Prospect for competitiveness of Serbian economy, home and state budgets

Recipe for energy efficiency

Domestic economy will have to afford and develop as efficient production conceptions as possible in order that enterprises can take sustainable positions at a regional market. According to the fact that the price of energy-generating products is one of the primary elements in the total price of a product, for leading world companies the condition to survive at the top represents the replacement of expensive oil with alternative energy resources


By BOJANA BIJELOVIĆ
from Belgrade, SERBIA


The amounts on electricity bills of Serbian citizens are increasing every year. The reason for this is insufficient production and distribution potential of electric power capacities. Poorness, but also social peace which for years has been bought by low prices of basic living provisions distracted attention from the need of regular big investment in infrastructure, while today we pay the price of many-years of escapism.

Most often during winter we face the situation that because of a necessary electricity import at the European level prices, we wait for the end of the month with empty wallets. Financial occupations are gradually changing consumers' behaviour, firstly regarding the endeavours to waste electricity more rationally. A positive example during summer months is an educative campaign of Public Transport Company "Belgrade", which, because of putting air-conditioning systems into buses reminds that passengers' inattention (opening of the windows despite the fact that a device for a specified purpose is on) causes grater fuel consumption. Serbian economy would achieve better business results if all the managers paid greater attention to more efficient energy strategies. In the region of South-East Europe, which is thanks to the processes of harmonization and institutional integration as nearer as possible to the EU, competition is greater and greater and that trend will continue to the cost of the weaker and less developed.

Domestic economy will have to afford and develop as efficient production conceptions as possible in order that enterprises can take sustainable positions at a regional market. According to the fact that the price of energy-generating products is one of the primary elements in the total price of a product, for leading world companies the condition to survive at the top represents the replacement of expensive oil with alternative energy resources. A high degree of economy dependence on oil and gas import gives headache not only to businessmen but also to statesmen all over the world. In recent years wars for oil have been fought and it has been threatened with suspending the delivery of the same. As the optimal electricity supply is a prerequisite for a stable economic development, insufficient energy-generating resources are a serious economic, as well as safety risk. Apart from this, oil is energy-generating product that marked the 20th century, and in accordance with the scientific predictions its reserves will last 40 to 100 years more.

While over the world the largest companies relocate their production capacities to the countries where energy values and labour force are the cheapest, and stress infrastructural improvements, significant financial savings can be made in Serbia but also economic crises can be prevented by the mere acceptance of rational business principles. In Serbia general phenomenon is to light up, heat and/or cool all the premises in homes and companies, because there was electricity in abundance for decades, all that at a low price. Usually for cooking we turn on the broadest hotplates which unnecessarily dissipate heat. It is asserted that about 30% of electricity in Serbia is literally dissipated and irreversibly emitted into the atmosphere, water and soil. Also, it has to be borne in mind that distributive network, despite significant financial investment and international investment support, still produces losses of even approximately 15%!

Just those examples are enough to show that the budget of both citizens and the state would be less burdened by the education of citizens, by state policy which would stimulate the investment in contemporary, energy efficient products, but we are still awaited by more serious ventures on restructuring electric power system. The region of South-East Europe faces the prospect of energy deficit as the consequence of rising demand of 3% for electrical energy per year, 5-6% of annual economic growth, and many years of insufficient investment in new production capacities and transmission networks. However, if the total energy intensity (the quantity of electric power necessary for the production of a product item) decreased for only 5%, Serbian economy would in a short term become an industrial leader of the Region and exceptionally competitive in wider area. Thus, significant resources would be saved and a financial capital which would be invested in buying modern production lines of higher degree of productivity would be performed.

Because of the lack of state money in our country, the realisation of the projects about building mini hydro-electric power plants and using solar and wind energy is just about to start. In South-East Europe a few regional initiatives (e.g. Energetic Community JIE, under the aegis of the Regional Cooperation Council and the European Commission) are getting into full swing, interstate agreements on building gas and oil pipe lines are being signed. The result will be stable and transparent electricity supply at competitive prices. While waiting to reach European standards of electricity supply and its delivery, we can visit Energy Efficient Products Fair in Master Centre of Novi Sad (29th September - 1st October 2008) and wait for lower temperatures with the devices marked with the stickers guaranteeing lower consumption and - lower electricity bills.


(Published: 10.09.2008.)