What is energy consumption? how does a heat exchanger be cost effective in reducing energy consumption?
Why is it not obvious what energy consumption means? It means the quantity of energy that is consumed (used) in operation. What else would it means? how does a heat exchanger be cost effective in reducing energy consumption? With a better design...that's how. Heat exchanger design is an art and a science. It usually requires a counterflow design of fluid directions or crossflow. And many fins and baffles to redirect flow and get a good contact of fluids at as little temperature difference as possible across the heat exchanger tube walls. And good insulation for the overall shell.
Energy is required to heat the water in thermal power plants. If there is no heat exchanger then boiler will require more energy to heat the water. By placing heat exchanger the pre-heated water enters the boiler now less energy required to boiler to heat the water because the water is previously heated in heat exchanger. Same principle works in Vapour Absorption systems many devices. So my answer is Yes if your heat exchanger is of good quality efficient.