Energy-saving technology

In the above equation, r can indicate the internal rate of return on an investment. Suppose that an investment in an energy-saving technology cost 100 and reduces energy costs by 20 per year indefinitely. The reduction in costs is comparable to net revenues received. The above equation can be modified as follows I equals R/r, where the values of I and R are specified and the value of r is computed. Hence 100 equals 20/r, and r equals 0.20, or 20 percent. The internal rate of return on the 100 investment is 20 percent per year. An investment is generally profitable when its internal rate of return exceeds the (interest rate) cost of obtaining credit. The investment is attractive when its internal rate of return exceeds the investor s hurdle rate, which may vary depending on the riskiness of the investment, and on the rate that can be earned from alternative uses of the investment funds. 

Mimura, T., Simayoshi, H., Suda, T., Iijima, M., and Mituoka, S. Development of energy saving technology for flue gas carbon dioxide recovery in power plants by chemical absorption method and steam system, Energ. Corners, and Manag., 38(Suppl.), S57-S62, 1997. 

A second, more radical approach is the development of low by-product, energy-saving technologies by radically changing techniques (e.g., drying) The purpose of this is to reduce the quantity of waste produced or to reuse it as a product in its own right. 

Identify candidate generic energy-saving technologies (note that the thrust of the research was to save energy). 

Efthimeros, G.A. and Tsahalis, D.T. (2000). Intensified energy-saving technologies developed in EU-funded research - a review. Applied Thermal Engineering, Vol. 20, pp. 1607-1613. 

Fengqin L, Songqing G. Review on the energy saving technologies applied in Chinese aluminum reduction industry. Light Met. 2012 141 575-9. 

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