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

Information about Georgia

Territory: 70 000 km2

Population: 4,5 mln

Capital: Tbilisi 1,2 mln

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.

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

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

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 2003-2012 with the financial support of the

Government of Norway..

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

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.

Energy is basic for tree Components of Sustainable

Development : the economic and social development and

environmental Protection

Industrial ( SME s) Sector

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).

In Boiler Plant are installed two old Russian type steam boilers E-1/9

Measures of EE Investment

(GEL)

Savings

( GEL/year)

Payback period

(year)

1. Reconstruction of

Boiler Plant

22 000 19 300 1. 1

2. Thermalinsulation of

steam pipelines

2 000 1300 1.5

Total 24 000 20 600

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 TypeAggregate, In which losses of the raw material is no more 20%. Theelectrical capacity of aggregate is 75 kW. (The power capacity of theexisting aggregate is 150 kW ).

Measures of EE Investment

(GEL)

Savings

( GEL/year)

Payback period

(year)

1. Apple Pieces-Pressing Aggregate

150 000 20 040 7.4

2 Modernization of the Boiler Plant

34 000 12 500 2.7

Total 184 000 32 540

•EE Measures : 1. Power supply system upgrading in the Factory through installation of

new HV transformer,

1000 MW:

• Investment 12 000 USD, loan 7 000 USD

• Electricity savings 134 550 kWh/year or 12 400 USD/year

• Raw materials savings 5 tons/year or 5 000 USD/year

• Payback 1 year

Status: The Project was implemented

3. Milk Factory “Sante” in Tbilisi

4. Mill Factory “Progress” In City Rustavi

- EE Measure : 1.Reactive Power Compensator has been

installed

• Investment 9 000 USD, loan 6 000 USD

• Savings 17 500 USD/year, payback 0,5 year

• Status: The Project was implemented

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 3 840 USD/year

•Payback 0,2 year

•Less environmental pollution

•The project was implemented

2. Replacement of disposable filters with

washable filters:

•Investment 1 500 USD, loan 1 500 USD

•Savings 1 170 USD/year

•Payback 0,4 year

•Less wastes

•Status: The Project was implemented

6. Bread Factory № 1 in Tbilisi

EE Measure : 1.Replacement of steam feeding system with water

spray equipment in bakery ovens:

• Investment 17 500 USD

• Loan 7 000 USD

• Natural gas savings 257 740 m3/ year or 33 000 USD/year

• Payback 0,6 year

• Status: waiting for equipment delivery from USA

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 :

7. Bread Factory “Colkhuri “ in Tbilisi

In “Colkhuri” was conducted Energy Audit for identification of

Energy efficiency measures

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 1200 26 640 4593 0.26

2. The installation of heat exchanger at the

stack of the bakery stoves, for recovering heat

from flue gases900

21 600 1490 0.60

3. 3. Utilization of Renewable Energy –

I Installation of Solar Water Heating

System

18 300 48 000 3312 5.5

4.Installation of Energy efficient Lighting

System 350 9288 1486 0.23

5 5 The Substitution of Electrical Heating by

Energy Efficient water Heating System 4200 12 000 1002 4.19

6. Installation of Energy Efficient Double

Glassing Windows

2720 3000 480 5.6

7. The Substitution of Excessive Capacity

Motors

150 4000 576 0.26

8. To Switch from Diesel Fuel to Compressed

Natural Gas ( CNG ) in the Bread

Distribution Cars of the Factory.

8000 23 725 0.4

Total 35 820 36 664

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

Schema installation of Heat Exchanger on the stack of Boiler Plant

8. Bakery plant “Imerioni” in Tbilisi

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

Energy Efficiency measure: Thermal insulation of dough fix device

9. Bread Factory № 4 in TbilisiEE Measure : 1. Substitution of flour pneumatic transportation system with mechanical

one:

•Investment 16 000 USD

•Loan 7 000 USD

•Electricity savings 468 660 kWh/year or 26 479 USD/ year

Payback 0,6 year

•Status: The Project is implemented

Energy Auditing of Buildings

Buildings are biggest consumer of energy resources . Buildings

consume more than 40% of total energy consumption in the word.

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 40 -50 %

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

Heat losses from Building How to stop energy losses?

Roof 18%

HHeating and

Ventilation 32 %

Windows 17%

Walls 17%Floor 16%

Heat losses in the distribution of building

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).

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 CO2 ,

SO2, NO2 to the atmosphere.

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

b) The construction of the gas

pipeline to boiler house

140 000

among them :

110 000

30 000

230 850

34 486

4.05

2 . The thermal insulation of the roof

of building

40 000 153 900 8970 4.45

3. The installation of energy efficient

double glazed windows

16 000 32 062 1868 8.5

5 4. Installation of Energy efficient lighting

system

66 000 73 872 7092 9.2

5. The utilization of renewable energy –

installation of Solar Water Heating

(SWH) System

15 878 84991 3872 4.1

6. Installation of DRYMAT –System,

for permanently dry building’s wall ( with the potential to save

approximately 5% of the heating

consumption).

45 000

Total 322 878

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

A view of growing Baku A view of the old and newTbilisi

Energy Institute, Baku

ENCON Potential - Energy Audit

Building: Energy Institute, Baku Project no: 8Heated area:

4 032 m²

Energy conservation measures Investment Net savings Payback NPVQ*

[USD] [kWh/yr] [USD/yr] [year]

1. Replacement of the pumps for

water supply1 200 24 190 1 660 0,7 9,2

2. Replacement of the heating

system

8 200 156 440 3 810 2,2 4,4

3. Replacement of lighting devices 2 540 25 800 1 760 1,4 4,1

4. Installation of independent boiler-

house18 200 201 200 4 880 3,7 1,6

Total ENCON measures 30 140 407 630 12 110 2,5

5. Replacement of windows 22 600 152 810 3 820 5,9 0,9

6. Additional insulation of the roof 4 830 24 600 620 7,8 0,3

Total all measures 57 570 585 040 16 550 3,5

School N 143, Tbilisi

ENCON Potential - Energy Audit

Building: School # 143, Tbilisi Project no: 1Heated area:

3 875 m²

Energy conservation measures Investment

[USD]

Net savings Payback

[year]

NPVQ*

[kWh/yr] [USD/yr]

1. Insulation of pipes 450 16 660 350 1,3 5,7

2. Double-glazing of the windows 7 910 128 660 2 440 3,2 1,7

3. Installation of valves 980 27 900 290 3,4 1,0

Total ENCON measures 9 340 173 220 3 080 3,0