ESCO project improves heating supply

IEE d.o.o.
Banja Luka, Bosnia and Herzegovina
Replacement of fuel oil boilers and reconstruction of the heat plant
Investment Size
EUR 1,426,000
Financial results
EUR 433,576
Energy savings
18,000 MWh per year
CO2 savings
6,456 tonnes per year
Switching from coal to biomass, decrease of CO2 emissions and maintenance costs
European Union, Western Balkans Investment Framework

Investment in two biomass boilers, produce 18 GWh of thermal energy annually and heat 120,000 m2 of residential and office space.

The Company IEE d.o.o. was founded in 2008. It deals with manufacturing, engineering and business consulting, focused exclusively on renewable energy, energy efficiency, ecology and sustainable development.

In October 2011, the Municipality of Gradiska and the company IEE signed the contract for performance of production and delivery of thermal energy and management, operation and maintenance of entire infrastructure of urban heating plant. In order to secure funds for implementation of this project, IEE approached UniCredit Bank Bosnia and Herzegovina, a Partner Financial Institution of WeBSEFF. The WeBSEFF team assessed project eligibility against the EBRD criteria.

The IEE decided to make reconstruction of the boiler room by replacing heavy fuel oil boilers with two biomass boilers of 12 MW total capacity in order to produce 18 GWh of thermal energy annually used for heating of approximately 120,000 m2 of residential and office space.

The investment of EUR 1,426,126 resulted with annual financial savings of EUR 433,576 which has enabled simple payback of the investment in less than 5 years, with annual primary renewable energy production of 18,000 MWh and annual reduction of carbon dioxide emissions for 6,456 tonnes. The investment was supported with the WeBSEFF financial incentive of EUR 130,380 (15% of the investment amount which equals to the loan amount of EUR 869,000).

The Western Balkans Sustainable Energy Financing Facility (WeBSEFF) was developed by the European Bank for Reconstruction and Development (EBRD) and is supported by the European Union and the Western Balkans Investment Framework (WBIF).