Maybe Today for the West the Way out from Existing Dilemma is Consumption of Less Energy and Achievement of More Energy Efficiency

Maka Ganiashvili

After the war between Russia-Georgia, the issue of energy security became very actual for the west.

Russia’s imperial intentions and aspirations, which became more visible after the events in August, made Europe think about alternative energy sources. On December 13 the document was published and according to it EU has to secure its own energy security. In case of realization of new project, EU will have possibility to export gas of Kazakhstan and Turkmenistan to Europe by passing around Russia.
This plan should be realized in the bounds of project of strengthening energy security, which aims to reduce the dependence of countries of EU on Russian gas. The new project of EU contains the network of pipelines, which means unification of all existing networks around Europe. Among them there are projects of “TRANSAKAR” and “NABUCCO”, which are on the level of ideas yet. Besides EU has already received resolution and according to it in order to ecological security by 2020 the usage of gas must be reduced by 20% in the countries of EU. Perhaps it is not outlet for Europe and instead of dependence on their natural gas, which means dependence also on Russia with the modern conditions, they have to think about reduction of its consumption and energetic alternative sources. It is clear that with the ecological security, searching for projects of alternative energy sources and less expenses of energy also gained the meaning of geopolitical security today.
The United States has also the same problem. This theme is also urgent there and this is certified by the results of presidential elections held in November. According to the experts and public opinion polls, Barac Obama – the new president of USA – won his competitor with his economic program. One of the main issues of economic program is the reduction of USA’s dependence on foreign oil, which makes extra problems for the economy of this country. Obama declares, that he will not refuse to use nuclear fuel and herewith he pins his hopes also on alternative energetic sources.
What do alternative energetic sources mean and how is it possible for it to become one of the ways of outlet from the dilemma for the west?
There exists common agreement; according to it existence of energetic supply is necessary for all countries, which must be long-term, guaranteed, available and safe for environment. In this direction effective steps were begun by the members of Great 8 in 2006. For this they cooperated with IEA – the International Energy Agency, which was created in the bounds of OCED – the Organization for Economic Co-operation and Development – in 1974 and is the independent organ. Its main goal is to work out and carry out different projects and recommendations connected to the International energy sphere. In the bounds of EU-IEA co-operation summits have been held since 2006. IEA works out the recommendations connected to issues of energy security, which, according to conditions of agreement, is necessary to be fulfilled by the representatives of Great 8 countries. These recommendations contain 7 basic spheres and in case of perfect realization the goals of energy security are achieved, which as we have already mentioned is not only ecological, but already geopolitical issue. The working spheres of IEA are:
1. General recommendations and researches, which are worked out by IEA for the countries of Great 8 in the sphere of investment and programming national energy security. Also it makes monitoring, which makes clear how is realized the inculcation of energy security programs in different countries and the realization of IEA’s recommendations.
2. In most countries, 40% of used energy is spent on building construction. That’s why especial working is being held in this direction to reduce energy consumption in building. There exist recommendations connected to getting special construction legislation, which foresees to construct buildings in such order which will use less energy.
3. IEA’s recommendations contain one more sphere – this is the production of less expensed electric equipments and tools.
4. The same can be said about the introduction of energy-effective lightning equipments.
5. 60% of world oil is spent on transport. That’s why it is one more main direction, on which IEA and countries of Great 8 are working together in order to save more energy.
6. When the issue is about effective usage of energy, of course we can’t pass by the producing sphere, that’s why there are separate recommendations for producers and enterprises.
7. And finally, the most important direction is the development and helping of natural energy alternative and renewable energy production.
As we can see there exists the whole system, which is entirely directed to use less energy and save oxygen, also to search alternative sources of energy.

What is being made in Georgia?
What is being made in this direction in Georgia? How can Georgian companies increase efficiency and improve comfort in houses in the conditions of permanent changes of prices on energy carriers?
According to the researches the whole share of Gross Domestic Product (GDP), which is used as energy by Georgia, three times outnumbers the same index of European average country. Besides, the growing prices on energy resources have an influence on production expenses of Georgian business and set them in unprofitable conditions in competitive global economy. To settle the mentioned problem European Bank of Reconstruction and Development (EBRD), with the goal of financing the projects of energy efficiency and renewable energy in the country, began to realize the program of energy efficiency.
With the aim of supporting energy efficiency in Georgia 35 million credit line of USD was assigned by EBRD, for those companies of private sector, who are ready to put investments in the projects of energy efficiency or renewable energy. Two Georgian banks – “TBC” and “CARTU” have already been participating in the program and giving loans in order to put investments in energy efficiency. Since the next New Year probably two new Georgian banks will be involved in this project. Credit line has already been assigned for giving average loans (2.500.000) to improve the energy efficiency of business and agriculture, or increase the usage of renewable energy.
The working scheme on project is simple – in the bounds of credit line local banks borrow loans from EBRD in order to lend money afterwards to their customers. The customer will introduce the project of bank, which decides his creditable issue. Totally 4 loans of 3.5 million USD cost have already been given for rehabilitation of hydro electric station; 4 more building projects are also being under discussion.
Except credit system, EBRD program guarantees also technical aid. Georgian Energy Efficiency Program (GEEP) has already been formed to guarantee technical support for Georgian banks and interested companies, in order to be worked out profitable investment projects by potential beneficiaries and local banks, GEEP represents consultant group, which helps banks to estimate the projects.

What is the Energy Efficiency used for?
The program of energy efficiency is very important for Georgian ecology and production, because it means:
· Reduction of energy usage without reduction of output, production and quality;
· It is possible to improve production, output and quality with its help;
· The usage of less energy means less import, but less import is less risk and sum;
· The usage of less solid fuel means less excretion of CO2;
· More renewable energy means less solid fuel;
· Georgia can save more money by using energy more effectively and by renewable energy.
However it is worth to mention, that Georgian enterprises and different kinds of organizations know little and don’t use the program of energy efficiency very often. The reason of this fact may be many factors, for example the fact that there is not extensive information connected to energy efficiency in Georgian language; there is not import of suitable equipments; the firms don’t know why and what they need it for, they try to save money for buying cheaper technics, which spends much more energy and finally may be said, that Georgian enterprises don’t understand the loan working principle.
Just for this there exists the Georgian Energy Efficiency Program (GEEP), which’s consultants help enterprises to calculate energy savings; give information to banks about the issue of returning loan by the customer; but give recommendations to customers connected to the importance of energy savings and the ways of its achievement.
Energy Efficiency will help companies to reduce the expenses of used energy and production expenditure; to overcome the growing prices on electric energy and energy insufficient; to improve the quality of production and products; to accord with International certificate demands of legisltaion and ISO 14001 activity, which is very important for Georgian output to appear on European market; to improve the environmental arrangements and to reduce excretion of greenhouse gas.
Except the project of EBRD there exists one more project, which is directed to improve energy efficiency in Georgia. This is the project of USAID (which costs 5 million USD), where American and Georgian experts have already begun to research energy system of Georgia. First of all they held consultations with the representatives of non-governmental organizations, for whom 1 million dollar has already been assigned and they work out the recommendations connected to the development of energy system in Georgia. In the bounds of project there is also planned to send 75 specialists to USA in order to rise the qualification.