NEFCO offers small scale financing for energy saving measures in social objects i.a. schools, kindergartens, hospitals, sports facilities and street lights in Russian and Ukrainian municipalities where repayment of the loan is directly tied to the savings of the investment. In Russia the loans are provided in local currency through Russian banks.

Implemented projects
The grant based credit scheme, that preceded the Facility for Energy Saving Credits, financed 30 energy saving projects during the time period 1997-2005. Since then NEFCO has granted 16 loans for similar projects mainly in schools, day-care centres and hospitals in Northwest Russia. Some 20 new projects are currently in the pipeline for NEFCO's consideration. The total investment in these 16 projects is approximately EUR 3,5 million.

Project criteria

• subsidized finance to social objects
• annual savings of approx. 25% of the investment cost
• significant environmental effects shall be achieved
• energy audit required before NEFCO's approval of the project
• repayment directly tied to the savings of the investment
• municipality or municipal company as borrower

Typical projects approved for financing

• heat sub-centrals renovation, installation of thermostatic valves combined with insulation of windows and doors in schools, kindergartens hospitals, or
• renovation of boiler houses
• street lights, replacement of mercury lamps with sodium lamps

Project monitoring and reporting to NEFCO

• the project implementation is monitored by local and Nordic consultants in order to secure sustainable energy saving solutions and good quality
• no extra cost for the borrower, consultants and legal costs are paid by NEFCO
• cooperation with several local Energy Efficiency Centers in Northwest Russia have been established and developed

NEFCO's Facility for Energy Saving Projects amounts to EUR 12.5 million.

Read more: Energy Saving – Case Studies

For further information regarding NEFCO's Energy Savings Credits, please contact
Elisabet Paulig-Tönnes, Senior Manager at elisabet.paulig-tonnes@nefco.fi or +358 10 618 0642.