A STUDY ON SHARED SAVING CONTRACTS AND LED RETROFIT IN

Abstract

As increasing energy consumption is contributing to the rise of global warming, the world is turning its focus into energy efficiency in an effort to counteract this imminent trend. One of the top contributors for energy consumption in the built environment is the energy consumption of light fittings. LED lighting has now been widely used to replace the less efficient fluorescent lightings. In Singapore, many town councils have undergone LED retrofits through Energy Saving Performance Contract (ESPC). However, many people are reserved about the benefits of using LED and its implementation through ESPC. This paper will explore the benefits of LED lightings over fluorescent lightings in terms of performance, energy and economic aspects. This paper will then conclude with the evaluation of the feasibility of ESPC for such retrofit projects. From the analysis of data obtained through literature reviews, case study and interviews, it was found that in terms of Economic and Energy aspects, LED lights have an edge over fluorescent lights. From the calculation for life cycle costing, it was found that S$3,589,555 could be saved, from a LED retrofit of 95,000 Fluorescent T5 lightings, over a period of 7 years. It also brings about a total energy saving of 217,476,200 kWh. In terms of performance, although there are some dissatisfaction from some users towards the brightness and the glare from the LED lights, the user acceptance towards LED lights is higher than that of Fluorescent lights. And its superior Colour Rendering Index (CRI) also compensates for its less suited Correlated Colour Temperature (CCT). It is concluded that a LED retrofit has an advantage over traditional fluorescent lamps in terms of performance, economic, and energy. It is important to note that the Shared Energy Savings Performance (SESP) Contract is well suited for public projects, due to reasons such as “risk free” implementation of such retrofit. Despite an improvement, energy efficiency should not end here; energy efficiency can be further improved through enhancing the ability of the system to light up only when required with better control. Also, other energy efficient technologies should also be explored.