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Comprehensive Assessment of Economic Efficiency for Energy-Saving Investments in Public Utility Enterprises: Optimizing Consumption and Sustainable Development

Author

Listed:
  • Dariusz Sala

    (Department of Enterprise Management, AGH University of Krakow, 30-059 Krakow, Poland)

  • Iryna Bashynska

    (Department of Organizational Management and Social Capital, AGH University of Krakow, 30-059 Krakow, Poland)

  • Kostiantyn Pavlov

    (Department of Economics and Trade, Lesya Ukrainka Volyn National University, 43025 Lutsk, Ukraine)

  • Olena Pavlova

    (Department of Economics and Trade, Lesya Ukrainka Volyn National University, 43025 Lutsk, Ukraine)

  • Ihor Halytsia

    (Department of Labor Economics and Management, National University of Food Technologies, 01-601 Kyiv, Ukraine)

  • Bohdan Hevko

    (Automobiles Department, Ternopil Ivan Puluj National Technical University, 46001 Ternopil, Ukraine)

Abstract

This article presents a comprehensive approach to assessing the economic efficiency of investments in energy-saving measures specifically for public utility enterprises. This study contributes to the theoretical and practical justification for using efficiency evaluation criteria, such as net present value (NPV), return on investment (ROI), and internal rate of return (IRR) for energy projects. Analysis revealed that the highest electricity consumption occurs in the winter period—approximately 246,923 kWh when using 90 W lamps operating 16 h per day. In the summer period, with an average daylight duration of 8 h, consumption decreases to 31,298 kWh. This difference is due to the influence of temporal and seasonal factors, highlighting the need for a comprehensive assessment of energy-saving measures’ effectiveness across different times of the year. Furthermore, a methodology for calculating and utilizing the payback ratio was proposed, according to which, by reducing lamp wattage from 90 W to 60 W and operating hours from 16 to 8 h, companies can reduce electricity costs to 21,076 kWh in the summer period, demonstrating potential savings of 1.5 to 2 times. This study also proposes specific financing schemes for energy efficiency projects, enabling the more accurate assessment of needs and the optimization of energy consumption under limited budget conditions and high environmental requirements.

Suggested Citation

  • Dariusz Sala & Iryna Bashynska & Kostiantyn Pavlov & Olena Pavlova & Ihor Halytsia & Bohdan Hevko, 2024. "Comprehensive Assessment of Economic Efficiency for Energy-Saving Investments in Public Utility Enterprises: Optimizing Consumption and Sustainable Development," Sustainability, MDPI, vol. 16(23), pages 1-23, November.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10163-:d:1525772
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    References listed on IDEAS

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    1. Cai, Wei & Wang, Lianguo & Li, Li & Xie, Jun & Jia, Shun & Zhang, Xugang & Jiang, Zhigang & Lai, Kee-hung, 2022. "A review on methods of energy performance improvement towards sustainable manufacturing from perspectives of energy monitoring, evaluation, optimization and benchmarking," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
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    3. Dariusz Sala & Iryna Bashynska & Olena Pavlova & Kostiantyn Pavlov & Nelia Chorna & Roman Chornyi, 2023. "Investment and Innovation Activity of Renewable Energy Sources in the Electric Power Industry in the South-Eastern Region of Ukraine," Energies, MDPI, vol. 16(5), pages 1-21, March.
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