How can Nordic and Russian actors work together?

1. How can Nordic and Russian actors work together? Experiences from energy sector cooperation with Russia Arne Grove Director NCM Office in Kaliningrad NB: This presentation does not represent the official point of view of NCM and does not intend to give the full picture, but reflect experiences from my work in Russia since 1995 including my work with NCM since 1. May 2006. NUPI, Renewable energy in Russia

2. Objectives of the cooperation? • Romantic promotion of renewables in Russia? • Solve problems of energy supply to the Russian population? • Develop the energy sector of the Russian economy? • Develop a sustainable long term win/win cooperation between Nordic and Russian partners in business, industry and research? NUPI, Renewable energy in Russia

3. Modes of cooperation • Cooperation on commercial basis • Bilateral cooperation between individual Nordic countries and Russia • Nordic Council of Ministers • NEFCO and Nordic Investment Bank, including Testing Ground Facility www.nefco.org/tgf • Council of Baltic Sea States (CBSS) – BASREC • EU-Russia Northern Dimension Partnership • EU-energy dialogue NUPI, Renewable energy in Russia

4. Technologies, Biofuels(1) This presentation of bio fuel technologies is limited to wood-chips, pellets and peat. Several demonstration projects implemented by NEFCO and bilateral assistance projects since 1997. Work on standardisation for biofuel under BASREC. Relevant reports and other information on websites: www.nordicenergy.net www.cbss.st/basrec www.nefco.fi wood-pellets.ru and www.wicnwr.ru NUPI, Renewable energy in Russia

5. Technologies, Biofuels(2) Barriers: • Low motivation, low energy prices, lack of federal and regional strategies and policies. • Lack of (evaluation of) experience, guidelines and standards related to biofuels. • Lack of capacity in preparation of bankable projects. Opportunities, using Nordic technolgy and know-how: • Further development of Russian production of fuels • Development of logistic solutions. • Development of production of boilers for biofuels in Russia for the Russian market NUPI, Renewable energy in Russia

6. Wind energy (1) • Wind atlas for Russia, 1995 (Denmark) • Wind mill park Kulikovo, Kaliningrad, 1997/99: • One 600 kW new(Danish) • 21 second hand 225 kW(Danish) • Total 5.1 MW • Murmansk,2002/2008(Norwegian project): • One second hand 225 kW (Danish) • Several stand-alone mills with low reported production. • Total installed capacity in Russia: 13.25 MW. NUPI, Renewable energy in Russia

7. Wind energy (2) Barriers • Lack of public policy, strategy and subsidies • Lack of technical standards, guidelines for wind mills in Russia based on international and Russian experience Opportunities under discussion • Stand alone windmills is often mentioned, however the experiences show difficulties in maintenance. • Development of Russian standards, HydroOGK. • Net-work connected wind mill parks are incluced in the strategy of HydroOGK, but the barriers above has to be dealt with NUPI, Renewable energy in Russia

8. Hydro power (1) Finland cooperate with Murmansk hydropower plants on water management related to generation of hydro power. • Murmansk Region get approx. 42 % of power supply from large hydropower plants • The hydropower plants producing to network is managed by TGC-1. A company emerged from RAO UES. • Norwegian-Russian NGO Bellona:“Prospects for development of Non-conventional and renewable sources of energy on the Kola Peninsula”, 2007. www.bellona.org NUPI, Renewable energy in Russia

9. Management and financing • The energy efficiency centers established in NW Russia by Nordic countries are key resource centers • Both ”Nordic” ee-centers and Russian ee-centers need development of capacity to prepare ”bankable projects” • The cooperation with NEFCO is important in this, but also a pre-condition for good projects with NEFCO. NUPI, Renewable energy in Russia

10. Research and innovation • National research cooperation is going on in different fields. • Nordic Energy Reseach Center is a key player in this field. www.nordicenergy.net • Outstanding results of practical importance are: • Manual for users of biofuel, 2005 • JI-Handbook, 2005, updated 2007 • Database on bioenergy. Future: • Importance of long term perspective in research • Importance of cooperation on market driven innovation and research NUPI, Renewable energy in Russia

11. NCM knowledge building program(1): Renewables – project development • Target group: civil servants from municipalities. • Objective: capacity building in preparation and implementation of proposals for a few selected small scale standard problems. • Outputs: Implemented small projects followed by recommendations/guidelines for other municipalities in their region. • Approach: • Regional energy efficiency centers as local coordinators. • Activities in groups rather than individual scholarships • Civil servants from municipalities are supported by promising students in energy with good English and business approach. NUPI, Renewable energy in Russia

12. NCM knowledge building program (2): Renewables – guidelines/standards • Target group civil servants and experts • Objective: Develop cooperation in preparation of guidelines and standards based on analysis of experiences from Russia and networking with Nordic experts. • Output: Analysis of experiences and established contact with Nordic partners within wind power and bio fuels. Evaluation of perspectives for continuation. • The civil servants and experts will be supported by promising students in energy with good English and business approach. NUPI, Renewable energy in Russia

13. Thank you for your attention! Arne Grove agr@norden.org www.norden.org www.norden39.ru NUPI, Renewable energy in Russia