Scale Use of Renewable Energy for Manufacturing Facility Workplace
Renewable energy is a type of energy source naturally replenished and derived from the wind, solar, and geothermal action. Energy from biomass can also be classified as renewable, however, biomass energy such as oil, coal, and natural gas have finite sources. Contrarily, renewable energy such as sun, wind and hydro-electric energy have infinity sources because they are naturally replenished. In the United States, many manufacturing companies are increasingly using the renewable energy to cut costs of production. Every 2.5 minutes, renewable energy is being installed in the United States.
The objective of this paper is to discuss the feasibility development of a full-scale usage of renewable energy at our manufacturing facility. The paper also compares the costs and benefits of renewable energy compare to non-renewable energy.
Feasibility Development Full-scale usage of Renewable Energy
The cost-effectiveness is one of the major benefits of renewable since the energy is renewed naturally after being replenished. The wind energy is the most cost-effective renewable energy because the energy only involves the cost of installation since the energy is supplied naturally. However, the solar energy is more cost effective in a region where there is a plenty of electricity such as the state of California, Florida, and Texas.
Fig 1: Components of Levelized Cost of Energy
Source: Energy Innovation (2015).
As being revealed in fig 1, the capital costs of renewable energy is still higher than the capital costs of conventional energy. The major reason for the higher capital cost is that the conventional energy has been in existence for a very long time, many energy companies are producing the capital equipment and materials used for the conventional energy in a large scale leading to a cost reduction of its capital equipment and installation. Despite the higher capital costs of renewable energy, the variable costs and costs of maintenance of renewable energy are considerable lower than the variable costs of conventional energy.
Fig 2: Unsubsidized Comparison of Conventional Energy vs. Renewable Energy.
As being revealed in Fig 2, the onshore wind energy is the most cost-effective out of all the renewable energies, and the solar power is more costly than the conventional energy. However, the costs of renewable energy have started declining in the last few years since increasing number of companies are taking interests in investing in the renewable energy resources. (Lezard, 2014).
The study suggests that our manufacturing company should not invest in a large scale renewable energy at this time because the capital costs of the renewable energy are still higher than the costs of conventional energy. Moreover, selecting a renewable energy technology depends on the location of a company. A company should be located where there is abundant of renewable resources to make the costs to be effective. Since the conventional energy can be implemented anywhere, it is still advisable to stick to conventional energy since this energy is still more cost effective. Although the costs of the wind and solar energies are fast decreasing, however, they are still unable to replace certain conventional “baseload’. Thus, the paper suggests that our company should continue using the conventional power for the manufacturing activity. However, we can still use some renewable energy power for some utilities such as using it for office electricity to enjoy the environmental benefits of renewable energy. Typically, the renewable energy is more environmentally sustainable than the conventional energy since a conventional energy produces more pollution than renewable energy. While conventional energy is more cost effective than the renewable energy, however, the renewable energy still delivers an environmental sustainability than the conventional energy.
Energy Innovation (2015). Comparing the costs of renewable and conventional energy sources. Policy Recommendation.
Lezard (2014). Lezard’s Levelized Cost of Energy Analysis. Version 8.
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