Improving Russian Energy Efficiency

Next Steps

Author(s): Andreas Goldthau
Editor(s): Jeronim Perovic, Robert Orttung, Matthias Neumann, Heiko Pleines, Hans-Henning Schröder
Series: Russian Analytical Digest (RAD)
Issue: 46
Pages: 9-12
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Research Centre for East European Studies, University of Bremen
Publication Year: 2008

Russia has enormous potential to increase its energy efficiency. It suffers from the lack of modern heating systems in housing, outdated infrastructure and equipment in energy intensive industrial sectors, natural gas leaks from pipelines during transmission and distribution, and oil companies flaring associated gas at their wells. To address these problems, Russia should provide incentives to reduce flaring, increase domestic prices for gas, breakup the Gazprom monopoly on the pipeline system, and improve the legal framework for international cooperation. The EU has only indirect levers on Russian domestic policy, so it should work to convince Russia that reducing domestic demand serves both Russian and European interests, help Russia cash in on its efficiency potential, and sponsor small-scale energy efficiency projects that could encourage additional efforts at the grassroots level.

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