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Mongolian equipment supplier gets new and efficient boiler

Investor
An equipment supplier
Location
Mongolia
Investment
Energy efficient boilers
Investment Size
$777,615
Financial results
Payback period 6.1 years; annual cost savings $128,000
Energy savings
12,030 MWh per year
Resource savings
3,100 tonnes of fuel per year
CO2 savings
4,403 tonnes per year
Donor
EBRD SSF

Automatic controls and new technology allow significantly less fuel consumtpion and less break-downs

A supplier in Mongolia of various equipment and materials for construction, plumbing, heating and ventilation has expanded in recent years to provide operation and maintenance services for owners of heating boilers.

To reduce the energy consumption of heating boilers, the company decided to replace a number of them with new energy efficient units. This was needed because the boilers were largely from the 1990s, outdated, without automatic controls and were very energy intensive.

The company contacted MonSEFF and received a financing and advisory package to support their project.

The project included the replacement of three smaller boilers with one more powerful 1.8 MW boiler, and other small boilers and ancillary equipment at two more sites.

The $777,615 MonSEFF investment generated the energy cost savings of $128,000 per year, which means the investment will be repaid out of the energy savings alone in just five years. The savings come from a significant reduction in energy consumption for heating – from 7,500 to 4,400 tonnes of fuel per year. In addition, the clients will enjoy fewer failures and unexpected interruptions, as well as lower maintenance costs.

The trend of boiler replacement is now supported by a growing number of clients.

This project demonstrates where to start energy saving investments, as investing in efficient heating usually provides the most substantial savings and fast pay-back.

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