1. 10th Annual Aleksanteri Conference
How Russian May Become Less Energy Dependent: Key Points of Russian Energy Strategy up to 2030
A.I. Gromov
Deputy General Director
Institute for Energy Strategy
Moscow, Russia
10th Annual Aleksanteri Conference
Helsinki
29 October, 2010

2. Energy intensity of GDP (by PPP) in Russia
IES
Energy intensity of GDP (by PPP) in Russia
Results of policy in energy efficiency:
Decrease in energy intensity
of Russian economy
by 34%
Reasons of decrease in energy intensity between 2000 and 2008:
Structural transformation of Russian economy (rapid growth of services)
Growth of world prices for energy resources

3. Energy intensity of GDP (by PPP) in the world
IES
Energy intensity of GDP (by PPP) in the world
Reasons of high energy intensity of Russian economy
Severe climatic conditions
Specific allocation of population and industry; necessity for extensive transport communications
t o.e./ 1000 USD
Prevalence of “heavy” energy-intensive industries in national economy
Technological backwardness of some industries
Underestimated price of energy resources in home market, which doesn’t stimulate energy saving

4. Barriers for energy saving and energy efficiency in Russia
IES
Barriers for energy saving and energy efficiency in Russia
Lack of motivation
Budget constraints
Comparatively low energy tariffs
Cross-subsidizing
Shortage of controlling tools in
energy consumption 1
Lack of information
Weak informational support of
measures in energy saving and
energy efficiency
Stereotyped energy-wasteful behavior 2
Lack of experience in
financing projects in
energy saving and
energy efficiency
Exacting requirements for projects in
energy saving and energy efficiency
from investment banks 3
Increase in energy efficiency is not
perceived as a cure for a wide range
of economic and social problems
Lack of organizational
and coordinating skills 4

5. Potential for energy saving in Russia
IES
Consumption of energy resources can be reduced by:
20% in heat supply
30% in electroenergetics
40% in transportation and
industry
50% in living apartments
45% of the current consumption
Strategic targets in energy saving and energy efficiency in Russia
President D.A. Medvedev: reduction of energy intensity of Russian GDP by 45% by
the year of 2020 (compared with the level of 2007)
Energy Strategy 2030: reduction of energy intensity of Russian GDP by times
by the year of 2030 (compared with the level of 2007)

6. Expected Dynamics of Specific Energy Intensity of GDP and Domestic Demand for Primary Energy Resources 9

7. IES
Key directions of the Russian energy policy for energy saving and energy efficiency
Housing and communal services
Rational utilization of APG, RES
Effective use of energy resources in industry
Elimination of infrastructure, technological and legal barriers for rational use of APG (increase in APG-utilization coefficient up to 95%)
Wide-scale introduction and use of RES (5-fold increase in electricity production on the basis of RES)
Top priority of decentralized heat- and power supply systems, rational use of local RES and modern technologies and equipment in the Siberia and Far East
Wide-scale introduction of equipment controlling energy consumption
Obligatory standards for energy efficiency for new and reconstructed buildings
Modernization of heat and water supply systems
Introduction of energy saving technologies in outdoor lighting, sanitation and etc.
Provision state organizations with legal rights for allocation funds obtained from energy saving
Ban against energy-wasteful technologies
Obligatory standards for energy efficiency
Development of energy services
Modernization of statistical accounting in the sphere of energy saving and energy efficiency
Energy audit of all the enterprises on a regularly basis
Monitoring of energy saving programs
Rationalization of prices for energy resources in home market
Informational support of arrangements in energy saving and energy efficiency aimed at alteration of wasteful stereotypes of energy consumption among population

8. Investment in energy saving and energy efficiency in Russia
IES
Investment in energy saving and energy efficiency in Russia
Total investment volume: 320 billion USD*
Effect for:
End users
National economy
Saving of 80* billion USD
Payback – 4 years
Saving of * billion USD
Payback – 2-3 years
The cost of energy saving and improvement of
energy efficiency in Russia is
3 times cheaper
than expansion of energy resources’ extraction !
* Official exchange rate, 2007

9. IES
Expected results of energy saving and increase in energy efficiency in Russia
Saving of 240 bln m3 of natural gas, 340 bln kilowatt-hour of electric power, 90 mln t of coal and 45 mln t of oil and oil products 1
Improvement in competitiveness of national economy under conditions of growing tariffs for energy resources 2
Increase in revenues from extra export of oil and natural gas:
84 – 112 bln USD 3
Decrease in governmental expanses:
3 – 5 bln USD 4
Reduction in СО2 –emissions: 790 mln t/year
(Volume of emissions in 2030 = 80% of 1990’s level)
Improvement of ecological situation in the country
Rise of national status in resolving global ecological problems 5

10. Thank you
for your
attention!