Energy efficiency in Russia

| By Jeroen Ketting

Energy efficiency in Russia: A chance to excel or a hard lesson to learn?

Unless urgent measures are taken against inefficient energy use the Russian heat and power sectors will hinder overall economic growth argues Jeroen Ketting, Director, Lighthouse Business Management Russia.

Russia has a low level of energy efficiency (EE) in all aspects of energy generation, distribution and consumption. Add to this Russia’s harsh climate and energy intensive industry and the result is a country that consumes roughly three to five times more energy per Euro of GDP than its Western European neighbors.

This low level of energy efficiency impairs economic competitiveness, creates social pressure, and causes harmful environmental effects. Continued economic growth and increased living standards in Russia depend not only on the vast export of natural resources, diversification of the economy and increase in the volume and quality of industrial production; but also on more efficient use of energy in the generation, distribution and consumption of heat and (electric) power. Without taking urgent measures against the inefficient energy use the Russian heat and power sectors will hinder overall economic growth.

The Russian government recognizes this problem. According to the official Russian Energy Strategy 2020, present-day energy consumption in Russia could be lowered by 40% to 48%, or 360-430 million tons of coal equivalents, in 2020 through effective energy efficiency measures and structural change in the Russian economy. That means that almost half of Russian energy consumption could be conserved if energy saving potential were fully realized. It is obvious to all that there are substantial EE gains to be achieved in Russia.

Read the full article in the Russian Investment Review via this link.

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