Small things have a large financial impact

The CEO of the Malaysian subsidiary of a multinational logistics company with 9 separate storage locations was routinely looking at cost-cutting measures. A recent substantial increase in electricity tariffs caused the annual energy bill to exceed EUR 1.5 million.

This set off alarm bells within the company and GBP International was called in to conduct an energy audit in all 9 locations and recommend energy saving measures also resulting in a reduction of the CO2 footprint.
GBP International’s Kuala Lumpur office assembled the energy audit team comprising of a project manager, two engineers and 2 support staff. The task followed a tested procedure comprising of desktop data collection (historical utility bills, drawings, etc) and measurement of field data to achieve a better understanding of on-site conditions. Data recorded was based on readings collected by specialized energy loggers (amperage, kW and power factor readings). In addition general on-site observations of staff behaviour and physical misuse of energy such as open doors and windows were recorded.

Since all locations were rented facilities it was jointly decided to only apportion three load end-users being air-conditioning, lighting and small power consumers (offices). Although the air-conditioning systems consumed 60% of the energy they were property of the building owners and as such exempted from expensive modernisation. The second largest consumer being lighting with 26% energy consumption therefore came under close scrutiny.

GBP International could show that a replacement of 5,000 FL lamps with high efficiency T5 lamps (25W instead of 36 W) and 500 Metal Halide lamps to be replaced by industrial T5 lamps (238 W versus 400W) could result in substantial savings while maintaining the same brightness (Lux level). An additional advantage of this replacement is the much longer lifespan of the proposed lamps.

The one-time investment showed a payback time of 18 months after which the client would save 33% on the annual electricity costs at current tariff rate being EUR 500,000 p.a. GBP International was also able to negotiate favourable bulk purchase terms for the new lamps on behalf of the client. The calculated CO2 footprint reduction per year was 700 tonnes.

(Malaysia)