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SOSC562 Sustainable Development Sai Kung as a Sustainable Community District Cooling System within Sai Kung Sea Food

Restaurant

Prepared by: Wesley Sin (02814895) Lee Hau Ming (99809830)

January 28, 2004

Content
CONTENT................................................................................................................................................2 1. INTRODUCTION................................................................................................................................4 2. BASELINE CONDITIONS.................................................................................................................5 2.1 ESTIMATION OF ELECTRICITY POWER CONSUMPTION AND TARIFF CHARGE...................................................5 2.2 SAI KUNG RESTAURANT.......................................................................................................................5 2.3 EXISTING AIR CONDITIONING SYSTEM....................................................................................................6 2.4 ESTIMATION OF ELECTRICITY TARIFF CHARGE FOR AIR CONDITIONING SYSTEM...........................................6 2.5 IMPACTS TO THE ENVIRONMENT.............................................................................................................7 STAKEHOLDERS, AWARENESS & CAPACITIES...........................................................................8 3.1 RESTAURANTS OWNERS.........................................................................................................................8 3.2 GOVERNMENT.....................................................................................................................................9 3.3 CUSTOMERS........................................................................................................................................9 3.4 CHINA LIGHT AND POWER....................................................................................................................9 4. ISSUE AND GAP ANALYSIS...........................................................................................................10 4.1 POWER CONSUMPTION CONCERNS .......................................................................................................10 4.2 ENVIRONMENTAL CONCERNS...............................................................................................................10 4.3 OTHER CONCERNS..............................................................................................................................11 4.4 BENCHMARKING................................................................................................................................11 5. ALTERNATIVE GENERATIONS...................................................................................................11 5.1 BASIC CENTRAL CHILLER PLANT CONCEPT...........................................................................................12 5.2 ADVANTAGE OF THE CENTRAL CHILLER PLANT........................................................................................12 5.3 COST SAVING BY THE CENTRAL CHILLER PLANT......................................................................................13 5.4 HOW FINANCIALLY ACHIEVABLE............................................................................................................13 5.5 FURTHER STUDY REQUIRE FOR IMPLEMENTATION......................................................................................14 6. STAKEHOLDER FEEDBACK........................................................................................................15 7. INDICATORS & MONITORING SYSTEM..................................................................................15 8. INTEGRATION WITH COMMUNITY.........................................................................................17 9. APPENDIX.........................................................................................................................................18 9.1 Restaurants Cooling Load Estimations:..................................................................................18 9.2 Existing air conditioning tariff charge estimations:................................................................18

9.3 Based on estimated cooling load.............................................................................................18 9.4 Suggested New Air Conditioning Installation tariff estimation...............................................19 9.5 Rough estimation for pay back time:.......................................................................................20 9.6 Hoi Pang Square......................................................................................................................23 9.7 Hoi Pong St..............................................................................................................................24 9.8 Man Nin St...............................................................................................................................25 9.9 sai kung market........................................................................................................................25 REFERENCES.......................................................................................................................................26

1. Introduction
Sai Kung is one of the important recreational areas for the Hong Kong residents as well as one of the major overseas tourist attractions in Hong Kong. The attractions of Sai Kung comprise scenic coastline, beautiful rural landscape and a wide range of recreational and tourist resorts. Sai Kung Town is planned as a "Tourism Gateway" for promoting tourism and recreation in Hong Kong. In addition, Sai Kung Town will continue to play the role as a central area for the provision of commercial, recreational, transport and services to the district as a whole, as well as the gateway to the countryside and coastal recreation areas. Hong Kong has been well known for cuisine. There are over ten thousand different kinds of restaurant, especially seafood restaurants, which are mainly located in three places (Aberdeen, Lei Yue Mun & Sai Kung). The scene and the environment of Sai Kung craft it the most popular among the three. Sai Kung seafood restaurants have been well known for their seafood cuisine for decades; Quiet and beautiful sceneries attract tourists. Once people think of seafood cuisines, they will think of Sai Kung. To gain higher popularity among tourists, more and more restaurants in Sai Kung start offering alfresco dining to let diners exploit to the striking outdoor scenery. The waterfront area with the alfresco dining to capitalize on the attractions of the thriving seafood restaurants is an interesting landmark in the town to promote the image of Sai Kung. However, the townscape around the waterfront area is not match with the surrounding Sai Kung scenic coastline. This is mainly due to the inappropriate management of the restaurant owners causing low energy efficiency and inadequate use of public utilities. To continue on it only benefit, the restaurant owners should not to keep their businesses only, they should think of keeping the environment sustainable. Cooling systems or air conditioning systems are going to be in detail description in the following report not only because of their high energy consumptions; these systems also have huge impacts on the surrounding environment. A rational use or choice with a potential energy saving plan should be considered in order to make the development sustainable so that a harmony between restaurants and Sai Kung environment could be formed.

2. Baseline Conditions
2.1 Estimation of Electricity Power Consumption and Tariff Charge
Sai Kung has a high standard of services such as water supply, electricity, and town gas. The restaurants major energy end-use is HVAC, lighting, equipment, hot water, and processes. In Hong Kong, electricity and town gas are the major forms of energy. About 59% of electricity and 44% of town gas are used by commercials. The most dominant are the air-conditioning and the lighting which consummating almost 65% of its electricity cost.1 From CLP COP CP215, the estimated demand of the premise is approximate 0.32kVA/m2. For air conditioning installation consumption is approximate 45% of the total demand.2 Based on the above assumption the estimated electricity loading could be up to 4080kW. If we based on CLP General Service tariff (96.8cents/unit) and assumed the restaurants working 8 hours per day the monthly tariff charge can be up to HK$940,000. Therefore tariff charge for solely air conditioning consumption can be up to HK$451,630. (See appendix 9.3 for calculations)

2.2 Sai Kung Restaurant


Sai Kung seafood restaurants with alfresco dining mainly locate at the waterfront area (Sai Kung Hoi Pong Street, Man Nin Street & Sai Kung Hoi Pong Square) because of their potential coastal scenic view. Unfortunately, this area was developed long time ago and it seems to be in an old town style. The housing blocks within Sai Kung Hoi Pong Street & Man Nin Street have already been stood up for around 30 years and with a range of 1 to 3 storeys.3 The sooty exterior walls of the building are caused by the chillers and exhaust fans from the restaurants which are all located at the ground floor. At the Sai Kung Hoi Pong Square area, there are two 10 storey buildings (Siu Yat Building) which have been developed around 25 years ago. There are 3 seafood restaurants with alfresco dining in this region; it seems that they are highly developed with a sidewalk for pedestrians. The numbers of restaurants around this area is approximate 50 numbers and totally 15,000m2 restaurants areas.

Energy Efficiency Office, EMSD, HKSARG CLP COP215, 1983 3 Buildings Department, HKSARG
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From the South East New Territories Development Strategy, Sai Kung will continue its potentials to attract overseas tourists to Hong Kong. Sai Kung Town is going to play a significance role as the core of the overall Sai Kung district. The streetscape or townscape around the waterfront area will become the major landmark or attractive point for the tourists not only is the scenic coastline view, also is the famous seafood restaurants located in here.4

2.3 Existing Air Conditioning System


Majority of restaurants around the district are using small split type air conditioning units, and some small package type air-cooling chiller unit and some water cool chiller (using cooling tower as the heat rejection unit). These devices are mainly located on the top of the restaurants like the podium at the Sai Kung Hoi Pong Square which just next to the Siu Yat Building. Trusting the air conditioning installation is own by the restaurants owner and of cause maintain by the restaurant owner. That is obvious do not have proper maintenance and create adverse effect to the district. The followings are the primary observation:

Excessive Energy Consumed Aesthetical effect o Expose refrigerant pipe o Expose equipment like cooling tower and split unit. Lake of maintenance leading: o Water leakage affecting hygienic. o Cooling Tower Legionaries Disease o Leakage of refrigerant create Ozone depletion Generate noise annoyance residents.

You may refer to Appendix 9.6 9.9 for photos indicate the aforesaid issues.

2.4 Estimation of Electricity Tariff Charge for Air Conditioning System


In above Baseline condition section has already mentioned the rough estimation of tariff charge by CLP based data from CLP CP215 is approximate HK$451,630 per month.

Planning Department, HKSARG 6

Another calculation was done by means of Cooling Load Estimation converted to electricity input to estimate the tariff charge. This calculation shows that the approximate tariff charge per month for solely air conditioning installation could be up to HK$478,923. (See appendix 9.3 for calculation) The different (6%) between the two estimations is fairly explainable because the Cooling Loading estimations are generally used for prediction of the cooling plant capacity and CLPs COP215 are base on statistical data Nevertheless, both value is useful for compare the saving of our proposal and will be elaborate further in the following sections.

2.5 Impacts to the Environment


The existing installations found installed and maintain by those individual owners for many years and are obvious that those installations do not have sufficient routine maintenance. If the plant do not maintain properly would create the followings environmental issues:

The air conditioning systems are very often found leakage of refrigerant. The leakage of refrigerant (CFC) is harmful to the environment because this is one of the major gases contribute the global warming and ozone depletion. Some air conditioning system using cooling towers as the heat rejection system. These installations found support grows of legionaries disease and should maintain dosing chemical so as to avoid generate legionaries disease. No grantee for the existing small installation of maintenance and therefore could be harmful to the near residents. For hygienic issues, the water leakage from the existing system would create a lot of problems, such as humid environment would supports grows of bacteria.

The noise produced by the air conditioner outside those restaurants does not have any control. Obviously affecting those near residential because those restaurants are operate from the afternoon until mid night and many residential buildings found located close to those restaurants. The existing air conditioning installations are consuming excessive energy. If
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adopting much energy efficient installation could beneficial to the environment and much cost effective, i.e. assists sustain the restaurants business. The following sections had recommended an alternative installation to improve the energy efficiency. The other impact or concerns is the appearances of the townscape, at the Sai Kung Sea Food Restaurants will be the landmark of the South East New Territories Development.

Stakeholders, Awareness & Capacities


The existing air conditioning system can be improved by construct some new cooling plant serving those restaurants, such plant should be well maintained. By doing so, require to invest a lot of money. However, it does not mean that it is not possible to implement. For any kind of development with in the district should have sufficient support from the stakeholders. Before we go into detail of suggested improvement on air conditioning installation and how it can be implement. Considerations from different stakeholders point of views briefly described below.

3.1 Restaurants owners


The restaurant owners should be the one who install those existing air conditioning systems but they do not have sufficient awareness on those problems created by the existing air conditioning installation and they may not willing to spend money to maintain their air conditioning installation. The concern of them at most should be their business development. By improve the air conditioning installation may help to attack customers as it can improve the surrounding environment. In addition, if new installation can enhance energy saving can improve their competitive because lesser expenses on energy. However, the capital cost for the new plant is the prime restriction on improvement. If the new plant can be built and operate by a private developer, which can provide saving on energy cost to the restaurants owners the restaurant owners should support the improvement project. The improvement project should be possible to implement as the saving could come from the improve plant efficiency and the discounted tariff rate offer by CLP when

under bulk and large consumption. The restaurants can be served by a central cooling plant so that the consumption of the plant can be apply the bulk or larger tariff so as to achieve cost saving.

3.2 Government
The government may introduce policy that could encourage private sector to involve the improvement project such as Private Public Partnering (PPP). Private sector involvement in providing municipal services and infrastructure is not a new concept. The following Alternative Generation section described the improvement project briefly and suggested to adopt the PPP concept so that the government can use private sector expertise and resources to address the public sector needs.

3.3 Customers
Customers are not just enjoying foods but also the environment of the district. The restaurants there can enjoy the water front leisure environment, local culture sampan and finish man boat are all the particulars that cannot found anywhere else except in Sai Kung. However, buildings services installations around the area are not pleasant. The air conditioning installation installed randomly without planning creates the most adverse effect to the environment. Customers are hates to see such cooling towers, air ducts and pipe works attached to the building. Customers should happy to see improvement on the environment so that attraction on broadens range of customer could be achieved.

3.4 China Light and Power


China light and power is the sole electricity power supplier. All air conditioning installations are consuming electricity power. The implement of energy saving air conditioning installation could reduce the tariff charge and seems not beneficial to CLP. However, in the long run if the restaurants sustains develop within the district without implement any energy efficient scheme than the power supply plant require developing to suit. By the energy efficient air conditioning plant could beneficial to the power supply company as it can optimize the consumptions to minimize the require power supply plant capacity.

Actually, the tariff scheme offers by the CLP are to encourage their customers to consider improve the loading profile i.e. to optimize CLPs power plant capacity.

4. Issue and Gap Analysis


4.1 Power Consumption Concerns
The power consumed by the existing air-conditioning plant does not achieve the best energy efficiency. Besides, the existing installation does not have sufficient maintenance would further reduce the efficiency. The restaurants can reduce the energy consumption by construct a cooling plant to cool the water and deliver the chilled water to the restaurants as the cooling media (see conceptual drawing in Appendix 9.5). General speaking the central chiller plant having higher performance in terms of efficiency therefore save energy and electricity charge. The saving of electricity charge would definitely help the development of the restaurants business. The next section describe further the central chiller plant advantage in other aspect and how such concept could be implement and suggested what further consideration and study will be required.

4.2 Environmental Concerns


To due with the environmental problems that previously mentioned, central chiller plant would help compare to the existing individual installations. The refrigerant for air conditioning system can centralized in the central chiller plant. Leakage of refrigerant can be monitor by the central chiller plant operator and appropriate action can be taking at right time once leakage found. Those existing cooling towers, split units etc. can be removed, which improved the Aesthetical effects. The central chiller plant can centralize the noise equipment and appropriate treatment can solve the noise problem. Therefore, the central chiller plant idea considers as solution for air conditioning improvement within the district.

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4.3 Other concerns


The existing air conditioning installation affecting the sustainable development of the restaurants business within the district because if increase the numbers of restaurant means more split units, cooling tower etc to be installed around the district and further worsen the appearance of the district. Those restaurants become less attractive. Also the more the individual air conditioning installation would affect the residents more that increasing the conflict between the restaurants and the residents. Eventually the residents may restrict the development of the restaurants.

4.4 Benchmarking
The CLP have provided a discount on bulk tariff and large tariff customers because of their high power consumptions. The customer that consumed not high enough power cannot enjoy such discount rate. Many large developments had successfully adopted such discount tariff scheme like New TVB city in TKO. The small restaurants cannot enjoy such benefit because they may not have sufficient consumptions. If we can convert the energy from electricity to cooling and deliver to those restaurants the central plant electricity consumption should be able to adopt such discount tariff. Just similar to those large shopping mall, those retails have their own electricity meter counting for the consumption other than air conditioning installation but in the rental fee or management fee have including so call air conditioning fee. That means the landlord supply them the cooling effect and such cooling effect was generated by electricity and the electricity cost is charge to those retails. In that case the landlord can enjoy the bulk tariff discount.

5. Alternative generations
As mentioned on the above sections Central Chiller Plant installation could solve the problems generated by the existing air-conditioning installations. The followings described further: 1) The concept, 2) The advantage, 3) How financially achievable, 4) What further study require for implementation.

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5.1 Basic Central Chiller Plant Concept


Since Sai Kung restaurants are located at waterfront and the best energy efficient cooling system is water cool chiller plant. The idea is to construct a seawater pump house pumping water to the central chiller plant than the Central chiller plant use seawater as the cooling media to chill the water. The chiller water will be delivered to those restaurants as the air-conditioning cooling media. The location of the plant should be closer to the waterfront and the restaurants to minimize the pipe line losses to achieve the best benefit. By adopting the central chiller plant those air conditioning equipments inside the restaurants should be retrofit to match with the chiller plant cooling media. The new installation should be well coordinate with the restaurants existing decorations. One possible additional consideration for further improve the plant cost efficiency is to implement the thermal storage system. In simple works this system are used to store energy by produce ice at night time and release the cooling effect by the ice at day time. The plant operate at night to produce ice can enjoy cheaper tariff charge offered by CLP because at nighttime the unit energy charge is cheaper than at daytime. Further reduction of energy cost could be achieved, as the maximum demand charge reduced. Such thermal storage plant requires higher plant capital cost and more spatial requirement. Further studies require to sees if feasible to be implement.

5.2 Advantage of the central Chiller plant


The chiller plant can deliver the following benefit.

Reduce the tariff charge for air conditioning installation as the central plant can apply for the bulk or large tariff charge offered by the electricity supply company. The central plant can provide treatment for the noise in a centralized location. The central plant design could cater for the future expansion of restaurant business within the district. On top of the restaurants, other retails can be serve by this plant depends on the development of the district. The central chiller plant can be well maintained to avoid the leakage of refrigerant, avoid water leakage so as to improve the environment.

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The central plant requires permanent employment for plant operator and maintenance worker, trusting create job opportunity.

5.3 Cost Saving by the central chiller plant


For instant, if consider the existing demand by the restaurants the plant design was estimated to be 1421ton say 1500Ton chiller plant to be constructed. The power consumption is approximate 1250kW (see appendix 9.4 for detail calculation). With this new installation, the air conditioning tariff charge (bulk tariff) estimated to be approximate HK$300K per month the anticipated saving per year can be up to HK$1,200K per year, which was estimated base on the simple life cycle costing concept. The estimated capital costs for the system estimated to be HK$10Million. The pay back time will be at year10th. The plant year 15th the cost saying will be around HK$6million. (Please refer to the Appendix for detail estimations.) To reduce the plant capacity and possibly shorten the cost recovering time, thermal storage installation may suggested if the space and capital cost could allowed for such installation.

5.4 How financially achievable


The effects after the investment are difficult to quantify such as the improvement of the Aesthetic, appearance. How such investment could justify? However, one thing that confirm is the district can become more attractive after such investment. Nevertheless, to have the best benefit to the Government and all other stakeholders may implement the idea of Public Private Partnering Scheme. As mentioned above, this system can make use of resource from the private sector. However, if all the capital cost to be finance by private sector may not be attractive from the private sector point of view. The following conceptual scheme may be consider but subject to further marketing research and consultation.

The plant cost to be share by Government and Private Sector. From the Appendix you can see if the Government share half of the investment capital cost the pay back time will become year 5th i.e. more attractive.

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To attract the restaurant owners to contribute the improvement project the cost saving after the first payback year to return a portion to the restaurants owner are suggested. Therefore, the pay back will be share by the restaurants owners and the private sector who involve in the project. The private sector or the Government should confirm the saving amount after an appropriate study period, which shall be use as a guideline for necessary improvement and may be form part of the contract liability. Any further saving improvement exceeding the confirm amount due to value engineering will be the private sector benefit. This is to encourage the private to think if any further saving can be achieved.

5.5 Further study require for implementation.


Further study on existing energy consumption to yields accurate data is required. After detail energy consumption study the preliminary plant design shall be figure out so that detail plant life cycle cost study can be done. These study help to confirm the plant saving as it is the focus of the improvement project. The detail energy consumption study will included the following founding: 1. 2. 3. Accurate air conditioning system design criteria. Accurate year round cooling load estimations. Accurate year round power consumed by the existing air-conditioning installation and others electricity appliances. Maximum power consumption period through out the year. Minimum power consumption period through out the year. What tariff scheme to be adopted to deliver best benefit.

4. 5.

To yields the above require to visits all restaurants and to take necessary measurement. With the above information, the building services engineers should be able to design the preliminary plant schematic and estimate more accurate price require for construction. Besides, other technical consideration such as the best location of the central chiller plant and space requirement are also affecting the capital/ running cost of the project therefore require further study to found out the best location and what will be the space requirement.
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A detail consultation with those stakeholders such as restaurants owners to lean their opinion and to convince them with express the benefit of the improvement project is required. In addition, what will be the restaurant owners expectations on anticipate saving are important information to yields. To consult if any private sector might interest in provide service to this kind of improvement project by adopting PPP. In addition, what will be the possible shares between Government and Private Sector? Those are essential information to write up the specification and tender documents for implementation of such project.

6. Stakeholder Feedback
The major concerns of business owners to deal with are money issues. Most of their feedbacks would be asking about the cost as well as the benefits of the system. They have fewer concerns about the environment or the townscape. They are interested in the idea and they are willing to afford the maintenances and other operation costs if the government agrees to construct the system for them. Nonetheless, business owners oppose the system construct by CLP or other business. Owners believe that those companies would run the system for profit. Business owners are interested in the reduction in electricity tariffs and power consumption from the implementation of the system. However, business owners concerns about their benefits or money saved from this implementation. In addition, who will be responsible for the construction since this will affect how much they would pay for using the system. The residents welcome the system since it would improve their living environments as well as the townscape. However, they concern about the construction would obstruct their livings.

7. Indicators & Monitoring System


Most of the environmental indicators for the air-cooling chillers and some water cooling chillers are already existed. These indicators are monitoring by the environmental protection department (for air, noise, sewage) and the food and environment hygiene department (for leakage). After the construction, these monitoring system or indicators can be located near the plant and also be monitored
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be the plant since there should be people operated. For the electricity power and tariff, it will depend on the CLP since they are the main provider.

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8. Integration with Community


Sai Kung sits along the coast of Inner Port Shelter (Sai Kung Hoi). This geographic benefit made Sai Kung be a fishing village; large number of freshly caught fishes were unloaded here. The abundant of fish supply shaped Sai Kung to be a center for seafood cuisine. Sai Kungs seafood cuisine attracts tourist. Tourism in Sai Kung flouishs as more and more tourist came for seafood. The waterfront area with the alfresco dining to capitalise on the attractions of the thriving seafood restaurants is an interesting landmark in the town to promote the image of Sai Kung. To continuous on this benefit, the restaurants owner not only to keep it business but also to sustain the environment. Using a central chiller plant is one of the main propose. The advantages on that are the energy cost can be rapidly reduced accounting to the large power tariff and icestorage air-conditioning tariff suggested by CLP Power, and the noise of the chiller plant could be central in one area. The development of the restaurants in Sai Kung should retain its character and identity. The energy efficiency suggested here is the first target for the restaurants to become a high quality urban design, integration with the local vernacular and not to result in detrimental effects to the local landscape.

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9. Appendix
9.1 Restaurants Cooling Load Estimations: Assumptions: Restaurant area = 15000m2 Restaurant area require air conditioning = 15000 x Cooling load per m2 = 0.5kW (This cooling load per meter square only by general rule of thumb which only good for prelim planning purpose. Accurate cooling load estimation for plan design requirement should go through further study and calculation)
Coolingloa d =10000 ( 0.5) = 5000 kW

2 = 1000m2 3

9.2 Existing air conditioning tariff charge estimations: The estimations herein after base on two different methods: 1. Based on estimated cooling load 2. Based on power consumed by air conditioning compare to total power consumption. 9.3 Based on estimated cooling load Assumptions: Split unit Coefficient of performance (COP) = 2.4
(Extract from Code of Practice of Energy Efficiency of air conditioning installation E&MSD)

Restaurants running air conditioning for 8 hours per day Tariff charge = 96.8 cents (CLP general tariff 1kw/hr) Conversion factors: 1kW (cooling capacity) = 3412 Btu 1Ton (cooling capacity) = 12000Btu Total Power input required by the split units = cooling load/ coefficient of performance Total Power input required by the split unit =
5000 = 2083kW 2.4

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Approximate tariff charge per month by split unit air con. = Power input x Tariff charge per unit power (1kw/hr.) x hours operate per day x 30days Approximate tariff charge per month by split unit air con. = 2083 x 0.968 x 8 x 30 = HK$478,923 Based on percentage of air-conditioning consumption compare to total power consumption Assumptions: Power consumption per meter square = 0.32 kVA/ m2 (include air conditioning) (Extracted from CLP COP215) Restaurant area = 15000m2 Power factor = 0.9 Total power consumptions = 0.32 x 0.9 x 15000m2 = 4320kW If 45% of power consumed by air conditioning installation therefore: Air conditioning consumption = 4320 x 0.45 =1944kW Tariff charge per month by air conditionings = 1944 x 8 x .968 x 30 = HK$451,630 9.4 Suggested New Air Conditioning Installation tariff estimation Assumptions: Central Chiller Coefficient of Performance = 5.2
(Extract from Code of Practice of Energy Efficiency of air conditioning installation E&MSD)

The airside equipment and power losses due to chiller water pipe assumed 30% of the total cooling load. Therefore: Power input to the central chiller plant =
5000 (1.3) = 1250kW 5.2

Tariff Charge: Assumed Bulk Tariffs rate (on peak period) offer by CLP: Maximum demand Change: Each of the first 650kVA unit cost HK$66.5 Each kVA over 650kVA unit cost HK63.5 Energy Charge: Each of the first 200,000units unit cost HK$0.694 Each unit over 200,000units unit cost HK$0.679 Therefore Maximum demand charge =

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1250 ( 66 .5) = HK$92,361 0.9

Energy Charge = 1250 x 8 x 30 = 300,000 units 200,000 x 0.694 + 100,000 x 0.679 = HK$206,700 Therefore total tariff charge per month is 206,700+92,361 = HK$299,061 The above results relieves that the suggested new installation could reduce the tariff charge from approximate HK$450k to HK$300k say if the plant maintenance cost HK$40k per month and the investment of the plant is required HK$10Million (see breakdown below) 5000kw plant = (5000 x 3412)/ 12000 = 1421Ton Recent approximate figure for chiller plant including air side equipment for new installation requirement HK$3000 per ton therefore for 1500ton plant HK$4,500K Dismantle the existing air conditioning installation say HK$2,000K Civil works for dig up and reinstate traffic road and pavement say HK3, 000K Total investment require 4,500 + 2,000 + 3,000 = HK$9.5Million say HK10Million 9.5 Rough estimation for pay back time: Net saving per year = (150,000 50000) x 12 = HK$1,200,000 Assumed 5% interest: Investment = HK$10Million

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N Pl ant Payback Est i m i on ew at


30.00 25.00 20.00 15.00 HK$ In Million 10.00 5.00 0.00 0 -5.00 -10.00 -15.00 At year tenth payback start 2 4 6 8 10 12 14 16 Year Investm nt afte interest e r

New plant tariff saving (after interest) Net Saving

Investment 10 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

10 Million (HKD) interest investm ent rate after interest 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 10.50 11.03 11.58 12.16 12.76 13.40 14.07 14.77 15.51 16.29 17.10 17.96 18.86 19.80 20.79 New plant tariff Year end net saving after saving interest 1.20 -9.30 2.52 -8.51 3.91 -7.67 5.36 -6.79 6.89 -5.87 8.49 -4.91 10.18 -3.89 11.95 -2.83 13.80 -1.71 15.76 -0.53 17.80 0.70 19.95 1.99 22.21 3.35 24.58 4.78 27.07 6.28

The above table estimated the approximate figure of the New plant saving and the investment increment based on 5% interest rate per year, which relieve that if implement the plant would be pay back at year 10th . If implement the PPP scheme and if the government invest 50% the plant cost than the private sector can earn money starting from year 5th (see the following chart)

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N Pl ant Payback Est i m i on W t h PPP consi der at i on say 50% by ew at i gover nm ent and 50% by Pr i vat e sect or
30.00 25.00 20.00 Investm after interest ent HK$ In Million 15.00 10.00 5.00 0.00 0 -5.00 -10.00 At year 5th payback 2 4 6 8 10 12 14 16 Year New plant tariff saving (after interest) Net Saving

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9.6 Hoi Pang Square

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9.7 Hoi Pong St

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9.8 Man Nin St

9.9 sai kung market

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References
[1] [2] [3] [4] [5] [6] [7] [8] Environment Protection Department http://www.epd.gov.hk Planning Department http://www.info.gov.hk/planning Food and Environmental Hygiene Department http://www.fehd.gov.hk Green Restaurant http://www.greenrestaurant-hk.org City Planning Consultants Ltd. http://www.info.gov.hk/planning Study on South East New Territories Development Strategy Review http://www.info.gov.hk/planning/p_study/comp_s/sent/sent-es/content.htm Sustainability in the Built Environment http://www.arch.hku.hk Sai Kung District Development Foundation Ltd. Sai Kung tourism & recreation development plan: summary report G155.C55 S35 1996 Sai Kung tourism & recreation development plan: technical report G155.C55 S34 1996 China Light and Power, Code of practice 215, issue 1983 Electrical and Mechanical Services Department, HKSARG.., Code of practice for Energy Efficiency of Air Conditioning Installation 1998 Edition

[9] [10]

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