Report - UNDP Russia

Regional energy efficiency policy shouldfocus on reduction of energy intensity of grossregional products. A multi-level system ofindicators for all energy consumption sectorswould enable control, analysis and monitoring ofthe process both nationwide and at regional level.5.5. The governmentshould set an example:improving energy efficiencyin the budget sectorThe budget sector (education, health,armed forces, etc., but not state-ownedcompanies) is fairly energy intensive: itFigure 5.5Rating of educational facilitiesin Ekaterinburg by specific heatconsumption for space heatingGcal/m 2 /year1.41.21.00.80.60.40.20.01 22 43 64 85 106 127 148 169 190 211Thousand m 2Worse than average Average BestSource: CENEf based on data of the Fuel and Energy Authority of theEkaterinburg Regional Administrationconsumes about 40 million tonnes of fuelequivalent annually or 4% of national energyconsumption. Utility expenditures of all Russianbudget-funded organizations exceeded 180billion rubles in 2007 and estimates for 2009 areover 260 billion rubles. These expenditures are2% of the consolidated budget and 5-10% ofregional and local budgets. High energyconsumption in the budget sector is caused bydepreciation of most facilities, which needmajor repair work. Lack of metering and controlequipment means that budgets often pay forutilities, which they either did not receive or didnot need.Steps to install energy-savingmanagement at budget-funded facilitiesbegan in 1999 with introduction of limits onelectricity use. However, the system wasabandoned in 2004. Energy saving potentialin the budget sector is 15 million tonnes offuel equivalent, or 38% of currentconsumption, as shown by the yellow and redlines in Figure 5.5.Russia already has considerableexperience of raising energy efficiency ofbudget-funded facilities, but an unwieldyprocedure for accumulating budget funds, thathave been saved, makes it hard to use thesavings for modernization of those samefacilities. In order to create motivation, ownersof these facilities (federal, regional and localTable 5.1Targets for reducing fuel and electricity intensity of GDP in the Concept for Long-term Social andEconomic Development of the Russian Federation up to 2020, and estimates up to 2030 (%)Energy intensity ofGDPElectrical energyintensity of GDPScenario 2007 2012 2020Reduction in2007-20202030Reduction in2007-2030Inertia 100.0 83.7 70.6 29.4 59.2 40.8Energy and rawmaterials100.0 83.1 67.0 33.0 53.6 46.4Innovation 100.0 82.4 59.6 40.4 42.1 57.9Inertia 100.0 88.1 81.4 18.6 77.1 22.9Energy and rawmaterials100.0 88.7 80.1 19.9 70.7 29.3Innovation 100.0 87.9 72.5 27.5 56.5 43.5Sources: Presidential Decree No.889 (June 4, 2008), ‘On measures to improve energy and environmental efficiency of Russia’s economy’, andthe Memorandum, ‘ On scenarios for long-term social and economic development of the Russian Federation’, (Ministry of EconomicDevelopment, July 2008).94 National Human Development Report in the Russian Federation 2009