There is a need for energy efficiency in Russia; increasing demand, stagnating supply, inefficient generation, distribution and consumption plus the rising tariffs. The efficiency in the heat segment of Russia´s ZhKH can be improved considerably. Due to poorly maintained heat transportation and distribution networks, an estimated 30 percent of generated heat is lost. In this area there are a number of concrete steps to be taken: on the side of consumption: individual metering, thermostatic radiator valves, insulation of apartments, control and regulation of heat within apartment blocks. Regulations need to be radically revised for consumers to pay on the basis of actual consumption, and there is liberalization of the market. Lighthouse Energy Investments initiates, funds and manages medium-sized energy efficiency investment projects in Russia. It capitalizes on the considerable potential for energy savings and resulting financial gains in Russia. In the area of ZhKH Lighthouse initiates, operates and finances decentralized heat and power generation projects for industrial end users of heat. LEI builds privately owned boiler houses, with which it generates heat to sell to the local district heating companies.
LEI is also involved in energy efficiency projects and energy performance contracting. The main aim of energy performance contracting is the implementation of the whole spectrum of energy-saving measures on a long-term contractual basis between the client and LEI whereby the latter´s profit is an agreed percentage from the total amount of the saved energy resources.