Economics of deploying LED lamps as energy efficiency measure in the Senate building of the University of Lagos using time series analysis

Abstract

The increase in energy waste from energy consuming technologies and human behavior with simultaneous sharp increases in electricity tariffs impinge negatively onto the available distributable income of every energy end-user in both public and private institutions. This paper assesses the impact of an energy management investment in a public building. The eleven-story public building in this case study is the Senate building of the University of Lagos, Nigeria. The energy baseline and economic impact of LED lamps deployment as a sustainable and advanced engineering method for achieving clean energy and cost savings are examined. The ISO50002:2014 energy audit procedure was used in accordance with the energy performance improvement in the building to assess and quantify the lighting energy management potential. The lighting energy consumption, relative humidity, and air temperature in this model were tested for co-integration to determine their relationships. The economic impact in the form of Net Present Value (NPV) was calculated for a period of 8 years at a discount rate of 15%. The overall result, compared to the baseline, indicates that energy efficient lighting does impact positively and significantly on the energy consumption and cost of energy in the building. In terms of elasticities, the regression result indicates that a 1% increase in electricity consumption attributable to lighting will lead to 0.28% increase in energy cost. The results show that the base case types of lighting have a negative NPV of $3,195.98, in contrast to the high-quality LED lamps with a positive NPV of $ 27,945.40.