Case Study

Russian barbershop benefits from energy efficiency measures

The company is a small barbershop famous for its services in the far east city of Blagoveshchensk, Russia. The business was facing the problem of continuously increasing energy bill, especially during the winter period.

To stay competitive in a saturated market, the company decided to invest into modernization of its building and contacted its servicing bank. It turned to be the RuSEFF participating bank.
 
The RuSEFF team supported the company with assessment of the energy balance of the production facilities. The RuSEFF team defined that energy losses were mainly caused by the poor envelope insulation and old windows.
 
The suggested project comprised replacement of old windows with the energy efficient ones, thermal insulation of walls and modernization of the heating system.
 
The €17,200 investment allows the company to reduce its energy consumption by 176 MWh per year, leading to annual €4,650 cost savings. This means the investment will be repaid from energy savings only in less than four years, turning the future cash-flows into company's income for many more years to come. The company will benefit from these measures immediately with the decreased energy bill 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 the energy consumption patterns and contribute to environmental protection.
 
29 Oct 2015