What's the real cost of higher efficiency? [electrical energy efficiency]

The problems that California had with electrical energy have only emphasized the need to look at the true cost of high-efficiency energy devices used by cement plants since electrical energy is among the top expenses in producing cement. This article focuses on low-voltage induction motors and lighting systems. Low-voltage induction motors generally account for about 30% of the electrical energy consumed by a cement plant. Lighting systems generally account for about 3-5% of the electrical energy consumed by a cement plant, but it is a fixed load that does not directly contribute to production. Life-cycle cost analysis is used to determine the true costs of this equipment. True equipment cost is defined as the total of the initial capital expenditures plus the operating costs, which include energy and maintenance. Even though the foremost requirement for a piece of equipment is its performance in the production chain, the justification for selecting one piece over another should be based upon the initial capital cost plus operating expenses. A review is given of two selected areas of electrical equipment to test their cost of ownership.