Green Energy One AS, together with project developer Nordic Commodities AS invests in one of the first commercial energy saving projects in Russia. The project consists of upgrading the district heating system in apartment buildings in St Petersburg and is organised as a so-called Public-Private Partnership, i.e. a partnership between the private company Green Energy One and a Homeowners Association in St. Petersburg. Cooperation under the auspices of the joint company FIRST St. Petersburg Energy Service Company in which each party owns 50%. A cooperation agreement between the parties open the opportunity for investments in 25 major apartment buildings built in the 1960s, each with several hundred apartments. These blocks are known to have a high potential for energy savings.
The first investment case started up in 2015 with technology from Danish company Danfoss AS and the documented measurements show that with relatively low investments, the buildings actually save 30% of the energy used for heating and hot water. The savings are monitored and can be followed on Green Energy One on Facebook and LinkedIn.
According to CEO Tom Langli and Chairman of the board Ragnar Ottosen, the project has been developed over several years and represents one of the absolutely first successful examples in Russia for so-called Energy Service Contracts. This means that an external investor finances the energy efficiency measures in return for a contractual percentage of the money saved. Tom Langli also stresses that the project is based on deliveries from Nordic companies and development is supported by both Nordic and Russian authorities and was in 2014 named the best foreign project in energy efficiency in Russia. Green Energy One also has the chairmanship of the St Petersburg Clean-tech Cluster, an organisation where also a number of Nordic companies are participating.
Now that the company has gained significant experience and overcome the many barriers in the Russian market, Green Energy One will expand its business to similar investments in other countries where there also are large potentials for energy savings. This applies to many countries, but especially in Eastern Europe, as there is still a large number of buildings and businesses that have a huge potential for energy savings. The company already has the first agreements under development in the Baltic states, which may also include Energy Management Systems and LED lighting and also linked to development of renewable energy.