Russia Energy Efficiency Indicators

8/13/2019 Russia Energy Efficiency Indicators

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Development ofEnergy Efficiency

Indicators in Russia

INTERNATIONALENERGYAGENCY

NATHALIETRUDEAUANDISABELMURRAY

W O R K IN G PA PE R

2011


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INTERNATIONAL ENERGY AGENCY

The International Energy Agency (IEA), an autonomous agency, was established inNovember 1974. Its mandate is two-fold: to promote energy security amongst its member

countries through collective response to physical disruptions in oil supply and to advise member

countries on sound energy policy.The IEA carries out a comprehensive programme of energy co-operation among 28 advancedeconomies, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports.The Agency aims to:

n Secure member countries access to reliable and ample supplies of all forms of energy; in particular,through maintaining effective emergency response capabilities in case of oil supply disruptions.

n Promote sustainable energy policies that spur economic growth and environmental protectionin a global context particularly in terms of reducing greenhouse-gas emissions that contributeto climate change.

n Improve transparency of international markets through collection and analysis ofenergy data.

nSupport global collaboration on energy technology to secure future energy suppliesand mitigate their environmental impact, including through improved energy

efficiency and development and deployment of low-carbon technologies.

n Find solutions to global energy challenges through engagementand dialogue with non-member countries, industry,

international organisations and other stakeholders. IEA member countries:

Australia

Austria

Belgium

Canada

Czech Republic

Denmark

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Japan

Korea (Republic of)

Luxembourg

NetherlandsNew Zealand

Norway

Poland

Portugal

Slovak Republic

Spain

Sweden

Switzerland

Turkey

United Kingdom

United States

The European Commission

also participates in

the work of the IEA.

Please note that this publication

is subject to specific restrictions

that limit its use and distribution.

The terms and conditions are available

online at www.iea.org/about/copyright.asp

OECD/IEA, 2011

International Energy Agency9 rue de la Fdration

75739 Paris Cedex 15, France

www.iea.org


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Development ofEnergy Efficiency

Indicators in Russia

INTERNATIONALENERGYAGENCY

NATHALIETRUDEAUANDISABELMURRAY

W O R K IN G PA PE R

2011

The views expressed in this working paper are those of

the authors and do not necessarily reflect the views or policy

of the International Energy Agency (IEA) Secretariat or

of its individual member countries. This paper is a work

in progress, designed to elicit comments and further debate;

thus, comments are welcome, directed to the authors at:

[email protected] [email protected]


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OECD/IEA2011 DevelopmentofEnergyEfficiencyIndicatorsinRussia

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Tableofcontents

Acknowledgements........................................................................................................................5

Executivesummary.........................................................................................................................7

ThedatasituationinRussiatodevelopindicators..................................................................8

Introduction:theuseofindicatorstounravelthecomplexityofenergyconsumption..............10

Industrysector..............................................................................................................................12

AvailabilityofindustrydatainRussiatodevelopindicators.................................................13

Keyindicatorsfortheindustrialsector.................................................................................15

Residentialsector..........................................................................................................................18

AvailabilityofresidentialdatainRussiatodevelopindicators.............................................19

Keyindicatorsfortheresidentialsector...............................................................................21

Servicesector................................................................................................................................25

AvailabilityofservicedatainRussiatodevelopindicators...................................................25

Keyindicatorsfortheservicesector.....................................................................................26

Transportsector............................................................................................................................28

Passengertransportsector....................................................................................................28

Freighttransportsector.........................................................................................................32

Conclusionsandnextsteps...........................................................................................................36

AnnexA.TheIEAindicatorapproach...........................................................................................37

ThebenefitsoftheIEAapproach..........................................................................................37

TheIEAindicatorpyramid.....................................................................................................38

AnnexB.TheIEAmethodologyforanalysingenergyconsumption.............................................46

Thedecompositionofchangesinenergyconsumption........................................................46

Sectoralcoverage..................................................................................................................49

AnnexC.References.....................................................................................................................51

AnnexD.Abbreviations,acronymsandunits...............................................................................52

Listoffigures

FigureA.1:TheIEAindicatorpyramid..........................................................................................38

FigureA.2:Industrysectorpyramid.............................................................................................39

FigureA.3:Residentialsectorpyramidbasedonfloorarea.........................................................41

FigureA.4:Residentialsectorpyramidbasedonhousehold.......................................................42

FigureA.5:Servicesectorpyramid...............................................................................................43

FigureA.6:Passengertransportsectorpyramid..........................................................................44

FigureA.7:Freighttransportsectorpyramid...............................................................................45

FigureB.1:BasicoverviewoffactorsinCO2decomposition........................................................49

FigureB.2:Disaggregationofsectors,subsectorsandendusesin

IEAenergyindicatorsapproach..............................................................................................50


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DevelopmentofEnergyEfficiencyIndicatorsinRussia OECD/IEA2011

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Listoftables

Table1:Industrydataneededtodevelopbasicenergyand

energyefficiencyindicators...................................................................................................14

Table2:Keyindicatorstounderstandtrendsinenergyand

energyefficiencyinindustry.................................................................................................16

Table3:Residentialdataneededtodevelopbasicenergyand



energyefficiencyinresidential..............................................................................................22

Table5:Servicedataneededtodevelopbasicenergyand



energyefficiencyinservices..................................................................................................27

Table7:Passengertransportdataneededtodevelopbasicenergyand

energyefficiencyindicators....................................................................................................30

Table8:Keyindicatorstounderstandtrendsinenergyandenergy

efficiencyinpassengertransport..........................................................................................31

Table9:Freighttransportdataneededtodevelopbasicenergyand



energyefficiencyinfreighttransport....................................................................................35

TableB.1:Summaryofvariablesusedforthedecomposition.....................................................47

List

of

boxes

Box1:TheIEAenergyefficiencyindicatorstemplate..................................................................11

Box2:Energyefficiencytrendsinmanufacturingsector.............................................................12

Box3:Impactofindustrialstructure............................................................................................13

Box4:Thebenefitsofenergyefficiencyindicatorsforcompanies..............................................14

Box5:Energyefficiencytrendsinresidentialsector....................................................................18

Box6:Determiningpriorityareafordevelopingendusedata....................................................19

Box7:Energyefficiencytrendsinservicesector..........................................................................25

Box8:Energyefficiencytrendsinpassengertransportsector....................................................28

Box9:Energyefficiencytrendsinfreighttransportsector..........................................................32


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Acknowledgements

This work was undertaken by the International Energy Agency (IEA) with funding from the

Foreign and Commonwealth Office of the United Kingdom Government under the Strategic

ProgrammeFund.

Thispaperwasprepared bythe IEADirectorateof Sustainable Energy Policy andTechnology in

collaboration with the Directorate of Global Energy Dialogue. The lead authors are Nathalie

TrudeauandIsabelMurray.

SpecialthanksgotoJeanYvesGarnier,HeadofIEAEnergyStatisticsDivision,PeterTaylor,Headof

IEAEnergyTechnologyPolicyDivisionandAnnEggington,formerHeadofIEAEurope,MiddleEast

andAfricaDivision,fortheircontinuoussupportandencouragementthroughouttheproject.

Editorial and production assistance provided by Anne Mayne and Marilyn Smith added

significantlytotheoverallqualityofthereport.

Manyothercolleagueshaveprovidedhelpfulcontributions,particularlyFranoisCuenot,Davide

dAmbrosio,MichelFrancoeur,PhilippinedeTSerclaesandAnnaZyzniewski.

TheIEAandtheauthorswishtothanktheFederalStateStatisticsService(Rosstat)oftheRussian

FederationfortheirclosecooperationthroughouttheprojectwithspecialthankstoAlexander

Goncharov, Deputy Director, Department of Foreign Statistics and International Cooperation,

Rosstat.The IEAwouldalso liketothanktheRussianEnergyAgencyfortheircooperationover

2010onenergyefficiencyindicators.

The IEA would also like to thank all the participants of the Round Table on Energy Efficiency

Indicators in Russia, held in Moscow on 20 September 2010, for their valuable insights on this

issue.TheIEAandtheauthorswelcometheirfeedbackonthisworkingpaperandlookforwardto

continuedcooperation.


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Executivesummary

Fordecades,countriesaroundtheworldhaveusedaggregateindicatorstoconstructabigpicture

ofpatternsofenergyuse.Oneofthemostcommonlyusedaggregateindicatorsisenergyintensity:

the measure of energy consumption per unit of gross domestic product (GDP). According to thisindicator,RussialedG8countries

1inthereductionofenergyintensityoverthe1990s;Russiasenergy

intensityhavingimprovedby2.5%ayear.From2000to2007,Russianenergyintensityexperienced

anevenhigherrateofimprovementwithanaverageannualdecreaseofover5%.

However,theusefulnessofthisindicatorislimitedandcanbemisleading;inactualfact,energy

intensity is driven by many factors that are not necessarily relatedto energy efficiency. So it is

perfectly possible to have improving energy efficiency, while still seeing rises in energy

consumption (the inverse is also true). For instance, given the increase in international

hydrocarbonpricesduringthe200007periodandtheconsequentgrowth in RussiasGDP, it is

likely that the decline in energy intensity seen during this time frame was linked more to

economicgrowthratherthanimprovedenergyefficiency.

This speaks to the need for mechanisms that can deliver a better understanding of the factors

thataffectenergy intensity,notonlywithinagivencountrybutonasectorbysectorbasisthat

adequately reflects that countrys economic landscape. Moreover, as each main sector2 is

influenced bydifferentunderlyingfactors,differentexplanatory datawillbeneededdepending

on the sector analysed. Much more detailed and disaggregated data than are currently

availableinstandardenergybalancesareneededforeachmainendusesectortoassesstherole

ofenergyefficiencyandthepotentialforfurtherenergysavings.

Overthepastyears,theInternationalEnergyAgency(IEA)hasbeendevelopingenergyefficiency

indicators for each enduse sector, with the specific aim of helping to disentangle the various

factors that drive and restrain energy use. Much of this work has been driven by the fact that

improvedenergyefficiency isasharedpolicygoalofmanygovernmentsaroundtheworld.Thebenefits of more efficient use of energy are well known and include reduced investments in

energy infrastructure, lower fossilfuel dependency, increased competitiveness and improved

consumer welfare. Efficiency gains can also deliver environmental benefits by reducing

greenhousegasemissionsandlocalairpollution.

In recent years, the IEA has worked closely with Russia to improve energy data collection in

general.Whilesomeprogresshasbeenmade,muchmoreworkisrequired:mostdatarequired

to understand past trends, assess the largest potential for energy savings and enhance energy

efficiencypoliciesarecurrentlynotavailable.

Despitethedatagapsidentified,analysisofsomesectorsoftheeconomyindicatesthatthereisa

large energy savings potential in Russia. In fact, Russia is sometimes referred to as the SaudiArabia of energy efficiency; its vast potential to reduce inefficient or wasteful energy

consumption can be considered a significant energy reserve. One IEA study estimated that

energy efficiency improvements in Russias district heating sector, alone, could save 30 billion

cubic metres per year (bcm/yr) to 50bcm/yr of natural gas (IEA, 2004). Optimisation of its

transmissionanddistributionsystemsfornaturalgas,coupledwithreductionsingasflaringbyits

oil and gas industry, could save up to a further 30 bcm/yr. In the industry sector, the energy

savingsfromtheapplicationofbestavailabletechnologiesisestimatedat750petajoules(PJ).3

1TheG8countriesincludeCanada,France,Germany,Italy,Japan,Russia,theUnitedKingdomandtheUnitedStates.

2Themainenergyconsumingsectorstypicallyanalysedincludeindustry,residential,serviceandtransport.

3 It is important to note that this potential cannot be achieved in the short term. The rate of implementation of best available

technologies in practice depends on a number of factors, including capital stock turnover, relative energy costs, raw material

availability,ratesofreturnoninvestmentandregulations.


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Russia, recognising the benefits of more efficient use of energy, is taking measures to exploit this

potential.Thepresidenthassetthegoaltoreduceenergyintensityby40%between2007and2020.

Furthermore,since2008,Russiahastakenimportantstepstowardcreatingalegalandinstitutional

framework to enhance efficient energy use and supply. A law on energy efficiency, passed in the

Duma4inNovember2009,introducesseveralimportantmeasuressuchas:restrictionsonthesaleof

incandescent light bulbs; requirements for electrical products to be labelled according to their

energyefficiencyrating;provisionsonmandatorycommercialinventoriesofenergyresources;new

energyefficiencystandardsfornewbuildingsandinstallations;andreductionsinbudgetspending

onpurchasingenergyresources.Inaddition,energyintensivebusinesseswillberequiredtocarry

out energysaving research and to adhere to energysaving and energyefficiency programmes.

This new protocol will also encompass a transition to a longterm tariff regulation and the

establishmentofasharedinterministerialenergyefficiencyinformationandanalysissystem.

In the past few years, the IEA worked closely with Russias Federal State Statistics Service

(Rosstat) and the newly formed Russian Energy Agency to support the development of energy

efficiency indicators in Russia. This work, which has focused on the industrial, residential and

transportsectors,iscriticaltoaneffectiveimplementationandmonitoringofRussiasambitiousenergy intensity and efficiency goals. Since 2008, the IEA has been working with Rosstat to

establishwhatdataalreadyexists,identifythedatagaps,andassessthedataquality.

ThekeyfindingsoftheIEAworkwithRussiaondevelopingenergyefficiencyindicatorsformthe

coreofthisreport.Thereportprovidesanoverallassessmentofrecenttrends,thecurrentdata

situationinRussia,a listofthebasicdataneededtodevelop indicators,andtheusefulnessand

limitation of some key indicators. It comprises five chapters covering the five main enduse

sectors:industry,residential,services,passengertransportandfreighttransport.

The report also includes two methodological annexes. Annex A describes the IEA indicator

approach, which uses the idea of a pyramid to portray the hierarchy of energy indicators (from

mostdetailedtoleastdetailed).AnnexBincludestheIEAenergymethodologytoanalysetrendsin

energyconsumption.

ThedatasituationinRussiatodevelopindicators

IndustrysectorThe IEA has found that for industry, the data available from Rosstat national energy surveys and

Russian National Accounts5 are at a detailed enough level of disaggregation to calculate energy

indicatorsbasedonphysicalunitsonproductionandprovidean initialassessmentoftheeffectof

energy efficiency on industry energy consumption. However, several major issues still need to be

overcometodevelopenergyefficiencyindicators.Forinstance,RosstatusescurrentRussianroublesinitsvalueaddedcalculations,butinordertoestablishanoverallindicatorfortheindustrysector,

valueaddedinconstantcurrencyisrequired.6TheIEAiscurrentlyworkingwithRosstattoaddress

this data issue. Questions also exist regarding breaks in Rosstat time series for some data points.

More difficult issues remain in relation to defining the coverage of energy consumption data (the

boundariesfortheindustry).Theboundariesissueswilltakemuchlongertoresolveandwilldemand

4Russiasparliament.

5TheNationalAccountsisaconsistentandintegratedsetofmacroeconomicaccounts,balancesheetsandtablesbasedonaseton

internationally agreed concepts, definitions, classifications and accounting rules. It includes data such as GDP, investment, private

consumptionandlevelofgovernmentdebt.6Valueadded isthedifferencebetweenoutputandintermediateconsumptionforanygivensector/industrythatisthedifference

betweenthevalueofgoodsandservicesproducedandthecostofrawmaterialsandotherinputsusedinproduction.


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closecollaborationwithRosstatexpertsandstatisticians.Moredetailedanalysiswillalsobeneeded

tobetterunderstandRosstatsindustryenergyconsumptiondata.

ResidentialsectorSome of the necessary data to establish aggregate energy indicators for the residential sector are

available for Russia from national annual surveys undertaken by Rosstat. These data include floor

area,numberofhouseholdsandsourceofspaceheating.NewquestionsaddedtoRosstatsNational

Household Income Survey 2010 will start to provide data required to build energy efficiency

indicators.Thesurveywillcollectinformationonthestock,ageandenergyefficiencyrankingoflarge

householdappliances,aswellasonthetypeoflightbulbsused.Thenationalsurveywillprovidedata

for2010andbeyondforthesenewdatapoints,criticalforabetterunderstandingoftrendsinenergy

consumption of appliances. This national survey will also continue to collect data on the size of

dwellingandheatedfloorarea,yearofconstructionandtypeofheatingequipment.

Whiletheexpansionofthesurveyisapositivestepindevelopinganenduseenergydatabaseand

assessing trends inresidential energy andenergy efficiency,additional data collection is requiredforotherendusessuchasspaceheatingandcooling,waterheatingandsmallappliances.

ServicesectorServicesisclearlythemostdifficultsectorinwhichtocollectdata.Atpresent,thereisaseriouslack

of detailed data in Russia, making it difficult to analyse trends in service energy consumption.

Russiaisnotuniqueinthisregard;mostIEAmembercountrieslackdetailedendusedataforthe

sector.Availabledata inIEAmembercountriesshowthatthepotentialforenergysavings inthe

servicesectorvarieswidelyfordifferentenduses.Assuch,indepthanalysisattheenduselevel

isneeded to develop indicatorsthat can helpto define the most importantpotential for energy

efficiencyimprovementsandsupportthedevelopmentofrelevantpolicies.

TransportsectorMuch more work is needed in Russia to understand the structure and trends of energy

consumptioninthetransportsector.Analysisoftrendsinenergyandenergyefficiencyrequirea

separate analysis for passenger and freight transport, as each is influenced by different

underlying factors. In Russia, the necessary disaggregated data are not available for energy

consumption,andactivitydataareonlyavailableforsometransportmodes.

ManydatasourcesexistsbeyondofficialRosstattransportsectordata,whichcangoalongwayto

completing the picture of structure and trends of energy consumption especially in terms of

individual automotive transport,one of thefastestgrowing sectors in IEA member countries and

likely in Russia, too. Car registration and the annual car inspection process could provide an

effectivewaytoenhancethedataondrivingtrendsandautomotivestock.Giventhesesystemsare

alreadyinplacetogatherthisimportantinputdata,allthatmaybeneededisacoordinatingbody

or agency to set up a data collection system. Data estimates and models are also available from

various research institutes. The IEA had very useful discussions and preliminary exchange of

informationwiththeScientificandResearchInstituteofMotorTransport(NIIAT)inMoscow.


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Introduction:theuseofindicatorstounravelthe

complexityofenergyconsumption

Governments are uniquely positioned to establish, through policy implementation, theframeworks within which energy is both produced and consumed across many socioeconomic

levels. As governments around the world tackle the complex and intertwined challenges of

improvingenergysecurityandreducinggreenhousegas(GHG)emissionsassociatedwithenergy

production and consumption while also supporting economic development objectives two

thingsareincreasinglyclear:

Ensuringa better use of the worldsenergyresourceswillrequirepolicies that encompassawiderangeofoptions.Analysisshowsthatimprovingenergyefficiencyisoftenthemostcost

effective,provenandreadilyavailablemeansofachievingthisgoal.

Good quality, timely, comparable and detailed data that go well beyond those currentlyincluded instatisticalenergybalances,arenecessarytoestablishandmaintainsoundpolicy.

These data must reflect the distinct characteristics of economic activity and resources

availableineachcountry.

For the overall economy, aggregate indicators such as total primary energy supply (TPES) and

totalfinalenergyconsumption(TFC)perGDPisoftenusedtoconstructabigpictureofcurrent

patterns of energy use. Aggregate energy indicators have the advantage that they are often

readilyandwidelyavailable.Thus,theycanrevealhighleveldevelopmentsinenergyuseandcan

be constructed to facilitate basic crosscountry comparisons. However, they could often be

misleading and consequently it would be incorrect, to rank energy efficiency performance

accordingtoacountrysTPESorTFCperGDP.

Inordertodevelopestimatesofoverallenergyefficiency,detaileddataarerequiredforthemain

enduse sectors (industry, residential, services and transport). As each sector is influenced by

differentunderlyingfactors,different explanatorydatawillbeneededdependingonthesector

analysed.Recenteffortsbyseveralcountriestocollectmoredetailedendusedatahavehelped

indevelopingindicatorsthatcanbeusedtounderstandpasttrends,assesspotentialforenergy

savingsandenhanceenergyefficiencypolicies.

Understandpasttrends:Energybalancedataforagroupof11IEAmembercountries7showthat

energy consumption increased by 22% from 1973 to 2006. More importantly, detailed enduse

dataavailableforthese11countriesdemonstratethatwithoutimprovementinenergyefficiency

overthesameperiod,energyconsumptionwouldhavebeen63%higherin2006.

Assesspotential

for

energy

savings:Detailed enduse data and indicators are equally essential

for assessing the further contribution of energy efficiency. IEA estimates show that large

potentialsremainacrossallsectorsoftheeconomy.

Enhance energy efficiency policies: This capacity to track trends and identify potential savingsmakes detailed enduse data and energy efficiency indicators key to launching and monitoring

moreeffectiveenergyefficiencypolicy.

An analysis of the impacts to date of energy efficiency policies implemented by IEA member

countries reveals that effective policies do make a difference. In each of the main energy

consumingsectors,thereisevidenceofimprovedefficiency,mostofwhichalsoresultsinreduced

7Australia,Denmark,Finland,France,Germany,Italy,Japan,Norway,Sweden,theUnitedKingdomandtheUnitedStates.


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carbon dioxide (CO2) emissions. In some cases, however, unexpected changes in consumption

patternswithinagivensectororsubsectorreducetheoverallimpactofefficiencygains.

Box1.TheIEAenergyefficiencyindicatorstemplate

Whileitisclearenergyefficiencypolicieswork,thefactisthatcurrentlyavailableenergydataare

a poor foundation for developing an indepth understanding of how or why or indeed, for

analysing which measures are most effective and warrant broader implementation. This fact

underlinestherealitythatexistingdataand informationaretoosparsetopreciselyanalysethe

impactofspecificmeasures.

Clearly, more data and different kind of data are needed to support the strategic

development,implementationandevaluationofenergyefficiencypolicies.

This paper examines various energy and energy efficiency indicators their usefulness and

limitationsanddescribes:

Thesetofdataneededtocalculatekeyenergyandenergyefficiencyindicators; AvailabledatainIEAmembercountriesandinRussiafromthissetofdata;and Whatenergyandenergyefficiency indicatorscanbederivedwiththissetofdata,andwhat

thoseindicatorsreveal.

Tofacilitate the reporting ofcomparabledata acrossall IEA membercountries, theIEA has worked

with the ODYSSEE Network (European Union) and the AsiaPacific Economic Cooperation (APEC) to

develop a standard energy efficiency indicators template. The template (which is similar to and

buildsonthesuccessoftheIEAannualenergystatisticsquestionnairesoffuels)establishesuniform

system boundaries, data definitions and methodologies specific to energy consumption and other

datarelatedtoenergyefficiency.

Earlyuse of this template by member countries has already allowed the IEA Secretariat to define a

seriesofdisaggregateenergyindicatorsthataimtocapturekeydatarelevanttoeachmajorsector.

Generally, these disaggregate indicators probe deeper than energy balances by focusing on activity

levels,structuraleffects,energyefficiencytrendsandpotentialforfutureenergysavings.

Suchindicatorsprovideamuchmoreeffectivemeansoftrackingtheevolutionofenergyusewithina

countryandconductingcomparativeanalyses.Theycanhelptoidentifyemergingtrends inenduse

sectorsincludingthefactorsbehindincreasingenergyconsumptionandthosethatrestrainit.They

also help to uncover areas that hold the greatest potential for improving energy efficiency and the

overallscopeforfurtherenergysavings.Ultimately,indicatorscanthusbeusedtoshapeprioritiesfor

futureactionsandtomonitorprogress.


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Industrysector

The industry sector covers the manufacturing sector (the manufacture offinished goods and

products),miningandquarryingofrawmaterialsandconstruction.Powergeneration,refineries

andthe

distribution

of

electricity,

gas

and

water

are

excluded

from

the

industry

sector.

Russias industrial sector is vast, including major enterprises in mining, energy, automotive,

defence,construction,communication,consumerdurables,constructionequipmentandtextiles.

ButRussias legacyof itsSovietpast is thedominanceofheavy industrysuchas ironand steel,

petrochemicalsandaluminiumallenergyresourceintensive.Afterhavingbeensetbackbythe

global economic crisis of 2008, Russian industrial production grew an estimated 11% in 2009.

Industrial output in Russia rose by 7.8% in January 2010, a sign that economic recovery was

strengthening in Russia. While the production of consumer goods remained flat or increased

marginally,productionofcarsandtrainswitnessedseveresetbackscomparedto200809levels.

Becauseof itsSoviet legacy,Russian industryneedstorestructure,streamlinecostsandensure

that its products meet demand in the most economic and environmentally sound way. Thehandful of energy efficiency success stories in Russias industrial sector illustrates how

competitiveforcesspurthisonrelativetoregulatemonopolisticmarkets.Russianindustryisslow

inrealising itsenergyefficiencypotentialprimarilyduetoalackofawarenessamongmanagers

and insufficient supply of longterm capital to finance energy efficient modernisation (World

Bank, 2008). Russia is one of the country with the largest energy savings potential for the five

most energy intensive industry (iron and steel, cement, chemicals and petrochemicals,

aluminiumandpulpandpaper)(IEA,2008;IEA,2009;IEA2010).Inaddition,companiesinseveral

sectorslacktheincentivetosaveenergybecauseproductpricesaregrowingfasterthanenergy

tariffs. In this regard, the continuation of electricity and gas sector reforms are critical to

achievingthissectorsenergyefficiencypotential.

Box2.Energyefficiencytrendsinmanufacturingsector

8Fuelprocessingindustriesandfuelsusedasfeedstockarenotincludedintheanalysis.

9 IEA 21 includes Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Italy, Japan, Korea, the

Netherlands,NewZealand,Norway,Portugal,Spain,Sweden,Switzerland,UnitedKingdomandtheUnitedStates.

Globally, energy consumption in the manufacturing sector increased by 29% between 1990 and

2008.8 In 2008, it accounted for 29% of TFC and 37% of enduse sectors CO2 emissions. In Russia,

manufacturingenergyconsumptiondecreasedbyabout29%between1993and2008,whileenergy

consumptioninthefivemostenergyintensiveindustriesdecreasedonlyby2%.

An analysis of the manufacturing sector for 21 IEA member countries9 indicates that buoyant

economicgrowthandhighenergypriceshaveplayedarole inimprovingenergyefficiency.Inorder

tosatisfyincreaseddemandforcommodities,countriesaddednew,moreefficientcapacity,thereby

reducing the share of smaller, less efficient production units. Energy consumption in those 21 IEA

member countries would have been 29% higher in 2006 than it was without the energy efficiency

improvementsinthesectorsince1990.

DespitetheimpressiverecentefficiencygainsinIEAmembercountries,themanufacturingsectorstill

shows considerable potential for further energy savings. The estimated global savings for the five

most energyintensive manufacturing sectors (pulp and paper, chemicals and petrochemicals, iron

andsteel,aluminium,andcement)are15PJperyearenoughtomeettheannualenergyneedsof

industry,transportandhouseholdsinRussia.


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AvailabilityofindustrydatainRussiatodevelopindicators

To effectively assess the developments in energy efficiency trends, the impact of energy

efficiency measures and the further potential for energy savings in the industry sector, the

followingdataarerequired:

Detailedenergyconsumptiondatabyindustry; Valueaddeddatainconstantcurrency;and Physicalproductionofkeycommodities,wherepossible.While energy consumption data are usually available from the energy balances of countries

(althoughonlyatthetwodigitInternationalStandardIndustrialClassification[ISIC]level),value

addeddataarenotalwaysavailable(orareavailablebutnotforthesame levelofdetailasthe

data for energy consumption). Value added in constant currency by industry allows the

development of indicators for heterogeneous industry, and are required to aggregate the

detailedindicatorstoassessenergyefficiencyforthetotalindustrysector.

Box3.Impactofindustrialstructure

In Russia, Rosstat has been collecting for numerous years industryrelated data. Rosstats 11 TER

Form(Rosstatenergyconsumptionquestionnaireforindustry)providesenergyconsumptionatthe

fourdigit ISIC levelaswellastheproduction inphysicalunitsforthesame industrialbreakdown.

These dataareavailableonanannualbasisatboth regionalandnational levels.The information

fromthe11TERFormcanbeusedtodevelopindustryspecificindicators,andprovideaproxyfor

theevolutionofenergyefficiency.Thelongtimeseriesavailableallowsanalysisoftheevolutionof

energyefficiencyatadetailedlevelofsectoraldisaggregation.However,thesemultipleindicators

do not provide an industrywide assessment of how energy efficiency in each industry sector

influencedthetrendsinenergyconsumptionfortheoverallindustry.

Physical units of production are the preferred activity variable to build detailed industry

indicators.However,foranoverallenergyefficiencyindicatorfortheindustrysectorasawhole,aggregation of the various industryspecific indicators is required. Given that physical units of

production cannot be added together (one tonne of steel cannot be added to one tonne of

clinker),avalueaddedapproachisusedfromeachsubsectortoprovideacommonbasis.

In doing so, it is essential to use value added in constant currency to avoid including a bias

inducedbyfluctuationsonthemonetarymarket.Valueadded,incurrentcurrency,areavailable

fromRosstatsNationalAccountsatthefourdigitISIClevel.However,thedeflatortoconvertthe

currentvaluestoconstantonesisonlyavailableforthemining,manufacturingandconstruction

sectors.Deflatorsforthedifferentmanufacturingsectorsarenotavailable.

TheenergyconsumptiondatafromRosstatsForm11TERandthevalueaddedfromtheNational

Accounts, if develop in constant roubles, would allow the development of an overall energy

Thevalueaddeddatabyindustryarealsorequiredtoanalysetheimpactofstructuralchangesinthe

sector. This information is essential when trying to understand trends in energy consumption, or

whenperformingcountrycomparisons.

Analysis shows that IEA member countries with high shares of energyintensive industries (such as

cement and iron and steel) usually rank among the most intensive countries. However, if those

countrieshadthesamestructureastheaverageIEAcountries,theaggregatemanufacturingintensity

wouldbereducedconsiderably;byover20%inmanycases.


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Dataneededtodevelop

indicators

NumberofIEAmember

countriesreportingthedataDataavailablefromRussia

Energy

use

Value

added

Commodity

productionEnergyuse

Value

added

Commodity

production

Paperandpaperproducts 27 17 n.a. Yes No n.a.

Pulp 0 0 28 Yes No Yes

Paper 0 0 28 Yes No Yes

Publishing,printingand

reproductionofrecordedmedia

8 18 n.a. Yes No n.a.

Chemicalsandchemical

products


Rubberandplasticsproducts 14 24 n.a. Yes No n.a.

Nonmetallicmineralproducts 28 25 n.a. Yes No n.a.

Cement 10 0 28 Yes No Yes

Clinker 0 0 0 Yes No Yes

Basicmetals 28 23 n.a. Yes No n.a.

Castingofironandsteel 28 0 28 Yes No Yes

Castingofpreciousandnon

ferrousmetals


Aluminium 0 0 0 Yes No No?

Motorvehiclesandother

transportationequipment


Othermanufacturing 28 21 n.a. Yes No n.a.

Notes:n.a.=notapplicableasthesectorasdefinedinthetableistooheterogeneoustohaveasinglemeasureofphysicalproduction.

IEAcountriescoverageindicatesthenumberofIEAmembercountriesforwhichdataarecurrentlyavailablefrom1990to2006intheenergyindicatorsdatabase.AstheIEAhasnotyetreceivedvalueaddeddatainconstantcurrency,thevalueaddeddataareindicated

asnot beingavailable fromRussia. Coveragefor Russia is based onIEA knowledge of the data situation in Russia for 2000onward;

thesehavebeenvalidatedbyRosstat.

Keyindicatorsfortheindustrialsector

InformationcollectedthroughtheIEAenergyefficiencyindicatorstemplateisusedtodevelopenergy

andenergyefficiencyindicatorsthatexplainthechangesinenergyconsumptionoveraperiodoftime.

Keyenergyandenergyefficiencyindicatorsthatcanbedevelopedwiththedatacollectedthroughthe

template,aswellasthepurposeandlimitationofthoseindicators,arepresentedinTable2.

Moredetailedindicatorscanbebuiltbycollectinginformationattheprocesslevelforeachsubindustryandfacilitycharacteristics.However,suchdataareavailableonlyforveryfewcountries

andforalimitednumberofsubindustries.

Itisalsopossibletocoupletheinformationonenergyconsumptionwithdataonenergypricesin

manufacturing, energy expenditures and capacity production to analyse the impact of these

factorsonthetrendsinenergyconsumption.

Insomemanufacturingsectors,portionoftheenergyconsumption is influencedbyweather

conditions.Theinfluenceonenergyconsumptionisdifferentfromindustrytoindustry.Given

the very limited information available on the impactofweather in industry,and the lack of

internationally recognised methodology to perform such an adjustment in the industry, the

IEA methodology does not take into account weather conditions in analysing themanufacturing sector.


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OECD/IEA2011 Developmentof

Page|17

Indicator Datarequired Purpose Limitation

ENERGYIND

ICATORS Industrysectors

energyconsumption

byunitofvalueadded

Energyconsumptionbyindustrysector.

Correspondingvalueadded(inconstantcurrency).

Indicatethegeneralrelationshipofenergyusetoeconomicdevelopment.

Mayhidesomeimpo(butthisimpactwillb

detailedenergyandv

Valueaddedareinfluareunrelatedtochan

production.

ENERGYEFFICIENCYINDICA

TORS

Industrysector energy

usebyunitofphysical

production

Energyconsumptionbyindustrysector.

Correspondingphysicalunitof

production.

Oftencalledthespecificorunitenergyconsumption.

Indicatetherelationshipofenergyusetophysicalproduction.

Atthedisaggregatedlevel,cangiveabettermeasureofthetechnical

efficiencyofaparticularproduction

process.

Itisnotpossibletocounits.

Cannotprovideanagthewholeofindustry

Decompositionof

changesinindustry

energyconsumption

Energyconsumptionbyindustrysector

andenergysource.

Correspondingphysicalunitof

production(if

available).

Correspondingvalueadded(inconstant

currency).

Quantification ofthefactorsunderlyingthechangesinenergy

consumptionoveradefinedperiodof

time.

Changesinenergyconsumptionaredecomposedbetweenindustry

structureeffect,energymixeffect,

andspecificintensityeffect(aproxyof

energyefficiency).

ThisisthebestindicatorfortotalindustrythatcanbedevelopedwiththedatarequiredintheIEAenergy

efficiencyindicatorstemplate.

Thisproxyforenergynotrelatedtotechni

climaticconditionsa

withinafacility).


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Page|18

Residentialsector

Theresidentialsectorincludesthoseactivitiesrelatedtoprivatedwellings.Itcoversallenergy

usingactivities inapartmentsandhouses, includingspaceandwaterheating,cooling, lighting

and

the

use

of

appliances.

It

does

not

includepersonal

transport,

which

is

covered

in

the

transportsector.

Between 1993 and 2004, residential energy consumption in Russia was greater than for the

industrysector,as istypicalforlowerincomecountriesinharshclimates.However, in2005the

commercialenergyconsumptiondataappeartohavebeenreadjustedupward,andresultedina

dramaticreductioninenergyconsumptionintheresidentialsector.Asaresult,in2005,Russian

TFCintheindustrialsector(5169PJ)surpassedthatoftheresidentialsector(4628PJ).Following

this reduction, according to IEA data based on annual submissions from Rosstat, residential

consumptionhasremainedrelativelyflatoverthe2005to2008period.

On a percapita basis, residential energy consumption roughly equals that in Canada, even

thoughCanadahasthreetimesRussiaspercapitafloorspaceandelectricappliancesare largerand more widespread. Thus, Russian residential energy consumption is at least twotothree

times more energy intensive than Canadas. The reasons are known: lack of consumer control

over heat regulation, low share of private ownership of apartments (landlords usually having

littleinterestininvestinginenergyefficiencyimprovements)andpricesubsidies.Largepotential

for energy savings exists in the residential sector. A study from the IEA estimated that energy

efficiencyimprovementsinRussiasdistrictheatingsectorcouldsave30bcm/yrto50bcm/yrof

naturalgas(IEA,2004).

The most significant barriers to energy efficiency in residential housing relate to building

standards, public behaviour and difficulties in organising and financing energy efficiency

improvementsincommonareas(WorldBank2008).

Box5.Energyefficiencytrendsinresidentialsector

11IEA 19 includes Australia,Austria,Canada,Denmark, Finland, France,Germany,Ireland,Italy,Japan,Korea, theNetherlands, New

Zealand,Norway,Spain,Sweden,Switzerland,theUnitedKingdom,theUnitedStates.

Globally,residentialenergyconsumptionincreasedby20%between1990and2006;itaccountedfor

28% of TFC in 2006 and 20% of enduse sectors CO2 emissions. In Russia, residential energy

consumptiondecreasedby32%between1993and2006,andaccountedfor26%ofTFCin2006.

Detailedendusedatafortheresidentialsectorareavailablefor19IEAmembercountries,11

allowing

a deeper analysis of the factors influencing residential trends in energy consumption. The analysis

indicates that the low growth in energy requirements for space heating per capita reflects an

impressive19%improvementinenergyefficiency.Infact,efficiencyimprovementsoffsetmostofthe

increaseinenergyconsumptionarisingfromtrendstowardlargerdwellingsizesandfeweroccupants

perdwelling.The analysis also reveals a significant shift in appliances energy consumption. The share of large

appliances (e.g., refrigerators, freezers, dishwashers and clothes washers) in total appliance energy

consumptiondroppedfrom47%in1990toonly28%in2006.Increasingownershipofawiderangeof

smallappliances(e.g.personalcomputersandmobilephones)wasthekeyfactordrivingtherise in

residentialelectricityconsumptionwhichisupby41%.

Overall, residential energy consumption in these 19 IEA member countries increased by 15% since

1990;almosthalfofthisincreasewasduetothegrowthinenergyconsumptionofappliances.


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Page|19

AvailabilityofresidentialdatainRussiatodevelopindicators

Total residential energy consumption, by energy source, is available from energy balances. As

each enduse is influenced by different factors, the analysis of energy efficiency trends in the

residential sector requires, at a minimum, detailed information at the enduse level, and

associated activity data. Furthermore, as space heating is greatly influenced by climatic

conditions,notably in countries with coldclimates such asRussia,an adjustment is required to

accountfortheyearlyvariationinweatherconditions.

Fordevelopingpolicyrelevantindicatorsintheresidentialsector,thefollowingdataarerequired:

energyconsumptionbymajorendusesandbyenergysources; mainactivityvariablesforthesector,includingnumberofhouseholdsandresidentialfloorarea; information on the stock and efficiency not only of large appliances, but also of small

appliancesgiventheirgrowingimportance;and

informationonheatingandcoolingdegreedaystoadjustforweatherconditions.SomeactivitydataareavailableforRussiafromRosstatsNationalHouseholdsIncomeSurveyon

anannualbasisforseveraldecades.Theseincludenumberofhousesandfloorareabydwelling

type and year of construction, heated floor area and type of heating system. The survey also

collects informationontheaccessofhouseholdstotheelectricityandgasgrid,and ifdwellings

areconnectedtothedistrictheatingsystemorhaveindividualheatingdevices(andwhichenergy

sourceisused).

The IEA is encouraged by the new questions Rosstat included in its annual Household Budget

Survey. Starting in 2011, the survey will include questions on: additional heat sources used by

households;meteringdevices;numberandtypeoflightbulbs;numberofappliancesandyearof

acquisition;efficiencyranking;andclassoflargeappliances.Thesurvey,whichwillbeconducted

in2011,willprovidedatafor2010andbeyondforthesenewdatapoints.

Despitethesepositivedevelopments,theminimalsetofdatarequiredtodevelopenergyefficiency

indicatorsisnotavailableforRussia.Moreinformation,attheenduselevel,isnecessary.

Box6.Determiningpriorityareafordevelopingendusedata

DatathatIEAmembercountriesarerequiredtoreporttotheIEAthroughtheenergyefficiency

indicators template, as well as the number of countries that are currently able to provide the

dataarepresentedinTable3.ItalsopresentswhichdataarecurrentlyavailablefromRussia.

Even in IEA member countries, developing the data for each enduse is a challenge and can be

resource intensive (both in term of human and financial resources). The development of basic

indicatorscanhelptoidentifywhichenduseshouldbeapriorityforenergyefficiencyinitiativesand

policiesintheresidentialsectorandwheretostartintermsofdatacollectionstrategy.Oncepriority

areas are determined, efforts should first concentrate on these enduses. For example, if space

heatingisapriorityarea,thensupplementaryinformation(suchastypeofheatingdevice,insulation

of houses, age of capital stock and efficiency rating of heating equipment) could be collected to

developindepthindicators,allowingthedevelopmentoftargetedactions.


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Page|20

Table3:Residentialdataneededtodevelopbasicenergyandenergyefficiencyindicators

DataneededtodevelopindicatorsNumberofIEAmember

countriesreportingthedata

Dataavailable

fromRussia

Energyconsumptionby:

Energysource 28 Yes

Enduse(andenergysource) 20 No

Spaceheating 25 No

Spacecooling 5 No

Waterheating 24 No

Cooking 23 No

Lighting 21 No

Appliances 24 No

Refrigerators 2 No

Freezers 12 No

Refrigerator/freezercombinations 13 No

Dishwashers 13 No

Clotheswashers 14 No

Clothesdryers 4 No

Television/homeentertainment 13 No

Personalcomputers/informationand

communicationtechnology5 No

Otherappliances 24 No

Totaldwellings

27 Yes

Totaloccupieddwellings 27 Yes

Totaldwellingarea 24 Yes

Stockofappliances 14 Yes

Refrigerators 1 Yes

Freezers 19 Yes

Refrigerator/freezercombinations 17 Yes

Dishwashers 15 Yes

Clotheswashers 17 Yes

Clothesdryers 5 Yes

Television/home entertainment 13 Yes

PC/informationandcommunicationtechnology 4 Yes

Average unit energy consumption of large

appliancesstock

13 No

Annualheatingdegreedays 27 No

Annualcoolingdegreedays 6 No

Note:IEAcountriescoverageindicatesthenumberofIEAmembercountriesforwhichdataarecurrentlyavailablefrom1990to2006

in the energy indicators database. Coverage for Russia is based on IEA knowledge of the data situation in Russia; which has been

validatedbytheRussianFederation.


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Page|21

Keyindicatorsfortheresidentialsector

ThedatacollectedthroughtheIEAenergyefficiencyindicatorstemplateprovideabasistobetter

understandenergyconsumptiontrendsintheresidentialsector,identifymajortrendsbyenduse

and help identify areas for further investigation. Key indicatorsthat can be developedwith the

setofdatacollectedthroughtheIEAenergyefficiencyindicatortemplateaswellasthepurpose

andlimitationofthoseenergyandenergyefficiencyindicatorsarepresentedinTable4.Forthe

buildingssector(residentialandservices),variationinweatherconditionsmayhaveanimportant

impactontrendsandlevelofenergyconsumption.Iftheindicatorsaredevelopedwithouttaking

the climatic conditions into consideration, the trends observed in aggregate indicators may be

misleading.

More indicators can be developed by coupling the information on energy use with other data

such as dwelling type, personal consumption expenditures, dwellings characteristics, energy

expendituresorresidentialenergyprices.


23/55


24/55


Indicator Datarequired Purpose Limitat

usedasanenergyintensityindicator.

Someimportantconclusionscanbedrawn

iftheweather,ownershipofenergyusing

appliancesanddwellingareaareknown.

ENERGY

AND

ACTIVITY

IND

ICATORS

Residentialenergyconsumptionper

floorarea

Energyconsumption.

Totalfloorarea. Monitorenergyuseintheresidential

sector.

Combinedwithenergyuseperhousehold,providesusefulinsightson

whatmighthavebeenthemaindriverof

energyconsumption.

Doesdeve

Influener

Residentialenergyconsumptionby

enduse

Energyconsumptionby

enduse.

Provideanindicationofthetrendsinenergyconsumptionandtherelative

importanceofeachenduse.

Provideanindicationofpriorityareastofurtherimprovedatacollectionordevelopenergyefficiencypolicies.

Proviener

cons

Shareoflargeappliancesenergy

consumptionintotalappliance

energyconsumption

Largeappliancesenergy

consumption.

Totalappliancesenergy

consumption.

Helpunderstandtrendsinenergyconsumptionfortheappliancesenduse.

Providesanindicationofwhichsegmentoftheappliancemarketisdrivingenergy

consumption.

Allowthedevelopmentofmoretargetedpolicies.

Influeeffici

ente

level

Residentialenduseenergy

consumptionbyfloorareaor

households

Energyconsumptionby

enduse.

Numberofoccupieddwellings.

Occupiedfloorarea.

Relatedto,butnotidenticalto,theinverseofenergyefficiencies.

Usedasaproxyforenergyefficiencyinmanycountries.

Influeinclu

owne


25/55

DevelopmentofEnergyEfficiencyIndicatorsinRussia

Page|24

Indicator Datarequired Purpose Limitat

ENERGYEFFICIENCYINDICATOR

Decompositionofchangesinenergy

use:activity,structureandintensity

effects

Energyconsumptionby

enduse.

Population. Dwellingarea. Appliance

ownership.

Peopleperdwelling.

Provideageneralunderstandingofthetrendsthatinfluencedchangeinenergy

consumption.

Quantifytheroleoftheactivity,structureandenduseintensitiesonthedevelopmentofenergyconsumption.

Doesimpa

Decompositionofchangesinspace

heatingenergyuse:conversion

efficiency,dwellingsize,useful

intensityandoccupancyeffects

Spaceheatingenergy

consumptionby

energysource.

Dwellingarea. Peopleper

dwelling.

Population.

Allowthequantification oftheusefulenergyintensityeffectontotalenergy

consumption(aproxyforenergy

efficiency).

ThisisthebestindicatorthatcanbedevelopedforspaceheatingwiththedatarequiredintheIEAenergyefficiency

indicatorstemplate.

Thiseffec

effici

hous


26/55


Page|25

Servicesector

Theservicesector includesactivitiesrelatedtotrade,finance,realestate,publicadministration,

health,educationandcommercialservices.According to IEA data, energy consumption in Russias service sector increased over 65% during

the decade between 1998 and 2008. This is largely due to a statistical readjustment in 2005.

Notably,between2005and2008,Russiasenergyconsumptionintheservicesectorhasincreased

by17%.GiventhestrongeconomicgrowthRussiaexperienceduntil2008, it isnotsurprisingthat

itsservicesectorgrewsoquickly.TheglobalfinancialcrisisalsoaffectedRussia,andwecanexpect

aslowdown inenergyconsumptionbetween2008and2009.IfRussianenergyefficiencypolicies

areeffectivelyimplementedintothefuture,thiswillbevisibleinitsservicesector.

Box7.Energyefficiencytrendsinservicesector

Availability

of

service

data

in

Russia

to

develop

indicators

Energyconsumption,byenergysources,isavailablefortheservicesectorfromcountrysenergy

balances. The assessment of energy efficiency improvements in the service sector requires, at

minimum,datafor:

energyconsumptionbymajorendusesandbyenergysources; main activity variables for the sector including valueadded data in constant currency, floor

areaandnumberofemployees;and

informationonheatingandcoolingdegreedaystoadjustforweatherconditions.GiventhatdetailedvalueaddedandemploymentdataareavailablefromRosstatforthemining

and manufacturing sectors, it is possible that this information is also available for the services

sector(ISIC5099).Deflatorsareavailablebyservicecategory12

fromRosstatNationalAccounts

to convert the value added in current Roubles to constant Roubles. The data situation for the

service sector in Russia is at par with most IEA member countries. However, it should be

emphasisedthat,atpresent,theseriouslackofdetaileddatainthissectoracrossallIEAmember

countriesmakesitdifficulttoanalysetrendsinserviceenergyconsumption.

Astheservicesectoronlyaccountsfor8%ofTFCinRussia,andgiventhedatalimitationsinthe

residential andtransportsector, the IEAdoesnot think that serviceshould bethepriorityarea

fordatacollection.

12 Bulk and retail trade, maintenance of automobile transport, motorcycles, household goods, and personal items, hotels and

restaurants,transportandcommunications,financialactivities,realestateoperations,rentalandprovidingservices,stategovernance

anddefence,socialsecurity,education,healthcareandsocialservices,othermunicipal,publicandpersonalservices.

Globally, service is, with transport, the fastestgrowing sector with an associated 39% increase inenergyconsumptionbetween1990and2006.In2006,servicesaccountedfor9%ofTFCand12%of

enduse sectors CO2 emissions. Economic activity is the main driver of energy consumption in the

servicesector;itisrepresentedbythelevelofvalueaddedoutput.Inrecentyears,highereconomic

activityhasledtoincreasesinthestockofcommercialbuildingsandtomorepeoplebeingemployed

inthesector.Bothofthesefactorsincreasedemandforenergyservices.

At present, a serious lack of detailed data makes it difficult to analyse trends in service energy

consumption in mostcountries.Thedata available show a rapid increase inelectricity consumption

andacorrespondingreductionintheshareoffossilfueluse.


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Page|26

Data that IEA member countries are required to report through the IEA energy efficiency

template, as well as the number of countries that are currently able to provide the data, are

presented in Table 5. The information collected is used to develop basic energy indicators to

explainthechangesinenergyconsumptionoveraperiodoftime.

Thisbasicsetofdataisonlyastartingpoint.Itwouldallowtheserviceenergyconsumptiontobeadjustedforweatherconditions,andwouldprovideapreliminaryanalysisofthemainconsuming

enduses. Collecting this information by type of building (health, schools, warehouses, etc.)

would support an analysis of the structure of the service sector and allow the development of

detailedindicatorsthatwouldfacilitatepolicydevelopment.

Table5:Servicedataneededtodevelopbasicenergyandenergyefficiencyindicators




Energysource 28 Yes

Enduse 3 No

Spaceheating(andbyenergysource) 3 No

Spacecooling 3 No

Lighting 2 No

Other(andbyenergysource) 3 No

Totalservicefloorarea 27 No

Floorareaaddition 27 Yes

Numberof

employees 24 Yes

Servicesvalueadded 14 No

Annualheatingdegreedays 27 No

Annualcoolingdegreedays 6 No




Keyindicatorsfortheservicesector

Intheabsenceofdetailedinformationonenergyconsumption,activityandotherrelevantdata,

onlygeneral indicatorscanbecalculatedfortheservicesector.Someofthekey indicatorsthat

can be developed with the data reported in the template are presented in Table 6. The table

does not present indicators at the enduse level (which would be similar to those in the

residentialsector)asonlyaverylimitednumberofcountriescanreportthisinformation.


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Page|28

Transportsector

TransportenergyconsumptioninRussiaisavailablefromtheenergybalance.However,itisnot

disaggregatedbytransportsegment(passengerandfreight).Asaresult,itisdifficulttomakeany

conclusions on the energy consumption trends in Russias passenger transport sector. AnyMoscovite can agree that since the early 1990s individual automotive vehicle ownership in

Moscow has skyrocketed, as evidenced by the major daily trafficjams. Other major cities in

Russiahaveexperiencedsimilartrends,butMoscowisbyfarthemoststriking.

Intermsofthetransportsectoroverall includingbothpassengerandfreightandallmodesof

transport as reported in Russias energy balance, the transport sector saw its energy

consumptiondroptoitslowestpointin1997atlessthan2800PJ.In1998,energyconsumption

inRussiastransportsectorjumpedover16%,asignofthehugeeconomicrecoverywhichbegan

in the second half of that year. Over the period from 1998 to 2008, energy consumption in

Russiastransportsectorincreased25%.

Passengertransportsector

Passengertransportincludesthemovementofpeoplebyroad,rail,waterandair.Roadtransport

isfurther subdivided into lightdutyvehicles (LDV) andbuses. Onlydomestic airand waterare

included;internationalairandwatertravelarenotcovered.

Box8.Energyefficiencytrendsinpassengertransportsector

AvailabilityofpassengertransportdatainRussiatodevelopindicatorsInmanycountries,passengertransportrepresentsasignificantandgrowingshareoftotalenergy

consumption. In order to develop useful energy efficiency indicators in this sector, a large

numberofdataarerequired.IntheIEAenergyefficiencyindicatorstemplate,theminimalsetof

datarequiredtodevelopindicatorsinclude:

Energyconsumptionbytransportationmode; Informationonthepassengertransportationfleetbymode(stockofvehicles);13

IEA19includesAustralia,Austria,Canada,Denmark,Finland,France,Germany,Greece,Ireland,Italy,Japan,theNetherlands,New

Zealand,Norway,Spain,Sweden,Switzerland,theUnitedKingdomandtheUnitedStates.

Global passenger transport energy consumption data are not available from a countrys energy

balances, as energy balances reportonly total transportation. As a result, analysis ofthe sectorcan

be performed for only 19 IEA member countries.

13

For those 19 countries, passenger transportenergyconsumptionbetween1990and2006increasedby24%,withthesharesofthevariousmodes

remaining quite stable. Lightduty vehicles are, by far, the largest energy consumer, accounting for

87%oftheenergyconsumption.

Passengerkilometres (pkm) and the efficiency of passenger transport modes (energy consumption

perpkm)arethetwomaindeterminantsofenergyconsumption. Bothareaffectedbyawiderange

of interacting factors such as: occupancy rate of vehicles; distance travelled; density of population;

vehicleownership;incomelevelsofdrivers;localtransportpolicies;andpriceoffuel.Indicatorsthat

canbebuiltwithavailabledatafromtheIEAenergyefficiencyindicatorstemplateshowthatonlyone

factor helped to restrain growth in road transport energy demand: energy efficiency. Energy

efficiencyforLDVsimprovedby6%since1990.


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Page|29

Passengerkilometresbymode;and Vehiclekilometresbymode.TransportenergyconsumptioninRussiaisonlyavailablefromtheenergybalance;thesedataare

disaggregatedbymode(road,rail,waterandair)butnotbytransportsegment(passengerand

freight).Asaresult,itiscurrentlynotpossibletodevelopindicatorsforthissector.

Most activity data are available from Rosstat and disseminated in the publications Main

IndicatorsofTransportPerformancesinRussia(Rosstat,2010a)andTransportinRussia(Rosstat,

2010b). For passenger transport, available information includes passengerkilometres, vehicle

kilometresandvehiclestockforbuses,trainsandairplanes.InformationforLDVisnotavailable.

As LDV generally represents the most important transportation mode, priority should focus on

collectingactivitydataforthistransportationmode.

Activity variables are equally important for developing indicators. As is the case for energy

consumption, activity data can be collected or estimated through different means. Different

countries are adopting different strategies to collect or develop passenger transport energy

consumption and activity data: survey targeting households for LDVs; collecting informationthroughfleetmanagersoroperatorsforbusesandtrains;anddevelopingmodellinganalysisto

estimate energy consumption. The strategy adopted depends on several factors such as the

availabilityofdatadrivingenergyconsumption,theexistenceofsurveysthatcanbeamendedto

includemorequestions,etc.

The IEA identified potential sources of data that can constitute a starting point for estimating

energy consumption by mode in the passenger transport sector, such as data available from

administrative sources e.g. vehicle registration, information collected during the mandatory car

annualverification,anddataavailablefromresearchinstitutes.Giventhenatureofadministrative

data,thecollectionofinformationfromthissourcemayrequire(asisthecaseinsomeIEAmember

countries)anofficialagreementbetweenallthepartiesinvolvedtosupportanadequateuseofthe

informationandensurethattheconfidentialityofinformationismaintained.

Data that member countries are required to report to the IEA through the energy efficiency

indicatortemplate,thenumberofcountriesthatarecurrentlyabletoprovidethedataaswell

asthedatacurrentlyavailablefromRosstatarepresentedinTable7.Theinformationcollected

isusedtodevelopbasicindicatorstoexplainthechangesinenergyconsumptionoveraperiod

of time. Countries would benefit by complementing the data requested in the template with

moredetailedinformationon,forexample,thevehiclestockturnover,size/classofvehicleand

travelpatterns.

KeyindicatorsforthepassengertransportsectorNumerous indicators, providing useful information to better understand the trends in energy

consumptionandenergyefficiency,canbedevelopedwiththeminimalsetofdataavailablefrom

theIEAenergyefficiency indicatorstemplate.Thekey indicatorsarepresented inTable8along

withanexplanationoftheirpurposeandlimitations.


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Table7:Passengertransportdataneededtodevelopbasicenergyandenergyefficiencyindicators




Energysource 25 Yes

Transportationmode 21 No

Cars, Sport utility vehicles (SUVs)

andpersonallighttrucks22 No

Motorcyclesandthreewheelers 10 No

Buses 22 No

Passengertrain 24 No

Domesticpassengerairplane 23 No

Domesticpassengerships 5 No

Passengerkilometres

by:

20 No

Cars,SUVsandpersonallighttrucks 26 No


Buses 23 Yes

Passengertrain 25 Yes

Domesticpassengerairplane 20 Yes

Domesticpassengerships 4 Yes

Vehiclekilometresby: No



Buses 19 No

Passengertrain 2 No



Vehiclestocksby:


Motorcyclesandthreewheelers 24 Yes

Buses 25 Yes

Passengertrain 0 Yes







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Page|32

Freighttransportsector

Freight transport includes the domestic movement of goods by road, rail, air and ships water.

Transportthroughpipelinesisexcluded.

Box9.Energyefficiencytrendsinfreighttransportsector

AvailabilityoffreighttransportdatainRussiatodevelopindicatorsInordertodevelopusefulenergyandenergyefficiencyindicators inthissector,alargenumber

of data are required. In the IEA energy efficiency indicators template, the minimal set of data

requiredtodevelopindicatorsinclude:

Energyconsumptionbytransportationmode; Informationonthefreighttransportationfleetbymode(stockofvehicles); Tonnekilometresbymode;and Loadfactorsbymode.TransportenergyconsumptioninRussiaisavailableonlyfromtheenergybalance;thesedataare

disaggregatedbymode(road,rail,waterandair)butnotbytransportsegment(passengerand

freight). As a result, it is currently not possible to develop indicators for the freight transport

sector. It is essential to collect or develop the energy consumption information to develop

indicators. As is the case in the passenger transport segment, different countries are adopting

different strategies to collect or develop this information such as usage of truck fuel meter;

collectinginformationthroughfleetmanagersoroperators;anddevelopingmodellinganalysisto

estimateenergyconsumption.Thestrategyadopteddependsonseveralfactors.

Activity variables are equally important for developing indicators. While tonnekilometres

providethebasisfordevelopingfreighttransport indicators, it is importanttocomplementthis

information with load factors (as there is a strong correlation between changes in load factors

and changes in the intensity of truck freight haulage) and stock of vehicles. As is the case for

energyconsumption,activitydatacanbecollectedorestimatedthroughdifferentmeans.

14WhileairfreighttransportdataarerequestedintheIEAindicatorsdatabase,theanalysisexcludesthismodebecauseoflackof

dataseparating domesticandinternationaljourney.15

IEA 19 includesAustralia, Austria, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands,

NewZealand,Norway,Spain,Sweden,Switzerland,theUnitedKingdomandtheUnitedStates.

Asisthecasewithpassengertransport,freighttransport14

energyconsumptiondataarenotavailable

fromcountryenergybalancesandtheanalysiscanbeperformedonlyfor19IEAmembercountries.15

For these 19 countries, freight transport energy consumption increased by 31% between 1990 and

2006. Trucks are by far the largest energy user, accounting for 83% of the overall freight transport

energyconsumptionin2006.

Theenergyintensitiesoftrucks,trainsandshipsvarysignificantly.Forthe19countriesforwhichthe

information isavailable,trainsare themostenergyefficientmodeoffreighttransport.Onaverage,

for the 19 countries, it requires 10 times less energy to transport one tonne of goods over one

kilometre by train than by truck. The difference in intensity between modes has important

implications for energy consumptiontrends: because of itsmuchhigherenergy intensity, growth in

truckfreighthaulagedrivesupenergyconsumptionmuchmorequicklythangrowthintrainsorships.

Consequently, efforts to reduce the intensity of trucking will lead to higher energy savings than

reductionsintrainsandships.Importantenergysavingscanalsobeachievedbyincreasingtheshare

ofrail,shipsandairinfreighttransport.


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Table9:Freighttransportdataneededtodevelopbasicenergyandenergyefficiencyindicators


countriesreportingthedata

Dataavailablefrom

Russia


Energysource 24 No

Transportationmode 21 No

Freightandcommercialroad

transport

22 No

Freighttrains 4 No

Domesticfreightairplanes 5 No

Domesticfreightships 22 No

Freighttonnekilometres16

by: 24 Yes

Freightandcommercialroadtransport 19 Yes

Freighttrains 0 Yes

Domesticfreightairplanes 0 Yes

Domesticfreightships 0 Yes

Freighttonnestransport17

by: Yes


Freighttrains 5 Yes

Domesticfreightairplanes 4 Yes

Domesticfreightships 3 Yes

Vehiclekilometresby:

Freightandcommercialroadtransport 20 No

Freighttrains 3 No



Vehiclestocks18

by:


Freighttrains 0 Yes






ActivitydataareavailablefromRosstatanddisseminated inthepublicationsMainIndicatorsof

TransportPerformancesinRussia(Rosstat,2010a)andTransportinRussia(Rosstat,2010b).The

16Coversonlylargecompanies;smalltruckingfirmsandindividualownersarenotincluded.




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Table10:Keyindicatorstounderstandtrendsinenergyandenergyefficiencyinfreighttransport

Indicator Datarequired Purpose Limitation

ENER

GYAND

ACTIVITYINDICATORS

Shareoftonne

kilometresby

mode

Freighttransporttonnekilometresbymode.

Provideassessmentofthechangeintheshareofmodes.

Provideusefulqualitativeinformationonactivitytrendsinthesector.

Providequalitativeinformationonhowchangeinactivityinfluencechangeinenergy

consumption.

Onlyactivitydenergyefficien

Tonnekilometasavailability

typeofgoods

thecountry.

Energyuseper

tonne

kilometreby

transportation

mode

Freighttransportenergyconsumptionbymode.


Energyintensitiesbymodearemeaningfulsummaryindicators.

Intensitiescanbeusedtohelpdeveloptransportationenergypolicies.

Stillaffectedbefficiencysuch

factors.

Maymaskimpsegment.

Truckaverage

loadpervehicle

Truckaverageloadpervehicle.

Helpexplainthechangesintruckenergyconsumptionpertonnekilometres.

Strongcorrelationbetweenchangesinloadfactorsandchangesintheenergyintensityof

truckfreighthaulage.

Thisindicator,indicationont

Theaveragelocompositiono

ENERGYEFFIC

IENCYINDICATOR Decomposition

ofchangesin

energyuse:

activity,

structureand

intensity

effects.

Freighttransportenergyconsumptionbymode.


Quantifythefactorsinfluencingchangeinenergyconsumption.

Doesnotprovchangeinthe

transportmod

Moredetailedstrongindicato

energyefficien


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Conclusionsandnextsteps

Developing, applying and deriving benefit from energy efficiency indicators implies a longterm

commitment to collecting and analysing a broader range of energy data. Many IEA member

governments have taken decades to establish effective and leastcost data collection systemsbased on strong coordination among the main statistical agency and other departments and

agenciesandtheprivatesector.

The IEA is keen to continue its work with Russia in this area. Given the political momentum

generated by the presidents ambitious energy efficiency goals, the time is ripe for a push

forward on developing such a coordinated system of data collection for energy efficiency

indicators.Moreover,thereisnowanincreasingandrealisticunderstandingoftheavailabilityof

dataneeded(andthegapsindata)tounderpintheprovisionofenergyefficiencyindicators.

AkeymessagetheIEAhasbeenpromotingindiscussionswithRussiancounterpartsistheneed

toprioritiserequirementsforenergyefficiencyindicators.Specifically,theIEArecommendsthat

this be done in consultation between energy experts (who are involved in the design,implementation and monitoring of energy efficiency policies) and statistical and analytical

experts (who are responsible for the collection and analysis of data). Currently, data collectors

areoverwhelmedbytheproposalsforcollectionofmanydifferentdata.Moreover,thecreation

ofanoverlylargeandcomplexsystemofenergyefficiencyindicatorsmayprovetohavealimited

value added. At this early stage, Russia may derive greater value from a more simple set of

indicators that concentrate on key aspects of energy efficiency in high energy intensity sectors

suchasindustry,transportandresidential.

While the clear commitment at the highest political level in Russia for substantial energy

efficiencyiswidelyrecognised,thereisnotyetconsensusonthekeyindicatorsneededbythose

developing energy efficiency policy and monitoring its implementation. Given the crossagency

natureofenergyefficiencyindicators,itmaybebeneficialtoformacrossgovernmentalworkinggroupto improvecoordination.Theworkinggroupshould ideally includeallthemajorplayers,

including government departments and institutions, and, where appropriate, research

institutionsandtradebodies(particularlywheretheseholdrelevantdataoranalyticalexpertise).

Therecouldbebenefitinaconcretefocus,forexample,suchashavingtheworkinggroupinitially

explorecoordinationneedsinRussiastransportsector,whichtheIEAfoundtohavethelargest

data gaps. Russia is not unique in this respect: the transport sector is one of the most difficult

sector inwhichtocollectreliabledata.TheIEAhassingledouttheapproachesofNewZealand

and the United Kingdom as best practice examples; both countries have published reports19

outliningtheirdatacollectionsysteminthissector.

Thiscrossgovernmentalworkinggroupshouldtake intoaccountwide internationalexperience,including that of the IEA, the European Union and individual countries. A coordinating body

couldbeidentifiedtotaketheleadonthis,suchastheRussianEnergyAgency.

The IEA stands ready to continue working with Russia in this important area to ensure the

effective implementation of its Law on Energy Efficiency and the achievement of its ambitious

energyefficiencygoals.

19 Transport Statistics Great Britain, Department of Transport, 2009 Edition; and NewZealand Transport Statistics, Ministry of

Transport,July2009.


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AnnexA.TheIEAindicatorapproach

Governments around the world are facing the complex and interlinked challenges of reducing

energy consumption and associated GHG emissions while also meeting economic development

goals. There is a growing recognition that improving energy efficiency is often the mosteconomic,provenandreadilyavailablemeanstodothis.

Trackingtrendsinenergyefficiencyisnotaneasytask.Whileoverallenergyconsumptionmaybe

increasingduetorobustGDPgrowthand/oranexpandingpopulation,energyefficiencymaywell

be improving. Energy efficiency is only one of a number of factors that impact energy use. As

such, it is possible to have improving energy efficiency while still seeing increases in energy

consumption. Some factors that may cause (explain) growth in energy consumption include:

populationgrowth;acolderorwarmerthanusualwinter;achangeinstructureoftheindustrial

sector; an increase in wealth (as measured by GDP per capita); an increase in the level of

ownershipofappliancesand/orequipment;andachangeinconsumerbehaviourorpreferences.

Disentangling these various factors that drive and restrain energy use is the key purpose of

energyindicators.Inthisrespect,energyindicatorsprovidepolicymakerswiththetoolstomake

informed policydecisions to target the key enduse area or consumer behaviourthat isdriving

energyconsumption.

ThebenefitsoftheIEAapproach

The IEA indicator approach uses a pyramid that portrays a hierarchy of energy indicators from

mostdetailed(atthebottomofthepyramid)to leastdetailed(atthetopofthepyramid).This

illustrates conceptually how the most detailed and disaggregated data and indicators can be

combined to reveal the more aggregated ones higher up on the pyramid. This hierarchy is

important because it shows how detailed changes (which may be the result of policies,technological progress, structural reform or behavioural change) can be linked to higher order,

moreaggregatequantities,showing how the formeraffects the latter.With thishierarchy,one

can better explain more aggregate changes in energy use in terms of components and more

carefullychoosethedepthofanalysisrequired.Thishierarchywillbedifferentfromcountryto

countryasitdependsonthedataavailabilityandthequestionsthatneedtobeanswered.

Examples: The five most energy intensive industrial sectors are pulp and paper, chemicals and

petrochemicals, ironandsteel,cementandaluminium.Becauseoftheirmuchhigherenergy

intensity, growth in these industrial sectors will drive up energy consumption much morequicklythangrowthinlessintensivesectors.Forexampleanincreaseincement,usingabout

20Megajoules(MJ)perunitofGDP,willhaveamuchbiggerimpactonenergyconsumption

thananincreaseinthefabricationofmetalproducts,usinglessthan5MJperunitofGDP.

In the iron and steel sector, a relative decrease in the use of open hearth furnace (a veryintensiveprocess)willhaveadownwardeffectonenergyconsumption.Soadecreaseinthe

iron and steel intensity (in terms of energy use per unit of production) will not necessarily

indicate an improvement in energy efficiency in a particular production process: it can be

causedbyaswitchofproductionfromopenhearthfurnacestoblastfurnaces.


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TheIEAindicatorpyramid

Thetoprowofthepyramid(themostaggregateindicator)isdefinedastheratioofenergyusetogrossdomesticproduct(GDP).Alternatively,itcouldbedefinedastheratioofenergyuseto

anothermacroeconomicvariable,suchaspopulation.

The second row of elements can be defined as the energy intensity of each major sector, asmeasuredbyenergyuseperunitofactivityineachsector.

Lower rows represent the subsectors or enduses that make up each sector and progressivelyprovidemoredetaile.g.characterisingparticularprocessesorappliances.

Joiningeachlevelofenergyintensitiesarestructuralvariablesthatindicatehowtoweightthese

intensitiestoformamoreaggregateparameterofintensityoruse.Descendinglowerdownthe

pyramidrequiresmoredataandmorecomplexanalysistoreaggregatebackuptoahigherlevel.

However, each descentalso provides a better measure of technical energy efficiency defined

foraspecifictechnology,processand/orenduse,butalsorequiredmoredata.

FigureA.1:TheIEAindicatorpyramid

Note:Indicatorsshownarejustonexampleamongthoseavailable.

Degree

ofdisa

ggregation

TFC/GDP

Sectoralenergy

intensity

Enduseenergyintensity

Unitenergyconsumption

Aggregated

indicatorsIEAstatistics

Disaggregatedindicators IEAindicatordatabase

Process/appliance

indicators

LimitedIEA

indicators

D a t a requirement


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Exampleofindicatorpyramid:IndustrysectorTheindustrysectorcoversthemanufactureoffinishedgoodsandproducts,miningandquarrying

of raw materials, and construction. Power generation, refineries and the distribution of

electricity,gasandwaterareexcluded.

The industrialpyramidshowshowthissectorcanbedisaggregatedandthedifferent indicators

thatcanbeusedateachlevel(FigureA.2).Thisisonlyanillustrationandmaynotberelevantfor

allcountries.

FigureA.2:Industrysectorpyramid

Note:Russiahasverydetailedenergyandproductionstatisticsforindustry.However, it isnotpossibletoaggregatethemtohigher

levels in the pyramid due to lack of associated GDP data in constant currency. For IEA countries, the IEA database contains

informationatLevel2for21membercountriesintheindustrialsector.Somecountrieshavemoredetailedinformationthanwhatis

availableintheIEAdatabase.

Level1:EnergyuseperGDP.

Structureadjustedintensity.

Level2:Energyuseperunitofpr

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