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" "GOVERNMENT-FUNDED ORGANISATIONSSHOULD BE ALLOWED TO ATTRACT PRIVATEINVESTMENTS,THEREFORE WEMUST REMOVEBARRIERS FORSERVICING CONTRACTS IN ENERGYnergy efficiency is crucial for modernisingour economy and the social sphere. Insolving these problems we are shaping a new economy and improving thecompetitiveness of our goods and services. We arecreating essentially new companies, new industries,and undoubtedly improving our environmental situationand quality of life.This issue is a difficult one and we must admit that wehave yet to make a lot of progress, but we have at leaststarted working properly. Of course, we really shouldhave started addressing this problem long ago.Authorities here have been working on this for tenyears, in other places they have been working on iteven less while perhaps we should have been workingon this for the past 15 years, even when our countrywas going through hard times, and then the currentresults would be different.A year ago, we passed a law on energy saving andenergy efficiency improving. All the Commissionmembers present here contributed to the adoption ofthe law. I am sure you remember our discussions of thelaw at a Commission meeting when we argued aboutspecific wording. It is good that it is finally done. Thelaw defined our priorities and in fact the prioritymeasures in this area. Now we can take stock of thesituation and address the obvious problems ourpeople, private enterprises, and public sector face.First, the law sets the timeframe for mandatoryinstallation of energy accounting meters. But we still have no clear requirements concerning their function and quality. We need to urgentlyformulate and adopt these requirements. Also, in March I gave the instructions to launch pilot projects involving smart meters. I would like to hear how this work is progressing.Second, the law stipulates that the savings generatedin government funded organisations by more rationalenergy consumption will remain at the disposal of suchorganisations and may be allocated where needed, forexample for wage increases. I would like to hear areport detailing the mechanisms already launched forthe purposes of implementing the said provisions.There is evidence that managers of public institutions,school principals, directors of clinics and daycarecentres simply do not even know about thesepossibilities or, if they are aware of them, do notbelieve the law may be enforced.Third, public sector energy consumption analysis isprogressing very slowly. There are various reasons forthis, including objective ones, as autonomousassociations of energy auditors are still in the processof establishment and founding. Energy auditors mustcommence their operations as soon as practicable aswe need reliable information on the energy savingpotential. Such energy audit must be performed byprofessionals and cover entire public sector. We werejust shown some monitoring capabilities and it iscertainly great that in Naberezhnye Chelny there is asystem supplying data on energy consumption by everyhousehold including, for example, the temperature ofhot water pumped to apartments. Such a system is aclear sign of the progress.Finally, government funded organisations should beallowed to attract private investments, therefore wemust remove barriers for servicing contracts in energy.Lastly, and perhaps most importantly for organising ouroverall efforts, regional programmes of improvingenergy efficiency should be launched. As of now 54THE ISSUE OF ENERGY EFFICIENCY IN RUSSIA108G-20 MEMBERSDMITRY MEDVEDEV, PRESIDENT, THE RUSSIAN FEDERATIONEPhoto: The Presidential Press and Information Office

G-20 MEMBERS109regional programmes have been fully developed, 25are undergoing approval proceedings while 4 more arebeing drafted. Our colleagues, the governors, mustaccelerate the implementation process or, in case offailure, give their explanations. At present even thedocuments in question are of poor quality as many ofthem lack exact targets, specific activities,programmes performance indicators, financing andmanagement mechanisms. Many regional budgets donot even envisage allocations for such programmes.Of course I am aware of budgeting difficulties,especially at the present time; on the other hand we allunderstand what kind of investment this is. It is aninvestment not only in our future, but also in a betterlife. Ultimately, such investments will amount tobudgetary savings, therefore approach to this kind ofspending should be rational.Just recently, on October 21, the Governmentapproved a new ten-year national programme onenergy saving and energy efficiency improving, aimedat essentially reducing the energy intensity of Russia'sGDP, by at least 13.5 per cent by 2020. One of themain mechanisms for implementing this governmentprogramme is co-financing regional projects. Over thenext three years we plan to allocate about 17 billionrubles [0.6 billion dollars] to this. Once again, I wouldnote that the governors must pay special attention to these efforts. We will discuss this topic in the near future. nThis is an edited version of President Medvedev'sopening remarks at the meeting of the Commission forModernisation and Technological Development ofRussia's Economy in Naberezhnye Chelny on 26October 2010. For more information please visit:www.eng.kremlin.ru.