Energy Efficiency Presents Russia with Businesses Opportunities

THE RUSSIAN government’s enthusiasm for energy efficiency is opening up opportunities for businesses to save money on reduced energy costs and for new start up energy saving businesses.

Leonid Sorokin, general director of Honeywell Russia, told The Moscow Times. “It’s just starting, but it is going to be big.”

The Moscow Times claims that Russia is the most energy-intensive country in the world, as it consumes 1.39 tons of coal equivalent for every $1,600 of GDP produced. This is three times more than Canada and more than any other BRIC (Brazil, Russia, India and China) country, according to the 2009 report by the McKinsey & Company consultancy.

The geography and climate in Russia is partly responsible for the high energy intensity, with the country having to function through long, cold and hard winters which drives energy use to the limit, but also presents plenty of energy saving opportunities.

Russian President Dmitry Medvedev has made energy efficiency centre to his modernisation platform, setting a target to reduce Russia’s energy intensity by 40 percent by 2020 through the Energy Efficiency Programme, which was approved by the government last October, who set aside 9.5 trillion roubles ($3 billion) for energy saving programmes.

The Moscow Times states that no one is willing to put a dollar value on the Russian market for energy efficiency measures, but it will be vast, providing fertile ground for new energy saving businesses.

The McKinsey & Company report projected that Russia could save $486 billion over the next 20 years and reduce energy consumption by 23 percent if it plowed $210.8 billion of investment into maximising efficiency.

Picture by thisisbossi

Wednesday 30th March 2011

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