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Two times 100 or four times 50?

The company ENECA has opened a new program called “Generation NEXT”. We offer an opportunity for internship for ambitious, gifted young people who want to develop their skills and think about building their future career. Internship vacancies are available for students studying marketing, ecology and all project design majors. Participating in the ENECA company internship program the students will be given an opportunity to gain meaningful workplace experience to complement their studies and to get an insider's view of a new career field. We value personal development of our interns. But the main outcome of «Generation NEXT» is that we form progressive viewpoints on the students" specialties and future jobs. We publish works and viewpoints of the most remarkable interns. Who knows, maybe this particular opinion of “Generation NEXT” intern will make the development of our country"s energetics more effective?


Once upon a time there lived two brothers, Tomas and John. They inherited two totally equal sausage manufacturing plants from their father. Tomas didn"t believe that innovations would give good results and worked the same old way. He became a bankrupt in a year and was imprisoned, and his property was confiscated. John was an advanced entrepreneur: he consulted the specialists from “ENECA” Company, ordered a technical and economic feasibility and modernized the production.


Technical and economic feasibility  is the documented results of marketing and technical and economic research which justify reasonability and possibility of realization of an investment project, the choice of the most efficient organizational, technical and economic solutions for the implementation of new capacities or renovation and modernization of the existing ones.


 Let us explain. You have a desire to make your production more cost-effective. And you understand that the bulk of production cost price is the expenditures on electric power, heating of buildings, hot water. You realize that you should install power efficient equipment; it"s possible that you also should change heating mains, etc. But what equipment do you need? And what kind of heating mains?

Probably each power engineer thought before the renovation of the boiler house: “How many boilers should be installed in the boiler house: two of 100 kW or four of 50 kW? And should it really be boilers? Or, possibly, it"s better to install a gas engine (GE), a turbine, a steam boiler, and a wind turbine on the roof? It will be a very power efficient situation…”

It"s easy to lose your bearings among these issues. Moreover, that the selection of equipment depends on the conditions of the heating season, the necessity of the enterprise in electric power, and many other factors.

Being an entrepreneur, you would like to know what to expect from the project realization: what equipment is the most efficient for your production, if you have a possibility of using secondary energy resources, what initial investment is required, and payback time to attract an investor.

The development of technical and economic feasibility will require certain investment, but it will become possible for you to see:

  • Several variants of project implementation and you can choose the better one;
  • Main boiler equipment;
  • Necessity of changing of external networks;
  • Amount of initial investment;
  • Payback time.

We gave a simple example of a person who thinks in such a way: “Why should I pay for a work if I don"t see it? I know what I want!” and buys expensive equipment without the preliminary work. And this person loses. The equipment often works inefficiently and isn"t suitable for the conditions of production. The person has to make everything over in the result. A miser pays twice.

During Soviet times the fraction of energy in manufacturing costs didn"t exceed 5% in the majority of industries. The cheaper is the production, the lower is the cost. Nowadays the cost of energy resources increases constantly. The fraction of energy in the cost price of industrial production in Belarus comes up to 20%; it comes up to 90% in the most power-intensive industries. Despite such rates, the production of electric power in our country costs more than in many European countries: it"s 10 times more expensive than in Holland, 8 times than in Germany, 3 times than in Poland. Such technical and economic rates are ensured, among other things, thanks to the fact that all European projects have already been carrying out for several decades with the participation of consulting companies. Such companies have recently appeared in our country.

We are pleased that you already understand the importance of the preliminary elaboration of project design and the necessity of energy saving.

We will go through all stages of creation of technical and economic feasibility to explain material expenditures of an entrepreneur. In contrast to a business plan, there is no fixed structure. Let us create a project as an example of one alternative which can be changed depending on the type of equipment, production, etc.

“Technical and economic feasibility “Construction of a water-heating boiler house”


There is a residential area which requires heating and hot water. The decision about the construction of a new water-heating boiler house has been made. The gas pipeline is situated at a distance of 150 meters.

Purposes of technical and economic feasibility:

  • Selection of the capacity and the number of boilers according to heating- and hot water power demand of the residential area;
  • Detection of the necessity of the installation of hot water storage tanks;
  • Detection of the possibility of the boiler house transformation into a mini CHP (the installation of a GE with electric power, which is at least enough for making up of electric power demand of the boiler house or the residential area);
  • Detection of the technical feasibility of installation of the chosen equipment.

In the technical and economic feasibility two types of fuel on which the designed boilers can work are considered: 
Alternative 1: natural gas;
Alternative 2: local types of fuel.


Hourly average power demand of the residential area during heating season is 0,75 Gcal/h.


Alternative 1: a heating boiler on natural gas with the capacity of 0,8 Gcal/h Despite the expensive imported fuel, natural gas boilers have plenty of advantages:

  • Easy installation;
  • High efficiency (up to 95%);
  • Small size;
  • Cutting-in into the gas pipeline is required (150 m).

Alternative 2: a heating boiler on local types of fuel (wood, wood chip) with the capacity of 0,9 Gcal/h.
Fuel wood is a renewable energy source. The connection to the gas pipeline isn"t required.


The construction of water supply, water removal, and gas pipeline is considered or provided through the feasibility.



The location of the designed boiler house for the easy supply of pipelines is analyzed. If the boiler works on local types of fuel, the capacity of storage for fuel keeping should be determined additionally.





The compliance of vibrating, noise, and electrostatic specifications with the installing equipment is verified.



The staff list of the designed boiler house is defined.






Payback time 10 6
Period of service 25 25
Annual average expenditures on fuel, rouble/year 25 15



Стажер ОДО "ЭНЭКА"
Лещина Константин БНТУ

The expenditures and capital investments, payback time of the designed facility are determined according to the estimate of investment efficiency. The analysis of advantages and disadvantages of all alternatives of the installation of the equipment is made and the best one is recommended for realization. So, we"ve examined the structure of technical and economic feasibility. There are more complicated alternatives of designed equipment for boiler houses and mini CHP of industrial facilities: the possibilities of installation not only of steam and water-heating boilers, but also GE, waste heat recovery boilers, turbines, cold producing machines, etc are considered. 
In practice, the size of technical and economic feasibility is about 30-50 pages. Project implementation, depending on the complexity, takes time from two weeks to 1.5 months. Power engineers, economists, ecologists and other specialists work on this feasibility. 
Technical and economic feasibility is one of the most essential parts in the creating of your project. Let"s take resources, peculiarities, and your advice into consideration in advance to get a well-done project in the end!