EEE6006: Since 1 July 2016, Electricity Consumers in Singapore Pay: Smart Grids and Cyber Security Assignment, Singapore

Problem Statement: A Case Study on Energy Efficiency

Since 1 July 2016, electricity consumers in Singapore pay a standard flat electricity tariff for their electricity usage. In an effort to encourage energy-saving and to reduce energy demand during peak hours (i.e. reduce peak demand), the Energy Market Authority of Singapore decides to mandate electricity tier tariff package to be offered EEE6006 to all electricity consumers in Singapore in 2020. The objective of tier tariff is to encourage electricity consumers to use electricity during off-peak hours whenever possible.

The tier tariff hour structure is tabulated as follows. Please see appendix for tariff rates for each of you.

Singapore Institute of Technology is planning to upgrade all the PCs in the laboratories. Please see appendix for the number of PCs in the laboratories for each of you.

The options are:

Base Scenario (business as usual)

OptiPlex™ GX280 Mini Tower and 1704FPVt Screen
(Capital Cost $1500 per computer including screen, Datasheets for Tower and Screen provided)

Option 1 (energy-saving option if cost-effective)

Precision M20 laptop
(Capital Cost $1600 per computer, Datasheet for M20 provided)

The computers will operate 350 days per year (250 weekdays and 100 weekend days). See data sheets provided for energy usage in the three modes of operation namely, On, Standby and Off in the table below.

Based on the information obtained from this Assignment info sheet and the product datasheets, answer the following questions:

a) Use the Excel spreadsheet to calculate the total expected yearly energy usage (kWh) and energy cost ($) of the two systems (BAU and Option1).
b) Assume the systems will last for 5 years and a discount rate of 7%. Calculate the Net Present Value (NPV) for Option 1 compared to the base case.
c) Assume the average CO2 intensity for electricity generated by power generation companies in Singapore is 0.43kg CO2/kWh, calculate the estimated yearly CO2 emission for the two systems.
d) Which option is more economical? Explain your decision.
e) Which option is more eco-friendly? Explain your decision.
f) Electricity prices are expected to rise by 10% per year for the next 5 years.
Recalculate the NPV of Option 1 compared to the base case, on this basis.
g) In one paragraph, summarise your findings and provide a recommendation with a brief explanation.