Increasing Energy Efficiency for Secure Energy Supplies
Countries: UNECE member states, with a particular emphasis on oil and gas
producing, transporting and consuming countries
Duration: 36 Months
National Implementing Agencies: Ministries, companies, organizations and institutions from energy, industry and financial sectors of the participating countries
Executing Agency: United Nations Economic Commission for Europe
Budget available: $150,000
Starting Date: September 2008
Objective: The goal of the project is to promote the development of energy efficiency investments projects designed to reduce the domestic consumption of hydrocarbons in the Russian Federation, Kazakhstan and other Central Asia energy exporters in order to release additional energy resources which could be used for either for domestic consumption or to increase oil and natural gas exports, which will enhance security of supply.
Brief Description: By improving their energy efficiency, the Russian Federation and Central Asian countries could reduce domestic energy consumption that would release energy resources which could enhance security of supply. At the same time, efficiency improvements could help raise industrial productivity, diminish fuel dependence and reduce environment air pollution as well as greenhouse gas emissions.
During the last fifteen years the UNECE Energy Efficiency 21 project has demonstrated that it is possible to identify, develop and finance energy efficiency investment projects in the Russian Federation, Eastern European and CIS countries. It has shown that cost-effective energy efficiency investments are the only self-financing method of reducing greenhouse gas emissions in the region. These projects could be made doubly attractive if energy efficiency investments were financed through foreign currency earnings derived from increased energy exports. In addition, many Russian and Central Asian experts know the technical solutions needed to improve energy efficiency in their municipalities, power stations or factories but they do not know how to formulate investment projects that meet bank rules, standards and criteria. Some governments in the region have not implemented the energy policy, regulatory and institutional reforms needed to improve energy efficiency.
Expected Accomplishments
(a) Increased skills for local experts to identify, develop and finance investment project proposals for financing to the Eastern European Energy Efficiency Investment Fund and other sources of equity or project finance;
(b) Improved capacity to analyse and finance investments from the revenues of increased hydrocarbon exports derived from efficiency improvements.
Main Activities
(a) Establish a network of government and industrial experts from energy importing countries and exporting countries for identifying and developing energy efficiency improvements in the production, transportation and use of natural gas and petroleum
(b) Develop the technical criteria, information requirements and standard format for the identification and selection of energy efficiency investment project proposals
(c) Review and evaluate the investment climate, energy policy and local agreements (property ownership, off-take agreements) needed to finance investment projects as loans and through equity financing
(d) Develop new mechanisms (guarantees, contractual agreements) to finance efficiency improvements from the greater availabilities of natural gas and petroleum for use in domestic and export markets.
Budget: The project budget for the whole implementation cycle 2008-2010 is $150,000. Cofinancing for the project will be explored with the supporting institutions of government departments, international organizations and public and private sector companies currently financing UNECE projects on energy security and energy efficiency. Support from "in-kind" contributions is expected from related UNECE intergovernmental bodies notably the Committee on Sustainable Energy intergovernmental expert dialogue on energy security, the Energy Efficiency 21 Project and the Working Party on Gas. The UNECE will provide an "in-kind" contribution of project counterparts in staff time, documents preparation and distribution, publications and conference services.
