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Quiver Pty Ltd (QPT) is preparing to design and implement sustainability systems and processes. You find (as the environmental director) that energy is a key

Quiver Pty Ltd (QPT) is preparing to design and implement sustainability systems and processes. You find (as the environmental director) that energy is a key resource for business operations; first for heating water and second for operational and security lighting. Management of these key resources for business operations can save the company money. Therefore the first step is to measure the water flow at the premises and the second step is to calculate the cost of heating water for 250 days each year. The second key resource for business operations is energy for operational and security lighting for 365 days each year. You report directly to William Case the CFO.

The daily rinsing process for fruit and vegetables requires the tap to run for 45 minutes per day and use 12 litres of water flow per minute. The water is heated to 70oC. The table below provides the number of kWh required to heat one kilolitre of water to various temperatures

Hot Water Temperature

kWh required make one kilolitre of hot water

50oC

45 kWh

60oC

64 kWh

70oC

82 kWh

80oC

95 kWh

QPT electricity usage for lighting for operational and security purposes is set out below.

Number of lights:

20 lights

Light Wattage per light: (halogen light)

80 watts or 0.080 kWh Light Wattage:

Electricity cost per kW Light Wattage:

$0.155 /kWh:

Hours of lighting use per day:

16 hours

Required: Please note all your answers should be to two decimal points (cents)

1- If the business uses water heated to 70oC, assuming the electricity cost per kilolitre is $0.155 per kWh, calculate the annual electricity cost to the business associated with the heating of water used to 70o

2- If the business uses water heated to 60oC (assuming the electricity cost per kilolitre is $0.155 per kWh), calculate the dollar saving if this lower temperature is used.

3- You are considering fitting the tap with a flow restrictor that will reduce water flow to 6 litres of water flow per minute. You expect to still run the tap 45 minutes per day. Calculate the electricity cost if the reduced water flow was heated to (i) 70 degrees and (ii) to 60 degrees.

4- Using your working to answer (1), (2), and (3), calculate the energy cost savings from (i) reducing the water flow without reducing the water temperature and (ii) reducing the temperature without reducing the water flow.

5- Calculate the annual lighting cost for the QPT using the following formula __ lights x ____ kW x _____ $/kWh x ____ hrs x _____ days = $______/yr

6- How much can the business save in electricity costs by using energy-efficient lights if the business replaces the 80 watt halogen bulbs with 20 watt LED bulbs that could be inserted into the existing light fitting

7- Provide your recommendation(s) to the managing director (using an internal informal report - email) about what energy reduction activities to implement [use your answers from 1) to 6) to support your recommendation] to make the greatest combined energy costs saving so the CFO can establish the capital costs for your recommended activities and the CFO can then perform a NVP analysis.

All requirements for this case Study must be answered

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