Factsheet

Energy Efficiency for Hotel Industry

Sector Highlights Tourism industy is recognized as one of the key economic pillars of Nepal. Hotel is the basic and main infrastructure of the tourism industry. According to 2010 data, a total number of 789 hotels are providing 30,042 beds for hospitality. The hotel industry is considered to have the highest local private sector investment in Nepal with a recorded investment of around NRs 100 billion. The industry earned US$ 330 million revenue in 2010 and established it as one of the highest contributors of foreign exchange reserves. According to Hotel Association of Nepal (HAN), during the same year business in the hotel industry has grown by nearly 15% as compared to previous years.

Energy Saving Potential

Nepal Hotels by numbers

Hotel Industry in Nepal use both electrical and thermal energy. Main sources of the energy in the hotels are grid-electricity, diesel and liquefied petroleum gas (LPG). Refrigeration, air conditioning, lifting & lighting, steam/hot water generation and cooking are the major energy consuming areas in hotels.. Among different sources of energy, electricity has the highest share about 60 % followed by Diesel (25 %) and LPG (12 %).The inability to meet the energy need from grid has unexpectedly increased the cost of energy; having used DG sets for deficit energy. Small and non-star hotels are unable to provide air conditioning service in the rooms during load shedding resulting in lower occupancy Coal 1% Kerosene 1%

Firewood 3%

Diesel for boiler 25%

LPG 12%

Electrical 58%

789 hotels in operation* 30,024 beds for service* NRs 100 billion investment* US$ 330 million revenue* 8% - energy cost Saving potential-annual

29,445 MWh electrical energy 97,056 GJ thermal energy NPR 360,432,716 from hotels 13,409.79 kg CO2 emission *Status 2010, update not available

Hotels

Figure 1: Energy use in a typical star-rated hotels in Nepal (GIZ/NEEP, 20121)

360 MILLION NPR

The energy cost on product value is 8% for the hotels. Energy saving potential for hotel sector is estimated to be 39%, whereas 56% for electrical and 16% for thermal. Specific Energy Consumption per room/year Type Electrical Thermal Hotel sector Nepal

(weighted average)

(weighted average)

17,326 kWh

45,367 MJ

Table 1: Specific energy consumption of surveyed hotels in Nepal (GIZ/NEEP, 20121) Figure 2: Monetary saving potential in Nepalese Hotel Sector (GIZ/NEEP, 20121)

1

GIZ/NEEP, 2012: Baseline study of selected sector Industries.

Experiences from the past have identified many options for improving energy efficiency in the hotel sector that are highly profitable with the payback period of less than 3 years. Option

Estimated Payback Period

Electrical load management to attain benefit of differential tariff.

immediate

Improvement of Chiller unit performance through optimum temperature setting

immediate

Improvement of boiler combustion efficiency by means of regular monitoring and tuning

0.2-yrs

Improvement of power factor to reduce reactive load of the plant

1-yrs

Improvement of lighting systems by using CFLS, LED lamps and metal halide lamps as applicable

1-yrs

Use of FRP Blades in the cooling tower

2.5-yrs

Table 2: Energy saving option and payback period of investment for hotel sector (Danida/ESPS, 20052)

Energy saving tips Housekeeping

• Installation of Occupancy Sensor • Installation of Biogas Plant • Improvement of fuel storage and handling system

Steam Outlet

Boiler and hot water system

• Application of Combustion Gas Analyzer for combustion analysis and combustion tuning of boilers or hot air generators. • Installation/maintenance of Steam Traps • Optimization of Steam Distribution System (Steam Traps, Piping, Headers) • Insulation of Flanges and Valves with Insulation Jackets • Fuel Switching • Replacement of Traditional Boilers with Fluidized Bed Boiler • Installation of economizer for Waste Heat Recovery • Installation of Air Pre-Heater (APH) for Boiler • Installation of Auto Blow Down System in boiler

Water Inlet

Flue Air and Fuel Inlet Combustion Chember

Water Tubes

Heat Expelled by Cooling Tower Electrical System

• Optimization of capacitor banks for maintaining the Power Factor at optimum level • Replacement of Old (Rewind) motors with EE motors • Adoption of the Load Management System • Installation of Variable Frequency Drive (VFD) wherever applicable. • Load Optimization of Drive Systems (Shuffling of Drive System) • Optimization of Water Pump system • Optimization of Lighting System voltage • Replace traditional Fluorescent light with LED lights

Cooling Tower

HVAC and compressed air system • Replace the Central-air conditioning system with Split Air Condition System • Replacement of Traditional Chiller with EE Chillers • Improvement of compressed air system performance

Water Removes Heat from Cooling Tower Cold Water Out

Chillers

Warm Water In

Contact details If you are interested to know more about energy efficiency, please, do not hesitate to contact us! - If you are a business man get information about energy saving opportunities in your company and get an energy audit done by our professional expert team - If you are an engineer explore the articles in our energy efficiency knowledge website and participate in our training programs - If you are a banker... participate in our awareness raising seminars and explore the new market of energy efficiency investment. - If you are an energy auditor... register in our database of energy efficiency professionals and be listed on our webpage. - If you are a supplier for energy-efficient technology register in our online B2B portal and list your products and services.

2

Danida/ESPS, 2005: Cleaner production report of hotel sector.

Fe de rati o n o f Ne pa l e se Ch a mb e rs o f Co mme rce a n d I n du str y (F NCCI ) Pachali Shahid Shuk ra FNCC I M ilan M arg, Tek u P.O. B ox 2 6 9 , K athmandu, NEPAL Webs ite: http:/ / eec.fncci.org, w w w.wecs - n eep.g ov.n p Telephone : ( +9 7 7 -1 ) 4 2 6 2 0 6 1 / 4 2 6 2 2 1 8 Fax : ( +9 7 7 -1 ) 4 2 6 1 0 2 2 / 4 2 6 2 0 0 7 Email: [email protected]