Abstract

One important question that is almost always asked when any demand-side management activity is implemented is: “How much is it saving?” That is an easy question to ask and it can almost always be expected. However, it is not necessarily easy to answer. One reason is because one cannot measure savings. Savings can at best be determined. The facility in this study installed a motor sequencing controller on a conveyor belt to decrease the energy costs. The plant personnel wanted to quantify the reduction in energy consumption and cost savings due to the installation of the controller. Therefore, an independent auditor was needed to measure and verify the actual savings. To determine the energy and cost savings of the controller, a baseline was needed. The baseline was developed from actual data using regression analysis. It was verified that the installation of the controller saved the facility R865 per month. With a cost of R6 000 for the controller, the straight payback is 0.58 years, the net present value is R29 615 and the internal rate of return is 172%.

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