Applying the international esco concept to energy saving projects in the energy production sector in northwest Russia
DOI:
https://doi.org/10.15626/Eco-Tech.2005.006Keywords:
Energy service company; ESCO concept; Energy saving project; Energy production; Northwest RussiaAbstract
The economy of the Russian Federation and its growth rate currently depend greatly on the
country's fuel and energy industry and actual development of the business. To maintain the
energy production at least at the present level, capacity must be increased by several gigawatts
annually. This sets up an extensive need for investments. One effective solution to the
problem is the realization of energy saving investments, which have very high potential in
Russia.
The EU project FRESCO (I 0/2003-12/2005), administered by Lappeenranta University of
Technology, studies the possibilities to promote Finnish energy business in Northwest Russia.
The project examines the ESCO concept that is proposed and anticipated to be a potential
finance tool in energy saving projects in the target area. The international ESCO business
aims at finding solutions to the following problems: the lack of investments, undeveloped
technology in use, ineffective energy systems, bureaucracy and risks.
Potential and feasible ESCO project targets in energy production include a new pre-furnace
for utilization of bio fuels, a new economizer and a boiler automation upgrade. In the near
future - when markets exist - the ESCO concept could also be a finance tool in utilizing waste
in energy production. For example bio waste from sawmills has significant potential as fuel
for local boilers.
Through energy efficiency projects, greenhouse gas em1ss10ns can also be reduced. The
international climate policy brings in its own possibilities to finance energy investments and
climate projects. Russia ratified the Kyoto Protocol in February 2005 and can therefore take
part in international emissions trading in 2008 if the country observes the provisions of the
Protocol concerning emission reduction units. Alternatives for carbon finance options could
be, in addition to international emissions trading, Joint Implementation projects and GIS
projects, in which so called "hot air" is utilized.
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References
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