Introducing energy efficiency principles to save Russian companies USD 100 bn per year

/ News
August 9, 2017

Introducing energy efficiency principles to save Russian companies USD 100 bn per year

The World Bank has estimated the economic effect for the Russian industry, energy, and transport sectors from the introduction of energy efficiency principles at USD 100 billion. The international financial organization’s calculations confirm the forecasts of the Russian Ministry of Energy set forth in the draft Energy Strategy. The document states that reducing the energy intensity of GDP by 1.3-1.5 times would correspond to saving 315–580 million tonnes of standard fuel per year.

The Russian Ministry of Energy estimated that the sectors of the Russian economy with the greatest potential for energy efficiency include the housing and utilities, budget, and services sector (22%), the fuel and energy sector (40%), transport (18%), and industry (12%). For example, energy can account for up to 60% of metals costs and up to 40% in the extraction of oil from wells.

The Russian Ministry of Energy jointly with the Federal State Statistics Service has also developed a system of objective key energy efficiency indicators (24 indicators), which would make it possible to formulate plans for the development of industries taking into account the requirements for reducing energy intensity.

Russian companies have already estimated the economic efficiency from the introduction of energy efficiency. For example, Inter RAO generated a return of RUB 400 million in 2016 from reducing conventional fuel consumption. The country’s entire power generation industry would save up to 60 million tonnes of conventional fuel from the widespread use of energy-saving technologies. In monetary terms, this figure is comparable to the annual budget of Ekaterinburg.

Energy efficiency and energy conservation will be covered by a separate pillar of events during Russian Energy Week. Such events include a meeting of the government commission on issues concerning the fuel and energy industry and improvements in the energy efficiency of the economy, a national meeting on the promotion of an energy saving lifestyle and the information transparency of the fuel and energy industry, and a presentation of the energy efficiency rating of grid companies. A discussion on energy efficiency is planned as part of the session “New and improved lighting: better investment in quality of life in Russia’s cities”.

Read more