The company is a large furniture producer in the Volga region, selling its products in the region and beyond. The company faced high energy costs as a result of using old inefficient electric heating boiler.
To decrease the energy costs and increase competitiveness on the tight market, the company contacted RuSEFF
for advisory package and affordable financing for the energy efficiency measures.
The RuSEFF team supported the company with assessment of production facilities, potential energy saving measures, their technical-financial parameters and profitability.
The final project comprised replacement of an old electric heating 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 substantial 630 MWh per year, resulting in €15,300 of cost savings annually. 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 bill and improved working conditions.
This project improved the company’s financial standing and competitiveness on the market, demonstrating that replacement of outdated equipment always leads to energy and cost savings, and sometimes to very significant ones.
The EBRD through RuSEFF supports 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.