

orab

le e

nviro

nmen

t for

impl

emen

tatio

n of

ene

rgy

savi

ng

activ

ities

und

er th

e pr

ogra

m.

The

mai

n ou

tcom

e of

the

four

th s

tage

of t

he r

egio

nal e

nerg

y sa

ving

pro

gram

dev

elop

men

t sh

ould

be

the

sele

ctio

n (fr

om

the

entir

e se

t of

the

ear

lier

iden

tified

mea

sure

s an

d ba

sed

on

the

spec

ific

regi

onal

nee

ds) o

f the

mos

t effi

cien

t and

effe

ctiv

e (p

rodu

cing

the

mos

t ene

rgy

and

mon

etar

y sa

ving

s and

hav

ing

the m

ost p

oliti

cal s

uppo

rt),

fast

real

izab

le (b

ased

on

the p

riori-

tized

nee

ds, t

he im

plem

enta

tion

time,

ava

ilabl

e or

att

ract

able

fin

anci

ng a

nd h

avin

g th

e op

timal

pay

back

per

iod)

and

the

re-

alist

ical

ly m

ost i

mpl

emen

tabl

e m

easu

res.

3 Th

e ta

ble

repr

esen

ts o

nly

a pa

rt o

f tec

hnic

al m

easu

res a

imed

at e

nerg

y

effici

ency

impr

ovem

ents

Det

erm

inin

g th

e m

ost e

ffici

ent s

et o

f mea

sure

s an

d ac

tiviti

es

for r

egio

nal e

nerg

y sa

ving

pro

gram

s req

uire

s tw

o m

ain

task

s:

sel

ect t

echn

ical

and

org

aniz

atio

nal m

easu

res f

or st

aged

im

plem

enta

tion;

cre

ate

a fa

vora

ble

mot

ivat

iona

l env

ironm

ent f

or

impl

emen

ting

thes

e m

easu

res (

regu

lato

ry a

nd le

gal

fram

ewor

k, e

cono

mic

stim

uli,

bans

, etc

.).

Som

e te

chni

cal s

olut

ions

can

incr

ease

the

leve

l of e

nerg

y effi

-ci

ency

of f

acili

ties i

n di

ffere

nt se

ctor

s of t

he e

cono

my,

but t

hey

mus

t be

chos

en a

ccor

ding

to th

e ch

arac

teris

tics o

f the

pro

ject

an

d th

e reg

ion.

The f

ollo

win

g cr

iteria

are

use

d to

sele

ct te

chni

-ca

l sol

utio

ns:

out

com

es o

f pilo

t pro

ject

s;

sec

tora

l cat

alog

ues;

The

impl

emen

tatio

n of

a n

umbe

r of t

echn

ical

mea

sure

s nec

es-

sary

for

the

reg

iona

l ene

rgy

syst

em d

evel

opm

ent

and

ener

gy

effici

ency

im

prov

emen

t re

quire

s re

gula

tory

and

leg

al f

ram

e-w

ork

impr

ovem

ent a

nd t

he c

reat

ion

of a

pos

itive

, mot

ivat

ing

envi

ronm

ent.

Som

e m

otiv

atio

nal m

echa

nism

s inc

lude

:

fina

ncia

l and

eco

nom

ic m

echa

nism

s;

reg

ulat

ory

and

lega

l fra

mew

ork,

regu

latio

ns a

nd st

anda

rds;

inf

orm

atio

n an

d ou

trea

ch m

easu

res;

lev

ers f

or ta

riff st

imul

atio

n an

d ot

her t

ypes

of e

ncou

rage

men

t.

Full-

fledg

ed a

nd f

ull-s

cale

ene

rgy

savi

ng a

ctiv

ities

req

uire

an

entir

e sy

stem

of fi

nanc

ial a

nd e

cono

mic

mec

hani

sms

base

d on

a c

ompr

ehen

sive

appr

oach

to re

gion

al e

nerg

y sa

ving

. Suc

h m

echa

nism

s re

quire

sig

nific

ant

inve

stm

ents

fr

om

vario

us

sour

ces o

f fina

ncin

g.

tant

to

deve

lop

mec

hani

sms

that

not

onl

y in

cent

iviz

e im

ple-

men

tatio

n of

ene

rgy

savi

ng a

ctiv

ities

with

in th

e fr

amew

ork

of

the

ener

gy s

avin

g pr

ogra

m, b

ut a

lso c

reat

e th

e ne

cess

ary

pre-

requ

isite

s for

regi

onal

dev

elop

men

t.

Rec

omm

ende

d st

ages

of d

evel

opm

ent

and

intr

oduc

tion

of

the

finan

cial

and

eco

nom

ic m

echa

nism

s:

1. C

arry

out

a p

relim

inar

y ev

alua

tion

of p

ossib

le fi

nanc

ial

reso

urce

s – so

urce

s and

tota

ls –

resu

lting

from

impl

emen

ta-

tion

of te

chni

cal a

nd o

rgan

izat

iona

l mea

sure

s;

2. E

stab

lish

the

follo

win

g pa

tter

ns o

f in

tera

ctio

n be

twee

n al

l pro

cess

par

ticip

ants

:

a.

na

tura

l flow

s (of

ene

rgy

carr

ier);

b.

ca

sh fl

ows;

c.

do

cum

ent t

urno

ver (

incl

udin

g do

cum

ent f

orm

attin

g an

d co

mpi

latio

n);

3. C

ompi

le a

lega

l pro

file (

revi

ew le

gal s

uppo

rt fo

r the

exist

-in

g pa

tter

ns):

a.

fe

dera

l leg

islat

ion;

b.

re

gion

al le

gisla

tion;

c.

re

gula

tions

and

stan

dard

s;

4. D

evise

am

endm

ents

and

add

enda

to fi

x an

y pr

oble

ms i

n m

echa

nism

dev

elop

men

t;

5. A

gree

to th

e pr

epar

ed a

men

dmen

ts;

6. I

ntro

duce

the

mec

hani

sm;

7. M

onito

r.

The

mai

n fin

anci

al a

nd e

cono

mic

mec

hani

sms

in t

he

regi

on in

clud

e:

Int

erna

l fun

ds o

f con

sum

ers o

f ene

rgy

reso

urce

s;

Bor

row

ed f

unds

in

the

form

of

shor

t-ter

m a

nd lo

ng-te

rm

cred

its a

nd c

redi

t fac

ilitie

s, le

asin

g sc

hem

es;

Dep

reci

atio

n an

d in

vest

men

t com

pone

nts o

f the

tariff

;

Gra

nts p

rovi

ded

by fo

unda

tions

(sta

te b

udge

t fun

ds, f

unds

pr

ovid

ed b

y na

tiona

l and

inte

rnat

iona

l fou

ndat

ions

);

Bud

get

supp

ort

in t

he f

orm

of

co-fi

nanc

ing,

sub

sidiz

ing,

an

d be

nefit

s;

Rev

olvi

ng m

echa

nism

s.

A n

umbe

r of

par

amet

ers

shal

l be

take

n in

to a

ccou

nt w

hen

deve

lopi

ng th

e fin

anci

al a

nd e

cono

mic

mec

hani

sms:

1. T

ype o

f wor

ks p

erfo

rmed

(des

ign

and

surv

ey w

orks

, con

-st

ruct

ion

and

inst

alla

tion,

mon

itorin

g, a

naly

tical

revi

ews);

2. F

orm

of o

wne

rshi

p of

the f

acili

ty w

here

an

ener

gy sa

ving

ac

tivity

is b

eing

per

form

ed (

priv

ate,

mun

icip

al, s

tate

), an

d av

aila

bilit

y of

stat

e bu

dget

fina

ncia

l sup

port

;

3. S

ourc

e of

fin

anci

ng

(inte

rnal

, at

trac

ted,

bo

rrow

ed

fund

s);

4. E

nerg

y su

pply

pro

cess

are

a whe

re th

e ene

rgy

savi

ng ac

tiv-

ity is

car

ried

out (

gene

ratio

n, n

etw

orks

, ulti

mat

e co

nsum

p-tio

n);

5. E

nerg

y su

pply

syst

em (c

entr

aliz

ed o

r dec

entr

aliz

ed).

Fina

ncia

l an

d ec

onom

ic m

echa

nism

s sh

ould

be

deve

lope

d ba

sed

on th

e ab

ove

para

met

ers.

At th

e sa

me

time,

it is

impo

r-

For e

xam

ple,

for t

he la

st te

n ye

ars o

ver 6

0 pr

ojec

ts h

ave

been

de

velo

ped

and

impl

emen

ted

in v

ario

us s

pher

es i

n R

ussia

's A

rkha

ngel

sk r

egio

n, i

nclu

ding

: re

siden

tial

build

ings

, pu

blic

en

titie

s, en

ergy

sour

ces a

nd h

eat n

etw

orks

. Ent

ities

’ ow

n fu

nds

(45%

), st

ate b

udge

t fun

ds (2

%) a

nd fo

reig

n in

vest

men

ts (5

3%)

finan

ced

the

impl

emen

tatio

n of

thes

e pr

ojec

ts.

It is

advi

sabl

e to

revi

ew th

e exi

stin

g fin

anci

al m

otiv

atio

n m

eas-

ures

in

the

regi

on t

oget

her

with

the

fina

ncia

l and

eco

nom

ic

mec

hani

sms.

Such

mot

ivat

ion

mea

sure

s (ta

x and

tariff

ben

efits

, cu

stom

s priv

ilege

s, et

c.) sh

ould

be

trea

ted

caut

ious

ly a

nd th

eir

likel

y ou

tcom

es m

ust b

e th

orou

ghly

cal

cula

ted

in a

dvan

ce.

Serio

us a

tten

tion

mus

t be

giv

en t

o th

e pr

ojec

t pa

ybac

k. F

or

fast-

payb

ack

proj

ects

, no

eco

nom

ic s

timul

atio

n is

requ

ired.

R

athe

r, su

ppor

t is r

equi

red

for p

roje

cts t

hat a

re c

ruci

al fo

r the

re

gion

al d

evel

opm

ent a

nd w

ould

be u

nlik

ely

to p

ayba

ck u

nder

cu

rren

t con

ditio

ns. I

n su

ch ca

ses,

cons

olid

atio

n of

all e

cono

mic

by

-effe

cts (

redu

ctio

n in

bud

get c

osts

, re-

use

of re

leas

ed c

apac

i-tie

s, pr

even

tion

of h

azar

dous

ove

rload

ing

of en

ergy

syst

em el

e-m

ents

, env

ironm

enta

l effe

cts)

is re

quire

d. Th

at c

onso

lidat

ion

shou

ld b

e co

nver

ted

into

eco

nom

ical

ly a

ttra

ctiv

e co

nditi

ons

for p

roje

ct im

plem

enta

tion.

Inte

grat

ed a

nd c

ompr

ehen

sive u

se o

f var

ious

sour

ces o

f fina

nc-

ing

shou

ld b

e ac

com

pani

ed b

y th

e im

prov

ed e

ffici

ency

of t

he

regu

lato

ry a

nd l

egal

env

iron

men

t of

ene

rgy

savi

ng i

n th

e re

gion

.

Whe

n de

velo

ping

a s

et o

f m

otiv

atio

n m

echa

nism

s it

is po

s-sib

le to

adj

ust m

easu

res s

elec

ted

at th

e pr

evio

us st

ages

. Suc

h a

nece

ssity

may

aris

e as

a re

sult

of ta

riff re

gula

tion,

out

reac

h, o

r ap

prov

al o

f bal

ance

d le

gisla

tive

docu

men

ts a

t the

regi

onal

and

fe

dera

l lev

els.

For

exam

ple,

dat

a ob

tain

ed a

s a

resu

lt of

exp

ert-l

evel

ass

ess-

men

ts d

emon

stra

ted

that

con

trad

ictio

ns i

n R

ussia

’s cu

rren

t re

gula

tory

and

leg

al d

ocum

ents

hav

e cu

rbed

the

ir m

otiv

a-tio

nal i

mpa

ct. O

nly

36%

of b

usin

ess e

ntiti

es a

re in

tere

sted

in

impl

emen

tatio

n of

ene

rgy

savi

ng a

ctiv

ities

(ene

rgy

end

user

s),

whi

le 1

8% o

f en

titie

s ar

e ne

ither

inte

rest

ed n

or d

isint

eres

ted

(pub

lic s

ecto

r); a

nd “

the

mot

ivat

ion”

of

the

rem

aini

ng 4

6%

cont

radi

cts t

o th

e log

ic o

f ene

rgy

savi

ng a

ctiv

ities

impl

emen

ta-

tion

(ene

rgy

supp

lyin

g or

gani

zatio

ns).

On

the

who

le, a

wid

e ra

nge

of m

echa

nism

s aim

ed a

t fos

terin

g en

ergy

and

reso

urce

savi

ng m

otiv

atio

n is

nece

ssar

y fo

r the

full-

scal

e de

velo

pmen

t of

an

effec

tive

prog

ram

. Fo

r ex

ampl

e, i

n 20

09, s

peci

alist

s of t

he R

ussia

n R

&D

Pow

er In

dust

ry In

stitu

te

carr

ied

out

a re

view

of

mec

hani

sms

aim

ed a

t su

ppor

ting

ener

gy s

avin

g po

licy

intr

oduc

tion.

Ove

r on

e hu

ndre

d su

ch

mec

hani

sms w

ere

prop

osed

and

div

ided

into

five

mai

n gr

oups

be

low

(Fig

ure

10).

Cle

arly,

und

er c

urre

nt R

ussia

n co

nditi

ons

bans

and

str

ict

cont

rols

are

the

key

“mot

ivat

ion”

mec

hani

sms.

Ther

e is

no

optim

um o

r un

iver

sal

mec

hani

sm s

truc

ture

, ho

wev

er.

Each

re

gion

, by

virt

ue o

f its

cha

ract

erist

ics a

nd sp

ecifi

c ne

eds,

mus

t de

term

ine

its o

wn

set

of m

ost

effec

tive

and

effici

ent

mec

ha-

nism

s. W

ithou

t suc

h m

otiv

atio

n m

echa

nism

s in

pla

ce, a

lack

of

com

plia

nce

wou

ld re

sult,

doo

min

g th

e en

tire

prog

ram

.

Afte

r id

entif

ying

the

nec

essa

ry m

echa

nism

s, th

e re

gion

al

prog

ram

sho

uld

be a

ppro

ved

as p

er t

he e

stab

lishe

d st

ate

pro-

cedu

re a

nd a

syst

em fo

r act

iviti

es m

anag

emen

t and

the

impl

e-m

enta

tion

stru

ctur

e sh

ould

be

esta

blish

ed (F

igur

e 11

).

The

mai

n ou

tcom

e of

the

fift

h st

age

shou

ld b

e a

deve

lope

d co

mpr

ehen

sive

regi

onal

ene

rgy

savi

ng p

rogr

am th

at p

riorit

izes

th

e im

plem

enta

tion

activ

ities

and

iden

tifies

nec

essa

ry m

otiv

a-tio

n m

echa

nism

s. Su

ch a

prog

ram

will

fost

er th

e est

ablis

hmen

t of

an

inte

grat

ed u

nder

stan

ding

of e

nerg

y sa

ving

in th

e re

gion

, at

trac

t co

sts

for

fulfi

llmen

t of

thi

s po

tent

ial

and

reco

up e

x-pe

cted

savi

ngs f

ollo

win

g th

e pr

ogra

m’s

com

plet

ion.

The

impl

emen

tatio

n of

the

com

preh

ensiv

e en

ergy

sav

ing

and

ener

gy e

ffici

ency

pro

gram

will

firs

t of a

ll en

able

:

im

prov

emen

t of t

he e

nerg

y su

pply

secu

rity

of th

e re

gion

;

red

uctio

n in

ene

rgy

inte

nsity

of

the

Reg

iona

l D

omes

tic

Prod

uct;

avo

idan

ce o

f add

ition

al s

hort-

and

long

-term

cos

ts in

var

i-ou

s sec

tors

of t

he e

cono

my;

sav

ings

on

inte

rnal

and

bor

row

ed fu

nds.

Any

regi

onal

ene

rgy

savi

ng p

rogr

am sh

ould

incl

ude

a co

mpr

e-he

nsiv

e mon

itorin

g sy

stem

of t

he re

gion

al en

ergy

cons

umpt

ion

and

a sy

stem

for e

valu

atin

g th

e effi

cien

cy o

f var

ious

mea

sure

s an

d ac

tiviti

es.

Spec

ific

cons

umpt

ion

of e

nerg

y re

sour

ces

at

ener

gy s

ourc

es,

loss

es d

urin

g tr

ansp

orta

tion/

tran

smiss

ion

of

ener

gy c

arrie

rs, a

nd s

peci

fic in

dica

tors

in d

iffer

ent

sect

ors

of

cons

umpt

ion

(ref.

abov

e) m

ay b

e us

ed a

s par

amet

ers r

eflec

ting

the

succ

ess o

f the

pro

gram

’s ac

tiviti

es. M

onito

ring

ener

gy e

ffi-

cien

cy in

dica

tors

(m

ost

of w

hich

are

list

ed in

Tab

le 4

bel

ow,

incl

udin

g th

e da

ta s

prea

d) is

an

impo

rtan

t com

pone

nt o

f the

ener

gy sa

ving

pro

gram

, as i

t ena

bles

obj

ectiv

e jud

gmen

ts ab

out

outc

omes

.

The

data

inc

lude

d in

the

Tab

le 4

sho

w t

hat

prog

ram

im

ple-

men

tatio

n an

d its

mon

itorin

g ar

e aim

ed at

ensu

ring

min

imum

en

ergy

con

sum

ptio

n an

d lo

ss. A

t the

sam

e tim

e, th

e ob

ject

ive

shou

ld b

e an

incr

ease

in th

e sh

are

(up

to 1

00%

) of e

quip

men

t w

ith m

eter

ing

faci

litie

s.

The

abov

e ra

nge

of d

ata

was

obt

aine

d in

the

cou

rse

of d

eve-

lopi

ng a

nd i

mpl

emen

ting

seve

ral e

nerg

y sa

ving

pro

gram

s in

Rus

sia. V

alue

s of

the

abo

ve in

dica

tors

may

diff

er, o

ne w

ay o

r th

e ot

her,

depe

ndin

g on

regi

onal

spec

ifics

.

Not

e, n

eith

er o

f th

e ex

istin

g re

gion

al a

ctiv

ities

dat

a co

llec-

tion

syst

ems (

for

exam

ple,

sta

te s

tatis

tics,

tech

nica

l inv

ento

ry

bure

aus

(BT

I), e

nerg

y se

rvic

ing

com

pani

es a

nd e

nerg

y co

n-su

mpt

ion

audi

t com

pani

es) i

s sat

isfac

tory

for t

horo

ugh

ener

gy

effici

ency

mon

itorin

g. A

bet

ter

syst

em s

houl

d be

cre

ated

as

a pa

rt o

f an

org

aniz

atio

nal m

echa

nism

for

reg

iona

l ene

rgy

ef-

ficie

ncy

man

agem

ent.

Esta

blish

ing

a st

rong

man

agem

ent

syst

em i

s on

e of

the

key

ta

sks o

f pro

gram

impl

emen

tatio

n, a

nd it

ent

ails

cert

ain

cost

s. Th

e nex

t sec

tion

incl

udes

a de

taile

d de

scrip

tion

of th

e ele

men

ts

of su

ch fu

nctio

ning

syst

em.

The m

ain

outc

ome o

f the

sixt

h st

age s

houl

d be

com

preh

ensiv

e,

cont

inuo

us m

onito

ring

with

in th

e fra

mew

ork

of th

e dev

elop

ed

regi

onal

ene

rgy

savi

ng p

rogr

am, s

tart

ing

with

the

ener

gy c

on-

sum

ptio

n in

dica

tors

.

Proc

eedi

ng fr

om t

he in

tern

atio

nal p

ract

ice

of e

ntiti

es t

hat h

ave

face

d pr

oble

ms

impl

emen

ting

ener

gy p

olic

ies,

the

man

agem

ent

cycl

e ba

sed

on P

lan-

Do-

Che

ck-A

ct e

nabl

es c

ontin

uous

im

-pr

ovem

ent

and

the

intr

oduc

tion

of e

nerg

y m

anag

emen

t fu

ndam

enta

ls in

to d

ay-to

-day

pra

c-tic

es.

The

prin

cipl

e m

ay b

e pr

esen

ted

in th

e fo

rm o

f a d

iagr

am (r

ef. F

igur

e 12

):

Plan

: set

targ

ets,

defin

e pr

oces

ses r

equi

red

for d

istrib

utio

n of

out

com

es in

com

plia

nce

with

op-

port

uniti

es in

the

field

(sel

ect p

riorit

y ac

tiviti

es);

Do:

intr

oduc

e pr

oces

ses,

impl

emen

t act

iviti

es;

Che

ck: m

onito

r and

mea

sure

ene

rgy

proc

esse

s and

pro

duct

s in

term

s of t

heir

com

plia

nce

with

th

e en

ergy

pol

icy,

set t

arge

ts, k

ey c

hara

cter

istic

s of t

hese

pro

cess

es;

Act

: dev

elop

act

iviti

es fo

r fur

ther

impr

ovem

ent o

f ene

rgy

effici

ency

and

ene

rgy

savi

ng.

Mon

itorin

g, m

easu

rem

ent

and

revi

ew a

re t

he fi

rst

step

s in

fu

rthe

r de

velo

pmen

t of

the

reg

iona

l en

ergy

sav

ing

prog

ram

(p

rior t

o co

mm

ence

men

t of t

his w

ork

it is

nece

ssar

y to

find

out

th

e st

artin

g po

int t

o pl

an th

e ro

ute)

. It i

s nec

essa

ry to

mon

itor

all k

ey c

hara

cter

istic

s of

reg

iona

l pro

cess

es im

pact

ing

ener

gy

effici

ency

. It

mea

ns t

hat

they

sha

ll be

mon

itore

d, m

easu

red

and

revi

ewed

from

tim

e to

tim

e.

The

key

char

acte

ristic

s sho

uld

incl

ude

at le

ast:

a) e

nerg

y co

nsum

ptio

n an

d en

ergy

effi

cien

cy re

view

dat

a (b

y fa

cilit

ies,

grou

ps o

f fac

ilitie

s);

b) li

st o

f fac

ilitie

s, gr

oups

of f

acili

ties c

hara

cter

ized

by

signi

fican

t ene

rgy

cons

umpt

ion;

c) in

terc

onne

ctio

n be

twee

n sig

nific

ant e

nerg

y co

nsum

p-tio

n an

d ot

her c

hara

cter

istic

s of f

acili

ties (

for e

xam

ple,

the

exte

nt o

f the

rmal

insu

latio

n of

bui

ldin

g w

indo

ws);

d) e

nerg

y effi

cien

cy in

dica

tors

;

e) a

ctiv

ity e

ffici

ency

indi

cato

rs in

term

s of p

erfo

rman

ce o

f ob

ject

ives

and

task

s set

.

Mon

itorin

g as

the B

asis

of

Ene

rgy

Man

agem

ent

Act

Plan

Do

Che

ck

It is

nece

ssar

y to

regu

larly

iden

tify

and

revi

se th

e req

uire

men

ts

for s

tatis

tical

dat

a to

ens

ure

they

obj

ectiv

ely

refle

ct th

e en

ergy

st

atus

of

the

regi

on. R

egio

nal-l

evel

act

iviti

es m

ust

guar

ante

e th

at a

ll eq

uipm

ent

used

for

mon

itorin

g an

d m

easu

rem

ents

(n

ot o

nly

equi

pmen

t ow

ned

by t

he r

egio

n), a

s w

ell a

s re

gula

-tio

ns fo

r co

llect

ion

of d

ata

at t

he r

egio

nal l

evel

, pro

vide

rel

i-ab

le, n

ewly

obt

aine

d da

ta. A

ll sig

nific

ant e

nerg

y co

nsum

ptio

n m

ust b

e ex

amin

ed in

ord

er to

resp

ond

acco

rdin

gly.

The

syst

em d

esig

natio

n:

a) a

ccum

ulat

e in

form

atio

n ab

out a

ctiv

ities

of e

cono

mic

en

titie

s in

the

field

of e

nerg

y sa

ving

;

b) tr

ack

chan

ges i

n pl

anne

d in

dica

tors

with

in th

e fr

amew

ork

of th

e re

gion

al e

nerg

y po

licy;

c) re

flect

err

ors i

n th

e en

ergy

pol

icy;

d) id

entif

y te

chni

cal,

econ

omic

and

fina

ncia

l pot

entia

ls an

d th

eir r

ealiz

atio

n (o

r lac

k of

real

izat

ion)

.

Dat

a co

llect

ion

shal

l be

orga

nize

d as

follo

ws:

1. Id

entif

y th

e m

inim

um re

quire

d le

vel o

f det

ail t

hat

ensu

res s

uffici

ent c

ompl

eten

ess a

nd in

tegr

ity w

ithin

the

boun

darie

s of t

ime

and

fund

ing.

Leve

l of d

etai

l:

“t

errit

oria

l”: re

gion

on

the

who

le; i

ndiv

idua

l sec

tors

; gr

oups

of e

cono

mic

ent

ities

with

in se

ctor

s; in

divi

dual

ec

onom

ic e

ntiti

es.

“t

ime-

base

d”: y

ear,

six m

onth

s, qu

arte

r, m

onth

, etc

.

A ra

pid

incr

ease

in in

put i

nfor

mat

ion

quan

tity

shou

ld b

e tak

en

into

acco

unt w

hen

shift

ing

to th

e nex

t det

ail l

evel

. At t

he sa

me

time,

the s

hift

to th

e nex

t lev

el m

ay p

rove

to b

e ina

dvisa

ble d

ue

to a

lack

of t

ime,

fund

s or r

elia

ble i

nfor

mat

ion.

It is

pos

sible

to

appl

y di

ffere

nt le

vels

of d

etai

l to

the r

evie

w o

f suffi

cien

tly la

rge

econ

omic

ent

ities

tha

t sig

nific

antly

influ

ence

reg

iona

l ene

rgy

indi

cato

rs.

2. Jo

intly

with

regi

onal

offi

cial

s and

inde

pend

ent e

xper

ts,

prep

are

a lis

t of p

aram

eter

s and

cla

rify

the

leve

l of d

etai

l of

thei

r val

ues i

n te

rms o

f tim

e. Th

ese

para

met

ers s

houl

d be

fo

rmul

ated

on

the

basis

of i

nput

dat

a pr

oces

sing

and

refle

ct

outc

omes

of p

rogr

am im

plem

enta

tion.

3. E

nsur

e (w

ith th

e us

e of

org

aniz

atio

nal m

echa

nism

s) th

orou

gh, a

ccur

ate

and

timel

y co

llect

ion

of d

ata,

whi

ch

shou

ld b

e re

view

ed a

s it i

s rec

eive

d.

Dat

a co

llect

ion,

sto

rage

and

rev

iew

pla

y a

signi

fican

t ro

le in

th

e mon

itorin

g sy

stem

. The I

nter

natio

nal S

tand

ardi

zatio

n O

r-ga

niza

tion

(ISO

) is c

urre

ntly

dev

elop

ing

stan

dard

ISO

500

01

Ener

gy M

anag

emen

t Sys

tem

s – R

equi

rem

ents

with

Gui

danc

e fo

r Use

. The

stan

dard

mai

nly

focu

ses o

n cr

eatio

n of

a c

ompr

e-he

nsiv

e m

onito

ring

syst

em.

It w

ill b

ecom

e th

e ba

sis f

or n

a-tio

nal,

corp

orat

e and

mun

icip

al st

anda

rds o

f the

glo

bal e

nerg

y m

anag

emen

t. Pr

ovisi

ons

of t

he s

tand

ard

may

be

used

as

the

basis

for e

stab

lishi

ng re

gion

al e

nerg

y m

onito

ring

syst

ems.

The

plac

e of

the

mon

itorin

g sy

stem

with

in t

he d

evel

opm

ent

and

impl

emen

tatio

n of

ener

gy sa

ving

pro

gram

s in

the r

egio

n is

show

n in

Fig

ure

13.

4. If

it is

impo

ssib

le to

ens

ure

thor

ough

, acc

urat

e an

d tim

ely

data

, mak

e a

deci

sion

eith

er to

cor

rect

the

list

of p

aram

eter

s and

leve

ls of

det

ail o

r to

add

mea

sure

s to

reso

lve

the

iden

tified

pro

blem

.

5. A

s pro

gram

is b

eing

impl

emen

ted,

eva

luat

e th

e po

ssib

ility

to ta

ke st

eps 1

-4 w

ith a

hig

her l

evel

of d

etai

l w

here

nec

essa

ry.

Dat

a in

put i

nto

the

mon

itorin

g sy

stem

may

be

auto

mat

ed o

r pe

rfor

med

man

ually

, or

both

. Man

ual i

nput

is a

pplie

d w

hen

the

data

requ

ire p

relim

inar

y cl

eani

ng, a

gree

men

t, or

cla

rifica

-tio

n –

i.e.,

whe

n di

rect

hum

an p

artic

ipat

ion

is ne

cess

ary.

This

met

hod

is m

ostly

use

d ei

ther

at

the

first

sta

ge (

colle

ctio

n of

in

itial

dat

a) o

f the

pro

gram

dev

elop

men

t or

in t

he p

roce

ss o

f pr

ogra

m m

onito

ring

befo

re th

e de

velo

pmen

t of r

egul

atio

ns.

Aut

omat

ic i

nput

is

used

with

ele

ctro

nic

qual

itativ

e da

ta (

the

qual

ity o

f da

ta i

s gu

aran

teed

by

tech

nica

l and

org

aniz

atio

nal

activ

ities

), ei

ther

in c

ase

of si

ngle

inpu

t at t

he fi

rst s

tage

of t

he

prog

ram

dev

elop

men

t or

dur

ing

the

prog

ram

impl

emen

tatio

n m

onito

ring

proc

ess.

Base

d on

tim

e an

d co

st, B

usin

ess I

ntel

ligen

ce (B

I) so

ftw

are

is m

ost s

uita

ble

for m

onito

ring

syst

em d

evel

opm

ent.

The

mar

ket

is de

velo

ped

and

its sp

ecia

lists

are

hig

hly

skill

ed a

nd a

vaila

ble.

Th

e list

of s

uppl

iers

incl

udes

wel

l-kno

wn

inte

rnat

iona

l com

pa-

nies

(Mic

roso

ft, O

racl

e, IB

M, S

AP,

etc

.) as

wel

l as c

ompa

nies

in

volv

ed in

BI a

t the

loca

l lev

el.

The

Tota

l C

ost

of O

wne

rshi

p (T

CO

) m

etho

dolo

gy m

ay b

e us

ed t

o m

ake

a de

cisio

n on

a s

peci

fic s

oftw

are

syst

em.

The

esse

nce

of T

CO

is in

con

sider

atio

n of

all

cost

s (fo

r pr

ocur

e-m

ent

of s

oftw

are

and

hard

war

e, o

pera

tion,

etc

.) du

ring

the

entir

e lif

e cy

cle

of t

he in

form

atio

n sy

stem

. Bot

h co

mm

erci

al

and

publ

icly

acc

essib

le so

ftw

are

solu

tions

are

ava

ilabl

e fo

r cal

-cu

latio

n of

TC

O (

see

an e

xam

ple

of t

he p

ublic

ly-a

cces

sible

so

ftw

are

at: h

ttp:

//ww

w.tc

otoo

l.org

/inde

x_en

.htm

l).

In 2

010,

spec

ialis

ts at

Rus

sian

firm

TEK

dev

elop

ed th

e Reg

ion-

2010

soft

war

e to

dem

onst

rate

bas

ic e

lem

ents

of t

he m

etho

dol-

ogy

rela

ted

to th

e en

ergy

con

sum

ptio

n m

onito

ring.

Soft

war

e de

signa

tion:

dem

onst

rate

the

oper

atio

n of

the

met

hodo

logy

usin

g lim

ited

initi

al d

ata;

fine

-tun

e el

emen

tary

col

lect

ion

of re

quire

d in

form

atio

n,

whi

ch h

elps

det

erm

ine,

in si

tu, w

hich

dat

a ca

n be

col

lect

ed

quic

kly

and

whi

ch d

ata

are

miss

ing;

dem

onst

rate

exp

ecte

d ou

tcom

es fo

r the

pre

-set

per

iod

(for

exam

ple,

for t

hree

yea

rs);

eva

luat

e th

e ex

pect

ed v

olum

e of

ene

rgy

reso

urce

savi

ngs i

n ki

nd a

nd in

USD

dep

endi

ng o

n se

lect

ed a

ctiv

ities

, pric

es

for r

esou

rces

;

pro

duce

a te

ntat

ive

eval

uatio

n of

the

poss

ibili

ty o

f pay

-bac

k of

cos

ts fo

r ene

rgy

savi

ng v

ia sa

ved

ener

gy re

sour

ces.

The

soft

war

e co

mpr

ises

:

A. T

ools

to d

evel

op:

a li

st o

f fac

ilitie

s by

leve

ls of

det

ail (

for e

xam

ple:

sect

ors,

grou

ps o

f con

sum

ers);

a li

st o

f par

amet

ers t

o be

mon

itore

d (fo

r exa

mpl

e,

elec

tric

ity c

onsu

mpt

ion,

ele

ctric

ity c

osts

, cos

ts fo

r m

anuf

actu

ring

of p

rodu

cts,

etc.)

;

a li

st o

f dat

a co

llect

ion

time

perio

ds (q

uart

er, y

ear);

oth

er se

rvic

e in

form

atio

n;

B. F

orm

ats f

or in

put o

f pla

nned

and

act

ual i

nfor

mat

ion

on th

e st

atus

of f

acili

ties’

para

met

ers i

n tim

e;

C. S

umm

ary

tabl

es a

nd re

port

s for

revi

ew o

f inp

ut d

ata.

The

soft

war

e fu

nctio

ns to

geth

er w

ith th

e da

taba

se, a

nd is

de-

signe

d fo

r ope

ratio

n by

one

or s

ever

al u

sers

. Fin

d th

e so

ftw

are

and

a brie

f man

ual o

n th

e web

site o

f ros

tepl

o.ru

, with

in U

sefu

l So

ftw

are

for

Ther

mal

Eng

inee

ring

(htt

p://w

ww.

rost

eplo

.ru/

soft

.php

?idd=

183)

.

Thus

, the

sys

tem

atic

and

fun

ctio

ning

ene

rgy

man

agem

ent

syst

em,

conn

ecti

ng t

he d

ots,

is

the

min

imum

key

con

di-

tion

for

the

lon

g-te

rm s

ucce

ss o

f th

e de

velo

ped

regi

onal

en

ergy

sav

ing

prog

ram

.

Acc

ordi

ng to

rec

ent p

ract

ices

, the

dev

elop

men

t of r

egio

nal e

nerg

y sa

ving

pro

gram

s in

cur

rent

co

nditi

ons i

s a p

roce

ss a

imed

at u

nder

stan

ding

the

mos

t im

port

ant r

egio

nal e

nerg

y pr

oble

ms,

defin

ing

impr

ovem

ent

pote

ntia

l and

str

engt

heni

ng e

cono

mic

ally

sus

tain

able

dev

elop

men

t by

es

tabl

ishin

g an

effi

cien

t m

onito

ring

and

man

agem

ent

syst

em o

f en

ergy

and

res

ourc

es s

uppl

y ac

ross

all

sect

ors a

nd su

b-se

ctor

s of t

he e

cono

my.

Dev

elop

ing

the s

tate

ener

gy sa

ving

pol

icy

in d

iffer

ent r

egio

ns ta

kes p

lace

in se

vera

l sta

ges (

Tabl

e 5)

, and

eac

h re

gion

will

mai

ntai

n its

ow

n ra

te o

f dev

elop

men

t dep

endi

ng o

n its

ow

n ch

arac

ter-

istic

s. A

s the

nat

iona

l sys

tem

of m

anag

emen

t and

ene

rgy

infr

astr

uctu

re e

volv

es, d

iffer

ent s

ets o

f re

gula

tory

and

lega

l mec

hani

sms w

ill b

e us

ed.

Rig

id p

rohi

bitiv

e m

echa

nism

s pre

vail

in th

e fir

st st

ages

(req

uire

men

ts, s

tand

ards

, rul

es (F

igur

e 10

)), w

hile

as a

new

inst

itutio

nal e

nviro

nmen

t (Fi

gure

14)

is c

reat

ed, l

ess r

igid

, mor

e at

trac

tive

mec

hani

sms (

priv

ilege

s, ou

trea

ch a

ctiv

ities

, etc

.) m

ay b

e ad

ded.

The

vario

us c

hara

cter

istic

s of r

egio

ns m

ean

that

a si

mpl

e se

t of

indi

vidu

al so

lutio

ns w

ill n

ot a

lway

s lea

d to

effi

cien

cy im

prov

e-m

ent.

Cer

tain

ly, t

here

is

no u

nifo

rm u

nive

rsal

set

of

ener

gy

and

reso

urce

s sav

ing

mea

sure

s and

tech

nolo

gies

. At a

ny p

oint

in

tim

e, k

ey r

egio

nal s

peci

fics d

eter

min

e th

e co

mm

on v

ecto

r, di

rect

ion

of m

oder

niza

tion,

and

the

esta

blish

men

t of a

cer

tain

se

t of m

easu

res –

as w

ell a

s the

sequ

ence

of t

heir

impl

emen

ta-

tion.

Tabl

e 6

and

App

endi

x C

incl

ude

basic

mec

hani

sms f

or im

ple-

men

ting

ener

gy s

avin

g m

easu

res,

incl

udin

g ex

ampl

es f

rom

va

rious

cou

ntrie

s. Th

e m

otiv

atio

n m

echa

nism

s de

mon

stra

te

how

the

mot

ivat

ion

of e

ntiti

es m

ay b

e im

prov

ed a

nd h

ow b

ar-

riers

to p

ro-a

ctiv

e im

plem

enta

tion

may

be

over

com

e.

Con

clusio

n

Not

all

succ

essf

ul c

ases

(re

f. A

ppen

dice

s C

and

D)

may

be

appl

ied

effec

tivel

y in

oth

er c

ount

ries,

beca

use

of t

he v

aryi

ng

stag

es o

f the

ener

gy effi

cien

cy im

prov

emen

t pro

cess

. Nev

erth

e-le

ss, t

he m

ajor

ity o

f cas

es c

onvi

ncin

gly

prov

e th

e w

orka

bilit

y of

mot

ivat

ion

mea

sure

s in

case

of s

tage

d an

d co

nsist

ent i

mpl

e-m

enta

tion

of th

e en

ergy

savi

ng p

olic

y bo

th a

t the

regi

onal

and

co

untr

y le

vels

in v

ario

us se

ctor

s of t

he e

cono

my.

Suita

ble

mec

hani

sms a

re se

lect

ed b

ased

on

the

spec

ifics

of t

he

rele

vant

regi

on. A

t the

sam

e tim

e, o

ngoi

ng c

hang

es in

the

re-

gion

al c

onfig

urat

ion

(com

miss

ioni

ng a

nd d

ecom

miss

ioni

ng

of r

esid

entia

l bui

ldin

gs, r

egio

nal i

nfra

stru

ctur

e fa

cilit

ies,

in-

dust

rial e

ntiti

es, e

tc.)

nece

ssita

te a

n effi

cien

t re

gion

al e

nerg

y su

pply

and

ene

rgy

man

agem

ent s

yste

m.

Des

pite

the

var

iety

of a

ppro

ache

s, on

the

who

le, c

ompr

ehen

-siv

e en

ergy

sav

ing

prog

ram

s al

low

reg

ions

to

optim

ize

oper

-at

ing

capa

citie

s and

cre

ate

requ

ired

rese

rves

. Reg

iona

l ene

rgy

savi

ng p

rogr

ams

shal

l be

com

e th

e ba

sis f

or c

ompr

ehen

sive

regi

onal

dev

elop

men

t pr

ogra

ms

- to

im

prov

e effi

cien

cy o

f ex

istin

g so

urce

s, re

leas

e re

serv

es f

or f

utur

e de

velo

pmen

t an

d pr

o-ac

tivel

y us

e se

cond

ary

and

non-

trad

ition

al e

nerg

y so

urce

s ra

ther

than

con

stru

ct n

ew e

nerg

y-ge

nera

ting

faci

litie

s.

The

deve

lopm

ent o

f suc

h pr

ogra

ms

is a

cruc

ial s

tep

in b

uild

-in

g an

effi

cien

t life

supp

ort s

yste

m a

nd th

e es

tabl

ishm

ent o

f a

robu

st p

latfo

rm fo

r reg

iona

l and

nat

iona

l dev

elop

men

t. St

aged

im

plem

enta

tion

of a

set

of a

ctiv

ities

fost

ers

unde

rsta

ndin

g of

th

e cu

rren

t situ

atio

n in

the

regi

on, i

dent

ifies

crit

ical

pro

blem

s an

d de

fines

met

hods

of e

nerg

y effi

cien

cy im

prov

emen

t.

App

endi

ces

4 Th

e do

cum

ent i

s in

publ

ic d

omai

n on

htt

p://w

ww.

1400

0.ru

Ene

rgy

effici

ency

man

agem

ent s

yste

m

Pla

nnin

g an

d id

entifi

catio

n of

obj

ectiv

es a

nd ta

sks

Ene

rgy

effici

ent d

esig

n

Im

prov

emen

t of t

he le

vel o

f pro

cess

inte

grat

ion

Mai

nten

ance

of m

otiv

atio

n in

the

proc

ess o

f ene

rgy

effici

ency

initi

ativ

e im

plem

enta

tion

Mai

nten

ance

of s

kills

of h

uman

reso

urce

s

Inf

orm

atio

n ex

chan

ge

Effi

cien

t con

trol

of p

rodu

ctio

n pr

oces

ses

Mai

nten

ance

Mon

itorin

g an

d m

easu

rem

ents

Ene

rgy

cons

umpt

ion

audi

t and

ene

rgy

diag

nost

ics

Ent

halp

y an

d ex

ergy

revi

ew (P

inch

ana

lysis

)

Ther

mo-

econ

omic

s

Ene

rgy

mod

els,

data

base

s and

bal

ance

s

Opt

imiz

atio

n of

par

amet

ers o

f ene

rgy

reso

urce

s use

ää

Sinc

e Ju

ly 2

007,

ele

ctric

ity a

nd g

as m

arke

ts i

n EU

Mem

ber

Stat

es h

ave

been

ful

ly o

pene

d fo

r al

l cu

stom

ers.

Acc

ordi

ng

to t

he E

urop

ean

Reg

ulat

ors’

Gro

up f

or E

lect

ricity

and

Gas

(E

RGEG

, 20

07),

end-

user

pr

ice

regu

latio

n di

stor

ts

the

mar

ket.

ERG

EG t

hus

reco

mm

ends

end

-use

r pr

ice

regu

latio

n be

abo

lishe

d or

bro

ught

into

line

with

mar

ket c

ondi

tions

.

Cas

e: R

educ

ing

fuel

pov

erty

by

incr

easi

ng e

nerg

y effi

cien

cy

An

appr

oach

pro

vidi

ng a

ssist

ance

to

low

inco

me

hous

ehol

ds

in o

rder

to

impl

emen

t en

ergy

effi

cien

cy m

easu

res

has

prov

ed

to b

e a

succ

ess i

n th

e U

K. I

t is u

sed

to re

duce

fuel

pov

erty

in

the

long

er-te

rm.

Wha

t: W

arm

Fro

nt sc

hem

e to

tack

le fu

el p

over

ty a

nd im

prov

e en

ergy

effi

cien

cy.

Why

: In

the

Uni

ted

Kin

gdom

(UK

), re

duci

ng a

nd a

ddre

ssin

g fu

el p

over

ty i

s on

e of

the

mai

n ob

ject

ives

of

ener

gy p

olic

y. Fu

el p

over

ty o

ccur

s due

to a

com

bina

tion

of p

oorly

insu

late

d,

ener

gy in

effici

ent h

ouse

s and

low

inco

me.

In th

ese h

ouse

hold

s, fin

anci

al b

arrie

rs to

ene

rgy

effici

ency

mea

sure

s are

hig

h.

Acc

ordi

ng to

the U

K d

efini

tion,

a ho

useh

old

is in

fuel

pov

erty

if

it ne

eds t

o sp

end

mor

e tha

n 10

% o

f its

inco

me o

n a s

atisf

acto

ry

heat

ing

regi

me.

In

2004

, abo

ut 2

mill

ion

hous

ehol

ds w

ere

in

fuel

pov

erty

in th

e U

K (O

ECD

/IEA

, 200

8).

How

: In

Engl

and,

the

War

m F

ront

Sch

eme

prov

ides

ene

rgy

effici

ency

gra

nts t

o ho

useh

olds

that

rece

ive s

ome f

orm

of s

ocia

l be

nefit

, su

ch a

s ho

useh

olds

with

dep

ende

nt c

hild

ren,

the

el

derly

, the

long

-term

sick

and

the d

isabl

ed. Th

e pub

lic g

rant

is

fund

ed b

y D

EFR

A (D

epar

tmen

t for

Env

ironm

ent,

Food

and

R

ural

Affa

irs) a

nd m

anag

ed b

y Ea

ga, o

ne o

f the

UK

’s la

rges

t su

pplie

rs o

f hea

ting

and

rene

wab

le e

nerg

y.

In t

he W

arm

Fro

nt S

chem

e, c

entr

al h

eatin

g is

offer

ed t

o al

l el

igib

le h

ouse

hold

s. O

ther

ener

gy effi

cien

cy m

easu

res m

ay a

lso

be o

ffere

d, su

bjec

t to

max

imum

gra

nt a

mou

nts.

Out

com

e: B

etw

een

the

intr

oduc

tion

of t

he s

chem

e in

Jun

e 20

00 a

nd t

he e

nd o

f 20

07,

near

ly 1

.5 m

illio

n ho

useh

olds

re

ceiv

ed a

ssist

ance

. Th

e av

erag

e gr

ant

inve

stm

ent

was

GBP

83

9 in

200

4-20

05 a

nd G

BP 1

436

in 2

006-

2007

. The

aver

age

payb

ack

time

was

5 y

ears

in 2

004-

2005

and

7 y

ears

in 2

006-

whi

ch a

t le

ast

half

had

to b

e m

et in

low

-inco

me

hous

ehol

ds.

Failu

re t

o co

mpl

y w

ith t

he r

equi

rem

ents

led

to

finan

cial

pe

nalti

es.

Flex

ibili

ty i

s al

low

ed t

hrou

gh t

radi

ng:

supp

liers

co

uld

buy

or se

ll en

ergy

savi

ngs,

or th

eir o

blig

atio

ns, t

o ot

her

supp

liers

.

Out

com

e: I

n th

e 20

05-2

008

perio

d, t

he s

uppl

iers

del

iver

ed

savi

ngs o

f 187

Tw

h, n

early

50%

mor

e th

an th

e ta

rget

. And

at

leas

t hal

f of t

he sa

ving

s wer

e m

ade

in lo

w-in

com

e ho

useh

olds

(O

fgem

, 200

8).

Cas

e: E

nerg

y sa

ving

obl

igat

ion

to e

lect

rici

ty d

istr

ibut

ion

syst

em o

pera

tors

Wha

t: O

blig

ate

elec

tric

ity d

istrib

utio

n sy

stem

ope

rato

rs t

o ac

hiev

e ene

rgy s

avin

gs in

hou

seho

ld an

d no

n-ho

useh

old

sect

ors

in th

e Fl

emish

regi

on in

Bel

gium

.

Why

: To

im

prov

e en

ergy

effi

cien

cy i

n ho

useh

old

and

non-

hous

ehol

d se

ctor

s.

How

: In

the

Fle

mish

reg

ion,

ele

ctric

ity d

istrib

utor

s m

ust

achi

eve

an a

nnua

l en

ergy

sav

ing

targ

et o

f 2%

of

elec

tric

ity

supp

lied

to h

ouse

hold

s and

1.5

% o

f ele

ctric

ity su

pplie

d to

non

-ho

useh

old

cust

omer

s. Th

e ta

rget

is

base

d on

the

am

ount

of

elec

tric

ity s

uppl

ied

in t

wo

prev

ious

yea

rs. O

pera

tors

tha

t fai

l to

ach

ieve

the

targ

et m

ust p

ay a

fina

ncia

l pen

alty

.

The

dist

ribut

ors

can

deci

de w

hich

ene

rgy

savi

ng m

easu

res

to

prom

ote

to a

chie

ve t

he t

arge

t. Th

e m

easu

re m

ust

cons

ist o

f fin

anci

al (f

or e

xam

ple

gran

t or

low

-cos

t loa

n) a

nd a

war

enes

s-ra

ising

ele

men

ts (

i.e. c

onsu

mer

s’ aw

aren

ess).

In

addi

tion,

the

sy

stem

ope

rato

rs w

ere

requ

ired

to c

arry

out

tw

o en

ergy

scan

s fo

r eve

ry 1

00 h

ouse

hold

con

nect

ions

bet

wee

n 20

07 a

nd 2

009.

W

here

adv

isabl

e, e

nerg

y sa

ving

lig

htbu

lbs,

wat

er-e

cono

my

show

er-h

eads

, pip

e in

sula

tion

and

radi

atio

n fo

il ar

e in

stal

led

to th

e sc

anne

d ho

useh

olds

. The

elec

tric

ity d

istrib

utor

s are

also

ob

ligat

ed to

offe

r ene

rgy

acco

untin

g fo

r sch

ools

and

heal

th a

nd

wel

fare

faci

litie

s an

d su

ppor

t loc

al a

utho

ritie

s in

the

ir en

ergy

po

licy

(Fle

mish

ene

rgy

effici

ency

act

ion

plan

200

8-20

10).

Out

com

e: Th

e m

ost

com

mon

mea

sure

s ha

ve b

een

supe

r-in

sula

ted

glaz

ing;

co

nden

sing

boile

rs

and

high

-effi

cien

cy

boile

rs;

roof

ins

ulat

ion

in e

xist

ing

build

ings

; th

erm

osta

tic

valv

es; a

nd so

lar b

oile

rs (F

lem

ish e

nerg

y effi

cien

cy a

ctio

n pl

an

2008

-201

0). Th

e re

aliz

ed p

rimar

y en

ergy

sav

ings

hav

e va

ried

2007

.

As

a re

sult

of t

he i

nves

tmen

ts,

the

CO

2 em

issio

ns o

f th

e ho

useh

olds

fel

l an

ave

rage

of

24%

in

2004

-200

5 an

d 13

%

in 2

006-

2007

. Oth

er b

enefi

ts w

ere

impr

oved

air

qual

ity a

nd

ener

gy se

curit

y (O

ECD

/IEA

, 200

8).

Sim

ilar

regi

onal

en

ergy

effi

cien

cy

prog

ram

s ta

rget

ed

to

hous

ehol

ds in

fue

l pov

erty

are

in p

lace

in N

orth

ern

Irel

and,

W

ales

and

Sco

tland

.

Cas

e: E

nerg

y E

ffici

ency

Com

mit

men

t fo

r el

ectr

icit

y an

d ga

s sup

plie

rs

Wha

t: E

nerg

y Effi

cien

cy C

omm

itmen

t (E

EC2)

, th

e m

ain

inst

rum

ent

of t

he U

K G

over

nmen

t fo

r im

prov

ing

ener

gy

effici

ency

of h

ouse

hold

s in

2005

-200

8.

Why

: To

im

prov

e en

ergy

effi

cien

cy o

f ho

useh

olds

thr

ough

ob

ligat

ions

to e

nerg

y su

pplie

rs.

How

: The

Elec

tric

ity a

nd G

as O

rder

requ

ires e

lect

ricity

or g

as

supp

liers

who

sup

ply

at l

east

50,

000

dom

estic

cus

tom

ers

to

achi

eve

ener

gy s

avin

g ta

rget

s in

the

hou

seho

lds.

The

over

all

targ

et fo

r the

200

5-20

08 p

erio

d w

as a

savi

ngs o

f 130

TW

h, o

f

betw

een

600

and

1000

GW

h/ye

ar

in 2

003-

2006

(Cor

nelis

, 20

09).

Cas

e: L

ong-

term

, low

inte

rest

loan

s for

bui

ldin

g re

trofi

t

Wha

t: C

O2

Build

ing

Reh

abili

tatio

n pr

ogra

m in

Ger

man

y

Why

: To

im

prov

e en

ergy

effi

cien

cy i

n ex

istin

g re

siden

tial

build

ings

How

: In

Ger

man

y, su

bsid

ies

com

bine

d w

ith l

ow i

nter

est

loan

s are

gra

nted

for

the

reno

vatio

n of

bui

ldin

gs t

hat r

equi

re

subs

tant

ial e

nerg

y sav

ing i

nves

tmen

ts. F

or a

build

ing c

ompl

eted

be

fore

1984

, for

exam

ple,

a su

bsid

y of 1

7.5%

of r

enov

atio

n co

sts

(up

to 8

750

euro

per

dw

ellin

g) m

ay b

e gra

nted

if th

e bui

ldin

g’s

ener

gy c

onsu

mpt

ion

is at

leas

t 30

% h

ighe

r th

an r

equi

red

by

the

curr

ent b

uild

ing

code

.

Alte

rnat

ivel

y, a

low

-inte

rest

loan

may

be

gran

ted

to c

over

the

in

vest

men

t co

sts.

The

leng

th o

f th

e tim

e w

ithin

whi

ch t

he

loan

has

to

be p

aid

is lim

ited

to 2

0 ye

ars,

but

the

perio

d of

re

paym

ent

can

be d

elay

ed f

or a

max

imum

of

thre

e ye

ars.

If

the

reno

vate

d ho

use

(bui

lt be

fore

198

4) a

chie

ves

the

ener

gy

The m

ost i

mpo

rtan

t mea

sure

s in

EEC

2, n

umbe

r of m

easu

res

deliv

ered

and

ener

gy sa

ving

ach

ieve

d in

200

5- 2

008

(Ofg

em,

2008

).

Figu

re. P

art o

f an

ener

gy c

ertifi

cate

of a

smal

l resi

dent

ial b

uild

-in

g in

Fin

land

. Ene

rgy

effici

ency

rat

ing

from

A to

G is

bas

ed o

n th

e en

ergy

con

sum

ptio

n of

the

bui

ldin

g (k

Wh/

gros

s ar

ea (

m2)

). Th

e bu

ildin

g in

the

exam

ple

cons

umes

185

kWh/

m2

and

has t

he

ener

gy p

erfo

rman

ce ra

ting

of C

perf

orm

ance

sta

ndar

d fo

r ne

w b

uild

ings

, 5%

of

the

loan

is

forg

iven

. If

ene

rgy

cons

umpt

ion

goes

30%

bey

ond

the

stan

dard

, the

relie

f is 1

2.5%

.

The

loan

s are

man

aged

by

KfW

, a n

on-p

rofit

pub

lic b

anki

ng

grou

p. L

ower

inte

rest

rate

s tha

n m

ost c

omm

erci

al lo

ans r

esul

t in

ave

rage

savi

ngs o

f abo

ut 7

-12%

per

loan

.

Out

com

e:

From

19

96

to

2004

, th

e C

O2

Build

ing

Reh

abili

tatio

n Pr

ogra

m

appr

oved

lo

ans

for

abou

t 16

.3

mill

ion

m2

for

196,

000

dwel

lings

. Bet

wee

n 20

01 a

nd 2

005,

th

e es

timat

ed a

nnua

l ene

rgy

savi

ng w

as 2

0 PJ

(O

ECD

/IEA

, 20

08).

Cas

e: E

nerg

y ce

rtifi

cate

s of b

uild

ings

Wha

t: E

nerg

y ce

rtifi

cate

of b

uild

ings

.

Why

: To

info

rm b

uyer

s and

rent

ers,

and

pros

pect

ive

tena

nts,

of a

bui

ldin

g’s e

nerg

y pe

rfor

man

ce.

How

: The

EU d

irect

ive

on E

nerg

y Pe

rfor

man

ce o

f Bui

ldin

gs

(200

2/91

/EC

) re

quire

s M

embe

r St

ates

to

ensu

re t

hat

whe

n bu

ildin

gs a

re c

onst

ruct

ed,

sold

or

rent

ed o

ut,

an e

nerg

y ce

rtifi

cate

is a

vaila

ble

to t

he p

rosp

ectiv

e bu

yer

or te

nant

. The

cert

ifica

te p

rese

nts t

he en

ergy

con

sum

ptio

n of

the b

uild

ing

for

spac

e an

d ho

t wat

er h

eatin

g, c

oolin

g, v

entil

atio

n an

d lig

htin

g.

In a

dditi

on, t

he c

ertifi

cate

sho

ws t

he r

efer

ence

val

ues s

uch

as

curr

ent l

egal

sta

ndar

ds, a

nd g

ives

rec

omm

enda

tions

for

cost-

effec

tive

impr

ovem

ent o

f ene

rgy

perf

orm

ance

.

Out

com

e: Th

e en

ergy

cer

tifica

tes h

ave

signi

fican

tly im

prov

ed

publ

ic aw

aren

ess a

nd a

tren

d to

war

d m

ore e

ffici

ent c

onst

ruct

ion

is vi

sible

. H

owev

er,

in m

ost

coun

trie

s it

is to

o ea

rly t

o qu

antit

ativ

ely

estim

ate

the

full

impa

ct o

f en

ergy

cer

tifica

tes.

In th

e Net

herla

nds,

whe

re a

cert

ifica

tion

sche

me e

xist

ed b

efor

e

the E

U d

irect

ive o

n bu

ildin

g en

ergy

per

form

ance

, it s

eem

s tha

t bu

ildin

gs w

ith th

e “g

reen

labe

l” (s

ee F

igur

e ab

ove)

hav

e ha

d a

sligh

tly h

ighe

r tr

ansa

ctio

n pr

ice

than

bui

ldin

gs w

ith t

he “

red

labe

l.” A

lso, t

he p

erio

d of

tim

e th

at a

hou

se g

oes

unso

ld h

as

been

shor

ter f

or g

reen

labe

l bui

ldin

gs (A

SIEP

I, 20

09).

Cas

e: E

nerg

y se

rvic

e co

mpa

ny (E

SCO

)

Wha

t: E

nerg

y se

rvic

e co

mpa

ny (E

SCO

).

Why

: To

prom

ote

ener

gy e

ffici

ency

inve

stm

ents

in in

dust

ry,

serv

ices

and

pub

lic b

uild

ings

.

How

: A

n en

ergy

ser

vice

com

pany

(ES

CO

) is

an e

nter

prise

th

at d

eliv

ers

ener

gy e

ffici

ency

mea

sure

s an

d in

vest

men

ts in

a

cust

omer

’s fa

cilit

y or p

rem

ises.

The r

emun

erat

ion

of th

e ser

vice

s of

ESC

O,

incl

udin

g in

vest

men

ts,

is ba

sed

on s

aved

ene

rgy

cost

s. Th

us E

SCO

ser

vice

s in

clud

e a

savi

ngs

guar

ante

e an

d ES

CO

cov

ers t

he fi

nanc

ial r

isk e

ither

par

tly o

r ful

ly (M

otiv

a,

2010

). Th

e ES

CO

con

cept

is p

artic

ular

ly su

itabl

e w

hen

a la

ck

of fi

nanc

ial o

r hu

man

res

ourc

es i

mpe

des

impl

emen

tatio

n of

ot

herw

ise v

iabl

e ac

tiviti

es.

Seve

ral

EU

coun

trie

s ha

ve

take

n m

easu

res

to

prom

ote

ESC

O’s,

esp

ecia

lly i

n th

e pu

blic

sec

tor.

ESC

O p

roje

cts

are

ofte

n pr

omot

ed t

hrou

gh t

he p

repa

ratio

n of

pro

ject

s an

d by

in

vest

men

t sub

sidie

s (EC

, 200

9). G

erm

any

has a

par

ticul

arly

es

tabl

ished

ene

rgy

serv

ices

indu

stry

.

Out

com

e: In

Ger

man

y, th

ere a

re ab

out 5

00 E

SCO

com

pani

es

and

an e

stim

ated

50,

000

proj

ects

. Th

e av

erag

e in

vest

men

t pa

ybac

k tim

e is

5 to

15

year

s, an

d th

e av

erag

e sa

ving

in e

nerg

y va

ries

betw

een

10%

and

38%

of e

nerg

y co

nsum

ptio

n be

fore

th

e in

vest

men

t. Th

e m

ost

com

mon

tec

hnol

ogie

s de

liver

ed in

ES

CO

pro

ject

s ar

e he

atin

g, in

sula

tion

and

CH

P (B

erto

ldi e

t al

., 20

07).

Ara

kelo

v V.

E. M

etho

dica

l Bas

is of

Ene

rgy

Res

ourc

e Sa

ving

s. –

M.:

Ener

goiz

dat,

1990

.

Art

ykho

v V.

V., G

asho

E.G

., M

arty

nov

A.S

., Z

abel

in

S.I.,

Miru

tenk

o M

.V.,

Ryzh

kov

I.N. E

colo

gy a

nd

Ener

gy G

ener

atio

n –

Ten

Cas

es. –

Inde

pend

ent E

co-

logi

cal R

atin

g A

genc

y N

ERA

. 200

8.

Baid

akov

S.L

., G

asho

E.G

. Eco

nom

ic a

nd L

egal

Pre

-re

quisi

tes f

or Im

plem

enta

tion

of C

ompr

ehen

sive

Ter-

ritor

ial E

nerg

y Sa

ving

Pro

gram

s // N

ews i

n El

ectr

icity

G

ener

atio

n Se

ctor

. 200

7, #

6.

Gas

ho E

.G.,

Kov

ylov

V.K

., Pa

rsch

ikov

V.P

. Met

hod-

olog

ical

App

roac

h to

Res

olut

ion

of th

e Pr

oble

m w

ith

Rat

iona

lizat

ion

of th

e R

egio

nal E

nerg

y an

d In

dust

rial

Com

plex

// In

dust

rial P

ower

Sec

tor.

2002

, # 1

0. P

. 2-7

.

Met

hods

and

Mod

els f

or D

evel

opm

ent o

f Reg

iona

l En

ergy

Pro

gram

s./ S

aney

ev B

.G.,

Soko

lov

A.D

., et

c. –

N

ovos

ibirs

k : N

auka

, 200

3.

Ref

eren

ce D

ocum

ent o

n Be

st A

vaila

ble

Ener

gy E

ffici

en-

cy T

echn

olog

ies /

V. V

inic

henk

o, E

. Gas

ho, T

. Gus

eva,

E.

Dm

itrie

v, G

. Pan

kin.

The

refe

renc

e do

cum

ent w

as

publ

ished

with

supp

ort f

rom

the

Stra

tegi

c Pr

ogra

mm

es

Foun

datio

n (U

K F

orei

gn O

ffice

) and

Ros

stan

dart

(R

ussia

). 20

09.

Sham

shev

a N

.V. P

ract

ical

Ene

rgy

Savi

ng M

echa

nism

s U

sing

the

Exam

ple

of th

e La

w O

n En

ergy

Sav

ing

in th

e C

ity o

f Mos

cow

// N

ovos

ti te

plos

nabz

heni

ya. 2

007,

# 3

.

Ener

gy S

avin

g En

cycl

oped

ia /

Dan

ilov

N.I.

, Sch

elok

ov

Ya.M

. – Y

ekat

erin

burg

: Soc

rate

s, 20

02. –

p. 3

51.

Ener

gy E

ffici

ency

Mon

itorin

g in

EU

27.

(OD

YSSE

E-M

UR

E pr

ojec

t). B

arba

ra S

chlo

man

n, M

athi

as M

aukh

an

d W

olfg

ang

Ach

ham

mer

.

http

://w

ww.

odys

see-

indi

cato

rs.o

rg

OEC

D/I

EA, 2

007.

Ene

rgy

Stra

tegi

es in

IEA

Mem

ber

Stat

es. I

nter

natio

nal E

nerg

y A

genc

y (I

EA),

Paris

.

http

://w

ww.

iea.

org/

text

base

/npp

df/fr

ee/2

007

Wor

ld B

ank.

201

0. L

ight

s Out

? Was

hing

ton,

DC

Ref

eren

ces

to U

sefu

l Doc

umen

ts: