Energy-Efficiency in Central & Eastern Europe & Russia

Cleantech - Teollisuuden

energiatehokkuus Itä-

Euroopassa ja Venäjällä

Santtu Hulkkonen, Ohjelmajohtaja

Cleantech Finland, Finpro

Ympäristöteknologian

asiantuntijaseminaari – TEM

18.11.2010

Contents

• Cleantech Finland

• Trends, markets vs. Finnish offering

• Economic outlook in Central & Eastern Europe & Russia

• Energy efficiency measures in CEE & Russia

• Energy efficiency market opportunities for Finnish

companies

November 22, 2010 Finnish Cleantech 2

3

Customers, Investors, Media

Cleantech Finland –brand

supports companies in

profiling themselves as

‟attractive business

partners‟.

All Cleantech Finland

companies have their own

brand building & marketing

activities.

Visibility &

Image synergies

Cleantech Finland. Members.

Energy sector in change

Booming growth market (10 % bio, 20 % wind, 40 % sun)

Conservative -> sexy

Production/supply driven to consumer demand

From centralized to decentralized systems

Fossils to renewable

“Dirty” to clean technology

Inefficient to Efficient (30 % -> 95 %)

ICT guys go green

November 22, 2010 Finnish Cleantech 5

Global Market Volume of Cleantech

Source: Roland Berger 2009 (Greentech 2.0)

Energy

efficiency

Bioenergy

& windClean

industrial

processes

Cleantech Finland – Top expertise

Sectors, Finnish competence

April 22, 2010 7

Recycling

Consultancy

Air protection

Waste

managementWater resources

management

Measuring, analysis,

automation

Market

growth rate

Market sizeThe size of the ball is equivalent to market position of the Finnish companies in the global markets.

Muutamien energiatehokkuus

teknologioiden kokonaismarkkinat.

November 22, 2010 Finnish Cleantech 8

Vuosi 2000,

mrd.$

Vuosi 2010,

mrd.$

Vuosi 2020,

mrd.$

Prosessiautomaatio

-järjestelmät

7,8 11 15

Taajuusmuuttajat 6,5 9,6 15,6

Valitut

metsäteollisuuden

teknologiat

0,19 0,19 0,32

Lähde:Tekes, Climbus -teknologiaohjelman taustaselvityksessä arvioitujen teknologioiden

kokonaismarkkinat.

Finnish energy efficiency, strengths

today

• Efficient administration and open markets

• CHP, district heating and cooling (municipal)

• Services and software

– Energy audits, emissions trading,

energy monitoring and measuring

• Integrated processes in industry and industrial CHP

• Energy efficient processes in energy intensive industries

• Frequency inverters and power electronics

• Wood/non-wood based bio-fuels

• Process and building automation

• Low-energy buildings

November 22, 2010 Finnish Cleantech 9

Finland's most promising innovations

April 22, 2010 10

New generation bio-fuels

Wood/non-wood based, by-

products from various

industries

Energy efficiency

Smart grid

Electric vehicles

Motors, automation,

AC drives, batteries

GDP growth (%) - CEE countries are

back on track!

November 22, 2010 Finnish Cleantech 11

Carbon emissions in Mt CO2 eq.

November 22, 2010 Finnish Cleantech 12

0 100 200 300 400 500 600

Austria

Bulgaria

Czech Republic

Hungary

Poland

Romania

Slovakia

Slovenia

Kyoto Target

2007

2005

Source: www.energy.eu 2010 & Eurostat 2010

Russia recovered fast, but far from

record years!

November 22, 2010 Finnish Cleantech 13

Market barriers – CEE far developed

than Russia!

• Absence of „energy efficiency culture‟ both policy-

makers and end-users.

• Legislative and regulatory system

• Economic and structural factors

• Financial barriers

• Lack of the necessary

knowledge, skills and

management and

potential service providers.

November 22, 2010 Finnish Cleantech 14

Huge energy efficiency potentials in

Russian industry.

November 22, 2010 Finnish Cleantech 15

• Combined heat and power generation (CHP)

• District heating

• Efficient industrial processes

– pulp & paper

– Chemicals

– Cement

– Metal & steel

– Etc.

• Energy management practices, energy audits

• Automation (ICT); smart grids

• ESCO – Energy Service Company services

• Advisory services, training, capacity building

November 22, 2010 Finnish Cleantech 16

Market opportunities for Finnish

companies in CEE & Russia

Opportunity: energy efficiency improvements

in Russian pulp & paper factories

November 22, 2010 Finnish Cleantech 17

Average Russian energy

intensity

International energy

intensity

Pulp production 18.1 GJ/t 11-14.3 GJ/t

Paper production 12-13 GJ/t 9GJ/t

Paper board production 11.77 GJ/t 7.8 GJ/t

Opportunity: Romania

/ © Finpro ry / / 18

Investments in power generation and

transmission grid

One third of power plants has been operating

longer than 30 years and the grid is obsolete.

Investments of 12-15 billion USD are

expected within next 10 years. Currently two

new nuclear reactors are under construction

by the Canadians.

Energy efficiency and environmental

protection

Due to high inefficiency energy consumption

per capita is 7 times higher than in Western

Europe. National priorities are energy

efficiency and conservation as well as closing

environmentally hazardous power plants.

Privatization and liberalisation of energy

market

This will change the whole playground and

make the market entry easier for new players.

Modernization of refineries

Romania holds one-third of Central and

Eastern Europe‟s refining capacity, but

the sector needs massive investments

to upgrade equipment and to improve

efficiency.

11/22/2010 19

Media RoundtableBeijing/October

Cleantech Finland Smart Days@Economic ForumSt. Petersburg/June

Cleantech Finland Smart Days

Shanghai/May

Cleantech Finland highlights 2011

Cleantech Forum Europe 2011

Amsterdam/May

Cleantech Finland Smart Days

London/December

DIREC 2011Delhi/October

Cleantech FinlandSmart Days

@DSDS 2011Delhi/February

WFES 2011Abu Dhabi/January

Power-Gen EuropeMilan/June

Cleantech FinlandMedia Roundtable

Germany/April

EWEA 2011Brussels/May

Media RoundtableSt. Petersburg/tbc

COP17South Africa/December

Cleantech FinlandCEE tour Feb-June

www.cleantechfinland.com