Availability and applicability of Business and Energy Efficiency financing solutions in Kaliningrad Oblast and North-West Russia. Baltic Sea Region experience.
The seminar ” Finances – Authorities- Business”, that took place 11-12 March in Kaliningrad, addressed different financial mechanisms available for municipal and private initiatives when working with Projects in Energy Efficiency field . It was a jointly organised event by the Information office of the Nordic Council of Ministers in Kaliningrad, the Association of the Centres for support of SMEs in the Kaliningrad region, and Baltic Development Forum representing RENSOL Project. Representatives of: NEFCO, EBRD, Danish Export Credit Fund, Swedish Export Credit Fund were also present. Such a high-level seminar has been held in Kaliningrad for the first time.
During this two day seminar, entrepreneurs, representatives of financial institutions of the Nordic countries, Lithuania and Russia, as well as regional and municipal authorities identified possible financial mechanisms and discussed their potential and availability for current and future Projects. The “Guide to Financing Energy Efficiency in Russia – RENSOL Experience” was also presented in order to fuel the discussion and initiate exchange of best practice.
In order to apply these theoretical ideas and concepts to actual existing business cases, 6 mini-arenas were built, where each table represented one specific project and where project implementation challenges were tackled and where possible solutions were introduced. The round-tables covered the topics of energy efficiency, construction and sustainable urban Development. Some of these business cases, faced various difficulties in their implementation phase. Thus, international participants, each expert in various relevant fields, led one round-table in order to come up with adequate conceptual solutions for these specific problems. The outcomes of the debates will help stakeholders not only to simplify and make work on current projects more efficient, but also to get to know funding opportunities for future projects.
The following solutions were offered to each of the 6 round-tables:
On basis of RENSOL case
Modernisation of a Kindergarten building: Recommendations concerned the preparation of a successful application for a bank loan or similar types of financing. The focus should rather shift from the use of expensive insulation technologies to the installation of a system that concentrates on controlling heat flow and consumption.
Modernisation of street lighting: The most suitable financial support for projects of such kind is according to the working group state funds. In addition to these available and very complex financing mechanism, EBRD and NEFCO grant and loan programmes were introduced. It is important to note that the involvement of municipalities is crucial for the implementation of modernisation projects.
Modernisation of an apartment building: Due to several changes in the federal legislation on communal service issues, the specific case was not quite up-to-date anymore. However, different external factors influencing the possible financing mechanism were evaluated.
Business cases for discussion:
Prospects of use for the old college building “Ozersk”: In this specific case, the experts suggested to transform the old college building into a science park aiming at research activities in the sphere of agriculture. However, the working group pointed out that there is a serious need of an investment analysis. According to the experts, it would be most suitable to be financed by state funding.
Social Housing with the use of energy-efficient technologies (3C-3E): This project could be carried out either by budget funding, investor participation, or a combination of both. The construction of social residential buildings could provide some positive political and economic effects and minimise the social and technological risks. In addition, the environmental-friendly technology does not have any legal barriers to be implemented both in Russia and Europe.
Pionersky resort. Beach for people with limited physical possibilities the working group evaluated the strategic potential of the project for construction of beach for the disabled in Pionersky and found mane positive factors that should be taken into account while financing this project (budget financing).
List of Participants: