Investments in heat supply field have relatively long pay back periods

13 may 2014 | Rossiyskaya Gazeta

The term of the annual energy saving program requiring that schools, kindergartens and hospitals of the Russian Federation, cut down their energy consumption until 2015, is to be extended for 5 more years. According to the Ministry of Economic Development and Trade, the public sector has a high potential for energy saving and better energy efficiency, while doing small steps in achieving that.

Evgeny Gasho
Evgeny Gasho
Department for Expert Analytics

Rossiyskaya Gazeta refers to the words of Evgeny Gasho, expert of the Analytical Center, that for the moment only half of the target has been reached. According to Mr. Gasho, there is no comprehensive view of the achieved goals: not everywhere the energy saving control is in place, the same goes for energy audit. Mr. Gasho made it clear, that the required energy saving rate of 3% per year is just an average rate, however the feasible saving rates can be 1-2% per year or 7-8% per year.

“Heat supply field has the highest potential for higher efficiency: on a comparable basis the rates of heat consumption by the public sector organizations are 3 times higher than those of electricity consumption”, – said Mr. Gasho, pointing out that at the same time heat supply is the most costly field in terms of boosting energy efficiency. The expert noted, that contrary to common belief, the investments in this field tend to have relatively long pay-back periods. For example, the capital invested in heat insulation of a building is going to be recovered not sooner than in 8-10 years (if not in 15-20 years); utility systems overhaul is going to pay back in 7-8 years. As explained by Mr. Gasho, shorter pay-back periods (of 2-3 years) are common only to investments in the field of electricity supply systems.