There has been much in the press lately about Russia’s need and interest in becoming more energy-efficient. The United Nations Development Program (UNDP) just published a report on the “Energy Sector and Sustainable Development.” It is comprehensive report (all 170 pages), which lays out the human and economic impacts if Russia continues as an energy “inefficient” country.
The risk of ‘Dutch Disease’ will worsen by 2020 and predicts that “Russian oil and gas will run out in 21.9 years and 9.4 years, respectively”. The report states that Russia should turn its focus on innovation in the energy sector.
There are many obstacles to face, including legislative, as outlined in Forbes, as well as, “lack of motivation, lack of information, lack of funding and long-term investments as well as lack of organization and coordination” according to the report.
In spite of these obstacles, Russia’s regions have been pioneers, the UNDP reports. Laws have been enacted in 43 regions, many have energy-saving programs, and 75 regions have established funds and agencies to work on energy efficiency. In the top ten regions that are considered most energy-efficient, two regions, the Amur Region and Chukotka, are number 5 and 8 respectively, with the Sakhalin Region coming in at number 17.
This report urges the Russian government to put a real emphasis on energy efficiency on all levels of government. President Medvedev has listed energy efficiency as a key area for modernization in a recent speech to the DUMA. However, at the moment, it is the responsibility of the Ministry of Economic Development and it is not surprising that energy efficiency has appeared on the list of top priorities for the Business Development and Economic Relations Working Group under the Presidential Bilateral Commission.
Although some see the obvious need for European expertise and technologies, as well as direct investment in energy efficiency projects, the United States, and, in particular, the Pacific Northwest could play an important role. The Pacific Northwest is increasingly seen as a leader in energy efficiency in both expertise and technologies. Perhaps a partnership between the Russian Far East regions and the Northwest will give a boost to Russia’s move to energy efficiency while, at the same time, creating jobs and other joint opportunities for both country’s businesses. It is worth exploring.
