1. EXPERTISE IN TECHNOLOGY AND ECONOMICS www.lut.fi Reduction of Greenhouse Gas Emissions in Russia – A Triple Dividend? Lassi Linnanen, Mika Horttanainen, Sami Kokki Greening of Industry Network Conference Cardiff, July 2-5, 2006

2. Background Climate change mitigation is a global challenge, in which Russia has a very important position –Vast natural resources –Enabled the ratification of Kyoto Protocol Very large emission reduction potential in the entire energy chain –Production: boiler efficiency, fuel conversion –Distribution: electricity, district heat –Use: industry, housing This case study is a part of a larger research project ’Reduction of Greenhouse Gas Emissions in North-West Russia - Finnish Business Opportunities’

3. Triple Dividend in Greenhouse Gas Emission Reduction in Energy Use in Housing in Russia? Economic benefit –Reduced fossil fuel consumption –Emission Reduction Units with existing market value Environmental benefit –Reduced greenhouse gas emissions Soci(et)al benefit –Better quality of everyday living conditions –Improved infrastructure (district heating systems)

4. Technical Means to Achieve Savings in Energy Consumption in Private and Public Buildings Heat measurement systems will be installed for each consumer and in future payments are based on real consumption Connection schemas (space heating) that are based on direct connection are replaced with indirect connections (heat exchanger) and building-level automation systems will be installed Hot domestic water should be produced with heat exchanger by district heat (nowadays it is supplied directly from the district heating network) Piping systems inside the buildings are replaced with two-pipe system connected in parallel Radiators are equipped with heat risers Repairing construction

5. Repayment Periods of Energy Saving Improvements in Housing (Grytsenko N., Teigen Ø., 2005) Potential improvement Average repayment period (years) Development and implementation of operation and maintenance routines and energy monitoring 1,5 - 2 Renovation and sealing of the windows 3 - 4 Installation of the new substation with automatic controls 3 – 4 Heat insulation of pipelines and valves 4 - 5 Thermostatic valves installation 5 - 6 Hydraulic balancing of the heating system 5 - 6

6. Renovation of 2 300 m2 Building: Effect on CO2 Emissions Activity Reduction of CO 2 emissions (kg/a) Energy efficient showers 851 Operation and maintenance routines 29 970 Window insulation 29 600 Rooftop insulation 6 586 Insulation of pipelines and valves 6 549 Thermostatic valves installation 19 906 Heat recovery 13 690 Automatic control systems 14 060 Total 121 212 ~ 30-50% of theoretical energy consumption!