With World Environment Day round the corner, and all the uproar around it; let us talk about how Going Green and specifically conserving energy can make money for organizations. Energy conservation is the need of the hour all over the world, especially in Zambia. Zambia – the second largest producer of copper in Africa is in major crisis with its economic slowdown. Zambia was one of the powerful, fast growing economies in the past with real GDP growth averaging to 6.7% p.a. This declined to become just 3.6% in 2016. There are numerous factors adding to the problems of Zambian economic growth. Some of the factors contributing to economic challenges of Zambia are fall in copper prices, rising costs of commodities, low agricultural output, etc. The ongoing issue in the country is the hike in electricity prices. Energy consumption (electricity) has become a major issue with a rise in the prices. Zambia has been facing electricity scarcity since long.
The electricity-supply deficit, which began in June 2015, has affected manufacturing and other businesses. It was estimated at 40-50% of baseload, requiring daily load shedding. This was followed by other problems such as an increase in operating costs, depreciation in Zambia Kwacha by 42% against the United State Dollars, giving a rise to inflation to about 21%. The problems did not end there but went ahead to cause 9000 job losses in the private sector, then.
Economic conditions have slightly improved in 2017. According to World Bank, the growth rate is projected to be 4% in 2017. The measures to increase the growth rate and develop the economy have already begun. One of the important steps adopted by Zambia in this direction is 75% hike in electricity prices. First fifty percent rise has already taken place and the remaining twenty five percent is set to take place on 1st September, 2017. The move has already created a ruckus in the country. People are disappointed with the move owing to high tariffs to be paid for usage of electricity. The rates have been hiked but it can be said that the rates are still cheaper than the neighboring countries. While in Zambia, the constant energy charge at present is K0.15 per kWh. It is still low as compared to other countries. For Instance, while Zambia pays 3.8 US cents per kWh, Tanzania pays 15.1 US cents per KWh.
As said earlier people are unhappy with this decision of hike in energy price but the fact cannot be denied that with the increase in price there would be less power cuts, electricity scarcity, and gradually full time energy access to people. This would rather boost the production process without the hindrance of power cuts and unavailability of electricity. Timely production would thus lead to timely sales further leading to on-time delivery and satisfied customers. This would also cut government electricity subsidies enabling to direct those resources rather surplus resources to the needy sector. This is indirectly a boost to the economy.There are also negative effects associated to it. The major drawback would be increased energy bills. High energy bills would be followed by high production cost leading to high price of goods.Undoubtedly, it is difficult to manage these problems arising due to rise of energy tariff. However, Faber Infinite has a concrete solution for it.
Yes, you heard it right. Team Faber Infinite with its organizational transformation framework has a very powerful solution for energy cost reduction. Our expert team has helped several clients to reduce energy cost by means of conducting energy audit, implementing energy efficiency solutions and alternate energy solutions, Energy Management Systems development as per Standards (ISO 50001).
Energy conservation and efficient utilization of energy resources play a vital role in optimizing costs for any organisation. Energy audits help to understand more about the ways energy is used in the industry, and help in identifying the areas where energy waste is occurring and where scope for improvement exists. Typically, audit covers Electrical Motors, Pumps, Lighting, Compressed Air System, Cooling Tower, Boilers, Steam Systems, Furnaces, HVAC & Refrigeration System.
For further details, please get in touch with our team at [email protected]