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Digest Finance
 

Analyzing practical experience of energy service contracts in Russia

Vol. 22, Iss. 1, MARCH 2017

PDF  Article PDF Version

Received: 29 November 2016

Received in revised form: 19 December 2016

Accepted: 11 January 2017

Available online: 15 March 2017

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: Q43

Pages: 50-61

https://doi.org/10.24891/df.22.1.50

Nazarova L.E. Kuban State University, Krasnodar, Krasnodar Krai, Russian Federation
Lnazarova05@mail.ru

Importance The article analyzes the practical use of energy service contracts in Russia. Based on governmental and special reports, I reviewed the practical experience in energy service contracts in Russia.
Objectives I reviewed how energy service contracts were performed and described the concept of energy service contract, its types and performance schemes. I also reflected the specifics of using such contracts in Russia and abroad. The article highlights strengths and weaknesses of energy service contracts and the main impediments to such contracts. I propose my solutions to rectify the problems and present a regional chart of investment in energy saving by energy service contract scheme. I put a special focus on energy efficiency barriers to implementing energy service contracts.
Methods The research employs a bibliographic and comparative analysis as the main method.
Results Having carried out a bibliographic analysis, I found common types of energy service contracts in Russia. The market of energy service contracts is emerging in Russia. I determined what impeded energy saving and development of energy service contracts and proposed respective solutions.
Conclusions and Relevance Should performance risks of energy service contracts be mitigated through well elaborated and documented procedures of statistical control and model methods to estimate savings, it would increase the number of energy service contracts in Russia, boost the development of market of energy saving goods and services, thus improving the energy efficiency of the economy as a whole.

Keywords: energy service contract, performance contract, energy service company, energy efficiency, energy saving

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