Azerbaijan, Baku, May 21 / Trend , N.Ismayilova/
Largest Azerbaijani companies can reduce their energy expenses by 20 percent for three years, the report of the International Finance Corporation (IFC) "Energy efficiency - a resource for sustainable development" said, which was presented to the public.
Such savings will allow Azerbaijani companies to increase sustainability in the face of global competition, the report said.
Power, the amount of energy produced per dollar of GDP in Azerbaijan amounted to 3.2 kWh / dollar, while the rate in Georgia is 2.7 kWh / dollar, and in Russia - 5,3 kWh / dollar. However, it is also necessary to note that Azerbaijan has the highest GDP growth. According to expert estimates, Azerbaijan may reduce energy production by 10 per cent of GDP for two or three years
Only 41 percent of leadership in Azerbaijani companies is aware of energy consumption and potential energy, while 14 percent did not have a notion about this.
Half of surveyed companies stated that legislation stimulates the energy efficiency not enough, so IFC noted the need to establish regulations for the manufacturing sector.
According to studies, most of the equipment in Azerbaijani companies is obsolete, and the period of its operation over 25 years. 46 percent of companies said the shortage of funds to update the outdated equipment. However, only 15 percent sought outside funding in 2006-2007, out of which 47 percent have received funding.
Companies, which refused to receive external finance, explained that with high rate (36 percent) and adequacy of own funds (15 percent).
IFC has proposed several measures to improve energy efficiency in Azerbaijani enterprises. The administrative measure included such as the establishment of programs to improve energy efficiency, creating a special department dealing with this issue, issuance of awards and application of penalties for energy conservation and waste, increasing awareness of staff, as well as the use of non-financial ways to promote.
There were also proposed measures reducing the percentage of energy expenses, as well as reduction of losses and waste, reducing number of defective products, improve product quality and reduced labor costs.
IFC also encourages Azerbaijani companies to increase competitiveness to conduct a detailed energy audit and identify energy processes realistically assess the potential for energy savings, evaluate the costs and benefits of energy saving measures
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