Building Energy Smart Communities by Promoting Energy Cooperative Business Model an APEC Project Concept Note, proposed by Russian Federation APEC Energy Working Group Meeting Washington, November 2012

Challenge: Access to Electricity Access to electricity in the world (2008/2030) Far East of Russia: government strategy Far East of Russia: energy poverty Energy poverty

Electric Cooperatives: a Viable Business Model? Experts from APEC economies Would you agree that cooperative can be effective way to introduce microgrid technologies and more renewable energy to local energy sector in island and remote areas? Workshop “Microgrids for Local Energy Supply to Remote Areas and Islands in APEC Region”, Russia 2012

USA – the Leader in Cooperative Energy America’s electric cooperative network Cooperatives and the Smart Grid Electric cooperatives employment Cooperatives and Renewable Energy

Project Rationale Limited access to energy in remote areas and islands with abundance of unexplored renewables stress the relevance of local (off-grid, decentralised) energy development across the Asia Pacific. There has been progress in both distributed energy technology and enabling policy development, but the rate of adoption of local energy development models still lags behind. A viable model for remote, off-grid or microgrid power generation in certain APEC economies (USA, Canada, Australia) suggests engaging local communities to establish electric energy cooperatives.

Project Objectives To identify and share best practices in establishing and managing energy cooperatives for accelerated development of local energy systems in remote areas and islands To enhance the understanding of energy cooperative as a smart business model that mostly meets the requirements of remote and isolated communities To encourage APEC economies to implement pilot projects of local community-based cooperatives and to further share success stories and methodologies of developing and managing energy cooperatives To make an essential and result-oriented contribution to the APEC Energy Smart Communities Initiative

Tentative Work Plan & Budget Nov 2012 – Jan 2013 Discuss the Project Concept Note with the EWG (other interested APEC fora and sub-fora?), reach the basic consensus on the objectives and deliverables, identify co-sponsors Jan/Feb 2013 Submit the Concept Note for the 1st APEC project approval session in 2013 Feb – Apr 2013 Wait for the results of the project approval session, work with the APEC Secretariat to improve the quality of the Project Proposal Apr – Jul 2013 [If approved] Employ consultants, engage stakeholders, review literature, compile relevant information for the next stage Aug/Sep 2013 Hold a workshop in Russia Oct – Dec 2013 Review the outcomes of the workshop to provide final deliverables to APEC via EWG Budget Requested: Total $181,000 (mostly travel and labour costs) Russia $61,000 (mostly hosting and labour costs)

Project Proponent: Contact Details Talyat Aliev (Mr.) Deputy Director, International Cooperation Department Ministry of Energy of the Russian Federation E-mail: AlievTZ@minenergo.gov.ru Svetlana Beznasyuk (Dr.) Chief Expert, International Cooperation Department E-mail: BeznasyukSA@minenergo.gov.ru Your queries and comments are welcome. Thanks for your attention!