Problems of technology transfer to energy efficiency of Russian cities

1. Problems of technology transfer to energy efficiency of Russian cities CSR “North-West” Foundation, Dmitry Sanatov Round Table « Energy Efficiency and Energy Saving . Russian-Finnish Cooperation » 27 May 2010

4. Often realization of some particular investment projects improve efficiency of separate objects, but does not change the existing inefficient management system > Penza : Although energy produced by regional energy system is excessive there is deficit of energy in the main consumption center . Program measures envisage expanding capacities in the city of Penza, but projection is made on the basis of the number of requests for electricity connections. This approach leads to wrong decisions . The alternative is the Smart Grid There is a request not for modernization of the system (by increasing energy efficiency or by expanding capacities), but for complex reconfiguration solutions, arising from strategic prospects for development of the region. Локальный дефицит (до 200 МВт в 2008 г.)

5. Russian cities are in the situation when they have to select their development strategy. Energy saving is regarded as an instrument of this selection. > Seversk : Expected reconfiguration of the city center leads to structural changes in demand for heating and electricity . Simple modernization of the central HPP can not solve the problem of improving the efficiency of the whole system. The need for implementation of energy efficient solutions is determined not only by internal conditions of the operation of enterprises but also by external conditions of the development of the whole system. In contrast to developed countries Russia does not have consolidated solution on many strategic issues (principal changes in the real estate market, changes in environmental standards) – discussion of these issues has just started. Hence, many energy saving projects are often regarded as additional investment expenses.

6. Still, despite the low level of market maturity, separate projects and on-going processes contribute to gradual reconsideration of their own prospects by Russian cities. > Residential property market Commercial property market Housing and public utilities Public and municipal management Certification of buildings Liberalization of the sector Introduction of smart systems for monitoring and management of urban infrastructures Entry into the green housing market Growing number of units equipped with BMS ( the automated building management system) “ Smartification” of the sector ( smart metering, smart grid) Growing importance of property management ( a building seen as a complex unit , rather than a « concrete box ») Creation of consumer market due to launch of RES to the market , building of active networks Change of regulation conditions Risks in the loss of real estate units value due to gross inadequacies Necessity to change the system of financing the sector Discrepancy between the management system and new market demands

7. In the next few years demand for energy saving projects in Russia would increase considerably. Corporate groups that provide complex services on restructuring and long-term development of cities would occupy leading positions on the market. > The process of launching of large scale energy saving projects in the country is underway, although at this stage many of these projects are ad hoc and do not lead to complex restructuring of the whole system. Nevertheless, the future of energy saving in Russia will depend on successful realization of demonstration projects. In view of the deficit of own developments and ready technological solutions demand for services of foreign companies in Russia will be growing. At the same time due to the growing competence of customers the contractors of energy saving projects would be required to have knowledge and approaches to solving strategic problems Smart City projects in Russian cities Russian energy-saving market perspectives Different maturity of markets is a barrier of technology transfer City Specialization 1 Rostov-na-Donu Security 2 Smolensk Street lighting, security 3 Belgorod Street lighting, power supply 4 Nizhnevartovsk Power supply 5 Voronezh Power supply 6 Sochi Power supply 7 Kaliningrad Power Supply