“Businesses without energy efficiency programmes are losing ground in the marketplace”

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Photo by: Rangsarit Chaiyakun / iStock

Businesses and organisations that do not follow the energy efficiency obligations set out in the legal and regulatory framework risk fines, administrative and time costs, and even restriction of activities. Let’s look at the most common situations.

Budgetary organisations. The Russian regulatory framework obliges enterprises with state and municipal participation to submit energy declarations and to achieve the target levels of energy consumption reduction for all types of purchased energy resources set by the superior body (the main administrator of budgetary funds).

Environment and BAT. The state monitors enterprises in terms of compliance with environmental legislation — some under the old system and some already under the new system — in the logic of Best Available Techniques (BAT) compliance, which captures the 300 largest polluters from Category I enterprises under Federal Law No. 7. These enterprises (and gradually others after them) must prove their compliance with BAT, i.e. with the indicators set out in the relevant industry information and technical handbook (ITS).

For any industry and product, the amount of negative impact on the environment, emissions and discharges are in direct relation to energy intensity. It is no coincidence that the Energy Efficiency Information and Technical Reference Book (ITS48) is “horizontal”, i.e. relevant for all enterprises regardless of sectoral affiliation. And implementing energy management to streamline energy management processes in an enterprise is a key component of it.

BAT legislation is tightening over time — more and more industries are being regulated in this way, and more and more businesses will be among those required to prove compliance with BAT requirements and obtain a CEP (Comprehensive Environmental Permit). Otherwise, they will have to develop and agree on an environmental performance improvement programme, which will result in compliance with the established indicators. In turn, energy efficiency measures also have a place among the activities of this programme. ITS48 will be updated in 2023 on the basis of scientific and practical studies and industry discussion.

Energy management. There is no legal requirement to introduce an energy management system in Russia. However, for many enterprises it is a kind of corporate obligation — large companies with state participation, regulated including in the fuel and energy sector, have such practices. The presence of a certificate of compliance of the energy management system with the requirements of the standard is often mandatory for participation in tenders and tenders.

For a number of organisations in Russia there are restrictions on the procurement of non-energy efficient products, there are Russian government regulations on the use of modern energy efficient lighting and so on.

In general, energy efficiency measures are becoming a kind of mandatory kit for modern business.

Cover photo: onuma Inthapong / iStock

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