Energy efficiency is an energy resource, the EBRD’s Energy Strategy points out. Energy efficiency reduces production costs, enhances competitiveness, supports energy security and lowers CO2 emissions per unit of production. It is critically important not only in the energy sector but across a country’s whole economy.
In line with international efforts to combat climate change and the Bank’s particular competencies in the field of sustainable energy, the EBRD supports as a priority improvements in energy efficiency and energy savings across all the countries where the EBRD invests.
The EBRD aims to unlock its countries’ significant energy efficiency potential and promote the widest possible range of demand-side as well as supply-side efficiency investments. It therefore finances efficiency measures in power generation and gas flaring reduction but also energy efficiency in industrial processes, energy savings in residential and public buildings and investments in cleaner and more efficient transport infrastructure.
There are many opportunities for saving energy and other resources at almost any industrial company, SME, agri-business or in the municipal and transport sectors in the countries where the Bank invests.
The EBRD supports its clients in identifying these opportunities, turning them into economically viable projects and developing long-term investment programmes for efficient use of energy and resources. Energy audits play an essential role in translating energy efficiency gains into specific investment opportunities. This has helped many clients to optimise their risk profile and better manage their resources, whilst improving product quality and increasing profits.
The energy sector itself poses great challenges for most countries, especially with the present financial environment and the need to enhance economic development while meeting climate change goals. Energy efficiency measures therefore aim to reduce losses that occur every day in the production and delivery of power, heat and hydrocarbons.
Investments the EBRD promotes include upgrades of inefficient power and heat generation equipment to best available techniques (BAT), investments in gas flaring reduction and investments in smart grids and smart metering infrastructure.
Alongside these investments, the Bank works with governments and agencies through technical assistance and policy dialogue to support the introduction or review of energy efficiency standards such as building codes and the establishment of energy efficiency policy frameworks. The Bank also promotes measures to improve price transparency and cost-reflective pricing of energy services, one the most effective drivers of energy efficiency.