IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i23p10163-d1525772.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/23/10163/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/23/10163/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Iryna Bashynska & Sabit Mukhamejanuly & Yuliia Malynovska & Maryana Bortnikova & Mariia Saiensus & Yuriy Malynovskyy, 2023. "Assessing the Outcomes of Digital Transformation Smartization Projects in Industrial Enterprises: A Model for Enabling Sustainability," Sustainability, MDPI, vol. 15(19), pages 1-46, September.
    2. 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.
    3. Kateryna Redko & Olena Borychenko & Anatolii Cherniavskyi & Volodymyr Saienko & Serhii Dudnikov, 2023. "Comparative Analysis of Innovative Development Strategies of Fuel and Energy Complex of Ukraine and the EU Countries: International Experience," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 301-308, March.
    4. Iryna Sotnyk & Tetiana Kurbatova & Yaroslavna Romaniuk & Olha Prokopenko & Viktoriya Gonchar & Yuriy Sayenko & Gunnar Prause & Aleksander Sapiński, 2022. "Determining the Optimal Directions of Investment in Regional Renewable Energy Development," Energies, MDPI, vol. 15(10), pages 1-26, May.
    5. 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).
    6. Farhan Hyder & Bing Yan & Mikhail Bragin & Peter Luh, 2024. "Convex Hull Pricing for Unit Commitment: Survey, Insights, and Discussions," Energies, MDPI, vol. 17(19), pages 1-20, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Galyna Trypolska & Oleksandra Kubatko & Olha Prokopenko, 2025. "Establishing Solar Energy Cooperatives in Ukraine: Regional Considerations and a Practical Guide," Energies, MDPI, vol. 18(14), pages 1-24, July.
    2. Dariusz Sala & Oksana Liashenko & Michał Pyzalski & Kostiantyn Pavlov & Olena Pavlova & Karol Durczak & Roman Chornyi, 2025. "The Energy Footprint in the EU: How CO 2 Emission Reductions Drive Sustainable Development," Energies, MDPI, vol. 18(12), pages 1-18, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Galyna Trypolska & Tetiana Kurbatova & Oleksandra Kubatko & Gunnar Prause & Maryna Domashenko, 2024. "Organizational and Economic Mechanisms for Promoting Residential Battery Energy Storage Systems in Ukraine," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 501-512, November.
    2. Tetiana Kurbatova & Iryna Sotnyk & Olha Prokopenko & Iryna Bashynska & Uliana Pysmenna, 2023. "Improving the Feed-in Tariff Policy for Renewable Energy Promotion in Ukraine’s Households," Energies, MDPI, vol. 16(19), pages 1-18, September.
    3. Catanzaro, Daniele & Pesenti, Raffaele & Ronco, Roberto, 2023. "Job scheduling under Time-of-Use energy tariffs for sustainable manufacturing: a survey," European Journal of Operational Research, Elsevier, vol. 308(3), pages 1091-1109.
    4. Ma, Shuaiyin & Ding, Wei & Liu, Yang & Ren, Shan & Yang, Haidong, 2022. "Digital twin and big data-driven sustainable smart manufacturing based on information management systems for energy-intensive industries," Applied Energy, Elsevier, vol. 326(C).
    5. Viktoriia Myronchuk & Oleksandr Yatsenko & Dmytro Riznyk & Olena Hurina & Andrii Frolov, 2024. "Financing Sustainable Development: Analysis of Modern Approaches and Practices in the Context of Financial and Credit Activities," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 317-329, September.
    6. Maurizio Dallocchio & Marcello Lambri & Emiliano Sironi & Emanuele Teti, 2024. "The Role of Digitalization in Cross-Border E-Commerce Performance of Italian SMEs," Sustainability, MDPI, vol. 16(2), pages 1-17, January.
    7. Sandipa Bhattacharya & Mitali Sarkar & Biswajit Sarkar & Lakshmi Thangavelu, 2023. "Exploring Sustainability and Economic Growth through Generation of Renewable Energy with Respect to the Dynamical Environment," Mathematics, MDPI, vol. 11(19), pages 1-22, September.
    8. Schmitt, Thomas & Mattsson, Sandra & Flores-García, Erik & Hanson, Lars, 2025. "Achieving energy efficiency in industrial manufacturing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 216(C).
    9. Yevheniia Ziabina & Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko & Yana Us, 2023. "Convergence of Energy Policies between the EU and Ukraine under the Green Deal Policy," Energies, MDPI, vol. 16(2), pages 1-19, January.
    10. Zhang, Jiaqi & Han, Xin & Li, Li & Jia, Shun & Jiang, Zhigang & Duan, Xiangmin & Lai, Kee-hung & Cai, Wei, 2023. "Multi-objective optimisation for energy saving and high efficiency production oriented multidirectional turning based on improved fireworks algorithm considering energy, efficiency and quality," Energy, Elsevier, vol. 284(C).
    11. Zhaohui Feng & Xinru Ding & Hua Zhang & Ying Liu & Wei Yan & Xiaoli Jiang, 2023. "An Energy Consumption Estimation Method for the Tool Setting Process in CNC Milling Based on the Modular Arrangement of Predetermined Time Standards," Energies, MDPI, vol. 16(20), pages 1-18, October.
    12. Yun, Lingxiang & Li, Lin & Zhang, Jiapei & Guan, Jingze, 2025. "Cost-effective industrial internet of things network planning for sustainable manufacturing systems," International Journal of Production Economics, Elsevier, vol. 281(C).
    13. Lo, Huai-Wei & Deveci, Muhammet & Lin, Sheng-Wei, 2025. "Benchmarking energy efficiency in Europe: An integrated two-stage framework using machine learning and decision-making approaches," Applied Energy, Elsevier, vol. 392(C).
    14. Xu, Zhicheng & Zhang, Baolong & Yip, Wai Sze & To, Suet, 2025. "Deep-learning-driven intelligent component-level energy prediction of ultra-precision machine tools with IoT platform," Energy, Elsevier, vol. 320(C).
    15. Aleksandra Kuzior & Yaryna Samusevych & Serhiy Lyeonov & Dariusz Krawczyk & Dymytrii Grytsyshen, 2023. "Applying Energy Taxes to Promote a Clean, Sustainable and Secure Energy System: Finding the Preferable Approaches," Energies, MDPI, vol. 16(10), pages 1-26, May.
    16. Iryna Bashynska & Viktoriia Kryvda & Dariusz Sala & Liubov Niekrasova & Oleksii Maksymov & Vladyslav Suvorov, 2024. "Simulation Model of a Unified Energy System for Different Scenarios of Planned Disturbances," Energies, MDPI, vol. 17(23), pages 1-45, December.
    17. Yang, Senmiao & Wang, Jianda & Dong, Kangyin & Jiang, Qingzhe, 2023. "A path towards China's energy justice: How does digital technology innovation bring about a just revolution?," Energy Economics, Elsevier, vol. 127(PA).
    18. Talat S. Genc & Stephen Kosempel, 2023. "Energy Transition and the Economy: A Review Article," Energies, MDPI, vol. 16(7), pages 1-26, March.
    19. Niftiyev, Ibrahim, 2025. "The role of renewable sources in energy efficiency among agro-industrial complexes: An integrative literature review," EconStor Preprints 319683, ZBW - Leibniz Information Centre for Economics.
    20. Jarosław Jaworski & Jakub Dowejko, 2024. "Renewable Energy Expansion in West Pomerania: Integrating Local Potential with Global Sustainability Goals," Energies, MDPI, vol. 18(1), pages 1-15, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10163-:d:1525772. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.