Report - UNDP Russia

Figure 5.8Gap in energy intensity of specific typesof products in Russia, comparedwith international best practiceKg of fuel equiv./tonne8007006005004003002001000Rolled productsSource: CENEfElectrical furnacesteelRussia 2000Russia 2007ClinkerAverage consumption outside RussiaFeasible minimumoverall energy intensity of industry (the indicatorhas remained the same or even increased forsome commodities). Changing energy intensityof many goods was determined by change inproduction capacity load. However,improvements were achieved thanks toequipment and technology upgrades at someenterprises.Despite reduction of energy intensity in2000–2007 Russian industry still uses much moreenergy than world leaders, with serious impacton competitiveness (Figure 5.8). Contracts withenergy suppliers place all the risks with industrialconsumers, who must often pay for ‘unused’energy.The national target for reducing energyintensity of GDP requires reduction of energyintensity of Russia’s industry by at least 33% by2020. Potential for increasing energy efficiencyin industry (not including the fuel & energysector) is estimated at 59 million tonnes of fuelequivalent. Including own needs and losses inthe fuel & energy sector the figure rises to 138million tonnes of fuel equivalent, which ismore than annual energy consumption inPoland, Holland or Turkey. Energy-intensivesectors represent 42% of potential energysavings in processing industries and 20% ofCardboardPaperPig ironCellulosetotal energy saving potential in finalconsumption sectors.Cooperation between the state andleading Russian industrial enterprises couldsignificantly speed up realization of energysaving potential and neutralize negative effectfrom rapid growth in the share of energy costs.Russia has almost no experience of partnershipsbetween government and the private sector inenergy efficiency, but there is plenty ofinternational experience. Voluntary agreementsbetween government and corporations toincrease energy efficiency and reduce GHGemissions or pollution are desirable, as well asmechanisms for coordinating governmentenergy efficiency policy with cost cuttingprogrammes of large national corporations,including agreements on energy efficiencytargets.Assistance to industrial companiesduring the crisis should be made conditional ontheir having an energy efficiency plan.Businesses need help in integrating energyefficiency goals into existing standards andmanagement systems. The chief energyengineer at an industrial facility should alsobecome an energy manager, capable ofhandling a wide range of both technical andeconomic issues. Energy managementstandards should be developed and introducedat Russian industrial enterprises.Industrial systems engineered withregard to energy efficiency criteria are moredurable, increase overall productivity andreduce energy costs. A special informationcampaign will help Russian businesses todetermine and utilize their energy efficiencypotential. Energy management and energyaudit manuals will be needed, current practices,which sometimes penalize employees forsaving energy, must be changed, and contractsfor energy supply to industry should bemodified. Part of the savings should be used toprovide incentives to the chief energy engineerin his work and to further promote energysaving. Development of standardized bankingtechnologies to finance energy efficiency98 National Human Development Report in the Russian Federation 2009