NEFCO will provide financing for modernising the street lighting system in Gurjevsk, which is located in the Kaliningrad region of Russia.
Under the terms of the agreement, existing energy-intensive lamps will be replaced by light-emitting diode (LED) lamps, which consume less energy and do not contain toxic substances or hazardous heavy metals.
Lamps containing mercury will be removed for safe recycling. Exposure to mercury is a health hazard, which can cause brain damage and harm the central nerve system.
The street lighting modernisation project is expected to reduce Gurjervsk’s energy consumption by some 270,000 kilowatt hours per year, which will translate to 122 tonnes reduction in carbon dioxide emissions. The reduction in energy consumption will result in annual savings of some 1 267,000 roubles for the municipality.
NEFCO will finance the Gurjevsk project from its Facility for Energy Saving Credits, channelled through Raiffeisen Bank in Russia.
“We have financed similar projects before in two cities in the Archangel region and in Segezha in Northern Karelia, where mercury lamps were replaced with energy saving sodium lamps. This is our first project, which aims at installing LED lamps in Russia. It is also the first loan offered to a municipal energy saving project in the Kaliningrad region. We are very pleased with the efficient management of the project”, says NEFCO’s Senior Manager, Elisabet Paulig-Tönnes.
At the moment NEFCO has some 16-20 new energy saving projects in the pipeline with a total value of around EUR 6 million. The corporation’s Facility for Energy Saving Credits has access to funds totaling EUR 12.5 million.