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The potential for Energy Savings in
          Public Buildings1

1. 9% of total Russian energy consumption.



1. 49% - potential reduction of energy consumption.
2. $ 3,5 – 5 bn. of annual economy on energy bills.



                      1 Source: “Energy Efficiency in Russia: hidden
                      reserve” The World Bank Group

                  WWW.THELIGHTHOUSEGROUP.RU                            2
The Project:                                     Goals:
                                          1.   Contribute to the overall
                                               objective of 40% energy
                                               saving in the Russian
                                               Federation by 2020.
                                          2.   Implement a showcase of
                                               successful energy efficiency
                                               measures in a public building.
                                          3.   Gain concrete experience in EE
                                               in public buildings under
Location: Municipal school in                  Russian circumstances.
Mokshino, Konakovo District,
                                          4.   To transfer expertise about
Tver region
Year of construction: 1964
                                               energy efficiency audits and
                                               measures in public buildings to
Surface area: 5067m2
                                               Russian professionals.
Goal: Energy reduction of at least 40-
60%                                       5.   To disseminate project results.
                            WWW.THELIGHTHOUSEGROUP.RU                            3
Objectives
1.   Audits in five pilot public buildings.
2.   Establishing baseline and final situation in one pilot building.
3.   Concrete energy saving measures in one pilot building.
4.   Transfer of knowledge and training program.

Project funded by:
     The Dutch Ministry of Housing, Spatial Planning and the Environment ,
     the Administration of the Konakovo District (Tver) and Lighthouse.
Project supported by:
     The Ministry of Economic Development, The Governor of the Tver
     Oblast, The Presidential Commission on Modernization of the Economy
     and Technology.


                           WWW.THELIGHTHOUSEGROUP.RU                         4
Ventilation       DHW & Heating               Insulation




Building envelope         Lighting              Electrical system
                    WWW.THELIGHTHOUSEGROUP.RU                       5
Measurements
Meters for heating, warm and cold water were
installed. Electricity meters were already present.




 Meter for heating                        Meter for hot water

Readings before and after the implementation of the
energy saving measures will allow to calculate the
achieved energy savings.

                     WWW.THELIGHTHOUSEGROUP.RU                  6
Ventilation          DHW&Heating                  Insulation




Building envelope            Lighting           Electric system
                    WWW.THELIGHTHOUSEGROUP.RU                     7
Comfort level
                    Heat recovery
ENERGY SAVINGS




                                                                          CONSUMPTION & COST
                                                                          INCREASE IN ENERGY
                   Building envelope
                                                          Ventilation
                 (insulation, windows)


                   IHS & Automatic                            Pumps
                 control space heating



                        DHW                                   Boilers



                       Lighting                    Acceptable lux level


                                  WWW.THELIGHTHOUSEGROUP.RU                                    8
Barriers to EE

There are barriers throughout the entire project cycle:
1. Project initiation.
2. Project design.
3. Project implementation.
4. Project replication.
5. Low stakeholder interest/involvement.




                         WWW.THELIGHTHOUSEGROUP.RU        9
Project initiation
1. Finance:
   1. Lack of governmental funding.
   2. Few private banks interested in EE projects.

 Most EE projects in Russia are funded by IFIs and foreign
  governments.


2. Long payback times.

3. Difficult to find committed project partners.



                       WWW.THELIGHTHOUSEGROUP.RU              10
Project design
1. Lack of reliable information:
   1.   Energy consumption (e.g. lack of meters).
   2.   Tariffs and relation between consumption and Payments (e.g.
        cross-subsidization).




2. Difficult to establish baseline energy consumption and costs.




3. Difficult to build a convincing business case for the project.



                          WWW.THELIGHTHOUSEGROUP.RU                   11
Project implementation
1. It is very hard to find engineers, projectors, builders and
   suppliers that really understand EE.


2. Foreign technical experts are often involved in the project
   implementation due to a lack of local knowledge on EE 
   difficulties may arise in the cooperation between these
   experts and the local project counterparts.


2. Local counterparts (e.g. building users) often do not fully
   understand EE, yet play a key role in ensuring a successful
   project implementation (e.g. daily tracking of meter readings).



                        WWW.THELIGHTHOUSEGROUP.RU                    12
Project replication
1. Many EE projects are implemented through subsidies /
   grants
              Such projects are rarely replicated through private/
             public funding.


2. The success of an EE project depends to a large extent on
   creating a competent and committed team of technical
   experts, stakeholders and contractors.


3. The local situation varies from location to location making
   project replication difficult.


                       WWW.THELIGHTHOUSEGROUP.RU                     13
Stakeholder interest
1. Stakeholder interest in public buildings:
   1) Public officials change regularly.
   2) Procurement needs to be done in accordance with federal
      legislation (i.e. the lowest bidder wins).
   3) Commitment of funds from the state budget is limited to a small
      number of years.
2. Stakeholder interest in residential buildings:
   1) All the tenants need to agree with the investments made.
   2) Ownership issues arise once the investor installs the equipment in
      the building.




                         WWW.THELIGHTHOUSEGROUP.RU                      14
Recommendations
1. Energy efficiency projects require an integrated approach.
2. Consider the entire energy value chain in project selection & design.
3. Consider the primary savings factor and the comfort level in your project
   selection & design.
4. Commitment and involvement of stakeholders is key.
5. Create a competent project team of experienced engineers, projectors, builders,
   suppliers, authorities, building users who really understand EE.
6. Establish baseline in order to evaluate the effectiveness of the project.
7. Think through the entire project cycle and install proper project cycle
   management.
8. Think of EE as a long term investment. Payback may range from 3 to 20 years
   (average 12 years).
9. Operation of the building is key factor → Include post-project training in your
   project:
    a. Correct operation of equipment;
    b. Proper operation of automatic control systems;
    c. Proper adjustment of space heating controllers;
10. Avoid "The Emperor's New Clothes“.

                             WWW.THELIGHTHOUSEGROUP.RU                           15
Conclusion
1. Many challenges lie still ahead of us and we can
   only face these challenges if each of us, living
   and working in Russia, reflects on our personal
   responsibility for energy saving, as it is
   becoming the norm all over the world.

2. In the meanwhile, money can already be made
   in Russia for those with the right understanding
   of the market, of the peculiarities of the Russian
   business environment and with a healthy
   appetite for adventure.


                   WWW.THELIGHTHOUSEGROUP.RU            16
Over the years, Lighthouse has build up a unique and strong track record in Energy
Efficiency (EE) projects in Russia. These projects range from developing EE strategies
and financing schemes to the actual implementation of EE measures and setting up of
ESCO companies. Such projects often require the implementation of Western know-
how and technology in the field of EE. However, the specific situation in Russia with
regards to the EE needs to be accounted for in order to ensure the successful
implementation of this know-how and technology. Lighthouse uses its extensive
practical experience in EE projects in Russia to bridge the gap between the Western
know-how and technology on the one side and the Russian reality on the other side.
See also: http://www.thelighthousegroup.ru/gb/lighthouse_energy

For further information you can contact us by using the coordinates below.
      Contact LIGHTHOUSE
                 Director                     Jeroen Ketting      jeroen@thelighthousegroup.ru

                 Client Relations and
                                              Birgit von Oehsen   birgit@thelighthousegroup.ru
                 Information
                 Finance & administration     Elena Kabko         elena@thelighthousegroup.ru
      Tel.:      +7 (495) 980 09 77
      Fax:       +7 (495) 502 92 86
      Website:   www.thelighthousegroup.ru
      Address:   Mytnaya Ulitsa 3, office 41, Moscow, Russia, 119049
                                        WWW.THELIGHTHOUSEGROUP.RU                                17

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28 06 11_ee_seminar__jeroen_ketting_lighthouse

  • 1.
  • 2. The potential for Energy Savings in Public Buildings1 1. 9% of total Russian energy consumption. 1. 49% - potential reduction of energy consumption. 2. $ 3,5 – 5 bn. of annual economy on energy bills. 1 Source: “Energy Efficiency in Russia: hidden reserve” The World Bank Group WWW.THELIGHTHOUSEGROUP.RU 2
  • 3. The Project: Goals: 1. Contribute to the overall objective of 40% energy saving in the Russian Federation by 2020. 2. Implement a showcase of successful energy efficiency measures in a public building. 3. Gain concrete experience in EE in public buildings under Location: Municipal school in Russian circumstances. Mokshino, Konakovo District, 4. To transfer expertise about Tver region Year of construction: 1964 energy efficiency audits and measures in public buildings to Surface area: 5067m2 Russian professionals. Goal: Energy reduction of at least 40- 60% 5. To disseminate project results. WWW.THELIGHTHOUSEGROUP.RU 3
  • 4. Objectives 1. Audits in five pilot public buildings. 2. Establishing baseline and final situation in one pilot building. 3. Concrete energy saving measures in one pilot building. 4. Transfer of knowledge and training program. Project funded by: The Dutch Ministry of Housing, Spatial Planning and the Environment , the Administration of the Konakovo District (Tver) and Lighthouse. Project supported by: The Ministry of Economic Development, The Governor of the Tver Oblast, The Presidential Commission on Modernization of the Economy and Technology. WWW.THELIGHTHOUSEGROUP.RU 4
  • 5. Ventilation DHW & Heating Insulation Building envelope Lighting Electrical system WWW.THELIGHTHOUSEGROUP.RU 5
  • 6. Measurements Meters for heating, warm and cold water were installed. Electricity meters were already present. Meter for heating Meter for hot water Readings before and after the implementation of the energy saving measures will allow to calculate the achieved energy savings. WWW.THELIGHTHOUSEGROUP.RU 6
  • 7. Ventilation DHW&Heating Insulation Building envelope Lighting Electric system WWW.THELIGHTHOUSEGROUP.RU 7
  • 8. Comfort level Heat recovery ENERGY SAVINGS CONSUMPTION & COST INCREASE IN ENERGY Building envelope Ventilation (insulation, windows) IHS & Automatic Pumps control space heating DHW Boilers Lighting Acceptable lux level WWW.THELIGHTHOUSEGROUP.RU 8
  • 9. Barriers to EE There are barriers throughout the entire project cycle: 1. Project initiation. 2. Project design. 3. Project implementation. 4. Project replication. 5. Low stakeholder interest/involvement. WWW.THELIGHTHOUSEGROUP.RU 9
  • 10. Project initiation 1. Finance: 1. Lack of governmental funding. 2. Few private banks interested in EE projects.  Most EE projects in Russia are funded by IFIs and foreign governments. 2. Long payback times. 3. Difficult to find committed project partners. WWW.THELIGHTHOUSEGROUP.RU 10
  • 11. Project design 1. Lack of reliable information: 1. Energy consumption (e.g. lack of meters). 2. Tariffs and relation between consumption and Payments (e.g. cross-subsidization). 2. Difficult to establish baseline energy consumption and costs. 3. Difficult to build a convincing business case for the project. WWW.THELIGHTHOUSEGROUP.RU 11
  • 12. Project implementation 1. It is very hard to find engineers, projectors, builders and suppliers that really understand EE. 2. Foreign technical experts are often involved in the project implementation due to a lack of local knowledge on EE  difficulties may arise in the cooperation between these experts and the local project counterparts. 2. Local counterparts (e.g. building users) often do not fully understand EE, yet play a key role in ensuring a successful project implementation (e.g. daily tracking of meter readings). WWW.THELIGHTHOUSEGROUP.RU 12
  • 13. Project replication 1. Many EE projects are implemented through subsidies / grants Such projects are rarely replicated through private/ public funding. 2. The success of an EE project depends to a large extent on creating a competent and committed team of technical experts, stakeholders and contractors. 3. The local situation varies from location to location making project replication difficult. WWW.THELIGHTHOUSEGROUP.RU 13
  • 14. Stakeholder interest 1. Stakeholder interest in public buildings: 1) Public officials change regularly. 2) Procurement needs to be done in accordance with federal legislation (i.e. the lowest bidder wins). 3) Commitment of funds from the state budget is limited to a small number of years. 2. Stakeholder interest in residential buildings: 1) All the tenants need to agree with the investments made. 2) Ownership issues arise once the investor installs the equipment in the building. WWW.THELIGHTHOUSEGROUP.RU 14
  • 15. Recommendations 1. Energy efficiency projects require an integrated approach. 2. Consider the entire energy value chain in project selection & design. 3. Consider the primary savings factor and the comfort level in your project selection & design. 4. Commitment and involvement of stakeholders is key. 5. Create a competent project team of experienced engineers, projectors, builders, suppliers, authorities, building users who really understand EE. 6. Establish baseline in order to evaluate the effectiveness of the project. 7. Think through the entire project cycle and install proper project cycle management. 8. Think of EE as a long term investment. Payback may range from 3 to 20 years (average 12 years). 9. Operation of the building is key factor → Include post-project training in your project: a. Correct operation of equipment; b. Proper operation of automatic control systems; c. Proper adjustment of space heating controllers; 10. Avoid "The Emperor's New Clothes“. WWW.THELIGHTHOUSEGROUP.RU 15
  • 16. Conclusion 1. Many challenges lie still ahead of us and we can only face these challenges if each of us, living and working in Russia, reflects on our personal responsibility for energy saving, as it is becoming the norm all over the world. 2. In the meanwhile, money can already be made in Russia for those with the right understanding of the market, of the peculiarities of the Russian business environment and with a healthy appetite for adventure. WWW.THELIGHTHOUSEGROUP.RU 16
  • 17. Over the years, Lighthouse has build up a unique and strong track record in Energy Efficiency (EE) projects in Russia. These projects range from developing EE strategies and financing schemes to the actual implementation of EE measures and setting up of ESCO companies. Such projects often require the implementation of Western know- how and technology in the field of EE. However, the specific situation in Russia with regards to the EE needs to be accounted for in order to ensure the successful implementation of this know-how and technology. Lighthouse uses its extensive practical experience in EE projects in Russia to bridge the gap between the Western know-how and technology on the one side and the Russian reality on the other side. See also: http://www.thelighthousegroup.ru/gb/lighthouse_energy For further information you can contact us by using the coordinates below. Contact LIGHTHOUSE Director Jeroen Ketting jeroen@thelighthousegroup.ru Client Relations and Birgit von Oehsen birgit@thelighthousegroup.ru Information Finance & administration Elena Kabko elena@thelighthousegroup.ru Tel.: +7 (495) 980 09 77 Fax: +7 (495) 502 92 86 Website: www.thelighthousegroup.ru Address: Mytnaya Ulitsa 3, office 41, Moscow, Russia, 119049 WWW.THELIGHTHOUSEGROUP.RU 17