Audit Report of Sun and Sand Hotal

8/12/2019 Audit Report of Sun and Sand Hotal

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INTRODUCTION

The auditor's report is a formal opinion, or disclaimer thereof, issued by either

an internal auditor or an independent external auditor as a result of an internal orexternal audit or evaluation performed on a legal entity or subdivision thereof

(called an "auditee"). The report is subsequently provided to a "user" (such as an

individual, a group of persons, a company, a government, or even the general public, among others) as an assurance service in order for the user to make

decisions based on the results of the audit.

An auditor's report is considered an essential tool when reporting financial

information to users, particularly in business. Since many third-party users

prefer, or even require financial information to be certified by an independentexternal auditor, many auditees rely on auditor reports to certify their

information in order to attract investors, obtain loans, and improve publicappearance. Some have even stated that financial information without anauditor's report is "essentially worthless" for investing purposes.[1]

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EXECUTIVE SUMMARY

This energy and water audit report provides detailed data and analyses regarding

energy and water usage at a five-star hotel in Aqaba, Jordan based on a

thorough energy and water audit conducted by EcoSol.

The energy and water audit shows that the hotel’s annual energy and water billsfor the past year totaled JD 960,867. Jordan applied a new electricity tariff in

June 2012; leading to higher energy bills for the hotel totaling JD 1,059,705.

The following distribution illustrates the cost breakdown of energy bills based

on the existing tariff applied starting June 2012:

- Annual electricity bill is JD 781,881.

- Annual fuel bill is JD 176,077.- Annual water bill is JD 101,747.

Implementing the energy and water management opportunities [EMOs] proposed in this report will help the hotel reduce its energy and water costs. The

report recommends the implementation of seventeen EMOs that would lead to

monetary savings of 254,144 JDs/year equivalent to 24 percent of the hotel’s

total annual energy and water bill. The required investment for implementing

the EMOs is about JD 287,971 which would be returned back in 13.6 months. It

is worth mentioning that the calculations in this report were developed based onthe existing electricity tariff in effect as of June 1, 2012.

Figure 1: Estimated Cost Savings from Implementing all EMOs

The energy audit proposes the following (EMOs) to achieve the aforementioned

monetary savings:



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INTRODUCTION

ENERGY AND WATER BACKGROUND AND RATIONALE

Jordan’s energy bill is posing a huge burden on its economy,

representing around 18 percent of gross domestic product (GDP) in 2011. Thishas created serious challenges for governments, developers, industries, and

individuals to conserve energy and to improve the efficiency of energy use.

The efficient use of energy helps all energy consumers cut their energy bills,

resulting in continuous growth and development by providing lower risks from

the increment of energy prices and increasing competitiveness.

Moreover, energy efficiency enhancements contribute to minimizing the burden

on

economy. Improving energy efficiency will not only save energy and reduceenergy bills, but will increase stakeholders' awareness regarding the importance

of saving energy and improve the surrounding environment by reducing

greenhouse gas (GHG) emissions associated with burning fossil fuels for energy

production.

An expected rise in oil prices could further complicate Jordan’s energy situation

since imports almost all of the energy required to satisfy local demand. Thus,

the need to enhance energy efficiency in Jordan will become more urgent.

Energy management programs are systematic strategies for controlling a building's

energy consumption pattern and reducing it to an acceptable level without

compromising production levels, quality, comfort, operations, or other factors.

They establish and maintain an efficient balance between a building's annual

functional energy requirements and its annual actual energy consumption.



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Energy management programs offer several benefits including, but not limited

to:

lowering energy bills; maximizing the efficiency of electromechanical

equipment (e.g., heating, ventilation, and air conditioning (HVAC) systems,

lighting, pumping, and thermal systems, etc.); reducing maintenance costs;decreasing GHG footprint; providing solutions to existing power or energy

problems; conserving resources; and improving comfort and productivity.

In terms of water, Jordan’s primary sources of water are aquifers and basins fed

and recharged through annual rainfall. The Yarmouk Basin is the largest in the

country. Water from ground, surface, and non-traditional sources exhibits short-

and long-term variation which requires planning and development decision-

makers to be informed and advised on general and specific data concerning

water levels. Jordan’s water supply suffers because about 85 percent of the total

amount of water is lost to evaporation annually, which leaves only a smallamount of surface and groundwater to enter the water supply.

Many methods have been suggested to increase Jordan’s water supply,

including capturing rainwater through the use of micro- and macrodomes,desalination of sea water, and importation of water from neighboring countries,

as well as other alternatives; however, all of these methods are subject to cost-

benefit analyses and geopolitical constraints.

Agriculture is the primary use of water in Jordan. It accounts for 77.5 percent ofJordan’s total water consumption, while the remainder is used for domestic and industrial purposes. Jordan’s annual water demand is estimated to be growing at

a rate of 25 mm3/year. This growth is related to urbanization and industrial

expansion, as well as increased domestic use, mainly as a result of population

growth.

Jordan’s current water supply and demand situation raises serious concerns

about the country’s water balance, as well as about the qualitative deterioration

of water. The picture is so gloomy that any water researcher would observe thatit is all too easy for The country to “cross the red line” when faced with annual

water deficits, overuse, resource depletion or contamination, and human errors.Projections of water resourcesto 2025 demonstrate that Jordan will experience

persistent water shortages.

Several methods are in place to help alleviate water shortages, with reduced

consumption at the top of the list. Appropriate pricing is the preferred approach



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PROJECT OBJECTIVES

The main objectives of this project are:

1. Execute a Type II energy audit at a 5-star hotel in Aqaba.

2. Conduct a complete billing analysis for the project which establishes theenergy balance for the hotel.

3. Identify energy efficiency enhancement opportunities, supported by a

complete technical, financial, and environmental analysis.

4. Increase the staff and stakeholder awareness about the importance of saving

energy for the Jordanian economy.



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KEY FINDINGS

This section outlines the proposed EMOs at the hotel. EMOs wereselected based on economic feasibility and ease of implementation.

Table 1 below shows the proposed EMOs at the hotel, their associatedenergy savings, the costs of implementing each EMO, and the pay-backperiod for each investment.

Table 1: Summary of EMOs in Electrical, Fuel, and Water

Systems



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3.0 ENERGY BILL ANALYSIS AND BASELINE

ENERGY

CONSUMPTIONThis section presents the hotel’s energy and water performance and baseline

analysis. This report provides an analysis of the hotel’s current energy and water

consumption, its energy and water bills over the past year, its energy and water

consuming systems, and the efficiency and characteristics of those systems.

3.1 ELECTRICAL CONSUMPTION

This report analyzes the hotel’s total electrical bill for the past year. Its annual

electrical consumption and costs are presented in Table 2 below.Table 2: Annual Electricity Consumption and Costs

Electrical Tariff System

The electrical tariff applied to the hotel is the three-part tariff system detailed asfollows:

The following tables show the hotel’s actual electricity consumption and

associated costs for the hotel over the past twelve months.



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It could be noted from the table above that:

1. The hotel’s annual electrical consumption over the past year was 6,459,664

kWh, and its annual electricity cost was JD 683,043, based on the old electricitytariff.

2. If the energy conservation measures are not implemented, the total expected

electrical cost will be JD 781,881 based on fees associated with the new

electricity tariff imposed in June 2012.

3. The hotel experienced its highest electricity bill ( JD 86,277) during the past

twelve months in August 2012.

4. The hotel’s lowest electricity bill (JD 32,242) was in February 2012.

5. The average electrical tariff was 0.0893 JD/kWh before June 2012 which

increased to 0.1113 JD/kWh as of today.The figures below illustrate the hotel’s annual electricity consumption and costs

graphically.



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Figure 1: Daytime and Nighttime Electrical Consumption (kWh)

The above figure shows the total electricity consumption in kWh over the past

year divided into day and night consumption. It should be noted that the nighttime electricity consumption represents 20% to 25% of the total electricity

consumption.

Figure 2: Total Electrical Energy Consumption (kWh)

The above figure shows the total monthly electricity consumption of the hotel.

The higher electricity consumption during summer months is due to increased

demand on the air conditioning system. Additionally, hotel occupancy rates arehigher during the summer, resulting in more demand on energy-consuming

systems.



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Figure 3: Maximum Demand Load (kWh)

The above figure shows the maximum demand load in kW for the hotel as

obtained from electricity bills. The maximum demand load in kW at summer

time is higher than winter time which is due to the higher demand on airconditioning system.

Figure 4: Maximum Peak Load Penalty (JDs)

The above figure shows the maximum peak load penalty of the hotel which is

related to the maximum peak load. The maximum peak load penalty duringsummer time is higher than winter time due to the higher electrical loads during

summer time as mentioned in Figure 4.



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Figure 5: Electrical Bill Comparison Based on Old and

New Tariffs (JDs)

3.1.1 BASELINE ELECTRICAL MEASUREMENTSThe hotel's electrical energy needs are being supplied through Electricity

Distribution Company's (EDCO) grid through 5 electrical power transformers

located in the hotel. The total installed capacity of electrical transformers at thehotel is 6.5 MVA divided as

follows:



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The power transformer's panels ATS 2, ATS 3, ATS 4, and ATS 6 and some of

the hotel’s electrical loads were monitored continuously over different periods

of time using a special power quality analyzer.

ATS panels 2, 3, and 4 are feeding the various electrical loads and locations at

the hotel while ATS 6 is feeding only the guest rooms.

The total electrical consumption for the power transformers is illustrated in the

figures below.

Figure 6: Electrical Power (Watt) Measured at ATS Panel #2



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Figure 7: Electrical Power (Watt) Measures at ATS Pane

Figure 8: Electrical Power (Watt) Measured at ATS Panel #4

Figure 9: Electrical Power (Watt) Measures at ATS Panel #6



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3.1.2 ELECTRICAL CONSUMPTION BREAKDOWN

During site visits throughout the audit stage, EcoSol took continuous and

instantaneous electrical measurements of the electrical loads and electricalenergy consuming systems to establish each system’s electrical consumption

and cost breakdown. The electrical measurements yielded the following

breakdown of electrical costs:

Table 4: Electrical Cost Breakdown



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Figure 10: Electrical Load Breakdown (kWh)

The above figure shows that water chillers are the major electrical energy

consumers followed by the AHUs. Water chillers and AHUs are the main

components of the air conditioning system representing about 65 percent of the

total electrical energy consumption. Other energy consuming systems (lightingsystem, pumping system, etc.) represents less than 33 percent of the total

electrical energy consumption.

Figure 11: Electrical Load Breakdown (JDs)

The above figure shows that the air conditioning system (water chillers and air

handling units) is costing more than JD 467, 000 per year while the other

systems costs about JD 234,000 annually



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Figure 12: Electrical Load Breakdown



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3.3 WATER CONSUMPTION

The hotel’s annual water bills were analyzed over the past year to determine themonthly water consumption and associated costs, presented in Table 7 below.

Table 7: Past Year Water Consumption (m3) and Costs

Highlights from the above table:

1. The hotel’s water consumption varies between summer and winter seasons

due to the high occupancy during summer months.2. The average monthly water consumption was about 5,060 m3.

The figures below illustrate the hotel’s annual water consumption graphically



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Figure 16: Past Year Water Consumption (m3)

The above figure shows the monthly water consumption in cubic meters at the

hotel. The increase in water consumption during May 2012 is not a trend, but

rather, is due to abnormal conditions during that time.

Figure 17: Past Year Water Cost (JDs)

The above figure shows the monthly water bills in JDs during the past year. Thewater bills increase during summer time due to the higher occupancy rates and

the higher demand on water for domestic applications



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3.3.1 WATER CONSUMPTION BREAKDOWN

During site visits throughout the audit stage, EcoSol conducted various

measurements from the hotel’s water consumers to establish the water

consumption and cost breakdown for each water consuming unit. Themeasurements yielded the following water breakdown:

Figure 18: Water Consumption Breakdown

From the figure above, it should be noted that showers are the hotel’s largest

water consumer, accounting for about 54 percent of its annual water

consumption followed by service (kitchen, cleaning, etc.) representing about 30

percent.



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4.0 FINDINGS AND RECOMMENDATIONS

4.1 ELECTRICAL SYSTEM’S ENERGY

MANAGEMENT OPPORTUNITIES

L.1 Replace existing FLs (2x36 Watt & 4x18 Watt) with new

technology highefficiency

LED lamps (2x18 Watt & 4x8 Watt) in selected areas.

Finding Description and Recommendations:

During the energy audit, a detailed lighting survey was carried out to identifytype, energy consumption, and illumination level of all spaces throughout thehotel. The energy audit showed that many areas in the hotel service areas are

being served by T8 FLs of 2x36 and 4x18 Watts as illustrated in the below

figure

Figure 20: Sample of Existing FLs.

Fluorescent lamps (FL) are considered one of the most energy-efficient lamps

available; however, a new lighting technology which relies on semi-conductortechnology, called LED lamps, provides reliability, high-quality lighting

characteristics, and energy efficiency in addition to offering the longest service

life compared to other available lamps. LED lamps are available in a wide rangeof shapes and colors to meet various application needs.

To assist in reducing the energy consumption of the hotel’s lighting system, it is

recommended that 2x36 Watt fluorescent lamps be replaced with 2x18 Watt

LED lamps and 4x18 Watt FLs be replaced by 4x8 Watt LEDs. The below

figure shows the proposed LED lamps.



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Implementing this measure will reduce the energy consumption of FLs by about

50 to 54 percent. Because the life expectancy of the proposed LED lamps isabout 30,000 to 50,000 hours, much longer than the existing FLs, the hotel’s

replacement and maintenance costs for lighting will be reduced. Maintenance

cost savings were not considered at this stage but provide an added benefit of

implementing this measure.

The following table illustrates the replacement of 2x36 FLs by 2x18 LED lamps

and 4x18 FLs by 4x8 LEDs.

\



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Table 8: Proposed Replacement of FLs with LEDs

Energy Savings:



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L.2: Replace the existing downlight halogen spot lamps (35 Watt

and 65 Watt) with high-efficiency LED lamps (4 Watt and 14

Watt).


The lighting survey also showed that a number of halogen spot lamps (35 Wattand 65 Watt) are currently being used to in several areas within the hotel,

including thereception area, restaurants, guest rooms, and corridors. Figure 22 below shows a

sample of the existing halogen spot lamps at the hotel.

Figure 22: Sample of Existing Halogen Spot Lamps

Halogen lamps are inefficient lamps and consume a lot of energy compared to

theillumination level they provide. Halogen lamps waste about 93 percent of

energy as heat losses while only 7 percent of the input power is being used for

illumination.

Currently, high-efficiency LED lamps 4 Watt and 14 Watt are available in thesame size, shape, and color to replace the halogen spot lights 35 Watt and 65

Watt respectively, offering an 80 percent reduction in energy consumption.

LED lamps are the best solution for meeting the hotel’s lighting requirementswhile providing energy savings. LEDs are considered the most energy-efficient



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lamps and offer an illumination level comparable to the existing halogen spot

lamps while reducing energy consumption by 80 percent.

It is worth mentioning that LED lamps have a service life of 30,000 - 50,000

hours while the service life of halogen lamps offers only about 1,200 - 2000hours of illumination. Replacing halogen spot lamps by LED spot lamps will

reduce the hotel’s lighting replacement costs and will save time and effort.

Monetary savings resulting from reduced replacement costs were not consideredin the calculations below, but offer an added benefit for the project.

The following table outlines the proposed areas to replace halogen lamps with 4

Watt LEDs.

Table 9: Proposed Replacement of Halogen Spot Lamps by LED Spot Lamps



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Energy Savings:

L.3: Replace the existing 26 Watt downlight compact fluorescent lamps(CFLs) with 12 Watt LED lamps in main elevators areas.



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The lighting survey showed that the hotel uses various types of lamps to light

internal areas, including 26 Watt compact fluorescent lamps (CFLs). The below

figure shows a sample of the existing CFL lamps.

Figure 23: Sample of Existing CFL Lamps

CFLs are one of the most highly efficient lamps available on the market, New

lighting technology which relies on semi-conductor technology, called LED

lamps, provides reliability, high-quality lighting characteristics, and energy

efficiency, in addition to offering he longest service life, compared to otheravailable lamps. LED lamps are available in a wide range of shapes and colors

to meet various application needs.

To reduce energy consumption while maintaining current lighting levels, it isrecommended that the hotel replace the 26 Watt CFLs with new high-efficiency

12 Watt LED lamps. The replacement of CFLs with LED lamps will provide an

energy savings of about 54 percent.

The following table shows the proposed areas for replacing CFLs with LEDlamps and the effects of implementing this measure.

Table 10: Proposed Replacement of CFLs with LEDs



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Energy Savings:



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P.2: Reduce domestic cold and hot water pumps' pressure from 7

to 5 bars.


During the energy audit, a detailed survey was conducted on water pumpingsystems to identify each pump’s operational characteristics and load

requirements.Domestic cold and hot water for guest rooms is supplied through a set of pumps

controlled by VFD. The below figure shows the existing water pumps at the

hotel.

Figure 23: Existing Water Pumps

Cold domestic water is pumped by three pumps, each of 18.5 kW (one in

service and two are stand-by) at a pressure of 7.3 bars. Hot water is pumped by

three pumps, each of 15 kW (one of them in service and two are stand-by) at a

pressure of 6.5 bars. For water pumps of a specific height, pressure is

proportional to flow rate in a non-linear relationship as mentioned in Figure 31.

Flow rate affects mechanical shaft power directly, hence the electrical powerdrawn by the pump.



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Figure 31: Water Flow Versus Pressure in Water Pumps

From the previous curve, it could by noted that water can by pumped to a height

of 70 meters using 7-bar pressure, and to a height of 50 meters using 5-bar pressure at a fixed flow rate value.

The hotel height is about 30 meters which provides a static head of 30 meters on

the pump. Friction losses in the water pipes should be added to this head which

increase the pressure required to reach the highest point of the hotel whilemaintaining proper pressure. However, the total head is expected to be 40

meters which requires 4 bars.

To reduce energy consumption of these pumps, it is recommended that the hotelreduce the water pressure of cold water pumps from 7.3 bars to 5 bars, and hotwater pumps from 6.5 to 5 bars.

Implementing this measure will reduce energy consumption of the hotel’s

domestic cold and hot water pumps by 19 percent, accounting for about 0.3

percent of the hotel’s total electrical bill.



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Energy Savings:

O.1: Shift the hours of operation for laundry equipment and the air

compressor

to be at the Night Low Electricity Tariff.


The hotel currently operates laundry equipment and air compressors for 10

hours

during the day shift, which is billed at day tariff rates (the high tariff). Theelectrical tariff applied to the hotel is the three-tariff system.

To reduce the hotel’s energy costs, it is recommended that the hotel shift the

working hours of laundry equipment and air compressor to nighttime to take

advantage of the low tariff period.

The shift will not affect electrical consumption of laundry equipment or the air

compressor, but will reduce the associated energy costs of operating the

equipment.

Implementing this measure will not affect working quality or demand issues of

the hotel, and will cut about JD 1,000 from current laundry and air compressor

energy costs annually.

Energy Savings:

O.2: Turn-off the air compressor when unneeded.


During the audit, it was observed that an air compressor was providing laundry

equipment with compressed air. The air compressor was monitored usingspecial



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electrical current data loggers and was found to be running continuously

throughout the day regardless of the hotel’s needs. Laundry equipment is in use

only ten hours per day. The below figure shows the existing air compressors at

the hotel

Figure 24: Existing Air Compressors

The following figure illustrates air compressor energy consumption

monitored over a 24-hour period using current data logger.

To reduce energy consumption, it is recommended that the hotel turn off the air

compressor when the laundry equipment is not in operation.



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Energy Savings:



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CONCLUSSION

This energy and water audit report provides detailed data and analyses regarding

energy and water usage at a five-star hotel in Aqaba, Jordan based on a

thorough energy and water audit conducted by EcoSol.

The energy and water audit shows that the hotel’s annual energy and water bills

for the past year totaled RS 960,867. Jordan applied a new electricity tariff in

June 2012; leading to higher energy bills for the hotel totaling RS 1,059,705.The following distribution illustrates the cost breakdown of energy bills based

on the existing tariff applied starting June 2012:



BIBLOGRAPHY

WWW.GOOLE.COM "Fundamental Analysis: The Auditor's Report" by Investopedia.com

Accounting What The Numbers Mean, (Marshall, McManus, Viele 2008), Mc Graw Hill

http://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-C-

00705.pdf

Auditing & Assurance Services: A systematic approach. Messier, W and C. Emby. McGraw-Hill

Ryerson Limited, 2005.

http://www.goole.com/


http://www.investopedia.com/university/fundamentalanalysis/auditorsreport.asp


http://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-C-00705.pdf





