An Economic Evaluation of Energy Management Opportunities in a Medium Scale Manufacturing Industry in Lagos

Abstract

This paper seeks to increase interest level on energy efficiency by bringing to fore payback-period assessment of implementing energy-efficient measures that could help achieve sustainable production processes in a typical medium scale printing manufacturing industry in Lagos, Nigeria. Several energy efficiency measures have been suggested based on identifiable energy management opportunities within this industry. The method used for the economic evaluation and feasibility study is payback period; this approach is aimed at providing guidance for a quick and informed decision on the implementation of the energy efficiency measures identified. The payback for two of these measures namely; turning off equipment when not in use and replacement of drive belts on large motors with energy efficient cog belts, have been found to be immediate. When standard fluorescent lighting and incandescent bulbs are replaced with energy efficient lamps and bank of capacitors are installed to improve the power factor of the motors, the company will recoup its initial investment in less than one year. Also, purchasing and installing an advanced electronic meter with data logging capability to help monitor electrical demand has been shown to give the highest payback of 2.4 years. These payback period results have indicated that investment in the recommended energy efficient technologies are economically viable and worthy of implementation. With this analysis, management of manufacturing industries can now make informed economic decision towards productivity improvement and sustainability.