Evaluation of Energy Conservation Opportunities in Manufacturing Industry: a Case Study of Schneider Electric Manufacturing Plant in Nairobi.

Abstract

One of the main pillars of the modern industry is the uninterrupted supply of energy at an affordable cost. In Kenya, the installed generation capacity is made up of 29.4% hydro, 29.8% geothermal, 26.1% thermal, 11.9% wind, 0.9 biomass and 1.8% solar [According to Power Africa study done in August 2019]. Electricity bills have a fuel cost, which is mainly a component of fossil fuels, which are progressively becoming more expensive. This increases the cost of energy and subsequently the cost of production of goods. It has therefore been established that energy efficiency is important not only for environment conservation but also for sustainable production in the manufacturing industries. This project evaluated the Energy saving potential of Energy Conservation Opportunities (ECOs) existing in Schneider Electric Manufacturing Plant in Nairobi. This was done through a Level III Energy Audit. The results of the energy audit were then analyzed to help identify the ECOs within the Plant, with the main area of focus being the Manufacturing Plant’s paint line which consumes nearly half of the facility’s total energy requirement. Consequently, techno-economic evaluation of the identified ECOs was carried out. The evaluated ECOs revealed that there is unexploited potential for energy savings in the manufacturing plant, taking into consideration that some initiatives had been undertaken prior to the energy audit. Migration of tariff from CI1 to CI2 has a Payback period of two and half years while supplementing the energy needs by onsite generation by solar PV Plant shows a positive Net Present Value. This project has also established that the efficiency of industrial motors plays a big role in energy conservation. Replacement of some of the existing motors with energy efficient motors results in a considerable saving in energy costs with a pay payback period of 3 months. The project provides an assurance to Manufacturing industries in Africa, specifically Kenya, that the energy costs associated with production can be lowered through Energy Conservation Measures, which will in turn lower the cost of production of goods and gain competitive advantage in the market.