ESCOs and performancecontracts as tools for enhancement of energy efficiency in a budgetary sector o

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ESCOs and performance-contracts as tools
for enhancement
of energy efficiency
in a budgetary sector
of the Russian Federation

• Pavel Svistunov
• Research Centre for Budget Relations

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Deficiency of power capacities environmental
protection and growth of expenses
To restrain consumption growth
Restraint of development
Time-consuming expensive and impacts on the
environment
To accelerate power capacity and relevant
infrastructure development as much as possible
Strategy options
Alignment of energy balance for term
To intensify energy-saving
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The goal and prerequisites of energy-saving
reform in a budgetary sector
Expenditures on energy-saving It is less
faster start to work pay off faster - 1-5
years (in generation from 10 years).
Creation of new capacities
The goal of the concept Optimisation of budgetary
expenses on payment on utilities and reduction of
impacts on the environment due to increase of
efficiency of use of energy resources in a
budgetary sector of the Russian Federation.
Creation of an energy-saving system
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Priority of the energy-saving challenge in a
budgetary sector
Growth of budgetary expences because of growth
of utility tariffs
Energy-saving

• Potential for decrease in expenses on energy- and
  water supply
• in a budgetary sector in general 90-130 billion
  rubles per year (in prices of 2006)
• including in a federal budgetary sector no
  less than 30 billion rubles per year

Growing deficiency of energy-capacities and
energy-resources

• Potential for energy-saving in a budgetary
  sector
• - 10 billion of kw-h.
• - 14 million tons of equivalent fuel
• including 7 billion sq. m of natural gas

Environment protection
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The concept of energy efficiency enhancement
in a budgetary sector of the
Russian Federation
Providing actions - Profile training of civil
servants Distribution of the best practices
Elaboration of monitoring system
Creation of an energy efficiency enhancement
system in a budgetary sector
Attraction of private investments (for energy
efficiency increase at public establishments on
the basis of public-private partnership contracts
with ESCO)
Creation of incentives (towards energy
efficiency enhancement at public and municipal
establishments)
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Tools for attraction of investments into Concepts
Public-private partnership contracts
The state (municipal) contract on
energy-saving
State (municipal) energy-service contract

• Economic sense
• ESCO invests in energy-saving (acquisition and
  installation of equipment repair of buildings)
• 2. The savings on municipal payments are shared
  between ESCO and the establishment

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Contracts
Contract on energy-saving
Energy-service contract
Budgetary funds on payment of utilities and repair
ESCO Investments in energy-saving
Budgetary funds on payment of utilities and repair
ESCO Investments in energy-saving
Provision of comfort services
Payment of utilities and repair
Savings
At the disposal of the establishment
Reduction of future budget expenses
At the disposal of the establishment
Savings
Compensation of expenses and profit of the
investor
Payment of utilities and repair
Reduction of future budget expenses
Compensation of expenses and profit of the
investor
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1. Creation of a possibility to conclude
contracts tracts on energy efficiency enhancement

Elaboration of regulatory and methodical
maintenance
Elaboration of standard form contracts on
energy efficiency enhancement
Possibility for conclusion of long-term
contracts
To vest the right of financing of contracts at
the expense of the means allocated for payment of
utilities
Changes in methods of budgeting of municipal
expenses
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2. Creation of effective incentives towards
energy-saving at establishments
Economic
Administrative

Possibility to use energy efficiency savings at
the establishments
Identification of the minimum targeted tasks on
decrease of energy use at establishments
Possibility for further financing of
energy-saving by own means
Financial incentives like bonuses to staff
Efficiency indicators
Requirements to the reporting
Creation of control mechanisms over task
implementation
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Pilot projects
Directions for testing

Requirements to energy-audit
Budgetary financing and saving distribution
issues
Development of a replicable format of the
project suitable for refinancing by ESCO at the
expense of means provided by credit organisations
Contractual base
Mechanisms of budgetary entities assessment
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The pilot project direct crediting
The project of the EBRD investments
to the to JSC Teploenergo

Bank Center-invest (share of EBRD 2458) 4
years preinvestment preparation modernisation
Participation in the capital of 133 million
rubles the long-term credit
221 million rubles
JSC Teploenergo delivers 57 of heat and 75
of hot water
FT Environmental Awards (competition in ecology
and sustainable development area) the finalist
Emissions of 2 into the atmosphere have
decreased by 40
Savings of 4 of fuel 10.5 of electric power
40 of permanent staff
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The pilot project ESCO crediting
The pilot project in Moscow ESCO - Budgetary
establishment (A coordination stage)

Objective - approbation of mechanisms and
creation of the replicable scheme of organisation
of works on energy-saving in a budgetary sector
carried out at the expense of off-budget means
EBRD Methodical and technical assistance
Energy-audit Energy-saving programme Contractua
l base Fixation scheme ESCO crediting
Budgetary establishment
Government of Moscow Possibility of carrying
out of the pilot project on a budgetary
establishment of Moscow
The replicable project of attraction of ESCO
into budgetary sector