you are working as an engineer company during an energy audit you rcalize that your company has

Step 1: Calculate the annual cost savings from installing a switch to turn on the transformer on

Question

You are working as an engineer at a company. During an energy audit, you realize that your company has a 40 kW transformer that is connected all the time. While inspecting the transformer, you calculate the core losses from the device to be approximately 5% of its rated capacity. Assume that the electrical costs are €10/hour and $10 USD/KW/month of peak demand, that the average building is used 12 hours/month, and that the average month has 720 hours. Estimate the annual cost savings from installing a switch that would energize the transformer only when the building was being used. The transformer is used for 12 hours/month and it can be turned off for the remaining hours of the month. That means the transformer can be turned off for 708 hours/year. The core losses from the transformer are 2 kW. Installing a switch to turn on the transformer only when the building is used results in: - Annual energy savings of 2 kW * 708 hours/year = 1416 kWh/year. - Annual cost savings of 1416 kWh/year * $10 USD/KW/month = $14160 USD/year. Does it make sense to use this strategy?

          You are working as an engineer at a company. During an energy audit, you realize that your company has a 40 kW transformer that is connected all the time. While inspecting the transformer, you calculate the core losses from the device to be approximately 5% of its rated capacity. Assume that the electrical costs are €10/hour and $10 USD/KW/month of peak demand, that the average building is used 12 hours/month, and that the average month has 720 hours. Estimate the annual cost savings from installing a switch that would energize the transformer only when the building was being used.

The transformer is used for 12 hours/month and it can be turned off for the remaining hours of the month. That means the transformer can be turned off for 708 hours/year.

The core losses from the transformer are 2 kW.

Installing a switch to turn on the transformer only when the building is used results in:
- Annual energy savings of 2 kW * 708 hours/year = 1416 kWh/year.
- Annual cost savings of 1416 kWh/year * $10 USD/KW/month = $14160 USD/year.

Does it make sense to use this strategy?

Added by Daniel C.

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