An energy audit was conducted at an existing building which offters two types of energy saving measures. One option was the low cost measure and the other option was the capital investment. Refer to Table Q4The low cost energy saving measure will help reduce energy consumption. The chilled water supply (CHWS) temperature will need to increase by 1°C. Consultant suggested that every 1°C increase of CHWS temperature would improve efficiency by 3%. The capital investment energy saving measure also help in reducing energy consumption wherein the consultant suggested to replace the existing chillers. Estimated investment cost for the new chillers replacement project was $1,800,000 and upgrading of permanent measurement verification system was $483,000. You are required to a submit comparison report using life cycle costing method to select the most economical option. For comparison purpose, the remaining life span of the existing chiller plant is estimated to be 5 years and operating at 24 hours a day for 250 days per annum. Effective interest rate for this project shall be 2.5 % per annum. Maintenance cost is assumed to be the same for all options. The following information are required to be reflected in the comparison report. Part 1 of the report (analysis of individual energy saving measures). 1-A Determine the current annual operating cost of the chiller plant. 1-B Determine the annual operating cost of the chiller plant using low cost energy saving measure (adjust CHWS temperature). 1-C Determine the annual saving using low cost energy saving measure. 1-D Determine the annual operating cost for the new chillers. 1-E Determine the annual saving using capital investment energy saving measure.Part 2 of the report (life cycle analysis of individual energy saving measures) 2-A Lifecycle cost analysis for low cost energy saving measure. 2-B Lifecycle cost analysis for capital investment energy saving measure. Part 3 of the report (Recommendation based on Net Present Value with valid reasons). (a) Analyse and provide Part 1 of the report (items 1-A, 1-B, 1-C, 1-D & 1-E). (12 marks) (b) Analyse and provide Part 2 of the report (Life Cycle Analysis 2-A & 2-B). (10 marks) (c) Demonstrate your energy management skill to recommend the appropriate energy saving measures. (3 marks)
