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IFC: Azeri firms may save energy costs by 20%

20 May 2009 16:32 (UTC +04:00)

Baku. Nijat Mustafayev - APA-Economics. Azerbaijan-based firms may save energy costs by 20%, IFC, a member of the World Bank Group, found in an energy efficiency survey.

The survey sought to assess the current market for energy efficiency financing in Azerbaijan and to raise awareness among local financial institutions, small and medium enterprises (SMEs), and policy makers about existing opportunities for energy efficiency financing in the country.

According to the report, Azeri industrial enterprises can significantly reduce energy costs through funding and implementing more ambitious plans for energy efficiency after improving their knowledge and know-how in this field.

The report said Azeri industry is the most energy consuming one in the region.

The Government of Azerbaijan should intensify improvement of the regulatory framework that promotes energy efficiency in order to ensure sustainable growth and energy security, said the report.

In addition to policy and operational issues, there are significant environmental issues in the energy sector of Azerbaijan because of the outdated technologies, inefficient equipment, limited pollution control mechanisms, inadequate waste management, and the poor quality of raw materials. Environmental degradation has been growing as many households have attempted to cope with reduced gas supplies by switching to fuel, wood, or oil.

The report is based on survey of about 100 enterprises and institutions.