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Reducing Energy Consumption: The Advantage of Energy Saving Bulbs

Content provided by PREMAnet, content partner of SME Toolkit


The Royal Orchid Hotel in Chiang Mai /Thailand

In brief

This hotel with 267 rooms and 276 employees had installed light bulbs in many places throughout its facilities, both for the convenience of customers as well as to create an attractive appearance for the hotel. Consequently, the hotel paid quite a high bill for electricity each month. By replacing conventional bulbs with energy saving bulbs in specific hotel areas, the hotel reduced electricity costs considerably, while still maintaining the desired aesthetics.

The challenge

Management was concerned that a change in the method of illumination would negatively affect the hotel’s appearance and level of lighting. Additionally, there was some scepticism with regard to energy saving bulbs because they were thought to break or burn out more frequently than conventional light bulbs. Experience has shown that energy bulbs are somewhat sensitive to short circuits, but such an occurrence was quite rare for this hotel.

Actions taken within the enterprise (after application of the PREMA GHK guide)

Over the course of 3 months, conventional bulbs were gradually changed to energy saving bulbs. This strategy helped the hotel to decrease the burden related to investment costs.

Economic benefits

Previous cost for electricity consumption per month

9,370 Baht or KES 890

These are the costs for the illumination of specific hotel areas (restaurant, fitness centre and car park)*

Cost savings per month

8,085 Baht or KES 768

By using 7-watt bulbs instead of 60 or 25-watt bulbs in these areas

Annual net savings

97,020 Baht or KES 9,216

 

Investment cost

32,160 Baht (KES 3,054)

For the purchase of 187 energy saving bulbs

Payback period

4 months

32,160 Baht investment cost divided by 8,085 Baht (monthly savings) = 3.98 month

* example fitness center:

Previous cost for electricity consumption per month (conventional bulbs):

            42 bulbs x 15 hours/day x 0.025 kW x 30 days/month x Baht 2.5/kWh

             = 1,181 Baht/month

Cost savings per month:

Previous cost minus electricity cost with energy saving bulbs.

            Electricity cost with energy saving bulbs:

            42 bulbs x 15 hours/day x 0.007 kW x 30 days/month x Baht 2.5/kWh

            = 331 Baht/month

1,181 Baht/month – 331 Baht/month = 850 Baht/month

Environmental benefits

By using energy-saving bulbs, the Royal Orchid Hotel significantly reduced energy consumption. In the bigger picture, this helps to reduce the demand for energy, therefore creating less demand on the natural resources to produce that energy.

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