Energy Efficiency and Cleaner Production in Industry and Energy Saving Initiatives in the Construction Sector of Georgia

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1 Sustainable Development and Energy Efficiency Energy Efficiency and Cleaner Production in Industry and Energy Saving Initiatives in the Construction Sector of Georgia Nelly Verulava, Energy Efficiency and Environment Protection Centre

2 Information about Georgia Territory: km2 Population: 4,5 mln Capital: Tbilisi 1,2 mln

3 Access to Energy is a crucial and absolutely essential enabling condition for achieving sustainable development. Energy more than any other single issue, holds the key to future sustainable development in the world. Energy is a fundamental input for promote the integrating of the three components of sustainable development : economic development, social development and environmental protection EU INNOVER EAST project aims to promote to Georgia ( as to other EPC s) in energy sphere by developing new innovation services, energy efficiency and the greater use of renewable energy sources, that are the key priorities of the national energy strategy of Georgia.

4 The analytical Policy Paper of the EBRD, Strategy for Georgia (2012), uniquely determined that for maintaining Georgia on the path of strong and sustainable growth, it is crucial to modernize the energy sector, to foster private investors and to support Georgia s regional and global economic integration. The Bank promised to help Georgia in these areas s Georgia lacks policy dedicated to targeting energy efficiency, however Georgia faces two important challenges: (i) High import dependency: a focus on increasing the energy security; (ii) Very high energy intensity of both industry and households. There is no unified energy efficiency law in place for all types of energy. There is no building code with requirements for energy savings.s

5 Georgia s high dependence on imported oil and gas should, in itself, provide a sufficient incentive for the Georgian authorities to implement strong energy efficiency policies. NGOs in Georgia and among them have been promoting energy efficiency by providing different assessment reports and carrying out pilot projects Energy Efficiency Initiatives with the support of international organisations, as USAID,UNDP, ECE WB,EBRD, EU INOGATE Program and others. Very important decision of the City Hall of Tbilisi was join to EU Initiative Covenant of Mayors for Climate Change Mitigation by which Tbilisi should become a low carbon city., Was elaborated SEAP for reucing CO2 emission by 20% by 2020

6 In the process of development of energy efficiency in Georgia particular important role played, Norway - Georgian Long Term Capacity Building Program, launched to promote local business development focusing on Energy Efficiency and Cleaner Production. The Program included cooperation with the same type Norwegian Azerbaijan Program Cleaner Production and Energy Efficiency. The Program was carried out in the period with the financial support of the Government of Norway.. EBRD -Business Advisory Services (BAS) Program aimed at enabling SMEs to access a diverse range of consulting services by facilitating projects - was also important for Georgia, for supporting to create sustainable and commercially viable infrastructures of SME s. Bellow are presented the examples of Energy Audits and EE Measures implemented under these Programs in the Industrial (SME s) and Building Sectors of Georgia

7 Energy is basic for tree Components of Sustainable Development : the economic and social development and environmental Protection Industrial ( SME s) Sector

8 1. City Gori Asphalt Factory Factory main stations are: bitumen brewing, sand gravel preparation; installations of mixers heaters ; Boiler Plant. For achieving energy efficiency were planned: Reconstruction of the Boiler Plant (boilers replacement); pipeline insulation; Return of condensate to Boiler Plant ; Thermal insulation of pipeline network ; installation of new motors with Variable-Speed Drives (VSD).

9 In Boiler Plant are installed two old Russian type steam boilers E-1/9 Measures of EE Investment Savings Payback period (GEL) ( GEL/year) (year) 1. Reconstruction of Boiler Plant 2. Thermalinsulation of steam pipelines Total

10 2. City Gori COMPANY ASTOR INTERNATIONAL. Concentrated Apple Juice Factory Energy Audit Report provides modernization of two stations : Substitution of Apple Pieces-Pressing Aggregate ; Modernization of the Boiler Plant Selected. German production high-efficiency Apple Pressing Drum Type Aggregate, In which losses of the raw material is no more 20%. The electrical capacity of aggregate is 75 kw. (The power capacity of the existing aggregate is 150 kw ).

11 Measures of EE 1. Apple Pieces-Pressing Aggregate 2 Modernization of the Boiler Plant Investment Savings Payback period (GEL) ( GEL/year) (year) Total

12 3. Milk Factory Sante in Tbilisi EE Measures : 1. Power supply system upgrading in the Factory through installation of new HV transformer, 1000 MW: Investment USD, loan USD Electricity savings kwh/year or USD/year Raw materials savings 5 tons/year or USD/year Payback 1 year Status: The Project was implemented

13 4. Mill Factory Progress In City Rustavi - EE Measure : 1.Reactive Power Compensator has been installed Investment USD, loan USD Savings USD/year, payback 0,5 year Status: The Project was implemented

14 5. Non Alcoholic Drinks Factory Oasis in Tbilisi EE Measures : 1.Transfer to natural gas from petrol in a truck s engine: Investment 500 USD, loan 500 USD Savings USD/year Payback 0,2 year Less environmental pollution The project was implemented 2. Replacement of disposable filters with washable filters: Investment USD, loan USD Savings USD/year Payback 0,4 year Less wastes Status: The Project was implemented

15 6. Bread Factory 1 in Tbilisi EE Measure : 1.Replacement of steam feeding system with water spray equipment in bakery ovens: Investment USD Loan USD Natural gas savings m3/ year or USD/year Payback 0,6 year Status: waiting for equipment delivery from USA

16 7. Bread Factory Colkhuri in Tbilisi In Colkhuri was conducted Energy Audit for identification of Energy efficiency measures In the Table bellow is presented general information about the proposed energy efficiency measures at the Bread factory Cholkhuri in Tbilisi, identified as result of the detailed Energy Audit :

17 Name of Energy Efficiency Measure Investment ( GEL) Energy Savings ( kwh/year) Savings ( GEL/ year) Payback Period ( Year) 1The tightening and thermal insulation of Dough fix devices The installation of heat exchanger at the stack of the bakery stoves, for recovering heat from flue gases Utilization of Renewable Energy I Installation of Solar Water Heating System 4.Installation of Energy efficient Lighting System The Substitution of Electrical Heating by Energy Efficient water Heating System Installation of Energy Efficient Double Glassing Windows 7. The Substitution of Excessive Capacity Motors 8. To Switch from Diesel Fuel to Compressed Natural Gas ( CNG ) in the Bread Distribution Cars of the Factory. Total

18 In the Factory was implemented the EE measure for recycling of thermal energy by installation of Heat Exchanger Heat Exchanger for flue gases on the stack ensures save energy by recovering heat. This measure is replicable at many Georgian bakeries and other Factories

19 Schema installation of Heat Exchanger on the stack of Boiler Plant

20 8. Bakery plant Imerioni in Tbilisi Energy Efficiency measure: Thermal insulation of dough fix device The mass balance shows, that from 100 kg of flour mixed with other ingredients it is possible to receive 130 kg/h baked bread. There is opportunity to receive about 135 kg/h bread if the dough fix period will be shorten. The implementation of Energy efficiency measure: thermal insulation of dough fix device gives opportunity to shorten the fix period

21 9. Bread Factory 4 in Tbilisi EE Measure : 1. Substitution of flour pneumatic transportation system with mechanical one: Investment USD Loan USD Electricity savings kwh/year or USD/ year Payback 0,6 year Status: The Project is implemented

22 Energy Auditing of Buildings Buildings are biggest consumer of energy resources. Buildings consume more than 40% of total energy consumption in the word.

23 The existing building stock of Georgia with its Soviet legacy buildings is characterized with very low efficiency. The thermal resistance to heat flow of the buildings, for instance in Tbilisi is 3 4 times less than requires for energy efficiency, for Tbilisi climate zone. Georgia uses % more energy for heating per square meter of floor space, than the EU countries with the same climate. The improvement of energy efficiency in building sector of Georgia should play important role for reduce country s dependence on energy import and lead to Improved national and energy security

24 Heat losses from Building How to stop energy losses?

25 Heat losses in the distribution of building Roof 18% HHeating and Ventilation 32 % Windows 17% Walls 17% Floor 16% Improve of thermal resistance of building s envelope (walls, windows, floors, roof) can reduce energy consumption by building on 50-60% (to increase energy effeciency of the building).

26 Energy Audit Report LTD # 6 Authorized School 28, Lado.Asatiani st. Tbilisi Renovation of School Building for Increase Energy Efficiency Energy Audit. conducted in the LTD Company # 6 Authorized School showed big potential of savings of annual consumption of : electricity and natural gas in the school building. There were identified energy efficiency measures the realization of that will improve of educational, economic and environmental protection indices of the company, that are connected with reduction of emissions of CO 2, SO 2, NO 2 to the atmosphere.

27 Name of Energy Efficiency Measure Investment ( USD) Energy Savings ( kwh/year) Savings ( USD / year) Payback Period ( Year) 1. The reconstruction of boiler house including : a) The substitution of boilers on liquid fuel by high efficiency condensing gas boilers. Will be installed two water heating boilers with capacity 290 kw ( one standby capacity) manufactured by Company BUDEROS, and auxiliary equipments among them : b) The construction of the gas pipeline to boiler house The thermal insulation of the roof of building The installation of energy efficient double glazed windows Installation of Energy efficient lighting system The utilization of renewable energy installation of Solar Water Heating (SWH) System Installation of DRYMAT System, for permanently dry building s wall ( with the potential to save approximately 5% of the heating consumption) Total

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30 A view of growing Baku A view of the old and new Tbilisi Bellow are presented the examples Energy Audits in Buildings conducted by Azerbaijan and Georgian Energy Efficiency Centers in Baku and Tbilisi under Norwegian Program Energy Efficiency and Cleaner Production in 2004

31 Energy Institute, Baku ENCON Potential - Energy Audit Building: Energy Institute, Baku Project no: 8 Heated area: m² Energy conservation measures Investment Net savings Payback NPVQ* [USD] [kwh/yr] [USD/yr] [year] 1. Replacement of the pumps for water supply ,7 9,2 2. Replacement of the heating ,2 4,4 system 3. Replacement of lighting devices ,4 4,1 4. Installation of independent boilerhouse ,7 1,6 Total ENCON measures ,5 5. Replacement of windows ,9 0,9 6. Additional insulation of the roof ,8 0,3 Total all measures ,5

32 School N 143, Tbilisi ENCON Potential - Energy Audit Building: School # 143, Tbilisi Project no: 1 Heated area: m² Energy conservation measures Investment Net savings Payback NPVQ* [USD] [kwh/yr] [USD/yr] [year] 1. Insulation of pipes ,3 5,7 2. Double-glazing of the windows ,2 1,7 3. Installation of valves ,4 1,0 Total ENCON measures ,0