Financial model for energy efficiency projects in the mining industry

The impact of industrial EE projects have previously been understated by the omission of non-energy benefits (NEBs). As a result, several fruitful projects have not been implemented which could have dire consequences for energy intensive industries, such as the mining industry. Typically, project feasibility is determined through financial evaluation techniques such as payback period, internal rate of return and return on investment. These techniques are limited to the monetisation of benefits, NEBs therefore, has to be quantified, monetised and included in these techniques. However, not all NEBs have direct costs, there are NEBs which affects productivity but the relationship cannot be empirically calculated. Therefore, this paper aims to develop a comprehensive financial model that can be used by energy advocates to quantify and monetise NEBs for EE projects in the mining industry.