Common use of GEL Clause in Contracts

GEL. For the same wall area F=1.2 m2 will be needed 15 simple blocks the cost would be 18 GEL. Accordingly price of 1 m2 of wall area constructed from perlite blocks can be calculated as 41.25 GEL and from the simple block as 15 GEL. The Capital cost for the walls of ARCI building in Tbilisi, for example, perlite blocks will be: CI1= 2057 x 41.25 = 84,851.25 GEL compared to simple block construction, were the cost would be CI2= 2057·15=30,855 GEL. The heating system load based on information obtained from the energy passport for the perlite block variant would be: Energy consumption, Q = 167,854 kWh for the entire winter period. Taking into consideration that 1m3 of natural gas generates the equivalent of 10.33 kW·h of heat, 19,055.9 m3 of gas will be burned costing 19,055.9 x 0.51 = 9,718.5 GEL in the case of perlite blocks. In the case of simple blocks 38,736.2 m3 of gas will be needed costing 38,736.2 x 0.51 = 19,755.5 GEL per heating season. As it is shown by calculations presented below the simple payback period for the additional investment in perlit blocks will be 5.5 years, assuming no future escalation in natural gas prices. This means that after 5.5 years of operation of the heating system the capital investment of the perlite blocks will become profitable thus load of the heating system in this case is much lower than in the case of the simple blocks. Total cost is calculated TC1 = 84,851.25 +5.5 x 9,718.5 = 13,830.3 GEL TC2 = 30,855 + 5.5 x 19,755.5 = 13,9510.3 GEL Thus, it can be summarized that the higher capital investment in perlite blocks will be compensated by operational costs of the low load heating system after 5.5 years operation during the heating season. For F = 1.2 m2 of wall area, 10 light weight blocks are needed if the thickness of the wall is assumed to be 300 mm at a cost of about 50 GEL. For the same F = 1.2m2 wall area, 15 simple blocks costing 18 GEL are required. Accordingly for 1 m2 of wall area the price of the light blocks would be 41.7 GEL compared to the cost of simple blocks, 15 GEL. Thus, the cost of light weight blocks would be: CI1 = 2,057 x 41.7 = 85,776.9 GEL; for simple blocks, CI2 = 2,057 x 15 =30,855 GEL. The energy consumption during the heating period Based on information obtained from the Energy Passport for light weight blocks will constitute for the heating season would be: Q = 167,854 kW·h requiring 16,249.2 m3 of gas which, at current prices, would cost 16,249.2 x 0.51 = 8,287.1 GEL. The payback period for light weight blocks would be 5 years: TC1 = 85,776.9 + 5 x 8,287.1 = 85,776.9 + 41,435.5 = 12,7212.4 GEL TC2 = 30,855 + 5 x 19,755.5 = 30,855 + 98,777.5 = 129,632.5 GEL Thus it can be assumed that the higher capital cost for the light weight blocks will be recaptured from operational costs savings of the low load heating system after 5 years operation during the heating season. For F = 1.2 m2 of the wall 15 pumice blocks, 400mm in long 300 mm wide will be needed. The cost would be: 2.6 x 15 = 39 GEL. 1 m2 of the wall area will cost 32.5 GEL for the basic construction structural layer plus 45 GEL for the insulation layer for a total cost of 77.5 GEL. Thus, the capital cost for pumice blocks with foam plastic insulation can be calculated as: CI1 = 20,57 x 77.5 = 159,417.5 GEL as compared to simple block construction: CI2 = 2,057 x 15 = 30,855 GEL. The energy consumption during the heating season based on information obtained from the Energy Passport in the case of pumice blocks would be Q = 192,837.5 kW·h for the whole winter period utilizing 18,667.7 m3 of gas at a cost of 18,667.7 x 0.51 = 9,520.5 GEL. . Payback period for capital investment is defined as 13 years. Pumice blocks by themselves are not as expensive but they don’t have high energy efficient characteristics. Energy efficiency in this case is reached by the combination of basic structural components, pumice blocks for the walls plus an expensive foam plastic layer. Total cost is calculated as follows: TC1 = 159,417.5 + 13 x 9,520.5 = 159,417.5 + 123,766.5 = 283,184 GEL TC2 = 30,855 + 13 x 19,755.5 = 30,855 + 256,821.5 = 287,676.5 GEL The results of economic calculations are presented in the Table 6. It can be see that both variants of the single layer walls have cost benefit compare to multi-layer walls under Georgian climatic conditions. Table 6. Type of exterior wall Investments [GEL] Gas savings related to the var.1, [m3] Gas savings in monetary terms [GEL/yr] Payback period (PB) [yr] single layer perlite block wall 84,851.25 19,680.3 10,037 5.5 single layer airocrete block wall 85,776.9 2,2487 11,468.4 5 multi layer pumice block wall with foam plastic insulation 159,417.5 20,068.5 10,235 13