Restricted UNDP/JAM/82/012 Terminal Report

J A M A I C A

FEASIBILITY STUDY AND IMPLEMENTATION OF AN ENERGY SAVING DEVICE

Project Findings and Recommendations

Serial No. FMR/SC/OPS/85/266 (UNDP)

United Nations Educational, Scientific and Cultural Organization

United Nations Development Programme

Paris, 1985

J A M A I C A

FEASIBILITY STUDY AND IMPLEMENTATION OF AN ENERGY SAVING DEVICE

Project Findings and Recommendations

Report prepared for the Government of Jamaica by the United Nations Educational, Scientific and Cultural Organization (Unesco) acting as Executing Agency for the United Nations Development Programme (UNDP)

United Nations Educational, United Nations Scientific and Cultural Development Organization Programme

UNDP/JAM/82/012 Terminal Report FMR/SC/OPS/85/266(UNDP) 31 December 1985

(£) Unesco 1985 Printed in France

TABLE OF CONTENTS

INTRODUCTION

Project background Project document

FINDINGS

Implementation strategy Survey of the hotel industry Seminar on energy saving devices Selection of a local manufacturer Acquisition of data on energy savings Establishment of manufacturing facilities UL certification of the product Missions in the region

RECOMMENDATIONS

Dissemination of the project in the Regional centre

Caribbean

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APPENDICES

Appendix I : UNESCO experts and consultants Appendix II : Counterpart staff Appendix III : Equipment

UNDP/JAM/82/012 - Feasibility Study and Implementation of an Energy Saving Device

TERMINAL REPORT

I. INTRODUCTION

Project background

1. As in the case of most oil-importing countries, the increase in the price of petroleum on the world market has adversely affected the economies of the small islands of the Eastern Caribbean. Jamaica is highly dependent on imported oil as evidenced by the fact that in 1977ï imported crude oil and petroleum products supplied approximately 93# of the country's total energy demand.

2. Consequently, the National Energy Plan emphasizes, inter alia, policy objectives such as the development of indigenous energy resources, on-shore and off-shore petroleum exploration and development of an energy conservation programme. This energy conservation programme focusses on the largest energy consumers in the economy, including the hotel industry, which is also an impor­tant foreign exchange earner. Energy savings in the industry would therefore have a positive effect on economic growth.

3. In 1978, a UN adviser working in Singapore developed a low-cost energy saving system which decreases the use of energy in hotels by switching off the electrical supply when guests leave their rooms unattended. The system was installed on an experimental basis in the 1,200-room Mandarin Hotel, and the data obtained after the installation showed at lk.k% reduction in the total energy consumption of the hotel, which represents about 2056 savings in the energy consumed in the guest rooms.

k. A formal request by the Government of Jamaica for UNDP assistance for a feasibility study on the use of the energy saving device was submitted in September 1982. The request was approved and Unesco was designated the Executing Agency with the Ministry of Mining and Energy (MME) as the Government counterpart agency. The initial aim was to install and test energy saving devices under specific local conditions, using a number of devices developed in Singapore, and, if the results were satisfactory, to identify a local manufacturer capable of producing the device.

5. As a result of the feasibility study, it was decided to continue the project, and to establish a manufacturing unit of the energy saving device in Jamaica. This was facilitated by collaboration with a similar project in Barbados and the availability

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of an expert there who could be made available to Jamaica with financial support from the UNDP Energy Office. In this way it was foreseen that both projects could advance in parallel.

Project document

6. The immediate objectives of the project were to demonstrate the feasibility of introducing an energy saving system into a hotel complex and to survey the-,capabilities for local manufacturing of the device. Later on, the terms of reference were expanded, making provision for technical support to the local manufacturer to help in the design of a product of quality for export. The target was the USA market, and, as such, the product had to be designed to American standards to be submitted later on to the Underwriters Laboratories (UL) in the USA for safety standard qualification and listing. This in itself represented a challenge as the production line of any UL listed product is subject to regular checks from UL to ensure that the quality of the product is maintained.

II. FINDINGS

Implementation strategy

7. For practical purposes the project was divided into three phases:

Phase I, for a duration of two-and-a-half months starting December 1982, had as its objective surveying the hotel industry and testing the energy saving device in a selected hotel. A seminar for hotel managers and local manufacturers marked the end of this phase.

Phase II, for a duration of nine months, starting March 1983, had as its objective obtaining data on energy savings from two hotel installations identified for this purpose. In addition, MME disseminated a letter of intent to 1^ local manufacturers, inviting them to participate in producing the device.

Phase III, for a duration of twelve months, starting January 198¿f, had as its objective the establishing of manufacturing facilities in Jamaica and obtaining the UL certification. This phase was extended by another twelve months, following developments in the Barbados project.

Survey of the hotel industry

8. The survey of the hotel industry, started with Government-owned hotels in Kingston, viz: "Oceana", "New Kingston", and "The Pegasus", and continued with "The Americana", "Shaw Park", "Jamaica Hilton" in Ocho Rios, and "Holiday Inn" and "Rose Hall Wyndham" in

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Montego Bay. The hotels were surveyed for their suitability to install energy saving devices on one floor, and monitoring of the energy savings achieved. The final recommendation was to do the test installation at the Americana, Ocho Rios. UNDP supplied 60 units for demonstration purposes, and 16 of these were installed at the Americana by the hotel maintenance team. The MME organized a seminar for the hotel industry and the manufacturing sector to demonstrate the units at work and determine the steps for the continuation of the project.

Seminar on Energy Saving Devices

9. Initiated by the MME, the Seminar on Energy Saving Devices for the Hotel Industry was at the Americana Hotel. Local manufacturers and importers were asked to present similar devices available locally. Also present were representatives of the Scientific Research Council (SRC) who co-operated with the MME as technical advisers. As a result of the seminar, the manager of the 350-room Pegasus Hotel in Kingston requested that 50 devices be installed on a test basis. By doing so, the manager abandoned his original intention to install an imported energy saving device, which had been subjected to an intensive three-month test in the hotel. The MME and UNDP agreed to the request, and The Pegasus was selected to be the second hotel which, together with The Americana, served as a testing ground for the energy saving devices during Phase II of the project.

Selection of a local manufacturer

10. In order to assess local manufacturing possibilities for the device visits were arranged to various industries, including electrical, mechanical and plastic manufacturing plants. The aim was to identify which parts, components or sub-assemblies could be manufactured locally. After the completion of this study, the MME issued a letter of intent to ik potential manufacturers inviting them to submit applications, describing their manufacturing and marketing possibilities for the device. In this way the project was now ready to share its findings with the private sector and to provide for an income-generating and job-creation phase.

11. The selected company was Industrial Commerical Development Ltd. (ICD), which expressed interest in manufacturing and marketing of the device both in Jamaica and overseas. The company was designated by the Government as the counterpart agency to the project and provided local expenses connected with the project.

Acquisition of data on energy savings

12. The main activity of Phase II of the project was the acquisition of data on the energy saved by the device. Two hotels were selected for this test: a businessman's hotel,"The Pegasus" in Kingston and a tourist hotel, "The Americana" in Ocho Rios. In order to monitor the

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savings, it was decided to complete the installation of the 326 rooms at the Americana Hotel with imported units and compare energy consumption before and after installation. This approach was found to be too costly to be applied to both hotels. At the Pegasus, two test floors were selected, and one of them was equipped with energy saving devices. The energy consumption was closely monitored by special kilowatt hour meters installed on each floor, together with data on the occupancy level. This information enabled the specialized team from the MME to make the necessary calculations on energy saved by use of the device.

13. The test results at the Pegasus Hôtel showed that savings of up to hO% on the energy consumption in hotel rooms were obtained with the device. This included the measured electrical consumption for lights, TV, and other electrical appliances, as well as the effect of the device on the central air-conditioning system, when the chilled water valve in each room was turned off as the guest left the room.

ih. No test has yet been performed at the Americana. A local contractor who was awarded the installation contract entered into a financial dispute with the MME on the cost of the installation. In the meantime the hotel changed management and negotiations had to be restarted. In addition, the devaluation of the Jamaican dollar contributed to an increase in the cost of the installation materials. To date only 76 rooms have been installed, and the MME is currently negotiating with a new contractor for completion of the installation.

Establishment of manufacturing facilities

15. The aim of Phase III was to establish manufacturing facilities in Jamaica. A subsidiary of ICD, Homelectrix Ltd., provided the space. The existing factory, specialized in electronic assembly, was re-organized to introduce a new product. Technicians and skilled workers were trained by the project in all aspects of production. Components such as the metal case, the printed circuit board, and the special painting of the case, were sub-contracted to other manufacturers in Kingston, expanding the involvement of the local manufacturers in the product.

UL certification of the product

16. From the outset the project established contacts with the Underwriters Laboratories (UL) in USA, in order to manufacture a product acceptable to and qualified for the USA market. In September 1985, a system was submitted at UL in Melville (N.Y.), for preliminary evaluation, and the results showed that apart from some minor changes connected with the printing of the labels and the type of wire used for the low voltage circuit, the product could be submitted for UL testing and classification under the Energy Management Systems, UL no. 916. The official listing of the product by this organization will boost its export to USA and Canada, contributing to the country's foreign exchange earnings.

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Missions to the region

17. The development of the energy saving device in Jamaica is of interest to other countries in the region which, due to the economics of scale, could not afford to establish manufacturing facilities. The project has been requested to bring the system to the attention of other governments in the region, as well as the test results obtained in Jamaica. To this end, the expert carried out an exploratory mission to the Bahamas in June I985. The mission included a seminar for hotel managers and the installation of a sample room in a hotel. The mission was well received by the Hotel Association in the Bahamas, and a hotel manager in Freeport decided to equip his 126-room hotel immediately after the seminar. At the time of writing 126 energy saving units have been bought in Jamaica and already shipped to the Bahamas, marking the start of the export of the device.

18. In view of the interest shown in the Bahamas, similar exploratory missions were carried out in Bermuda and Cayman Islands during November and December 1985• This time the possibility of a regional programme on energy saving was also discussed with the governments, with the aim of creating in each country the technical infrastructure necessary to implement the system without outside help. A draft project document in modular form was therefore prepared.

19. A standard module of this project provides a two-month assistance programme per country, and includes:

a seminar/workshop for hotel managers and their chief engineers,

a sample installation in a local hotel to estimate costs,

assistance to governments in identifying local contractors for the installation of devices and training of selected personnel and technicians from local hotels to survey the hotels' existing electrical installations and assess the appropriate energy saving devices,

provision is also made for training on the installation and maintenance of the device itself.

20. This modular approach of dissemination of the energy saving system was well received by the governments and already two govern­ments, namely Bermuda and the Bahamas, have cabled UNDP Jamaica their support for the proposed regional programme.

III. RECOMMENDATIONS

Dissemination of the project in the Caribbean

21. Information on the development of the energy saving device should be made available to all the countries in the Caribbean Region

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through a planned programme of dissemination. Small countries may not be able to afford the cost of establishing manufacturing units similar to the one in Jamaica, but could train a team of 2-3 electrical technicians to take over the installation and the maintenance of the device acquired in either Jamaica or Barbados. This will also contribute to inter-island trade and technical co-operation.

Regional centre

22. Jamaica, with its fortunate geographic location, could be a development, manufacturing and marketing centre for the Caribbean countries from the Leeward Islands to Bermuda, for a regional project on the energy saving device. The aim of such a project would be to train local technicians from neighbouring countries to become familiar with the technology. In addition, seminars and regional workshops could be held in Jamaica with demonstrations at the hotels where the system is installed. With help from UNDP, the project could boost the export potential of Jamaica, contributing at the same time to the conservation of energy in the region.

APPENDIX I

UNESCO EXPERTS AND CONSULTANTS

Name of expert Country of Field of Duration of origin specialisation contract

Ofer Bar Israel control engineering 3.12.82 - 2.2.83

3.2.83 - 3I.I2.85

§ Consultant §§ Expert

Note The expert was shared with the project BAR/82/001 in Barbados

APPENDIX II

COUNTERPART STAFF

Name Position held/Qualification

V. Scantlebury

0. Coley

E. Powell

G. Jackson

E. Bramwell

Director, Energy Conservation, MME

Engineer, Energy Conservation, MME

Vice President, ICD

Factory Director, Homelectrix

Chief Engineer, Homelectrix Factory

APPENDIX III

EQUIPMENT

MAJOR ITEMS OF EQUIPMENT PROVIDED BY UNDP AND GOVERNMENT

Description Units

Energy Saving System for Americana 326

Energy Saving System for Pegasus 50

Kilowatt Hour meters (KWh) 2

Note The cost of an Energy Saving Unit is USÍ135 The cost of a Kwh meter is US$350

APPENDIX IV

PERSONNEL TRAINED BY THE PROJECT

For the Hotel Industry 18 maintenance technicians (Pegasus and Americana)

Campbell Electrical Contractor 6 installation technicians

Homelectrix Ltd. 6 installation technicians 12 manufacturing technicians 6 installation technicians k management/supervisory k technical sales