Financing Municipal Energy Efficiency in the Commonwealth of Independent States


To enhance the capacity of local governments in countries of the CIS to obtain financing for municipal EE projects.

Main Activities

  • Conduct a regional forum of municipal associations, energy agencies, NGOs, multilateral banks (MDBs), private companies, financing institutions and reform champions to demonstrate to local governments the characteristics and benefits of energy-efficiency (EE) financing mechanisms such as vendor credit, various types of loans, leases, revolving funds and performance contracting. Presentations and discussion at the forum will feature experience and case studies about EE financing from CIS and selected Central European and Baltic countries.
  • Synthesise the lessons and recommendations into a set of financing guidelines and exemplary case studies. The document (in Russian and English) will serve as a tool for local governments to use in improving vital public services such as heating, public lighting, water supply and wastewater treatment. For financing institutions such as banks, bilateral donors and MDBs, it will increase their understanding of what to expect when working with municipalities in the project development stage, and how they can more effectively involve local NGOs to improve chances for successful project implementation.

Expected Impact

  • Increased interest and capacity from local governments and financing institutions to develop projects that improve energy efficiency in heating, public lighting, water supply, and wastewater treatment as well as in public buildings;
  • Dissemination of financing "how-to's" (in Russian) to at least a 150 municipalities;
  • Introduction and uptake of relatively new financing for municipal energy efficiency projects, especially "self-financing" options (i.e. small revolving funds) and vendor credit lines;
  • Municipalities will also become more exemplary consumers of energy and water by improving efficiency of consumption and comfort in buildings;
  • Growth in both the market for EE products and services, and financing of EE improvements in communal services and buildings.
Programme sector: 

Energy Efficiency (EE) (Business&Finance)

Stage of project: 



RU/Russia, UA/Ukraine (Moldova, Armenia)


2005 - 2006


€ 315,746

Implementing agency: 

Alliance to Save Energy

REEEP grant funded by:

United Kingdom