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The Energy Efficiency and Cleaner Production Centre

Profile

- Mission - to enhance activity of the engineering staff of Georgian enterprises in the direction of saving resources and, as a result, to reduce waste and decrease environmental pollution.

- Background and history

The Energy Efficiency and Cleaner Production Centre, non-governmental and non-profit organization, was established on the basis of the Civil Code of Georgia in 2003, within the framework of the Georgian - Norwegian Capacity Building Programme on Energy Efficiency and Cleaner Production.

Founders of the Centre are:
1. The Union “Energy Efficiency – 21 Georgia ”
2. The Fund “Carbon Power Engineering Fund”
3. The Union “Georgian Center of Energy Efficiency ”
4. The Fund “Caucasian Regional Center of Ecology”
5. “ENSI – Energy Saving International” – Norway

In April 2005 The Energy Efficiency and Cleaner Production Centre has been merged with Energy Efficiency Centre Georgia.

Contact Information

Telephones:

+ 995 32 242540; + 995 32 242541

FAX

+ 995 32 242542

Address

19, D.Gamrekeli street, VI floor, Tbilisi, 0160, Georgia

E-mail

eecgeo@eecgeo.org

Service

Energy Auditing of Buildings

Energy Auditing of building is the joint Norwegian-Georgian Project, aim of which is to enhance activity of the engineering staff and to implement Energy Efficiency measures.

The first combined training and project development programme on “Energy Auditing of Buildings" for the specialists from Azerbaijan and Georgia was conducted within the period April-August, 2004. The Norwegian programme offered hands-on training on identification, development and implementation of energy efficiency projects according the ENergy CONservation Process (The ENCON Process).

The goal was to train engineers and specialists on Energy Auditing of Buildings, enabling them to complete all the steps of the ENCON Process, including:

• Project Identification and Scanning to select the most suitable projects;

• Energy Auditing, development and presentation of Energy Audit Report;

• Development of procedures for Operation & Maintenance and Energy Monitoring of Buildings;

• Planning of efficient project implementation.

The target group for the training programme were the staff of the Centres, external consultants, representatives from building owners and educational institutions. The Programme was planned and implemented together with the Cleaner Production and Energy Efficiency Centers in Azerbaijan and Georgia.

Certificates were awarded to 28 participants, representing 13 different organisations. 8 of the 28 were representatives from the Centres.

During the Programme 4 Energy Audit Reports were developed by the participants. Key figures from the projects are summarized below:

Project

no.

Building

Year of

constr.

Heated

area

Energy

savings

%

No. of

measures

Tot. inv.

USD

Savings per year

kWh USD

Payback

years

1

School # 143, Tbilisi

1968

3 875

30

3

9 340

173 220

3 080

3,0

2

School # 161, Tbilisi

1974

7 582

32

5

16 825

272 190

19 620

0,9

3

Maternity Hospital, Tbilisi

1968

5 364

11

3

7 600

235 490

3 510

2,2

4

Infectious Hospital, Tbilisi

1938

1 014

25

3

3 050

44 210

1 570

1,9

Total ENCON measures

24

14

36 815

725 110

27 780

1,3

Energy Monitoring

Energy consumption in many buildings is 20 - 40 % higher than required for guarantee necessary comfort level. Administrative and public buildings often have big ENCON Potential. The energy consumption is usually reduced up to an optimal level and remains the same for several years after implementation of energy saving measures.

Energy Monitoring activity in the buildings does not require significant investments. Norwegian experience shows that permanent Energy Monitoring in the buildings reduces costs of energy consumptions by 8-15% by means of control of energy consumption and earlier revealing of its violations. In other words, Energy Monitoring is the most profitable and simplest measure on higher of energy efficiency in the buildings.

Energy Monitoring is a control tool for permanent maintenance of the energy consumption at due level

Energy monitoring is based on routine (weekly) registration of energy consumption and measuring of relative changes in outdoor temperature.

Cleaner Production and Energy Efficiency in Industry

Capacity Building Programme “Energy Efficiency and Cleaner Production in Industry” is the joint Norwegian – Georgian project aim of which is to enhance activity of the engineering staff of Georgian enterprises in the direction of saving resources. It is about using raw materials and utilities (i.e. energy and water) more efficiently.

The Norwegian consultancy company ENSI - Energy Saving International make training programme “Capacity Building Programme Energy Efficiency and Cleaner Production in Industry”.

Between the training sessions, each participant or group of participants carries out practical homework on a specific project. This enables them to gain their own experience while repeating and testing their new knowledge, resulting in Pre-feasibility Studies, Audit Reports and Business Plans for their own projects, ready for implementation or submission to financial institutions.

Participants who have successfully completed the programme, are handed professional certificates.
Companies may choose to make small investments from their own budget or they can borrow money from the Revolving Fund, which was established by the programme, to implement saving measures.

Our programme started from November 2003. In Project take part 14 companies from Rustavi and Tbilisi and 30 managers were trained. For today companies implemented measures and saves 97 749 USA.

About Revolving Fund

Revolving Fund (RF) was established by the programme.
Companies may choose to make small investments from their own budget or they can borrow money from the RF.
RF will financing only Energy Efficiency and cleaner production measures. Payback period is less than one year, grace period 6 month. The maximum loans from the Revolving Fund would be 7 000 USD per company. It is best for the company to get the loan as late as possible, because interest is calculated from 1st day of disbursement.
Our programme participated 14 companies, nine of them make small investment from their own budget + loan from RF. They implemented EE&CP measures and saved raw materials. For today’s information companies saved 97 749 USA.

See below schedule:

Name

Measure

Loan (USD)

Annual Saving (USD)

Bread Factory № 1 (70 employees)

the substitution of steam feeding by water spraying in the bakery stoves
7000 17500

Mill Factory «Progress»
(130 employees)

installation of the reactive energy compensation devices
6000 26560 (20000 investigation)

Non-Alcoholic Drinks Factory “Oasis” (50 employees)

1. installation of multiple filters, 2. HV transformer, 3 installation of automatic syrup dosage system.
2000 5780

Milk Factory «Sante Walsh Products» (110 employees)

change power supply system
7000 9400

Bread Factory № 4 (120 employees)

substitution of pnevmatic transportation of the flour by mechanical
7000 9870

Bread Factory “Beta +” (25 employees)

1. reducing capacity of the electroboiler with regulation 2. substitution of diesel-fuel with natural gas in trucks engine
6500 8357

Bread Factory” Burji” (50 employees)

installation of new gas stove
7000 12050

Bread Factory “Krtsanisi” (100 employees)

substitution of flour pneumatic transportation with feeding screw
7000 16400

Printing House “Polygraph” (20 employees)

purchase risograph with interface
6000 9175

The Project Development Process

Every project is unique, and decision-makers may have various intentions and plans for the project (profit, environmental requirement, renovation, etc.). Therefore each project must be treated separately to find individual solutions.

The Project Development Process is a generic method for developing energy efficiency and environmental projects. The total process is divided into six main activities/steps as illustrated in the flow chart. The results from each of the steps will be evaluated, and decisions made whether or not it is beneficial to continue the process.

If the information gathered during the project Identification phase reveals a beneficial project, a brief technical-economic evaluation named a Scanning is performed. The Scanning will assess whether or not profitable installations can be made. The following key figures are usually presented in the Scanning Report:
•Total energy saving potential
• Total investments required
• Profitability

If Scanning reveals a profitable and beneficial project, we then continue with a more detailed technical-economic evaluation, otherwise known as an Energy Audit (incl. Environmental evaluations).

The Energy Audit Report will provide you with more detailed information about the project and its profitability, and is the basis for the decision of project implementation.

If external financing of the project is required, or in case further clarification about the investment i required, the process will continue with the development of a Business Plan, which will later be presented to financial institutions. Assuming financing has been obtained, we can continue to the Implementation step.

During the Implementation period, it is important to ensure that all activities proceed in accordance with the budget, time schedule, quality requirements, laws and regulations.

After the implementation has been completed, correct and efficient Operation will begin. Routines and procedures for correct operation and maintenance should be developed and used to ensure proper use of all installations.

When energy efficiency and environmental measures have been implemented in a building, we have to ensure that energy consumption remains permanently low. To do this we need good procedures for energy management.

Norwegian - Georgian Cooperation Programme

Capacity building on Energy Efficiency and Cleaner Production
Norwegian - Georgian Co-operation Programme

The “Energy Efficiency and Cleaner Production Centre” is the focal point of the joint Norwegian – Georgian Capacity Building Programme on Energy Efficiency and Cleaner Production. This long-term bilateral programme is executed in close co-operation with the Government of Georgia and with financial support from the Norwegian Ministry of Foreign Affairs.

The objectives of the programme are to contribute to reduced pollution loads, increased energy efficiency, improved environment and a sustainable and market economy based development in Georgia. It is intended to be a catalyst in establishing basic capacity and skills for increased energy efficiency and improvement of the environmental conditions in industry, buildings and district heating.

Imported fossil fuels, which is the main energy carrier for heat energy generation, is a heavy burden for the budget of Georgia. The subsidies on the public energy consumption have been removed, increasing the energy prices. The political consequences of such a decision are hard to carry for the Government of Georgia. Therefore development of local renewable energy sources and energy savings are of high priority for the Government. They have underlined the importance of getting projects implemented to achieve savings and improvements. However, one barrier is that local project managers and technical specialists have limited skills and experience in how to identify, develop, arrange financing and implement specific projects for Energy Efficiency and Cleaner Production.

Norway has successfully implemented such capacity building programs in several Central and Eastern European and CIS countries. A number of Centres for Energy Efficiency and Cleaner Production have been established and are in operation in Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Romania and the Russian Federation, having contributed to substantial documented achievements and savings.

The Norwegian consultancy company ENSI - Energy Saving International, partner of NEEG – the Norwegian Energy Efficiency Group, has played a central role in initiating and developing the concept and content for these long-term Norwegian capacity building programmes on Energy Efficiency and Cleaner Production.

In the spring of 2003 the Norwegian Ministry of Foreign Affairs decided to start this programme in Georgia. The programme is managed by ENSI at the Norwegian side, and is based on the same concept proven its success in other countries. The programme content comprises the following five main headlines:

1. Development of the “Energy Efficiency and Cleaner Production Centre”
Development of the Centre in Georgia as the national “Centre of Excellence” for Energy Efficiency and Cleaner Production is seen as a strategic measure to ensure long-term results. The Centre will act as the link between national authorities, and industries and international companies, suppliers, institutions and organisations.

The model and strategy for the programme and the main directions to be dealt with are illustrated below.

All activities will build on the skills of the local engineers, managers, economists and specialists. Initially the Georgian specialists and the Centre staff will need training and support from Norwegian specialists. Step by step they will implement the various activities with decreasing Norwegian support pecialists, and at the end of the programme they will be able to implement all the activities themselves and continue a further, sustainable development. This way, a strong and self-financed Centre will ensure the programme's long-term goals.

2. Combined capacity building and project development
Local specialists need training and the capacity to develop, arrange financing and implement Energy Efficiency and Cleaner Production measures and projects. To ensure efficient learning, the Norwegian programmes are interactive combining training with development of specific, commercial projects. Between the training sessions, each participant or group of participants carries out practical homework on a specific project. This enables them to gain their own experience while repeating and testing their new knowledge, resulting in Pre-feasibility Studies, Audit Reports and Business Plans for their own projects, ready for implementation or submission to financial institutions.

The following subjects will be covered through interactive training courses during the programme:
• Energy Auditing of Buildings
• Cleaner Production and Energy Efficiency in Industry
• Energy Monitoring
• Financial Engineering/Business Planning
• Project Management
• Environmental & Quality Management Systems and Standards

3. Implementation of Energy Efficiency and Cleaner Production projects
Several projects will be developed as a part of the courses described above. These projects will include buildings, industrial facilities, district heating systems, etc. The programme will establish and develop suitable financial schemes (i.e. Revolving Fund) for arranging project financing for selected demo-projects. In dealing with these projects, local specialists will develop skills in project development, management, project financing, monitoring, etc.

4. Information
Local representatives from the municipal sector, industry and decision-makers often lack information on the practical options for Energy Efficiency and Cleaner Production that will influence their business in a positive way.

To raise public awareness, and thus increase the request for Energy Efficiency and Cleaner Production services, information on already achieved results needs to be widely disseminated.

The Norwegian programme includes a set of information activities to be carried out together with the Centre:
• Development of the project brochures, guidelines, reports, etc.
• Development of Internet homepage
• Arranging of workshops, seminars and exhibitions
• Networking

5. Co-financing and international co-ordination
The Norwegian and Georgian support will be the basic contribution to the programme. Together with the Centre, the possibilities for obtaining co-financing from GEF (Global Environmental Facility), World Bank, EU, USAID or other organisations and financial institutions will be investigated. The process of identifying additional financial sources and investors is started from the very beginning.

Commenced in May 2003, activities of the Norwegian Capacity Building Programme on Energy Efficiency and Cleaner Production in Georgia are now well underway. The co-operation is foreseen for 5 years and offers ample opportunities that you can benefit from.

Please do not hesitate to contact the Energy Efficiency and Cleaner Production Centre for more information.

Software

To ensure efficient and high quality services from our Centre, we are using modern technologies and software.

We have full access to the software and tools developed by our international partner ENSI – Energy Saving International.

Our Centre staff has been trained and are authorized to use the following software:

• Key Numbers Software calculating energy consumption and energy saving potential for buildings

• Economy Software for detailed profitability and draft Cash flow calculations

• Energy Monitoring Software for processing and reporting results from energy monitoring of buildings

For more information, please visit the Software site of ENSI - www.ensi.no

Projects and References

Implemented Projects

Energy Efficiency and Cleaner Production Capacity Building Programme in Georgia. Progress Report, June 2004

Combined Training and Project Development Programme in Azerbaijan and Georgia "Energy Auditing of Buildings" - Completion Report, September 2004

Combined capacity building and project development programme on “Energy Efficiency and Cleaner Production in Rustavi,Georgia”. Completion Report, November 2004

Capacity Building Programme on Energy Efficiency and Cleaner Production. Status December 2003

Programme on Energy Efficiency and Cleaner Production in Industry, Tbilisi. Completion Report, December 2003

Programme Staff

Ms. Nelly Verulava - project coordinator . Has over 20 years experience coordinating, implementing, and managing projects in the sphere energy efficiency and environment protection. She participated several International Projects, among them : UNDP/GEF project “ Removing Barriers to Energy Efficiency in Municipal Heat and Hot Water Supply”; the Feasibility Study elaborated by JapanCompany “ Kansai Electric Power “ - Thermal Efficiency Improvement of Geardabani Power Plant.”; the Norwegian–Georgian Programme “ Energy Efficiency and Cleaner Production in Georgia”. She is the member of the Tbilisi City Council Special Energy Commission, were took part in preparation of “The Conception of the Tbilisi City Municipal Heating System Development“

Paata Gagnidze - Expert of Energy Audit building of EEC Georgia, electric engineer, Georgian Technical University graduate, Master of Environmental Management , International center for Environmental Management and Planning graduate; participant of several training programmes sponsored by international institutions, has many years engineering experience with international companies (B&V (UK) LTD , AES), private company and Ministry of Environmental.

Khatuna Sichinava - Expert of the programme on “Energy Efficiency&Cleaner Production in Industry”.
Graduated Georgian Technical University, Energy Faculty, HPS and sub-stations engineer. Involved in scientific works in Georgian Scientific and Technical conference, participant of several training programmes sponsored by international institutions, has engineering experience on Small HPS Planning and developing in Georgia, worked on the development and implementation of TACIS projects - EGE 9501 and EGE 9801, since 2003 till now the main areas of activities are energy efficiency.