Energy efficiency and management in industries – a case study of Kaase Industrial Area in Kumasi

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Date
May, 2016
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Abstract
Energy is and has always been the backbone of the industrial sector of every economy in the world. The sustainability of the industrial sector of every economy depends on how strong that economy or country is willing to make maximum and efficient use of its energy for national development. The efficient use and management of energy enables industries to save cost (make profits) and thus reduce wastage and carbon dioxide emissions. However, industries are finding it difficult (especially in developing countries) to implement energy efficiency and management measures due to factors such as financial constraints, energy price hikes, lack of technical expertise, just to mention a few. The purpose of this study is to throw more light on the current level of energy efficiency and management measures adopted by industries within the Kaase Industrial area in Kumasi. The study also investigates the existing barriers which mitigates the implementation of energy efficiency and management measures in the industrial area. Another aspect that was also looked at was the driving forces that propelled industries to implement energy efficiency and management measures. To make this study more realistic, questionnaires were administered to both medium and large scale companies in the industrial area. In the questionnaire, respondents were asked to fill in various sections which covered the study area such as the energy management profile, energy information sources, energy efficiency opportunities, etc. The final results of the study revealed that efficiency gap was in existence since there was low implementation of energy efficiency measures. This was due to the barriers which mitigates the implementation of these measures. In addition, more than half of the industries did not have energy management policies implemented in their companies. Energy audits was also on the low side as industries rarely engaged the services of energy consultants in helping them review their energy efficiency and management structures. On the high side, majority of the industries did implement the use of efficient machinery and office equipment and the use of energy saving bulbs at their workplace which are cost-effective and profitable. Factors such as “expectation of rise in energy prices” and “statutory requirement for energy efficiency” were the major drivers for implementing energy efficiency measures. At the end of the study, it was recommended that government should pay much more attention to improve energy efficiency in the Kaase industrial area by empowering the Energy Commission so as to allow them to provide more technical services to these companies. Also, it was recommended that, industries in the area should adopt a comprehensive energy audit system. The services of energy auditors can be taken advantage of in order to create a data bank for energy and its related issues in the industries. Another policy which was recommended to industries in the area was the implementation of a comprehensive energy policy. This will help provide a basic framework within which the overall goal of energy can be achieved. This can be done through the upgrading of the skills of the energy managers in the companies to equip them with the requisite skills to manage energy issues better.
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This dissertation is presented to The Department of Economics in partial fulfillment of the requirements for the award of a Master's Degree in Economics (Energy and Resource Economics Option),
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