Moving towards renewable energy and energy efficiency at Notre Dame University-Louaize: an economic feasibility study

Abstract

This thesis is concerned with feasibility study made on energy saving and renewable energy at Notre Dame University- Louaize (NDU). The energy saving solution proposed to NDU deals with replacing fluorescent lamps inside offices and classes with LED lamps. This solution will decrease the watt-hour consumption of the university leading to less electrical power cost, less maintenance cost, and longer lamp lifetime. The renewable energy proposition is concerned with installing photovoltaic solar panels at the rooftop of the faculty buildings. The amount of power that the solar photovoltaic would produce is equal to the amount of electrical power needed to operate the LED lamps that will replace the fluorescent lamps. The main research question is whether replacing fluorescent lamps with LED lamps inside offices and classes of the faculty buildings and installing photovoltaic solar panels is capable of replacing the existing sources of energy while still having a good return on investment? Three scenarios were designed to answer the research question. The first scenario will examine the cost of replacing fluorescent lamps with LED lamps as well as the difference in watt consumption before and after the replacement. The second scenario examines the installation of solar panels. The third scenario considers replacing fluorescent lamps with LED lamps and at the same time installing solar panels. These three scenarios will be stimulated under two cases; the first case is that electricity generation prices remain stable in Lebanon over the lifetime of the project and the second case represents the increase in fuel oil prices. Payback period, net present value (NPV) and benefit-cost ratio (BCR) will be calculated to assess the feasibility study of the three above scenarios.Three rates will be used, 0% is the rate that NDU could get if it presents its studies to the National Energy Efficiency and Renewable Energy Account, the second rate is the social discount factor 3% and the third rate is the market discount factor 6%. The main findings suggest that scenario 1, under both cases will have a positive NPV. For scenario 2, the results were the least attractive for case 1, while for 3% discount factor case 2 of scenario 2 will have a positive NPV. Case 1 of scenario 3 showed a positive NPV under 3% discount factor while for 6% it had a negative NPV, case 2 of scenario 2 showed a good return on investment while being able to combine both scenarios, 1 and 2, together.