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The company is a large furniture producer in the Volga region of Russia, selling its products in the region and beyond. The company faced high energy costs as a result of using an old inefficient electric heating boiler.
To decrease the energy costs and increase competitiveness in the market, the company contacted RuSEFF for an advisory package and affordable financing for energy efficiency measures. The RuSEFF team supported the company with an assessment of its production facilities, the potential energy saving measures, their technical-financial parameters and the profitability.
The final project comprised of the replacement of an old electric boiler with a gas fired one. The fuel efficiency of a new boiler is 45 per cent higher, leading to cheaper and more reliable heating.
The €34,000 investment allowed the company to reduce its energy consumption by a substantial 630 MWh per year, resulting in annual cost savings of €15,300. This means the investment will be repaid from energy savings in about two years, leading to reduced production costs upon project implementation. The company will feel the investment benefits immediately due to lower energy bills and improved working conditions.
This project improved the company’s financial standing and competitiveness in the market, demonstrating that replacement of outdated equipment can lead to energy and cost savings, and sometimes to very significant ones.
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.