The document discusses priority areas for developing an energy efficiency cluster in Russia. Three main themes are identified: 1) closing the gap with developed countries, 2) increasing energy efficiency in key industries like oil/gas and metals, and 3) enabling participation in global energy trends. A methodology is presented for prioritizing strategic directions based on attractiveness and feasibility criteria. The top priority areas identified are energy storage, central heating network modernization, new gas and hydro turbines, and industrial waste heat utilization.

1. Prioritization methodology development and priority areas identification for Energy Efficiency cluster Skolkovo January 31, 2011

4. On the consumption side, compared to other developed countries, Russia is the most energy-intensive which creates large market for energy efficient technologies 0 Source: Rosstat; MED; BP Statistical Review of World Energy 0.23 Russia 1.39 China 1.14 Saudi Arabia 0.86 India 0.75 Canada 0.48 Brazil 0.40 US 0.32 Finland Japan 0.19 Germany 0.19 -65% 1 In 2005 prices Northern countries Energy intensity of the GDP in 2007 Tce per EUR thousands of the GDP 1

6. Russia’s generation and T&D efficiencies are below other countries benchmarks 1 9 5 11 6 11 6 13 6 17 10 177 459 93 462 363 Losses in the grids Electricity consumption by power plants Japan EU-27 U.S. China Russia Source: IEA; Energy Strategy Institute of Russia Electric efficiency of thermal power plants Percent Electricity losses as a share of total production Percent, 2008 Total losses TWh, 2008