The company is a small barbershop in the far east city of Blagoveshchensk, Russia. The business was facing the problem of continuously increasing energy bills, especially during the winter period.
To stay competitive in a saturated market, the company decided to invest in the modernisation of its building and contacted its servicing bank which is a RuSEFF participating bank.
The RuSEFF team supported the company with an assessment of the energy balance of the production facilities. The RuSEFF team defined that energy losses were mainly caused by poor insulation and old windows. Therefore, the suggested project comprised of the replacement of old windows with energy efficient ones, thermal insulation of the walls and modernisation of the heating system.
The €17,200 investment allowed the company to reduce its energy consumption by 176 MWh per year, leading to annual cost savings of €4,650. The investment will be repaid from energy savings in less than four years, turning future cash-flows into income for many years to come. The company will benefit from these measures immediately with decreased energy bills and improved comfort. The latter is likely to attract more clients and increase the company’s turnover.
This project demonstrates that energy efficiency investments are possible and profitable even in small service enterprises. Therefore, it is worth checking the energy saving potential of possible investment measures to choose the most profitable and attractive investment.
The EBRD, through RuSEFF, supports the sustainable financing and implementation of energy efficiency and renewable energy projects by the private sector. Together, the private, residential and public sectors can make a change in energy consumption patterns and contribute to environmental protection.