18 June 2014: The International Energy Agency (IEA) conducted a comprehensive review of energy policies in the Russian Federation and has released a report that recommends improvements for spurring robust and sustainable growth.

The report, titled ‘Russia 2014 – Energy Policies Beyond IEA Countries,’ finds that despite the energy efficiency policy framework put in place in recent years, much room for improvement remains. The energy intensity of the Russian economy is approximately twice that of the average of IEA member States, and its carbon intensity is 60% higher than the IEA average.

The report recommends that Russia work to attract investments to modernize aging power generation and transmission systems, prioritize district heating sector reform, improve energy efficiency in the building and industrial sectors, develop the most cost-efficient oil and gas resources, upgrade technology in the oil and gas upstream sectors, give priority to enhanced oil recovery (EOR) and tight oil development, and further develop its export potential, particularly to Asia.

In addition, greater competition and efficiency would be achieved through the phase-out of energy subsidies and cross-subsidies. The report suggests that regulated prices should be eliminated and social policy should be de-linked from energy policy. Instead of subsidies, policy planning should be focused on consumer protection and quality of service. [IEA Press Release] [Publication: Russia 2014 – Energy Policies Beyond IEA Countries Executive Summary]