Worcester Business School

Energy consumption

1. Energy usage and supply 

APEC Kolath’s energy is supplied by the Kerala State Electricity Board in the form of electricity generated by a local coal fired power station. All production equipment is powered by electricity. In addition, electricity is used for lighting, IT equipment and air conditioning in the senior managers’ offices. The biggest use is in the factory. 

http://busm3319.worcestermedialab.com/wp-content/uploads/2016/01/Powerstation-300x201.png

Figure 1: Coal fired power station supplying APEC Kolath’s electricity 

Electrical air conditioning units were installed in the offices in 2015. They are manually operated and frequently left on 24 hours a day to ensure the offices are cool when managers arrive at work. All lighting and IT equipment is on individual switches. No sensing equipment is fitted. 

The only non-production user of electricity is the residential quarters. There is no separate meter for this areas but the Purchasing Manager estimates that they use c. 10 kWh p.a.1. Electric lighting and cooking facilities are available between 7pm and 10pm daily. No air conditioning is provided. 

An opportunity to move to renewable lower carbon electricity was offered in January 2019 when a hydro-electric power station came online. This power costs 5% more than that generated by local coal fired power station. APEC chose not to change their source of supply. 

In December 2020, 210 fluorescent tubes (1.2 metres each) were replaced. The amount saved has not been calculated but is estimated to be c. $400 p.a. This energy and cost saving has encouraged APEC Kolath to investigate energy saving opportunities for additional lighting fixtures and the plastic moulding and vacuum forming machines and extruders. 

When electrical equipment needs to be replaced Nigel Simmons investigates potential replacements available at a reasonable cost. Energy efficiency is not considered within the sourcing process. 

APEC Kolath is the largest local industrial user of electricity and has a contract with the Tamil Nadu Electricity Board which guarantees their reliability of supply. Some local residents are concerned that in times of power shortage their power is cut to allow APEC’s requirements to be met. 

No solar panels are fitted to APEC’s factory buildings. 

2. Energy consumption 

The price of electricity is fixed at $0.25 / kilowatt hour (kWh). Energy consumption is not monitored. 

Electricity consumption figures for 2019 and 2020: 

  Electricity kWh* 
2019 Jan 75000 
 Feb 81000 
 Mar 69000 
 Apr 66000 
 May 66000 
 Jun 54000 
 Jul 54000 
 Aug 103,000 
 Sep 66000 
 Oct 66000 
 Nov 84000 
 Dec 96000 
   
2020Jan 96000 
 Feb 114000 
 Mar 69000 
 Apr 66000 
 May 57000 
 Jun 54000 
 Jul 54000 
 Aug 60000 
 Sep 66000 
 Oct 109,000 
 Nov 84000 
 Dec 85500 

 
1 The kWh is a unit of energy equivalent to one kilowatt (1 kW) of power expended for one hour (1 h) of time. 


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