Microsoft Word 2012, Källén, M.,-Energy Efficiency Opportunities within the Heat Treatment Industry


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4.3  Economic Calculations 

The profitability of the energy saving measures has been investigated using two capital 

budgeting methods: payback period and net present value. The cost of capital was 20% and 

the time frame for the calculations was set to 10 years. A sensitivity analysis was carried out 




 

 

22 



 

for the economical calculations with an increased energy price. It was assumed that the 

electricity price will be 25% higher in 10 years and that the district heating price will be 15% 

higher [16]. 

 

4.4  Environmental Calculations 

The environmental assessment of the energy saving measures has been based solely on carbon 

dioxide emissions. Emission values of 600 kgCO

2

/MWh for electricity and 106 kgCO



2

/MWh 


for district heating have been used. The emission value for electricity is based on the effect of 

a change in the electricity use in the electricity grid in northern Europe, so called marginal 

electricity [17]. The emission value for district heating is based on the district heating mix in 

Gothenburg [18]. 

 


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