Report - UNDP Russia

enhancement is also important. Energy servicebusiness in industry should be supported, andpartnership between business and technicaluniversities for development of energy savingprogrammes should be promoted.The government could provide fundingfor enterprises, which invest in energyefficiency programmes. Saving of one milliontonnes of fuel equivalent in industry requires 6-9 times less funding than expansion of fuelproduction to produce the same amount.Saving of one million tonnes of fuel equivalentin industry saves the same amount of fuelequivalent throughout the national economy,as well as releasing extra quantities ofexportable oil &gas. These factors are sufficientreason for official support to be lent to energyefficiency programmes in industry.Support could be in the form of partialcompensation of loan interest, or federal budgetsubsidies for projects reducing consumption ofnatural gas, thermal or electric energy byinstallation of efficient equipment or use ofsecondary energy resources. Special fundingpackages could be used to implement modelprojects for promoting energy efficiency atindustrial facilities with minimal risks:replacement of electric motors, lighting systems,ventilation, water and steam supply networks,refrigeration equipment, upgrading ofcompressed air systems, etc. Other instrumentsinclude tax and customs preferences, guarantees,accelerated depreciation of energy efficientequipment, and investment tax credits.5.9. Increasing efficiencyin the electricity segmentEnergy losses at power stations inproduction of electric and heat energy accountfor 15-16% of all primary energy losses. In2000–2007 the fuel efficiency coefficient atRussia’s power stations declined from 58% to56%, mostly because of shrinkage in the shareof CHPs on the heat market. The averagecoefficient at Russian stations in 2000–2007Figure 5.9Generation efficiency ratingof Russian thermalpower plants in 2007Consumption of fuel equivalent for electricity production(kg of fuel equivalent/KWh)250022502000175015001250100075050025001 51 101 151 201 251 301 351 401 451 501 551Source: CENEfNumber of power plants (pcs.)Fuel efficiency < 40% Fuel efficiency > 40% Fuel efficiency > 57%was 36-37% (Figure 5.9) and fuel consumptionper 1 KWh of electric energy during the sameperiod declined by only 1.5%. Only 1.5% of allenergy generated in Russia met the IEA’s upperefficiency limit, while 7% of all Russianelectricity was generated at stations whoseproductivity indexes were below 30% and 2billion KWh was generated at stations withindexes below 20%. Average energyconsumption for heat production at powerstations has decreased slightly from 156 kg offuel equivalent per tonne in 2000 to 154 kg in2007. Losses in energy grids in 2007 were 105billion KWh or 10.5% of all energyconsumption.Potential for increase of energyefficiency in production of electric energy atthe 2005 output level is 64 million tonnes offuel equivalent. This figure would increase to133 million tonnes if all consumersimplemented the energy savings, of whichthey are capable. Russia needs to invest USD106 billion to increase energy efficiency of itsfuel-fired power stations.Attainment of the national goal ofreducing energy intensity of GDP requiresreduction of fuel consumption at Russianpower stations by at least 11% to 286 g of fuelequivalent/KWh by the year 2020.Requirements for minimal levels of energy99