Case Study

Energy efficient pizza and dumplings in Russia

This RuSEFF client is a large company specializing in the production of pizza, dumplings and other food semi-products. It has been on the market for twenty years, however, the increasing energy bill caused by the electricity tariff increase and the rising level of energy consumption could significantly affect the competitiveness of the company.

The company decided to invest in infrastructure modernization and asked its servicing bank for a loan. Since it was the RuSEFF participating bank and it was interested in building up long-term relations with the client, the bank suggested to use the RuSEFF advisory services for development of the best project solution, leading to the highest energy savings.
 
The RuSEFF team assessed the company’s production facilities, the energy consumption, suggested the potential energy saving measures and presented their technical-financial parameters and profitability to the client. It was discovered that electricity is a very expensive energy source as compared the cheaper natural gas. Therefore, it was suggested to replace the electricity fed frying pans, stoves and ovens with those consuming gas, and new, hence, more energy efficient.
 
The final project consisted of the cooking ovens replacement, modernization of refrigerating chambers, replacing of the old lighting system and installation of mini-CHP.
 
The investment of RUB45 million allowed the company to decrease its energy consumption by substantial 8,150 MWh per year, resulting in cost savings of RUB17 million per year. It means the investment will be repaid from energy savings only in less than three years. The company will feel the benefits of this measure immediately through the lower energy bill.
 
This project improved the company’s financial standing and competitiveness at the market, securing its future in the face of the rising energy prices. It demonstrates once again, that investment in energy efficiency are among the most profitable ones, leading to fast repayment and steady energy saving cash-flows.

 

18 May 2015