How to promote the sustainable development of the company?

The European Green Deal is a comprehensive plan to ensure the sustainable development of the European Union and to achieve its climate goals while continuing its economic growth. According to a survey conducted by Elektrum in 2020, 49% of companies surveyed believe that the European Green Deal will have an impact on the company's future. The entrepreneurs could learn about the options the Green Deals gives entrepreneurs and the solutions for long-term and balanced development could be implemented at webinar hosted by Elektrum Energy Efficiency Centre “How to promote the company's sustainable development?”.

The European Green Deal as an opportunity for business

The results of the survey in 2020 conducted byshow that 91% of Europeans consider climate change to be a major concern. Member of the European Parliament Inese Vaidere says the concern of people is justified by the premature loss of around 400,000 Europeans each year due to air pollution.

To address existing environmental challenges, the European Union (EU) has set itself the goal of becoming the world's first climate-neutral part of the world by 2050, with zero climate and environmental impacts. The European Green Deal is a strategy to achieve this goal. In addition, the commitment to become a climate-neutral part of the world is reinforced by a climate law passed by the European Parliament.

“Specific ways to achieve climate neutrality will be covered by sectoral sub-laws. The European Commission will present the sub-laws in the summer of 2021 to discuss, refine, improve and agree with the Member States,” said Member of the European Parliament Inese Vaidere.

Speaking about the benefits of the Green Deal, I. Vaidere points out new green jobs, a modernised economy, the export of environmentally friendly goods and technologies, cleaner and more affordable energy, as well as savings in the state and business budgets. More and more companies are setting ambitious environmental goals and targets for sustainable development, and the European Green Deal must be seen as an opportunity to achieve these goals. “One of the opportunities that sustainable development offers to entrepreneurs is to improve their public image. The number of consumers whose choices are influenced by environmental aspects is growing every year,” says Inese Vaidere.

Also, one of the goals of the Green Deal is to facilitate the transition to a circular economy. “The Environment Committee recently approved a report on a new action plan for the introduction of a circular economy, which includes various proposals on how to reduce and reuse unnecessary packaging. Of course, initially entrepreneurs will need additional resources and time to optimise production processes, but this will strengthen the competitiveness of companies and reduce costs in the long run - lower material costs, energy consumption, waste management costs, less dependence on external suppliers and international supply chains,” emphasises Professor Inese Vaidere. In addition, the circular economy is an opportunity for Latvian manufacturing companies, as the production of new and sustainable goods will create new jobs. Studies show that the introduction of a circular economy in the EU could create an additional 700,000 new jobs by 2030, boosting growth.

Demand for electricity will increase

“There is great potential for an increase in electricity consumption as a result of the electrification of various processes. In the IT sector, electricity consumption is currently increasing due to data processing,” informs Māris Balodis, Research and Development Director of Latvenergo AS.

An increase in electricity consumption is also expected due to the electrification of heating solutions. “Latvia is a Nordic country and energy consumption is 20% higher than the EU average, so the renovation of buildings must be carried out with more significant energy supply solutions. Achieving the performance of passive and zero-energy buildings requires large investments in the insulation of buildings, so energy supply alternatives often need to be considered. For example, heat pumps are a competitive heat supply solution with great potential for future growth,” says Māris Balodis.

Considering the fact that the transport sector in Latvia generates about a quarter of the total GHG emissions, electrification of this sector is expected. “Potential increase in electricity consumption is expected from the development of railway electrification, Rail Baltica and electromobility. If the entire existing fleet were electric, it would create a demand for approximately 3 TWh of electricity per year, which, from the point of view of electricity supply and production, can be provided in Latvia,” emphasises Māris Balodis.

Great emphasis will be placed on renewable energy generation in the future, especially the development of offshore wind farms. According to M. Balodis, the EU has developed a strategy for the development of offshore wind farms, which works with the optimisation of supply chains related to production technology, infrastructure, development of human resources, development of maritime spatial planning.

“Solutions are being provided to provide base and regulatory capacity, for example, new, more efficient natural gas technologies are being developed in Germany, Poland, Greece and the Netherlands. They are vital for the operation of RES. In order to get closer to the generation of green energy in terms of emissions from natural gas technologies, the possibility of co-burning hydrogen in parallel with natural gas is being considered,” explains Māris Balodis.

Great emphasis will be placed on renewable energy generation in the future, especially the development of offshore wind farms. According to M. Balodis, the EU has developed a strategy for the development of offshore wind farms, which works with the optimisation of supply chains related to production technology, infrastructure, development of human resources, development of maritime spatial planning.

“Solutions are being provided to provide base and regulatory capacity, for example, new, more efficient natural gas technologies are being developed in Germany, Poland, Greece and the Netherlands. They are vital for the operation of RES. In order to get closer to the generation of green energy in terms of emissions from natural gas technologies, the possibility of co-burning hydrogen in parallel with natural gas is being considered,” explains Māris Balodis.

According to Maris Balodis, Latvenergo is also considering various options to improve the efficiency, security and availability of energy supply. One such possibility is the installation of high-capacity batteries in one of Latvenergo's production facilities to provide services to transmission system operators in providing primary reserves. In addition, an evaluation is being carried out on the development of a hydrogen production pilot project at one of the company's plants to be used in the production process at the power plant, as well as in synergy with other sectors such as transport.

How easy is it to become a consumer of green electricity?

In order to determine what resources are used to generate electricity, a number of RES “tracking” systems or RES certification markets have been created in the world. “They provide an opportunity for countries to identify how much of the total electricity consumed is from RES,” explains Rodika Prohorova, a senior trade analyst at Latvenergo AS.

The Association of Issuing Bodies (AIB) is an association of European issuers of guarantees of origin that aims to develop, use and promote the use of RES in particular. It was established in 2002, following the establishment of the European Energy Certificate System. “This system ensures cross-border trade through a single system in which guarantees of origin for electricity can be traded or exchanged throughout Europe. For example, a consumer in Portugal can buy proof of origin that electricity is produced in Norway,” says Rodika Prohorova.

Proof of origin is a document in electronic format used in electronic systems and registers. It shows not only the volume produced, but also the date of operation of the plant, the month of production, volumes, technology, sources.

According to Rodika Prohorova, it is a systematic and transparent system where every end consumer can understand what energy they are consuming. One Proof of Origin is equivalent to one MWh of electricity. Information on each country's development, energy consumption, issuance and write-off of certificates is available on the AIB website. “On 1 December 2020, amendments to the Electricity Market Law entered into force in Latvia, which stipulates that the issuing authority of the certificates is the Latvian electricity transmission system operator Augstsprieguma tīkls AS (AST). All activities related to export, import, transfer and use are managed by AST through the website cmo.grexel.com. It is also possible to find information on the website www.ast.lv", explains Rodika Prohorova.

“Proof of origin, of course, comes at an additional cost, but many companies switch to such a solution, for example in IKEA's plants, as a precondition for using energy from renewable sources,” says Rodika Prohorova.

 

Experience in sustainable company management

Lindstrom Latvija, a company that provides the production, maintenance, repair, rental and delivery of textile products, such as workwear and carpets, shared its experience in the sustainable management of the company. According to Ivars Šmits, CEO of Lindstrom Latvija, the company's goal is to take care of people and the planet, inspiring them to become better and develop their businesses sustainably.

“In the production process of the company, we use more durable materials, tested and practical design, during the rental period we ensure that the clothes are washed on appropriate programmes and repaired,” says Ivars Šmits.

Each laundromat has an environmental management system in place and sets specific targets for the consumption of water, electricity and detergents, as well as for the recycling of textiles. The company follows the goals every month, constantly reducing the consumption of resources.

The recycling of textile waste in the Baltics was a major challenge, at best, they were burnt to heat. This year, Lindstrom Latvija has signed an agreement in Finland on recycling textile into new textile fibres. The Baltic states also plan to join the process this spring or summer.

“Three years ago, we commissioned a new building with an office and a factory. We integrate modern LED lighting, which can be adapted to different needs. We use energy-saving technologies - water heat recovery in washing, air heat exchange drying, recuperation in heating and ventilation. We installed a building management system in the service centre - automation for external lighting, air flow gates that switch on automatically depending on the outdoor air temperature. The heating is automatically regulated by setting the required temperature in individual rooms.

We reuse water during the washing process - the last rinsing water is stored and used in the next washing cycle as the first water. As a result, we have reduced our water consumption by 16%. There is a similar principle in carpet washing, and it helps to reduce the water consumption of carpet washing by 25%,” says Ivars.

Schmidt on the technologies used in the company. The company uses part of the treated wastewater to recycle the contaminated water. The treated water is supplied from the bottom with purified water, which is aerated or filled with air bubbles. The bubbles cause the contaminant particles to rise and are removed mechanically. The amount of water used in its purification process has been reduced by 80%.

“In order to motivate employees to take care of energy-efficient use, monthly bonuses are provided for employees in the laundry part, and one of the factors that makes up the bonus is how resource-efficient it is. It should be added that customers increasingly value companies' concern for environmental sustainability,” says Ivars Šmits, sharing his experience.

Sustainable solutions for any business

Ivars Inkins, Head of Elektrum Energy technologies, informed that Elektrum offers entrepreneurs sustainable solutions for electricity generation, electric car charging and lighting modernisation.

One of the solutions for generating electricity from renewable energy sources offered by Elektrum is solar panels. “When choosing a solar panel system, one must first understand the volume of panel production and electricity consumption at the site. It is important to consume as much of the electricity generated during the day as possible immediately and to reduce the amount transferred to the grid. Solar panels produce the most energy when the production in hydroelectric power plants is low; it is not profitable to produce electricity in thermal power plants, because there is no place to put the heat, therefore the electricity market price is more expensive. The panels provide an opportunity to produce electricity themselves during this period, reducing the cost of it,” says Ivars Inkins.

Monocrystalline panels and polycrystalline panels are currently widespread on the market. The difference is power - monocrystalline panels have a slightly higher power than polycrystalline panels, so they can produce more electricity. The new panels use different technological solutions to increase efficiency.

“One such solution is split cells, which have a higher efficiency in the shade, because the current flow is only reduced in the part of the panel that is shaded, and not the whole panel. PERC technology is also used - this means that the sun's rays pass through the silicon crystal twice, the radiation received by the cell increases, as well as the heating of the panels decreases. Thus, panels with PERC technology have higher efficiency and a shorter payback time,” says Inkins.

Elektrum also offers electric car charging solutions at home and at work. “The main difference between charging solutions is the current used to charge the car - AC or DC. AC chargers are slower because the charging speed is limited by the power converter built into the electric car. In DC devices, the car's internal charger does not affect the charging speed, so it is possible to charge the car much faster, as well as the charging capacities of these stations are higher. For example, with a 50 kW DC charging station, the Nissan Leaf can be charged in a little less than an hour. The 11 kW AC device will charge it in about 4 hours,” explains Ivars Inkins.

In order to choose the most suitable solution, Elektrum offers free consultations, delivery and installation of charging equipment, connection design and construction, as well as payment options for both charging equipment and construction work.

University experience in sustainability

The path of Riga Technical University (RTU) towards sustainability began in 2015, when it was concluded that the university does not think enough about its impact on the environment and its reduction. “In 2015, we identified the situation with the first Sustainability Report. In 2016, we developed the RTU Environmental Protection Policy. In 2018 a vision of Ķīpsala was created - a green and progressive university complex. In 2020 we approved the RTU Sustainable Development Concept. One of the sub-strategies is sustainable development, which we want to implement by 2025, because we see it as one of the important directions for the university of technology,” says RTU Administrative Director Juris Iļjins.

Juris Iļjins points out that one of the priorities is to increasingly include the content of sustainability in study programmes, so that students see the connection between learning and sustainable development. RTU is also actively working on the development of the lifelong learning offer. “In order to link the concept of sustainable development with scientific activities, it is planned to promote the connection of RTU publications and projects with the UN Sustainable Development Goals, to reorientate research to the areas of sustainable development, in 2027 reaching 54% of scientific publications per year in the fields of sustainable development,” says Juris Iļjins.

In order to promote the sustainable development of RTU infrastructure, the new buildings use the most modern technologies to create less impact on the environment. It is also planned to abandon the use of plastic bottles in Ķīpsala, providing available drinking water taps.

RTU plans to abandon the purchase of fossil transport and fuel in the near future, replacing it with electric transport. “Currently, electric cars are available in all remote study centres. We plan to use shared services in Riga, employees have access to e-scooters and other light mobility tools to move between RTU buildings. If necessary for freight transportation, we will use trucks in the short term. On the other hand, in cases when employees have to travel further distances, for example, to Lithuania, it is planned to provide an alternative solution, such as rental services. As a result of these activities, we plan to use electric transport for 95% of mobility,” Juris Iļjins points out. In addition, it is planned to triple the number of electric car charging points this year in Ķīpsala.The current solutions and actions that have been completed have enabled RTU to enter the UI GreenMetric Rankings among the 60 greenest universities in the world.

The global path to climate neutrality is gaining momentum. If a year ago the European Union was one of the few to state such a goal, then in the last year other countries, such as China, Japan and South Korea, have done the same. We must all work together to ensure sustainable and environmentally friendly development.