Business Planning: A Key to Energy Efficiency in Russia

Panel: Panel 4: Human dimensions of energy use and efficiency

Authors:
Meredydd Evans, Battelle, Pacific Northwest National Laboratory
Susan Legro, Battelle, Pacific Northwest National Laboratory

Abstract

Many banks and Western companies would like to invest in energy efficiency projects in Russia, but they find it difficult to offer financial support for the Russian proposals they receive, which may lack key market and financial information. With support from the U.S. Department of Energy, The Pacific Northwest National Laboratory has organized training workshops on writing business plans for energy efficiency projects.

Russian business plans often resemble project proposals â they describe the technical measures to be implemented, and they provide a simple payback analysis of the costs. The most difficult tasks for Russian entrepreneurs include developing a marketing plan, using creative financing techniques, describing the implementation plan in sufficient detail, and providing appropriate information on the organizations involved in the project.

As Russians enhance their business planning skills, their ability to attract financing for energy efficiency projects and successfully implement such projects will increase. Business planning also provides a useful framework for assessing energy projects. In this sense, it can highlight the advantages of energy efficiency and increase the willingness of Russian entrepreneurs to invest in demand-side measures.