Modernizing the Russian District Heating Sector: Financing Energy Efficiency and Renewable Energy Investments under the New Federal Heat Law

This article analyzes the new legislative basis that the 2010 Federal Heat Law – together with the Federal Energy Efficiency Law – creates for the regulation of tariffs in the heating sector. The central question of this legal analysis relates to the financial viability of energy efficiency and renewable energy investments in the heating sector. Does the new legislative basis for the regulation of heat tariffs in Russia provide investors with the possibility to recover the capital costs of their energy efficiency and renewable energy investments? Does the new law create an adequate tariff structure to tackle the pressing modernization challenge that is presented by the Russian heating system?

By answering these questions, this article aims to contribute to the legal and policy literature on the energy transition towards more sustainable and climate-friendly patterns.