Thomas Hendel of Rudea on improving energy efficiency in Russia

Established in July 2009, the Russo-German Energy Agency’s (Rudea) main purpose is to increase energy efficiency in the conversion and use of energy in Russia through cooperation with domestic and German ministries as well as businesses from both countries. Its specific focus is on energy-based refurbishment of buildings and improved industrial efficiency through the use of innovative technologies in order to provide electricity and heat along with new developments in renewable energy technology. Thomas Hendel, head of Rudea, spoke to Modern Russia about his company’s work in the field of energy efficiency.

Increasing energy efficiency is one of the important aspects of Russia’s economic modernization efforts. How would you assess the current level of energy efficiency within the Russian economy?

We must take into consideration that, from the energy efficiency point of view, the Russian economy today is to some extent a successor of the Soviet Union, despite the fact that a lot of time has passed and a lot has changed since then. I would therefore answer your question this way: the Russian economy has great potential in the energy efficiency sector; an enormous potential even. Business in Russia is starting to realize this and is investing with confidence in quick returns on their investments. And business is right – global experience demonstrates this. 

Rudea is a public joint venture of the Russian Federation and the Federal Republic of Germany, established to promote energy efficiency in Russia. How does Rudea support the Russian economy’s efforts toward higher energy efficiency?

We implement concrete, economically significant initiatives and projects, related to the integration of the best German experience, knowledge and energy efficiency technologies in the Russian energy sector and in the Russian economy in general. We consult, help with financing, and organize technical and technological events. 

In a speech you gave during the Industrial Trade Fair in Moscow in September 2011, you emphasized the high potential of renewable energy in Russia.  How is this potential being used so far, and how would you assess Russia’s current approach to renewable energy sources?

Russia is only starting to use renewable energy sources, with much ground to be gained in the future. Its potential in the renewable energy sector is enormous because Russia occupies a quarter of the world’s land. I think the driver of the progress in this sector over the next five years will be the investments companies will make with the government’s support. But for this to happen we need an adequate legal basis, specifically a law on renewable energy sources. 

Will Russia be ready to switch to more renewable energy as its oil and gas supplies decrease over the next decade? 

It is impossible for Russia to completely abandon oil and gas. Such an act would also be absurd for Russia in economic terms. But the country will, and already is, setting forth on the path of increased energy savings by making energy efficiency one of the priorities of its energy policy. More and more Russian enterprises and farms will bet on renewable energy sources and prefer them over traditional ones. I am sure this will quickly become a sort of trend in Russia, which is why the use of renewables there will grow rapidly. 

What are Rudea’s long-term plans for the next 10-20 years in Russia?

Russia is aiming to reduce its energy consumption by 40 percent in the next 10-20 years, thereby creating conditions for stable economic development. To achieve this, it is necessary to attract investments in energy saving technologies and ensure business competitiveness. It is here in Russia that Rudea can use Germany’s experience, and these are the main tasks our agency should help with. 

Thomas Hendel is managing director of Rudea, the Russo-German Energy Agency.