Russia: Presidential Decree No. 889, Federal Law No. 261-FZ, State Program in Energy Efficiency and Energy Sector Development
The carbon footprint of Russia is influenced by the following characteristics:
- Russia is one of the worldwide leaders in oil and gas production;
- The country economy is based on energy-consuming industry with heavy and partially old technologies;
- Fossil fuels are accessible and not expensive, and 68.1% of power is generated by combustion of fossil fuels
- The overall level of energy consumption in Russia is relatively high due to the cold climate and lack of natural limitations. Fossil fuels prices are affordable for the population and industries. Most of the heat and electricity is supplied to the customers from the united grids and centralized heat distribution systems considered as being more practicable and reliable for the Russian conditions.
The national strategy in respect to the reduction of greenhouse gas emissions is yet to be developed. So far, there has been no structured policy on the GHG emissions reduction. The carbon trade instruments under the Kyoto protocol were implemented in part and did not have any significant outcome.
However, a nation-wide initiative for energy efficiency improvement which started almost 8 years ago has had meaningful positive impact on the GHG emissions issue. In 2008, the President’s Decree no.889, “On certain measures for increase of energy and environmental efficiency in the Russian economy,” established the goal to reduce the Russian GDP energy intensity by 40% of the value of 2007 by 2020 and prescribed the development of technical regulation tools, relevant legislation and appropriate budgeting.
In 2009, Federal Law no. 261-FZ, “On Energy Savings and Increase of Energy Efficiency,” was adopted. This Law established the legal, economic and administrative framework for promotion of energy savings and efficiency improvements. It also determined the deadlines for mandatory installation of measuring devices in order to control actual energy consumption and payments.
On December 27, 2010, the State Program, “Energy Savings and Increase of Energy Efficiency for The Period by 2020,” was approved by the Government of the Russian Federation. In 2014, this program became an essential part of a larger State Program, “Energy Efficiency and Energy Sector Development”, also adopted by the RF Government. The key goal of the programs by 2020 is the reduction of the Russian GDP energy intensity by 13.5% over the base rate in 2007. The implementation of the Program’s actions, together with the economy restructuring measures, seeks to provide an overall 40% reduction.
The program provides organizational guidelines for management system improvement, development of technical regulations, awareness raising, informational support, etc. The program has also established goals for energy use in different sectors including an oil refining efficiency rate, limits for electricity losses in grids and rated energy and fuel consumption for oil, gas and coal production.
Since the end of 2014, Ministry of Energy of the RF has prepared an annual report on energy efficiency in order to monitor the results and performance of the State Programs implementation. The first report was prepared in 2015 for the year of 2014, the next report of the year of 2015 is ready in Final Draft status.
In 2008, the goal of a 40% reduction in energy usage was based on the forecast that the national GDP will increase 2.3 times by 2020 (1.7 times by 2015) and investments will increase by 11% annually. It also was anticipated that there would be increases in the input of immovable property, communications, engineering, infrastructure and social sectors and that energy use in the transport, power and mining sectors will decrease over time.
Despite the lesser level of performance improvement in energy efficiency than planned, the Program has had a very positive impact in Russia in general, creating an all-Russian trend of energy efficiency oriented development. Each new development or reconstruction project includes the mandatory energy efficiency practices applicable for the wide range of the project issues from management to equipment selection. A special national BAT Reference Document on energy efficiency was developed and is followed by the companies in their practice. Large companies, based on their energy consumption level and energy efficiency performance, develop and implement programs. In their annual public reports and state statistical reports, they report on their improvement and include relevant information of their energy efficiency.
Though improvement in energy efficiency does not equate directly with the progress in reduction of GHG emissions, it has an overall positive impact on reduction of power demand in the country and therefore contributes to a decrease in power generation.
The RF energy policy and programs have the potential to improve energy efficiency throughout Russia. The existing programs need to be revised and soon will be updated to reflect the current economic situation.
Publications on energy efficiency in Russia: http://www.cenef.ru/art_11212_119_node2.html
State reports on energy efficiency: http://minenergo.gov.ru/node/5197