PECULIARITIES OF DETERMINATION OF ECONOMIC INDICATORS OF EXECUTIBILITY OF IMPLEMENTATION OF MEASURES TO INCREASE ENERGY EFFICIENCY

Authors

DOI:

https://doi.org/10.20535/1813-5420.2.2021.247412

Keywords:

energy efficiency, energy saving, a set of measures to improve energy efficiency, economic indicators, rising prices, energy resources, buildings, static and dynamic indicators, costs, revenues.

Abstract

The work is devoted to the analysis of the peculiarities of determining the economic indicators of the feasibility of implementing measures to improve energy efficiency. In contrast to energy saving, which aims to reduce the consumption of energy resources, energy efficiency is a matter of appropriate energy consumption. That is, the use of less energy for the same level of supply of buildings or industries. The topic is relevant, because now energy prices are rising every year. At the same time, the International Energy Agency estimates an increase in total resource needs by 25% by 2040.

 To achieve this goal, standard measures aimed at improving the energy efficiency of buildings, the effects of the implementation of these measures, a number of economic indicators, including PP, ARR, NPV, PI, BCR, SIR, MARR, IRR and DPP, were analyzed, evaluated and grouped. The focus was on the dynamic group of indicators due to the fact that their calculation involves the use of a discounting procedure. The general scheme of all dynamic indicators is the same and is based on forecasting costs and revenues for the planning period. The indicators of this group take into account changes in the value of money over time, which is neglected by the indicators of the static group. The most popular indicators are the calculation of net present value (NPV) and the definition of profitability index (PI). This work can be used to solve the problem of low energy efficiency and insufficient funding for the modernization of the building

References

Pro enerhetychnu efectyvnist budivel: Zakon Ukrainy vid 22.06.2017№ 2118-VIII. S. 359.

Enerhetychna efectyvnist budivel. Metod rozrahunku enerhospozhyvannia pry opalenni, okholodzhenni, ventyliatsii, osvitlenni ta hariachomu vodopostachanni / DSTU B A.2.2-12:2015 [Natsionalnyi standart Ukrainy] – K.: Minrehion Ukrainy, 2015, - 203 s.

Oficiyinyi sayit prohramnoho produktu ELCUT, [Electronic resource]. - Access mode: https://sgv.in.ua/off-lifaq/28-otsinka-efektivnosti-investitsij-v-excel-rozrakhunok-npv-pp-dpp-irr-arr-pi

Rosalie T. Ruegg, Harold E. Marshall, Building Economics: Theory and Practice, p. 46-48, https://link.springer.com/chapter/10.1007/978-1-4757-4688-4_4

Benefit-Cost Ratio (BCR), [Electronic resource]. - Access mode: https://www.investopedia.com/terms/b/bcr.asp

Aditya Goenka, Lin Liu, and Manh-Hung Nguyen, SIR Economic Epidemiological Models with Disease Induced Mortality, TSE Working Paper, n. 20-1150, October 2020, revised January 2021.

Derevyanko D.G., Evaluation of the effectiveness of regulation of energy processes in the local electrical systems with DG sources,: author's ref. dis. ... cand. tech. Science: 05.09.03. Kyiv, 2016. 14 p.

Discounted Payback Period, [Electronic resource]. - Access mode: https://www.investopedia.com/terms/d/discounted-payback-period.asp

Profitability Index (PI) Rule, [Electronic resource]. - Access mode: https://www.investopedia.com/terms/p/profitability-index-rule.asp

Published

2021-12-21

Issue

Section

ECONOMIC ASPECTS OF ENERGY