The Industrial Policy Needs Minimal Energy Consumption Standards

18 july 2016

The active work to develop a new industrial policy in Russia goes hand in hand with the development of the energy sector, territorial development efforts, efforts to increase energy efficiency both in industry and in the sectors that use industrial products. The goal of improving energy efficiency is becoming more and more salient and achieving that goal involves, among other things, setting minimal energy efficiency standards for specific types of equipment. If a labelling program and minimal energy efficiency standards were introduced, Russia could potential save up to 6% of the total amount of annual energy consumption, Analytical Center experts believe.

However, energy efficiency is not a goal in itself but just an indicator characterizing business processes and overall progress in the economy. Today one of the most acute problems involves modernization of the economy and the social relations, the government is actively looking for growth drivers in the economy, primarily by developing the real sector and industry. And if industry is the skeleton of the economy and the foundation that economic growth is based on, the effects of economic growth are distributed through the housing, utilities and social sectors, their comfortability, infrastructure, quality of housing and social infrastructure. These are closely interlinked processes: the real sector generates added value which is then distributed through urban areas (housing utilities), which in turn actively work with investors and act as social customers of projects in the real sector. Today, the demands of the housing and utility sectors for modernization can become a driver for industrial growth through the creation of localized production of components, equipment and materials for energy efficient modernization and creation of cooperative chains and regional production clusters.

Green technologies, the best available technologies, engineering, product management, better technologies, revolutionary IT approaches: with all these global trends taken into account Russia must follow its own way. The transition to the new industrial policy implies radical change in energy generation and energy consumption equipment. However, formal introduction of international requirements overnight in an attempt to make a profit in the global market may drive a lot of domestic producers into bankruptcy, the experts warn. In order to avoid unwanted consequences, a positive modernization period with a lot of state support is needed.

What has already been done, what other steps need to be taken to maintain the current trend and what measures are needed in specific sectors of the economy - these and other questions are answered in the report Minimal Energy Consumption Standards for Specific Types of Equipment as an Effective Mechanism of Ensuring Better Energy Efficiency in the Industrial Policy.

The materials were first presented in Yekaterinburg during the business program of Innoprom-2016.