Presentation KO Meeting

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Projects results Albert Zweering Team
Leader E-mail zweeringa_at_yahoo.com
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Presentation overview

• Regional energy balance and forecasting
• Policy environment
• Regional and federal EE-policy improvements
• Financing issues
• Conclusions

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Good Project basis

• Strong cooperation with fedral and regional
  administrations facilitated good project
  results
• The project worked closely with the Regional
  EE-centres
• In regional projects, longer-term presence of
  the project is crucial

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Integrated Regional Energy Balances

• In all regions, an Integrated Fuel and Energy
  Balance was prepared
• This was possible with existing statistics and
  annual reports
• Data collection must be more consistent and
  structural

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Energy Demand Forecasting

• In all regions, different forecasting scenarios
  were developed using computerised model (experts
  were trained)
• Potential impact of strong EE-programs was shown
• It is necessary improving coordination between
  economic and energy departments

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Arkhangelsk region

• Study on a regional boiler rehabilitation
  program
• It is possible designing a project that includes
  remote districts while preserving overall
  economic basis
• Lack of hard data is biggest constraint (energy
  audits)

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Astrakhan region

• Study into decreasing losses in electricity
  distribution networks
• Applicable in many cities in RF
• Astrakhan utility is already implementing the
  project
• Instrument for regional tariff service

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Kaliningrad region

• Study on heating network modernisation in Svetly
  town
• Special request from Oblast administration with a
  view to new small-scale CHPs
• Modernisation is often not included in
  rehabilitation plans

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Regional EE policy past experience

• Mostly negative when EE-programs have been
  implemented
• Regional EE-centres are functioning but with
  limited success (depending on the region)

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Why?

• Insufficient preparation
• Insufficient financing
• Insufficient monitoring evaluation
• Insufficient use of EE-centres

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Policy environment

• Top-Down approach is still prevailing
• Building new plants is more interesting
  (supply-side thinking)
• Energy efficiency is still not seen as a real
  alternative
• But times are changing more attention is given
  to EE-programs

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Policy improvements

• Assign from above specific responsibility for
  regions and departments to develop EE-programs
• Integrate economic and energy planning in order
  to increase consistency and realism
• Develop structural modern heat planning as a
  basis for better investment decisions

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Policy improvements (2)

• Quality of project preparation and financial
  analysis must be improved energy audits!
• When external financing is necessary, focus on
  the requirements of the lender
• Base the program design not only on technical
  considerations but on economic ones (economic and
  social can go hand in hand Arkhangelsk)

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Financial issues

• Develop specific mechanism in RF Budget Code for
  including regional debt service/guarantees into
  budgetary procedures
• Create a budgetary Incentive mechanism to
  increase flexibility and motivation (federal and
  regional)

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Financial issues (2)

• Strengthen budgetary discipline (regional and
  federal)
• Arrange co-financing from the budget based on
  well-prepared projects before approaching
  lenders
• The financing mechanism exists use tariff
  components (profit) to include debt service
  comlemented with regional guarantees

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Conclusions

• If the political will is present from the Top,
  energy efficiency investments would accelerate
• Modest demo-programs may convince a Regional Duma
  that EE is real
• Increasing tariff subsidies will force
  EE-programs

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Conclusions (2)

• Where possible include Climate Change mechanisms
  into project design
• Connect possible follow-up projects to concrete
  investments
• Careful project design and implementation
  mechanism is crucial for financing public sector
  programs

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Finally....
There is enough money available from banks, if
you prepare your projects well (design and
analsis)! (ask the EBRD, IFC, NEFCO etc.)
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Project reports are available on http//www.cowip
rojects.com
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Thank you for your attention!