DTEK ESCO’s Project at CMPP Reduced Electricity Costs by 5.5 Million Hryvnias in a Year

DTEK ESCO together with the Central MPP made conclusions on the year of operation of the enterprise’s first energy service project. In March 2017, DTEK ESCO funded and installed at the mill on the turnkey basis 12 frequency converters manufactured by the Swiss company ABB which automatically control the electric motors operation. Back then, it had been expected that an ESCO project would improve the pump units efficiency by 25% thus saving the mill 2 million kWh, or 3 million hryvnias. However, over the year of the project’s operation the results have exceeded all expectations.IMG 9679

The actual annual electric power economy amounts to 52.3%, even reaching 61% some months. For 12 months of operation, the frequency converters have saved 3.4 million kWh of power (which equals to more than 3,000 tons of CO₂ emissions) and reduced the enterprises electricity costs by 5.5 million hryvnias. The savings exceeding the estimates will allow to complete the energy service contract a year earlier. After that the new equipment will be transferred to the CMPP’s property.

“As a mechanism for funding and execution of energy-efficiency measures on the turnkey basis with guaranteed achievement of saving, energy service has been actively utilized for more than 30 years around the world. In Ukraine, this service is just developing, that’s why hypothetical and estimate results of ESCO projects usually can be heard of. The project at the CMPP demonstrates what an actual benefit the client enterprise has attained for the year. You can feel this economy and reliable operation of equipment,” said Yevhen Bushma, Director of DTEK ESCO.

“At the project start, the CMPP only funded 20% of new equipment and work costs. The rest – 80% – was invested by DTEK ESCO which has taken all the project’s success risks. We split the attained savings with DTEK ESCO 20/80. The CMPP’s investments have already been paid off. Further savings become for us essentially an income,” reported Dmytro Shevchyk, CEO of the Central Mining and Processing Plant.

“The frequency converter is a robot replacing a man that uses smart technologies to control the pumps operation automatically. The switches tell the robot whether to speed up or slow down the pumps depending on the production line loading. This robot has never grown tired for the entire year, disregard harsh winter and abnormally cold spring. The equipment has been operating as a Swiss clock,” told Maksym Strilets, Head of energy management department at the Central MPP.

At the moment, DTEK ESCO and the CMPP are implementing two more ESCO projects – replacement of 7 electric motors with modern energy-efficient ones and installation of 10 frequency converters on the pump units. Similar projects of retrofitting of pump equipment at DTEK’s power plants and coal plants also show saving of 35 to 60% of electric power.