Energy efficiency of qantas by myassignmenthelp
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This document summarizes an energy efficiency initiative by Qantas Airlines to reduce electricity consumption through increased use of renewable energy and initiatives like installing windows for natural light and solar shading devices. It analyzes the current electricity consumption and costs, the potential savings from various initiatives, and calculates the net present value of the project over 5 years to be $213,219.67. It recommends accepting the project because it has a positive NPV, will reduce carbon emissions and enhance environmental sustainability and the organization's long-term profitability.
Energy efficiency of qantas by myassignmenthelp
- 1. Energy Efficiency Initiative by Qantas Airlines Cost Management and Analysis By www.myassignmenthelp.net
- 2. Introduction • The electrical energy efficiency project for Qantas Airlines. • The project is about conserving the electricity by making more use of renewable energy which is sunlight. • Reduces Carbon emissions
- 3. Steps to Analysis • The electricity energy consumed by offices and properties of airlines • Initiatives that can be taken to reduce the energy consumption • Cost of taking the initiatives (initial investment) • Energy savings from the project over the period of time using the EBIT and (NPV of the project).
- 4. Electrical Energy consumption • Energy consumption in lightning is calculated as follows: Lighting benchmarks Lighting benchmarks Installed Power density (W/m square) 20 Hours of use of the lightning (Hours / year) 3200 Percentage utilization * 85% KWH/m square/yr 54
- 5. • Energy consumption for the fan and Air conditions has the following benchmarks: Air Handling benchmarks Amount of air Handled (liters/ second per meter square (l/m square) 4 Specific fan Power (SFP) in watts per liter/second (w per l/s) 3 Annual hours run 3500 Fan KWH/m square/yr 42 FPC KWH/m square/yr 60
- 6. • Total Consumption of electricity per year: Total consumption of electricity Area in m etres square 3000 Lighting consumtion (KWH/m square/yr) 54 Air handling (KWH/m square/yr) 102 Total KWH per year 468000 Average Cost per unit of Electricity in NSW $0.30 per KWH Total cost of electricity $140,400.00
- 7. Cost of Project • a. Initiatives and practices: Total savings of electricity Area in meters square 3000 Lighting saving (KWH/m square/yr) 27 Air handling saving (KWH/m square/yr) 30 Total KWH per year 171000
- 8. • b. Construct windows for free natural light entrance: Savings in 25% of the lightning requirements • C. Using solar shading devices: Savings in 15% of the cooling requirements Total savings of electricity units per year 238500 KWH Cost of electricity saved $71,550.00
- 9. NPV of the Project Year 0 1 2 3 4 5 cash Flows: Initial cost (investment) ($67,450) Savings in electricity (EBIT) $71,550.00 $78,705.00 $86,575.50 $95,233.05 $104,756.36 Depreciation $13,490 $13,490 $13,490 $13,490 $13,490 Total cost savings $85,040.00 $92,195.00 $100,065.50 $108,723.05 $118,246.36 Tax on savings @30% $25,512.00 $27,658.50 $30,019.65 $32,616.92 $35,473.91 Savings after tax $59,528.00 $64,536.50 $70,045.85 $76,106.14 $82,772.45 Net cash flows ($67,450) $59,528.00 $64,536.50 $70,045.85 $76,106.14 $82,772.45 NPV @7.7% $213,219.67
- 10. Recommendation The Project must be accepted because: • NPV is More than zero. • Reduces carbon emission and green house effect • Enhances sustainability of environment and hence the profitability and sustainability of the organization.