Restricted

UNDP/JAM/82/012 J A M A I C A
Terminal Report

FEASIBILITY STUDY AND IMPLEMENTATION

OF AN ENERGY SAVING DEVICE

Project Findings
and
Recommendations

Serial No. FMR/SC/OPS/85/266

(UNDP)

United Nations Educational, United Nations

Scientific and Cultural Development
Organization 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
Page

INTRODUCTION 1
Project background 1
Project document 2

FINDINGS 2
Implementation strategy 2
Survey of the hotel industry 2
Seminar on energy saving devices 3
Selection of a local manufacturer 3
Acquisition of data on energy savings 3
Establishment of manufacturing facilities
UL certification of the product k
Missions in the region 5
RECOMMENDATIONS 5
Dissemination of the project in the Caribbean 5
Regional centre 6

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 1977 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 impor-
tant 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
 - 2 -

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

198f, 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
 - 3-

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
 - k -

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 Htel 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.
 - 5 -
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 govern-
ments, 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
 - 6-
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 Director, Energy Conservation, MME

0. Coley Engineer, Energy Conservation, MME

E. Powell Vice President, ICD

G. Jackson Factory Director, Homelectrix

E. Bramwell 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 US135

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