It’s payback time: how TCO calculations can save energy and money

11.10.2021

As the effects of climate change intensify, industry is under pressure to reduce its carbon footprint. Bilfinger Tebodin’s energy consultants and engineers apply a powerful calculation tool to help clients meet their climate goals and reduce costs long-term. Using a Total Cost of Ownership calculation (TCO) we give insight into how initial higher capital expenditure on more energy-efficient systems is compensated by lower running costs over time. TCO at an early project stage provides insights which help clients save operational cost and select the right solutions and suppliers.

Mark Elderman, Senior Energy Consultant and Utility Engineer, has extensive experience in chiller plants, heat pump integration, and other energy systems (like steam, pressurized air, co-generation and water treatment systems). He knows that when clients in Food, Pharma, Oil & Gas and (Petro)Chemical Industry seek to install more efficient energy and utility systems, they often flinch at the higher investment needed compared to standard alternatives. 

‘If you have the choice between investing in a new standard system for, say, 2 million euro, or a more energy-efficient system costing 2,5 million euro, you need sound arguments to justify the extra investment. That’s where TCO comes in. ’To put it simply, TCO is a method to calculate the payback time of the incremental investment required to purchase more energy-efficient systems.

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