Market Transformation Programme on Energy Efficiency in GHG-intensive industries in Russia

The main target is the development of energy efficiency in the Russian industry, through development of a systematic approach to efficiency and by assisting in the implementation of energy management systems (EnMS) in accordance with the ISO 50001.

In the framework of the project UNIDO is helping the enterprises to implement advanced energy management systems, develop energy saving and large industrial systems optimization programs, as well as assistance for development of investment plans and raising funds for the implementation of energy-saving programs.

The work is carried out to develop the competencies in the field of energy efficiency among industrial companies and government officials, as well as active work with industry to optimize industrial systems and implement energy management systems. All services for companies and partners are free of charge.

An important feature of the project is that energy efficiency is achieved largely by introducing no-cost and low-cost organizational changes, in other words by improving the energy management system and not by replacing the production technologies. It should be noted that introduction of the energy management system — is organizational innovation, one of the most effective on the criterion of „investment/saving energy“. Companies that only started to introduce energy management can obtain annual savings of 10-20% within the first 2 years. In the next years, most of companies that introduced EnMS reduce energy consumption by 2-3% per year against 1% in the usual approach.

The project will achieve this market transformation through activities that will:

• structurally improve industrial energy efficiency through increased energy efficiency investments,
• have a wider direct positive effect on rational energy use with related environmental benefits, and
• improve the capacity of the government to develop effective (industrial) energy efficiency policies.

The project is implemented in cooperation with the European Bank for Reconstruction and Development, with support from the Ministry of Energy of the Russian Federation and the Russian Energy Agency.

The project involves a group of UNIDO international experts in the field of energy efficiency.

Main project activities:

Project activities are carried out in the four main directions:

1. Component 1: Development of training materials, website & train-the-trainers programme.
   Under this component educational, methodical and information materials on energy efficiency and EnMS were developed and adapted to Russian modalities, plus a group of national experts and consultants was trained in the following areas:
   1. Energy management;
   2. Fans;
   3. Steam;
   4. Compressed air;
   5. Pumps;
   6. Motors;
2. Component 2: Energy management system capacity building programme for large energy –intensive industries. (The implementation of this component is carried by EBRD)
3. Component 3: Introduction and implementation of an energy management system in selected SMEs. Under this component close and active work is carried out with industrial enterprises and UNIDO provides whem with service package, which includes:
   1. Energy management trainings and implementation;
   2. Systems optimization trainings;
   3. Assistance for EnMS and benchmarking implementation;
   4. Energy audit;
   5. Preparation of energy efficiency investment plans;
   6. Assistance for enterprises to obtain financing.
4. Component 4: Government capacity building and support programme.
   In the course of activities under this component, UNIDO carries out trainings and webinars on energy efficiency and EnMS for representatives of federal and regional government agencies. The Organization also works to improve legislation in the field of energy efficiency and to adapt international tools to improve energy efficiency and develop Russian analogs.

Impact and results

The project is expected to:

• Improve the skills and knowledge of Russian experts in the field of industrial energy efficiency;
• Improve energy efficiency and implementation of EnMS in small, medium and large enterprises of the Russian industry;
• Improve government capacity to design and implement an effective, long-term industrial energy efficiency policy;
• Total CO_2eq emission reductions – 3.8 million tonnes (over 10 year lifetimes);
• Total energy saved 1.4 TWh per year.