Procurement of energy-efficient equipment to improve competitiveness in El Salvador
Electricity consumption represents a significant part of the expenses of hotels. In tropical countries such as El Salvador, air conditioning equipment can represent up to 70% of the entire electricity consumption of a hotel. As El Salvador is not an oil producing country, energy costs tend to be volatile, which may increase the average price per KWh at certain periods of the year, affecting the profitability of businesses such as hotels.
The use of energy-efficient air conditioning technologies and infrastructure improvements can enable significant
cost savings and improve productivity of hotel services by reducing the hotel’s dependency on energy costs.
cost savings and improve productivity of hotel services by reducing the hotel’s dependency on energy costs.
Background information
Novo Hotel & Suite is located in the heart of the capital San
Salvador city, in the vicinity of most business centres of El
Salvador. The business community makes up the majority of
guests at Novo Hotel & Suite.
As there is a large variety of hotels in the city centre,
innovation and cost-efficiency are the two main levers to
remain competitive in the local market.
The challenge
Electricity consumption represents a significant part of the expenses of hotels. In tropical countries such as El Salvador,
air conditioning equipment can represent up to 70% of the entire electricity consumption of a hotel. As El Salvador is
not an oil producing country, energy costs tend to be volatile, which may increase the average price per KWh at certain
periods of the year, affecting the profitability of businesses such as hotels.
The use of energy-efficient air conditioning technologies and infrastructure improvements can enable significant
cost savings and improve productivity of hotel services by reducing the hotel’s dependency on energy costs.
The strategy
In collaboration with the National Cleaner Production Centre of El Salvador1
(NCPC El Salvador), Novo Hotel & Suite
launched its energy efficiency project in 2015 to strengthen its management of energy resources. Technical assistance
was supported financially by the Inter-American Investment Corporation2
, in the framework of its GREENPYME
programme3
in the Central American region, whose goals are to help small and medium-sized enterprises improve
energy efficiency, encourage them to use energy sources that are low in carbon emissions, and offer the tools necessary
to implement energy-saving measures.
The project kicked off with an energy audit to measure all of the equipment at Novo Hotel & Suite, analyse the multiple
sources of energy, and quantify the potential energy savings.
The feasibility of installing new equipment was evaluated through technical, economic and environmental indicators,
including: economic savings, investment costs, electric and thermal savings, CO2 emissions, Return on investment
(ROI), Internal Rate of Return (IRR) and Net Present Value (NPV).
1 More information is available at: http://cnpml.org.sv/
2 More information is available at: https://www.iic.org/en
3 More information is available at: https://www.iic.org/en/greenpyme/program#.XHQ344hKiUk
Supported by:
based on a decision of the German Bundestag
For further information
http://www.novosuitehotel.com/hotel-verde.html
Contact person: Carmen García Prieto, Chief Executive
gerenciageneral@novoaparthotel.com
Lessons learned
To strengthen the engagement of the suppliers of electrical
appliances, it is critical to include, in the supplier contract,
specifications setting quality expectations with regards to the
delivery, installation and maintenance of the new equipment
as well as provisions detailing the projected energy savings.
Following the energy audit, Novo Hotel & Suite decided to:
 Replace 40W T12 type luminaires with 18 W LED technology in its two large meeting halls;
 Replace window type air conditioners (945 W) with high efficiency mini split technology (600 W) in bedrooms;
 Replace air conditioners for multi-use rooms (installed capacity 10.3 kW) with more efficient technology
(installed capacity 6.7 kW)
 Replace its laundry equipment (installed capacity 4.66 kW and 208 Litres of water per cycle) with high efficiency
equipment (installed capacity 2.45 kW and 75 Litres of water per cycle);
 Minimize thermal load on roofs by replacing and isolating them.
Impacts
Base year (2015) 2016 2017
(KWh/year) 167,738 135,021 132,041
Production (guest night-staying/year) 11,924 11,421 12,037
Environmental Indicator (KWh/guest night-staying) 14.07 11.82 10.97
(Ton CO2/year) for electric energy 115.84 93.25 91.19
Total investment (USD$) 72,534.97
% of reduction of Environmental Indicator with regard to base year 15.99% 22.03%
Savings in KWh/year 32,742 35.692
Environmental Benefit (Ton CO2/year) 22.61 24.65
Economic Benefit (US$/year) $6,220.94 $6,781.50
“The energy audit allowed us to take stock of where we stand and
learn how to improve to further our contribution to protecting the
environment and reducing CO2 emissions and it enabled us to
more efficiently produce and save resources.”
- Carmen García Prieto, Chief Executive, Novo Hotel & Suite
Installation of new air conditioners in Novo
Hotel & Suite
Novo Hotel & Suite is located in the heart of the capital San
Salvador city, in the vicinity of most business centres of El
Salvador. The business community makes up the majority of
guests at Novo Hotel & Suite.
As there is a large variety of hotels in the city centre,
innovation and cost-efficiency are the two main levers to
remain competitive in the local market.
The challenge
Electricity consumption represents a significant part of the expenses of hotels. In tropical countries such as El Salvador,
air conditioning equipment can represent up to 70% of the entire electricity consumption of a hotel. As El Salvador is
not an oil producing country, energy costs tend to be volatile, which may increase the average price per KWh at certain
periods of the year, affecting the profitability of businesses such as hotels.
The use of energy-efficient air conditioning technologies and infrastructure improvements can enable significant
cost savings and improve productivity of hotel services by reducing the hotel’s dependency on energy costs.
The strategy
In collaboration with the National Cleaner Production Centre of El Salvador1
(NCPC El Salvador), Novo Hotel & Suite
launched its energy efficiency project in 2015 to strengthen its management of energy resources. Technical assistance
was supported financially by the Inter-American Investment Corporation2
, in the framework of its GREENPYME
programme3
in the Central American region, whose goals are to help small and medium-sized enterprises improve
energy efficiency, encourage them to use energy sources that are low in carbon emissions, and offer the tools necessary
to implement energy-saving measures.
The project kicked off with an energy audit to measure all of the equipment at Novo Hotel & Suite, analyse the multiple
sources of energy, and quantify the potential energy savings.
The feasibility of installing new equipment was evaluated through technical, economic and environmental indicators,
including: economic savings, investment costs, electric and thermal savings, CO2 emissions, Return on investment
(ROI), Internal Rate of Return (IRR) and Net Present Value (NPV).
1 More information is available at: http://cnpml.org.sv/
2 More information is available at: https://www.iic.org/en
3 More information is available at: https://www.iic.org/en/greenpyme/program#.XHQ344hKiUk
Supported by:
based on a decision of the German Bundestag
For further information
http://www.novosuitehotel.com/hotel-verde.html
Contact person: Carmen García Prieto, Chief Executive
gerenciageneral@novoaparthotel.com
Lessons learned
To strengthen the engagement of the suppliers of electrical
appliances, it is critical to include, in the supplier contract,
specifications setting quality expectations with regards to the
delivery, installation and maintenance of the new equipment
as well as provisions detailing the projected energy savings.
Following the energy audit, Novo Hotel & Suite decided to:
 Replace 40W T12 type luminaires with 18 W LED technology in its two large meeting halls;
 Replace window type air conditioners (945 W) with high efficiency mini split technology (600 W) in bedrooms;
 Replace air conditioners for multi-use rooms (installed capacity 10.3 kW) with more efficient technology
(installed capacity 6.7 kW)
 Replace its laundry equipment (installed capacity 4.66 kW and 208 Litres of water per cycle) with high efficiency
equipment (installed capacity 2.45 kW and 75 Litres of water per cycle);
 Minimize thermal load on roofs by replacing and isolating them.
Impacts
Base year (2015) 2016 2017
(KWh/year) 167,738 135,021 132,041
Production (guest night-staying/year) 11,924 11,421 12,037
Environmental Indicator (KWh/guest night-staying) 14.07 11.82 10.97
(Ton CO2/year) for electric energy 115.84 93.25 91.19
Total investment (USD$) 72,534.97
% of reduction of Environmental Indicator with regard to base year 15.99% 22.03%
Savings in KWh/year 32,742 35.692
Environmental Benefit (Ton CO2/year) 22.61 24.65
Economic Benefit (US$/year) $6,220.94 $6,781.50
“The energy audit allowed us to take stock of where we stand and
learn how to improve to further our contribution to protecting the
environment and reducing CO2 emissions and it enabled us to
more efficiently produce and save resources.”
- Carmen García Prieto, Chief Executive, Novo Hotel & Suite
Installation of new air conditioners in Novo
Hotel & Suite
