Republic Securities Limited

Electricity cost cut in half!

Oct 16, 2006

Pharmaceutical firm/JPSCo claim massive cost cut after energy-saving programme

By Patrick Foster
Sunday, October 15, 2006

Windsor Laboratories, a subsidiary of pharmaceutical distributors HD Hopwood, has entered into an energy-saving programme with Jamaica Public Service Company (JPSCo), which the pharmaceutical company said has resulted in a 42 per cent saving in monthly electrical usage.

Energy-saving measures by the company ranges from the mere installation of energy saving light bulbs and sensors on air-conditioning units, to the use of automatic capacitors to regulate power usage.

Pivotal in the energy-saving drive at Windsor Lab was the May 2003 installation of the automatic capacitors, also called a power factor correcting unit, which chief engineer Patrick Aldred said cost the company approximately J$1 million.

"Within 14 months we had recovered our cost. It is really a beneficial piece of equipment," Aldred told Sunday Finance.
While refusing to give JPSCo's actual monthly billing, Aldred said that the charge would be the Kilovolt Amperes (KVA) consumption multiplied by the JPS tarrif.

"We prefer not to give an actual dollar figure," he said.
According to Aldred, the JPSCo reading for September was 292KVA, and without the power factor correcting unit, the reading would be 414.64KVA.

Starting in 2001 Windsor Lab located in Nanse Pen in Kingston joined with the power providers in strategising energy useage at the lab and warehouse facility just off Spanish Town Road.

"We actually started the conservation in 1995 when we renovated our office and adopted the greenhouse to shade the office," said Aldred.
Through a combination of installing new technology and implementing new practices, the company has been successful in controlling how much electricity it consumes. The result, according to Aldred, is considerable savings on the energy charge portion of the electricity bill.

Strategies used by the Windsor Lab that the company says have contributed to its energy-efficient operation are:

Improved internal lighting

The company has installed high-efficiency lighting systems and uses more natural light to lower lighting costs and improve lighting quality. Occupancy sensors are also installed to turn off light bulbs automatically after a period of time when rooms are empty.

Upgraded air-conditioning systems

Where possible, mini-split air-conditioning units are used instead of central air conditioners. In addition, occupancy sensors with timers are installed to turn off these units. These are activated when the offices are vacant for more than 15 minutes. The staff is educated on the use of the timer controls for the split units so that they can set the off timer prior to leaving the office for the day.

Increased shade cover with vegetation

By strategically locating plants and trees along the windows and walls on the east-west side of its buildings, the company is able to shade the a/c condensers that are located outside to dramatically increase operating efficiency.

Identify and manage peak energy consumption

Energy managers monitor and strive to keep the peak demand as low as possible through methods such as scheduling production to minimise the number of equipment operating simultaneously.

Improving company's power factor

Energy managers have installed automatic capacitors, which enable the out-of-phase current and voltage to work in harmony resulting in a dramatic power factor improvement from 68% before the capacitors were installed to 98% afterwards.

Warehouse building design

Careful attention has been given to the design of a new 54,000 square-foot warehouse building. The specific height of the building maximises storage space and also allows goods to be stored in a cooler environment. Additionally, wind turbines are used to augment the cool air. "Both factors not only increase the shelf-life of products but also help to reduce energy consumption," said Aldred.

In the meantime, JPSCo said it has detected a growing body of evidence which indicate that companies that take a systematic and strategic approach to energy management can enjoy tangible and intangible benefits, including reduced operating and regulatory costs and increased productivity and sales.

http://www.jamaicaobserver.com/magazines/Business/html/20061014T190000-0500_114077_OBS_ELECTRICITY_COST_CUT_IN_HALF__.asp