Energy Conservation and Increase of Energy Efficiency (FLEC IEE)
Policy measure

The Russian Federal Law No. 261-F3 on Energy Conservation and Increase of Energy Efficiency (FLEC IEE) of November 2009 includes a separate chapter entitled “Information provision concerning energy conservation measures and energy efficiency increase”.


A report on energy saving and energy efficiency published by the Ministry of Energy notes the lack of efforts made to provide “informational and motivational” background for preparing and putting into effect policies on energy saving and energy efficiency issues. The shortage of information and public awareness has resulted in the development of the pervasive public attitude of “do as others do”, meaning that it is acceptable to waste energy resources. The report also asserts that it is crucial for the government to cooperate with the private sector and to provide informational and educational support for the energy saving and energy efficiency initiatives and programmes at the international, federal, regional and municipal levels. The Ministry of Energy, along with the State Foundation of Support for Social and Informational Programs, have developed a plan to provide informational support for the improvement of energy efficiency and energy saving. (APERC, 2010)

Implementation

According to APERC (2010), Article 22 of FLEC IEE Chapter 6 describes the following activities for the dissemination of information:

  • “Establishment of a single integrated federal information network on energy conservation and energy efficiency

  • Publication of information about energy saving and energy efficiency programs in the print and other media at the federal, regional, and municipal levels

  • Organization of various television and radio programs on the measures and best practices for energy efficiency improvement and latest equipment and technologies in the field of energy conservation

  • Distribution of information on energy saving issues to the consumers

  • Dissemination of information about the energy saving measures and potential in the building and residential sectors

  • Organization of exhibitions of equipment and technologies with high energy efficiency

  • Realization of other measures for energy conservation and energy efficiency improvement in accordance with the FLEC IEE.”

Concerning awareness-raising APERC (2010) further describes how “the federal, regional and municipal governments are required to organize and support various media-based awareness campaigns and events for the promotion of energy saving, improvement of energy efficiency, and effective use of natural resources in industrial and social spheres of Russia. In addition, the producers of energy-consuming equipment and suppliers of energy resources are obliged to inform consumers on a regular basis about energy and heat-consuming potential of their products by using the Internet, advertisements and other means”.

Challenges

The IFC (2008) discusses the most common barriers Russian managers face:

  • “Managers of many Russian industrial companies are not fully aware of the energy efficiency potential their companies have. Managers tend to be overly conservative when assessing energy savings potentials. They believe they may only be able to save 8-10 percent, when in fact they could reduce their energy consumption by 20-30 percent. Managers’ lack of awareness about energy efficiency is due both to a lack of equipment metering the use of energy at the production level, and to a lack of adequate access to information.

  • The majority of enterprises in less intensive industries lack the ability to measure their energy consumption. Only 40 percent of SMEs monitor their energy consumption at the workshop level, and only one out of ten companies has an automated energy cost control system. Others only have the energy cost data of the entire company. Without accessible and reliable data demonstrating energy consumption, companies are unable to see their cost reduction potential and will have more difficulty determining which production units possess the greatest potential for energy savings.

  • Heavy energy consumers report specific energy consumption to the Federal Statistical Office, but this information is not shared publicly. Best practice guides and benchmarks from international experience, which have been developed in a number of countries, are not available in the Russian language.

  • Managers have limited awareness of how to improve energy efficiency. Companies often do not know well what measures exist to save energy at their facilities. Part of the problem may be due to the fact that traditional methods of spreading information about the benefits of energy efficiency have limited outreach to the target audience. Dissemination of information through energy saving exhibitions, which are carried out almost in every region, does not always reach decision-makers in industrial companies, especially SMEs. And, industrial customers are, in particular, generally averse to using a new technology which they may view as untested and potentially more expensive.

  • Managers do not know what opportunities exist for financing projects. Even when end-users can measure the amount of energy savings potential, they may not have easy access to information on how to finance the investments required to achieve this savings. Most EE projects carried out by industrial companies have a pay-back period of two to six years and therefore can be financed with currently available bank loans. Nevertheless, nearly two-thirds of enterprises consider their lack of existing financial resources to be the main barrier to carrying out EE related projects. Moreover, only one out of every four companies citing insufficient funds actually sought outside financing, even though 90 percent of the companies that sought external financing received it."

Outcomes
No outcomes have been identified.
References

IFC (International Finance Corporation), 2008. Energy Efficiency in Russia: Untapped Reserves. Washington, DC. Available at: www.ifc.org/ifcext/rsefp.nsf/AttachmentsByTitle/FINAL_EE_report_Engl.pdf/$FILE/Final_EE_report_engl.pdf.


APERC (Asia-Pacific Energy Research Centre), 2010. Compendium of Energy Efficiency Policies of APEC Economies – Russia. Tokoy. Available at: www.ieej.or.jp/aperc/CEEP/2010/Russia_2010.pdf.