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Money out of thin air


28.01.2014
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Money out of thin air

Time spent on an aeroplane, can be called time spent "up in the air" - both literally and figuratively. The purpose of the trip is ahead of you, and several hours of the flight may be taken up in reflection - often allowing habitual problems to be looked at from a different angle.

Such singular thoughts are shared by Serikbay Bisekeev, president of "Arman" Group and winner of the contest "Entrepreneur of the Year" in the category B2B.

The group of companies I run consists of business-units that are literally scattered all over the world - in Russia, Kazakhstan, Germany, Singapore and India, which means I have to fly very often. When the aircraft is climbing or descending, I always pay attention to the different landscapes that I see below - in Europe, a series of elegant metal structures often flashes before the eyes: they do not spoil the view, indeed add even a touch of variety to the flat landscape. They are wind farms, which enable Europeans to produce energy without harming the environment - using the natural power of the wind.According to estimates by the European Wind Energy Association, the total capacity of wind power in Europe has already exceeded 100GW, which is equivalent to the work of 62 power plants using ordinary coal, or 52 powered by gas, or 39 nuclear power plants. The environmental effect is astounding: after just one year the amount of carbon dioxide emitted into the atmosphere was reduced by 220 million tonnes.

In Russia, the total capacity of wind energy devices (wind turbines) is only about 16MW. This is six thousand times less than in Europe, even though our country is of a considerably greater size and has a no smaller amount of the geographical features that are prerequisites for developing alternative energy. 70% of the territory of Russia, where 10% of the population reside, comprises areas of decentralised power supply which almost exactly coincide with zones of potentially viable wind energy potential: Kamchatka, Magadan region, Chukotka, Sakhalin, Yakutia, Buryatia and Taimyr. According to experts, the effect on the fuel economy from the use of wind turbines alone could save up to 80 billion rubles a year!

State support

It would seem that the benefits of renewable energy are evident, both for the economy and for the environment. Implementing programmes for the construction of wind farms, however, needs investment and serious governmental support. At the present time, while stocks of conventional fuels in the CIS are sufficient for another 50-60 years without any pressing need to consider alternatives, heads of states who are in support of wind power look like real innovators.

Among these visionary leaders is the President of Kazakhstan, Nursultan Nazarbayev. I can discuss this based on real experience: over the past year and a half, KazWindEnergy, one of the companies under the holding "Arman", has developed a feasibility study for a wind farm in the Kostanai region of Kazakhstan. The cost of the project is one hundred million dollars.

The main problem that we encountered in practice was a lack of secure investor interest. The legislative framework is flawed, since the market rules for return on investment in the energy sector are vaguely defined. It is therefore necessary to adopt laws that will help increase the number of investors capable of putting up money, to learn how to build, how to work and to earn money from this.

In Russia, large-scale implementation of such projects is still far away, but the first steps towards supporting "green energy" are being made right here. In late April 2013, the government of the Russian Federation prepared a resolution according significantly increased investment in renewable sources of energy - more precisely, types of energy harnessing such as solar, wind and small hydropower plants. There is discussion of holding annual competitions for renewable energy investment projects - the winner eligible to receive payment for power over 15 years from the date the facility is first put into operation, with a guaranteed return on investment of about 14%. It is assumed that the first competition will be held this year. Of primary interest are the far eastern, northern and southern regions of Russia.

Thanks to such competitions, the authorities anticipate that decisive technology will finally be created for renewables to appear across the country in significant amounts. Development of wind power technology is now already at a very high level, and we have the possibilities to transfer that technology rapidly and effectively for use in Russia.

The right to clean air

I think that each of us would like to see above us a clear blue sky, and to breathe fresh air - free from carbon dioxide emissions and other pollutants. Anyone can make their own personal contribution, but in this instance the role of business is certainly more important than the role of a particular individual. It is essential to introduce the concept of "environmental responsibility" into all spheres of society and business, without exception.Modern-day companies must strive not only to comply with environmental legislation and accepted standards of environmental management, but also the introduction of modern technologies - to modernize production and to minimize negative impacts on the environment. Wind power, in this context, is precisely the case where being responsible is not only pleasant, but also beneficial.

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