1. Federal Energy Service Company (FESCO)

2. The potential of power consumption decrease at different stages of energy efficiency projects implementation Existing power consumption Existing power consumption + Updating accountability + Updating accountability -5%-5% -5%-5% -10% + Engineering equipment upgrade + Engineering equipment upgrade -15% -5%-5% -5%-5% 100% 95%95% 95%95% 90% 80% 65% + Lighting upgrade + Lighting upgrade Energy audit and organizational actions

3. FESCO`s participation in supporting activity of the Russian Ministry of Energy on realization the policy of energy efficiency and energy saving Energy saving and increase energy efficiency of Russian economics Building-up a modern standard-legal base Formation of organizational structures The state support and formation of a favorable investment climate for business attraction Information and educational support of actions at the international, federal, regional and municipal levels Interaction with business community and financial institutions on the basis of the private-state partnership FSO REA of the RF FESCO

4. The basic ways of financing Internal funds of the organization Budgetary funds Joint investment Energy service Credits Goods credits and leasing Combined credits Subsidiary tools: Joint investment in the best regional programs of increase of energy efficiency Provide enterprises for state guarantees for realization of projects in the field of energy efficiency increase (within the limits of long- term target agreements)

5. Plan of FESCO energy service organization Contract / financial obligations FSO Russia Energy Agency of the RF FESCO Источники финансирования Заказчики An agreement on joint activity FESCO provides complex interaction of all interested parties at implementation of actions in the field of energy efficiency and energy saving Cooperation and subcontract Источники финансирования Financing sources Заказчики Customers Cooperation and subcontract Regional and municipal sector Energy performance contract

6. Realization of pilot projects with a view of their further financing Creation of the regional energy services companies (RESCО) Participation in share capital 25% + 1 share Plan of FESCO organization Financing source - private investors - investment funds - banks - federal budget - other sources FESCO Заказчики Customer Regional and municipal sector Contract / financial obligations Заказчики Customer Regional and municipal sector Joint venture (RESCO) Private investors Executive bodies of subjects RF Participation in share capital Energy performance contract Participation in share capital Energy performance contract

7. Financing energy service project FESCO Financial lease/ leasing of equipment Credit/loan Goods credit Securing of execution of obligations Other financing projects` schemes ESCO Delivery by installments Customers Regional and municipal sector Energy service project implementation Customers Financing Cooperation with banks, private investors And with other financing sources

8. FSO REA Energy performance contract Contracts FESCO At Customer`s disposal SAVINGSAVING Budgetary funds on payment of public utilities and repair Compensate public utilities and repair Realize programs on energy saving Return FESCO`s inputs and transfer profit to financing programs of energy saving Return the credit and pay percent on the credit An agreement on joint activity Financing FESCO energy efficiency projects in state-financed sector based on principles of recoverability, reinvestment and sufficiency State-financed sector

9. Finance, methodic and informational support of creation and development of regional ESCOs, attraction of investments in energy saving Organization rendering of complex energy services in federal budgetary sphere Elaboration of draft normative legal acts (orders) and acts of technical regulation in the field of energy efficiency Implementation R & D engineering works for development of national technical and technological base Organization the international cooperation in scientifically-methodical, information and technological sphere FESCO`s main goals:

10. Goals of Federal Energy Service Company (FESCO) creation in Russian Federation Conditions development for dynamic development of energy service market and creation of energy service companies in RF constituent entities and municipal districts Ensuring rational use of energy resources in state-financed sector based on execution of energy service agreements (contracts) Support of energy saving development in RF industry, support of Russian energy saving equipment development

11. Services, provided by FESCO: Programs and complex projects aimed at increasing the energy efficiency and energy saving Energy audit services Development and implementation of programs and complex projects aimed at increasing the energy efficiency of state-financed organizations including facilities upgrade in accordance with audit results; system creation for monitoring the energy resources effective use, find out the source of losses and irrational use basing on energy audit of state-financed organizations (heat supply, power supply and water disposal) and results analysis; Services provision on energy consumption accounting, meters installation and energy consumption system; Equipment and materials purchase program development, supply services for existing projects; Services provision, organization and performance of works on decreasing the direct losses and (or) irrational energy use including buildings and rooms winterization, controllers installation, shift to dynamic schedule of heating, self-contained power supply systems installation and other works resulting in the energy saving effect providing needed comfort level for consumers; Implementation of energy management in state-financed organizations. Research and informational project administration Creation of sole data model and registry of products and services as well as sole information space for all participants of power supply program; Market analysis of suppliers and manufacturers of energy saving equipment, informational support of import substitution program; Informational services provision for participants of power supply program (research institutes, manufacturers, suppliers, state organizations, public organizations, etc) based on actual data provision; Concept and procedures development for biddings on E-commerce venues on the principle of paperless document flow.

12. Outdoor and indoor lighting upgrade, including control systems installation Automated control systems installation for heat energy consumptio9n control (heat controllers) Central heat supply stations upgrade, single heat supply stations installation, heat pumps implementation Frequency-regulated drives installation on electric motors of pumping and other equipment Reconstruction and upgrade of boiler equipment, including the one based on alternative fuels use Buildings and facilities technical equipment upgrade Priority pilot energy-service projects

13. Conclusion FESCO activity allows creating the implementation mechanism for the program of energy effectiveness and energy saving increase in economics, first of all in state-financed sector by means of:  Investments attraction in energy effectiveness and energy saving development;  Companies encouragement for energy saving programs implementation;  Demand development and additional working places creation in said services sector;  Creation of energy-services market;  Decreasing budget expenses by decreasing the demand for power consumption;  Increasing the technical and technological level of energy systems on Companies’ level, development of Research and Advanced Development and R&D;  Distribution of best world and Russian practice. The scope of FESCO energy services against general market potential should be: at stage I – 5% (Short-term development program), at stage II – 25% (Mid-range development program).