1. Agenda 2013-06-18 Background Short overview of the Russian Federal programme for energy saving/energy efficiency Review of projects performed since autumn 2010 with Nefco funding Focus on Energy Plan Kostamuksha more in detail

2. AVEC GROUP-Erik Sollén Russia since 1998 Owner and General Director Avec Group 2007- Consulting and project management within: forest technology, communal infrastructure, Leading brands like Scania, Ponsse, ÅLÖ, Trelleborg, Olofsfors and others Trading of sawn timber from Karelia to Scandinavia www.avecgroup.se

3. Background Cooperation between Västerbotten and Republic of Karelia since 1994 A number of different projects initiated by Västerbotten within Barents region aimed at industrial cooperation An initiative based on discussions between Västerbotten Governor, Swedish Environmental Minister and experts in the field of use and production of renewable energy 2010, invitation to Swedish-Karelian partnership in climate action, energy conservation and environmental protection using model areas as example territories for creation of ”eco efficient communities”. Creating strategies, action plans for exchange of know how and industrial, technical and commercial collaboration in the field of: - production/use of alternative fuels for replacing fossile energy - developing municipal infrastructure - renewal/modernization of residential/commercial areas - recycling of waste and remains from treatment of waste/wastewater into the biomass production cycle

4. Russian Federal Programme Important to highlight the fact that the Russian government has decided about a huge program for energy saving and energy efficiency. The highlights from this program are for example: 35 billion USD will be used for energy efficiency until year 2020 The energy intensity in Russia will be lowered by 40 % until 2020. Energy consumption within all budget-financed organisations should be reduced with minimum 15 % during the coming 5 years. 65-70 % of the equipment for production of electricity and heat is considered to be worn out Russia will invest 113-114 billion USD in alternative energy sources until year 2030 The Russian government will co-finance regional and communal programs for energy saving and energy efficiency. Its very pleasant that this decision is taken by the Russian government in this moment. It will be of help in our efforts from Västerbotten and give better understanding and support from governmental levels for implementation of local projects in Karelia.

5. Projects performed in Karelia and Kostamuksha 2010-2012 with funding from Nefco (”Eco Efficient Communities” – Sustainable Use of Renewable Resources in the Republic of Karelia) Feasibility study, Nov 2010-June 2011 Main objective: ”Provide an overview of the potential for creation of eco efficient communities in 5 selected Karelian municipalities (Olonets, Pryazha, Medvechegorzk, Petrozavodzk, Kostamuksha) creating certain model areas either by improving/modifying existing areas or by creating new ones”. Focus on 3 key technical sectors: energy efficiency, waste water/sludge treatment, waste management Energy Plan Kostamuksha, April – August 2011 Surplus heat Karelsky Okatush Kostamuksha, Dec 2011 – June 2012 How to recover surplus heat from the production of iron pellets in Karelsky Okatush Is it possible to recover surplus heat, possible technology, can it be used as district heating etc ? Boiler houses in Olonets region June-August 2012 Technical analysis of boiler houses in Tuksa, Vidlitsa and Mikhailovskaya settlements Needs of improvements ! Practical aspects and use of data from energy measuring in the City of Kostamuksha”, March 2012-October 2012 Identifying existing solutions, methods, analysis, technologies and routines in Sweden and how they can be applied on Russia Clarifying the Russian federal requirements for use of data from energy measuring Practical cases of how data can be digested, stored and used for infrastructural improvements (Swedish model)

6. Energy plan Kostamuksha In the work with creating an Energy Plan in Kostamuksha, Avec has cooperated with an expert from Sweco Systems in Umeå, Sweden, being a sub consultant to Avec The expert is a well experienced person who has developed several energy plans for Swedish cities like Luleå for example. The work consisted of practical measuring, study of heat production, collecting data for relevance of the study, comparisons, practical cases, preparation of the report and action plan The plan focused on the housing areas and public buildings. Not industries ! The work with creating the Energy Plan was based on Swecos model developed according to Swedish conditions. For this specific work the model was modified according to some main differences between Sweden and Karelia. For example: - energy production - use of energy - reliability in measuring, measuring devices, control systems, payment for consumed energy among consumers - availability of information such as figures, numbers and the reliability

7. Energy Plan Kostamuksha (Structure) Energy planning in a city from fuel through distribution, transportation until the final product – heat and/or electricity Long term goals How is the energy produced and how do we use it ? Type of fuels (volumes, costs, production, efficiency in production, transformation)? Distribution network(design, ownership, losses) Collection of statistics for different kind of buildings, houses etc Calculation of consumption in selected buildings Final report with action plan proposing certain steps for energy saving and increased energy efficiency Pilot project for Russia, first of its kind. No Russian cities have any Energy Plans

8. Energy Plan Kostamuksha (Action plan) Examples of suggested actions that can be taken in a city like Kostamuksha in order to improve energy situation in a long term perspective: -Education among personnel within sustainability, use of energy and energy costs -Employ a certain ”Energy Coordinator” at the Kostamuksha City Administration(to set up energy requirements for energy consumption when producing new buildings, to have overall responsibility for energy supply and creation of energy systems) -Education/Information among citizens about energy savings in ”daily life” -Lower the indoor temperature -Energy inventories, energy passports for buildings -Installation of measuring equipment for consumption/use of heat and water -Change invoice system so that everyone pays according to real consumption(the best incentive is when ”you feel in your own pocket”) -Install steering and control systems for production and consumption of heat -Rebuild sub centrals in apartment buildings -Modernize street lamp system to use LED or low energy lamps -Change water taps and pipes to ”low flow/low pressure” -Etc etc

9. Energy Plan Kostamuksha (Conclusions) An Energy plan is a necessary tool for taking further decisions about energy efficiency, energy consumption, investments in energy sector Energy plans shows the whole picture in a certain city regarding energy situation In Sweden all cities have an Energy plan and its being updated regularly Since Russian cities do not have energy plans it should be an obligatory platform to start with before taking major decisions about investments, distribution, efficiency etc For Kostamuksha city the energy plan was an ”eye – opener”