russia energy efficiency report - abb group · 1 russia | country reports | trends in global energy...

1 Russia | Country reports | Trends in global energy efficiency 2011

RussiaEnergy efficiency report

Objectives:

– 56% reduction in energy intensity by 2030

Overview 2009 2000-2009 (% / year)

Primary intensity (EU=100)1 261 -- -4.8% ++CO2 intensity (EU=100) 280 -- -5.3% ++CO2 emissions per capita (in tCO2 / cap) 10.0 -- -0.2% -Power generation 2009 2000-2009 (% / year)Efficiency of thermal power plants (in %) 26 -- 1.0% +Rate of electricity T&D losses (in %) 11 -- -1.2% -CO2 emissions per kWh generated (in gCO2 / kWh) 341 - -0.1% -Industry 2009* 2000-2009* (% / year)Energy intensity (EU=100) 268 -- -4.5% ++Share of industrial CHP in industry consumption (in %) 13 - -1.0% --Unit consumption of steel (in toe / t) 0.70 -- 0.3% -*2008 and 2000-2008 for steel

Among best countriesBetter than the EU averageBelow the EU average Among countries with lowest performances

1 The European Union, as the best-performing region, is used as the benchmark.

Latest update: February 2011

Trends in global energy efficiency 2011 | Country reports | Russia 2

1. Overview1.1. Policies: 56% reduction in energy intensity by 2030Energy efficiency is a priority in the Energy Strategy of Russia for the period up to 2030, defined in 2009. The Energy Strat-egy sets a 56 percent energy intensity reduction target for 2030 (compared with 2005). To reach that goal Russia plans to create a favorable economic environment, including the pro-gressive liberalization of energy prices on the domestic market to promote more rational energy use, and the establishment of a market for energy services. New standards, tax incentives and penalties, as well as energy audits will have to be adopted. The Energy Strategy also aims to increase the energy efficiency of buildings by 50 percent between 2005 and 2030 (+10 per-cent between 2005 and 2015). It will implement new manda-tory construction standards.

A Federal Law on Energy Conservation and Increase of Energy Efficiency was adopted in November 2009 to create the legal and economic framework for the promotion of energy efficien-cy. It mainly focuses on the efficiency of buildings and intro-duces the installation of compulsory meters, the establishment of a federal energy efficiency information network and energy efficiency certificates (“energy passports”).

1.2. Energy consumption trends: slow growth since 1998 Energy consumption per capita in Russia is twice as high as the world average, at about 4.4 toe / cap (2009). Total energy consumption (primary consumption) grew slightly between 1995 and 2008 (+0.6 percent / year) but fell by 10 percent in 2009 as a consequence of the global economic crisis.

Source: Enerdata

50

150

250

350

450

550

650

750

1995 2000 2005 2009

Mto

e

Primary consumption

Final consumption

Figure 1: Total and final energy consumption trends

Russia’s primary consumption is dominated by gas and oil, which account for 53 percent and 21 percent, respectively. The share of coal decreased slightly, from 21 percent in 1995 to 16 percent in 2009. Nuclear power covers 7 percent of primary

consumption, followed by hydroelectricity (2 percent) and biomass (1 percent).

Industry is the largest end user with 45 percent of final energy consumption (2009). Its share has remained relatively stable since 1995. The households, services and agriculture sector’s share dropped slightly over the 1995-2009 period, from 44 percent to 40 percent (decreasing consumption), to the benefit of transport (15 percent, compared with 10 percent in 1995).

Source: Enerdata

0%

20%

40%

60%

80%

100%

1995 2000 2005 2009

Households - Services -Agriculture

Transport

Industry (including non energy uses)

Figure 2: Distribution of final energy consumption by sector

Electricity consumption per capita is twice as high as the world average, at around 5,700 kWh / cap (close to the EU average). After a decline between 1995 and 1998, electricity consump-tion grew at the steady pace of 2.6 percent / year until 2008. In 2009 it fell by 4.3 percent. Over 60 percent of electricity is consumed in industry.

Source: Enerdata

0

100

200

300

400

500

600

700

800

900

TWh

1995 2000 2005 2009

Industry Others

Figure 3: Electricity consumption trends by sector



1.3. Energy efficiency and CO2 trends: statistical improve-ment rather than efficiency gainsBetween 1995 and 2009 the very strong growth in Russian GDP, triggered by high energy prices, led to significant decreases in energy intensity and CO2 intensities.

Total energy consumption per unit of GDP (primary energy intensity) decreased by 3.9 percent / year over the 1995-2009 period. Meanwhile, final energy intensity (final consumption per unit of GDP) fell by 4.8 percent / year, in line with the decrease in industrial energy intensity (-5.3 percent / year).

CO2 intensity (CO2 emissions per unit of GDP) fell at the signifi-cant pace of 4.3 percent / year between 1995 and 2009. About 90 percent of that reduction is attributable to the drop in ener-gy intensity and 10 percent to fuel substitutions (mainly the reduced share of coal in primary consumption, which fell from 21 percent in 1995 to 9 percent in 2009, and the 3 percent increase in the share of nuclear and hydroelectricity).

Source: Enerdata

-7.0%

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1995-2009 2000-2009

%/y

ear

Primary energy intensity

Final energy intensity

CO2 intensity

Figure 4: Energy and CO2 intensity trends

2. Power generation2.1. Policies: 38% share of CO2-free power generation by 2030The Energy Strategy of Russia for the period up to 2030 (2009) aims to reduce the share of gas in the thermal mix to 60-62 percent by 2030 (over 70 percent in 2008), to the benefit of coal (from 26 percent in 2008 to 34-36 percent in 2030), and to increase the share of CO2-free generation to at least 38 per-cent by 2030. Nuclear generation is expected to increase to 20 percent of total power generation by 2030, while power gen-eration from renewable sources (including hydropower) should account for 18-19 percent. Excluding large hydropower plants (over 25 MW), renewables should account for 4.5 percent of electricity production. The Energy Strategy plans to create the institutional basis for renewable energy use in the energy

sector, including a tax system that encourages renewable power plants and a system of guaranteed access to electricity networks. Russia is considering introducing public-private partnerships to accelerate the diffusion of advanced renewable technologies.

Russia also aims to modernize its energy infrastructure. Under the Energy Strategy, by 2030 the generation efficiency rate should be increased to at least 41 percent in coal-fired power plants, 53 percent in gas-fired power plants and 36 percent in nuclear power plants. It also aims to reduce the carbon factor (CO2 emissions per kWh produced) in thermal power plants from about 340 gCO2 / kWh to 270 gCO2 / kWh and to cut grid losses to 8 percent by 2030.

2.2. Power generation trends by source: growing share of gasGas accounts for 49 percent of the electricity mix (41 percent in 1995). The shares of coal and oil decreased from 19 percent and 8 percent in 1995 to 15 percent and 2 percent, respec-tively, in 2009. Over time, CO2-free generation has grown from 32 percent to 35 percent; that growth was achieved thanks to nuclear power generation (which rose from 12 percent to 17 percent), since the share of hydroelectricity decreased slightly, from 21 percent to 18 percent.

Source: Enerdata

0

200

400

600

800

1000

1200

1995 2000 2009

TWh

Other*

Wind

Hydro

Nuclear

Gas

Oil

Coal-Lignite

*Including biomass, geothermal and solar

Figure 5: Power generation by source

2.3. Efficiency of power sector: low efficiency rateRussia’s average power generation efficiency rate is kept low by the high share of low-efficiency power plants: in 2009 oil-fired, coal-fired and nuclear power accounted for 33 per-cent of the power generation (38 percent in 1995). Neverthe-less, the generation efficiency rate rose over the years, from 29 percent to 32 percent. That improvement was triggered by thermal power plants, which saw their average efficiency increase from 23 percent to 26 percent, which remains 24


percent below the world average. The share of gas combined-cycle plants in the total capacity is insignificant.

Source: Enerdata

10

15

20

25

30

35

%

1995 2000 2005 2009

Total power generation

Thermal power plants

Figure 6: Efficiency of power generation and thermal power plants

Source: Enerdata

135

140

145

150

155

160

165

170

GW

Steam

1995 2000 2005 2009

Figure 7: Thermal electricity capacity, by technology

The rate of T&D losses is 30 percent higher than the world average, at 11 percent.

Source: Enerdata

3

5

7

9

11

13

15

%

1995 2000 2005 2009

Figure 8: Electric T&D losses

The carbon factor (CO2 emissions per kWh generated) is below the world average, at 340 gCO2 / kWh (close to the EU average).

Source: Enerdata

200

250

300

350

400

450

500

gCO

2 /

kWh

1995 2000 2005 2009

Figure 9: CO2 emission factor for power generation



3. Industry3.1. Policies: Energy audits and energy passportsRussia has developed sectoral energy efficiency programs (especially in the energy-intensive industries like steel, cement, paper or aluminum), such as the Federal Targeted Program for an Energy Efficient Economy (2002-2010) that promoted high-efficiency technologies in those sectors.

The Federal Law on Energy Conservation and Increase of Energy Efficiency (November 2009) includes energy audits and energy efficiency state standards for industrial consumers. Large consumers (with an energy expenditure exceeding 10 million rubles / year (US$0.330 million / year) are submitted to mandatory energy audits. The law also introduces incentives and tax benefits for heavy industry to replace inefficient equip-ment by energy-efficient machinery.

3.2. Energy consumption trends: stagnating consumption since 1998After a 25 percent fall between 1995 and 1998, energy con-sumption in Russia’s industry remained roughly stable between 1999 and 2008. In 2009 it dropped by 7 percent as a conse-quence of the global economic crisis.

Source: Enerdata

60

80

100

120

140

160

180

Mto

e

1995 2000 2005 2009

Figure 10: Industrial energy consumption

District heating covers one-third of industrial energy consump-tion. Nevertheless, it has fallen since 1995, when it stood at 48 percent, to the benefit of electricity (from 16 percent in 1995 to 23 percent in 2009), gas (20 percent compared with 15 per-cent in 1995) and oil (9 percent). The share of coal remained relatively stable, at 14 percent.

Energy-intensive industries are gaining importance, which shows the opposite trend compared with most countries: their share increased from 58 percent to 67 percent between 1995 and 2008. Steel is the largest consuming sector (32 percent in

2008, from 28 percent in 1995). The share of the chemical branch remained relatively stable (18 percent in 2008), while that of the non-metallic minerals industry increased over the period, from 6 percent to 11 percent. The paper branch accounts for 5 percent of industrial energy consumption.

Source: Enerdata

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1995 2000 2005 2009

Heat

Electricity

Biomass

Gas

Oil

Coal/Lignite

Figure 11: Energy consumption of industry, by source

Source: Enerdata

Other

Paper

Non metallic minerals

Chemical

Steel

1995 2000 2005 2008

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Figure 12: Energy consumption of industry, by branch

3.3. Energy intensity trends: limited energy efficiency gainsBetween 1995 and 2008 energy intensity in Russia’s industry decreased rapidly, by 5.3 percent / year. However, efficiency gains in the energy-intensive branches were limited: the unit consumption of steel (total energy consumption per ton of steel produced) decreased by 2.5 percent / year while that of the chemicals branch dropped by 1 percent / year. The unit con-sumption of the non-metallic minerals industry even grew by 2.8 percent / year, while that of the paper sector –although relatively marginal in industrial energy consumption– increased by 26 percent / year.


Source: Enerdata

-6%

0%

6%

12%

18%

24%

30%

Total*

Steel

Chemical

Cement**

Paper%/y

ear

1995-2008 2000-2008

*Including construction and mining

**Non metallic minerals

Figure 13: Trends in the energy intensity of industrial branches

The share of electricity produced by CHP facilities in industrial electricity consumption has been decreasing slowly since 1996. At 13 percent in 2009, it is twice as high as the world average.

Source: Enerdata

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1995 20052000 2009

Figure 14: Share of industrial CHP in industrial consumption

Copyright notices

“Trends in global energy efficiency 2011” is based on data and information pro-vided by Enerdata and the Economist Intelligence Unit. The data and informa-tion is published with the consent of Enerdata and the Economist Intelligence Unit.

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