 The Background
Bakos Brothers is a family-owned furniture business offering an
upmarket range of imported furniture and accessories as well as an
interior design service. It is based in Gauteng and has four retail
outlets...
 The Objectives
GCX conducted a Carbon Footprint Assessment of Bakos Brothers’ operations in December 2008. The company was found to have very high electricity consumption so GCX recommended that it carry out an energy efficiency audit of its operations. As a starting point, Bakos Brothers commissioned GCX to conduct a Lighting Audit of its Decorating Centre showroom in Jan Smuts Avenue and also allocated a monthly budget to energy- reduction measures. The objective of this audit was to provide Bakos Brothers with the best strategy for reducing the energy consumption of its lighting system whilst remaining within the designated monthly budget for lighting retrofits. Bakos Brothers also aspires towards the broader goal of reducing the overall environmental impact of its operations.
"I chose GCX for their fantastic reputation world wide. I have found their team young, keen and wanting to change the world. Their easiness to assist and professional approach made my experience with GCX most pleasant. I undoubtedly recommend and place GCX as the industry leaders in helping business and people in combating climate change!" - Ryan Bakos, CEO, Bakos Brothers
The Process
A full lighting audit of the facility was undertaken. This involved:
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Meeting with the maintenance manager to ensure that all the correct lamp wattages and types were known;
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Inspection of the HVAC system to ascertain the coefficient of performance of the system;
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Establishing an inventory of all the light fittings and operational hours in the facility.
The data gathered from the above inspections and inventory was then analysed. Calculations were based on all lighting being operational for 12 hours per day, 6 days per week, except for the store room which is only used for 2 hours per day, 6 days per week. Suitable retrofitting options were proposed and payback periods were alculated. An implementation strategy for each technology was developed so that the total cost of the project would fall within the allocated budget.
The Results
The table below lists an inventory of the current lighting system at the Decorating Centre Showroom. It is clear that by far the highest cost is for the 50W downlights.
 * It was assumed that the following tariffs apply:
Energy Charge: High Season - R0.37/kWh ; Low Season - R0.25/kWh
Demand Charge: High Season - R81.52; Low Season - R77.63
The next table summarises the recommended retrofit options and gives the Rand, kWh and Carbon Savings per year as well as the payback period.
The calculations are subject to:
*Note: These savings levels will only be achieved after retrofitting is complete. The savings include maintenance, air conditioning and energy savings.
Using the recommended retrofits, an implementation strategy was developed according to the designated budget of R5,000.00 per month. In order to accommodate the budget, it was decided that the monthly savings should be accrued onto the budget in order to accelerate completion of the project. By doing this, the retrofit program will require an investment of approximately R184,000.00 and will take 23 months to complete (see graph 1 below). Up to 23 months, savings are represented as nil because they are re-invested. The graph illustrates that It will take approximately 3 years from start of implementation to reach breakeven, (taking into account projected price increases for fittings and electricity) whereafter all savings will be profit. These savings will rise annually in line with electricity price increases.
An alternative option for Bakos Brothers would be to invest the full amount required for the retrofits up front. With this option, the investment required would be +/- R140,000.00, and breakeven would be reached by 21 months, whereafter all savings will be profit (see graph 2 below).
In conclusion, after completion of the retrofit programme, a significant saving of approximately 70.79% will be achieved on the lighting bill per annum, giving the return on investment (ROI) shown below:
 The Recommendations
The following conclusions were drawn from the audit:
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There is large potential for savings on the lighting system at Bakos Brothers’ Decorating Centre Showroom;
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It is possible to implement the project in a 2 year period provided that the savings achieved each month are fed into the budget for the following month.
It is recommended that Bakos Brothers:
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Ensure that the downlight replacement fittings meet their lighting requirements;
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Implement the energy reduction strategy outlined above;
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Implement energy/lighting audits of their other 2 outlets as well as their office and warehouse.
 The Future
To maximize savings, the monthly investment could be increased,
thereby accelerating the implementation strategy, or the upfront option
could be considered. In addition, Bakos Brothers could extend this
programme by conducting energy efficiency audits on all their
facilities. Not only will this lead to significant and ongoing cost
savings, but it will also provide a sound basis for reducing Bakos
Brothers’ environmentalimpact.
"GCX believes that climate change is the single biggest economic, social and environmental challenge we face this century." - Kevin James, CEO, Global Carbon Exchange (GCX)
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