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Title
Author(s)
An evaluation of the feasibility of implementing energy efficiency

measures in commercial buildings in Hong Kong
Hsiao, Hou-yip.; .
Citation
Issued Date
URL
Rights
2012
http://hdl.handle.net/10722/174568
The author retains all proprietary rights, (such as patent rights)

and the right to use in future works.
An Evaluation of the Feasibility of Implementing Energy Efficiency Measures in

Commercial Buildings in Hong Kong
by
Hsiao House Yip, Bonson
Submitted in partial fulfillment of the requirements for

the degrees of Master of Housing Management,
The University of Hong Kong
30 June 2012
DECLARATION
I declare that this dissertation, entitled An Evaluation of the Feasibility of

Implementing Energy Efficiency Measures in Commercial Buildings in Hong Kong,
represents my own work, except where due acknowledgement is made, and that it has
not been previously included in a thesis, dissertation or report submitted to this
University or other institution for a degree, diploma or other qualification.
_____________________________
Hsiao Hou Yip, Bonson
ACKNOWLEDGEMENT
For the completion of this dissertation, I would like to express my gratitude to Dr. Ho
Hin Ming and Dr. Yeung Che Keung Nelson for their continuous support and
guidance, and their devotion in providing useful information and advice to me.
I also wish to express my thankfulness to Dr. Benjamin P.L. Ho for his advice to me
for the dissertation.
Lastly, I would like to thank my wife, family, all my classmates and friends for their
support and patience during the course of writing this dissertation.
Abstract
In 2006, over 160 countries have ratified the Kyoto Protocol, which is an international
agreement concerning the climate change. It sets binding targets for reducing
greenhouse gas (GHG) emissions (UNFCCC, 2006) and these countries were
committed to do so. Reduction on GNG emission becomes a common but
differentiated responsibility over these countries, including China and Hong Kong.
In Hong Kong, The Government of the Hong Kong Special Administrative Region
(HKSAR) was also committed to reduce GHG emissions by implementing
difference measures (EPD, 2010). In view of 60 percent of GHG emission in Hong
Kong is generated by electricity generation, reduction on electricity consumption for
building operations is the main means of achieving reduction on GHG emissions.
Since Hong Kong had been treated as international financial centre, over 60 percent of
the total electricity consumption was contributed by the commercial sector.
To promote energy efficiency so as to accomplish reduction on electricity

consumption, both HKSAR and other green organization, such as BEAM Society and
4
U.S. Green Building Council, had set up numerous reference guidelines. However,
these guidelines may applicable to new buildings but not in most commercial building
in Hong Kong which were aged and multi-owned.
In these aged and multi-owned commercial building, the concern of energy efficiency
was not involved during design stage. In view of durable nature of commercial
building, energy efficiency hardly be achieved unless substantial implementation of
measures. However, capital cost and alteration work were needed to be considered for
such implementation which causing difficulties for most of the single block building.
As advised by Electrical and Mechanical Department, the Building Manager is one of

the key persons in building energy efficiency and conservation as it is the one who
operate all building services installation so as to suit the needs of the occupants. This
dissertation is an attempt to evaluate the feasibility of implementing energy efficiency
measures in these commercial buildings in Hong Kong from the management point of
view.
Table of content
Declaration
Acknowledgement
Abstract
Table of content
Chapter 1
1
Introduction
Outline
1.1 Background of study
1.1.1 GHG emission sector in Hong Kong
1.1.2 Electricity consumption sector in Hong Kong
1.2
Significance of study
1.2.1 Implementation of energy efficiency measures
1.2.2 Study goal and objective
1.3 Conceptual Framework
1.4
Methodology
1.4.1 Literature review
1.4.2 Case study
Chapter 2
2
Literature review
Outline
2.1 Concept of energy efficiency
2.2
2.3
Measurement of energy efficiency

Rationale of energy efficiency
2.3.1 Cost saving
2.3.2 Environmental protection
2.3.3 Sustainable development / energy crisis
2.4 Means of energy efficiency
2.4.1 Technical appliance
2.4.1.1 Lighting system
2.4.1.2 Air-conditioning system
2.4.1.2.1 Heat rejection method
2.4.1.2.2 Water side equipment
2.4.1.2.3 Air side equipment
6
2.4.1.2.4 Change of air-conditioning operation mode

2.4.1.3 Building operation approach
2.5 Successful factor of energy efficiency
2.5.1 Capital cost and payback period
2.5.2 Role of Government
2.5.2.1 Environment and Conversation Fund
2.5.2.2 Building energy efficiency ordinance
2.5.2.3 Building energy code
2.5.3 Green organization
2.5.3.1 LEED
2.5.3.2 BEAM Plus
2.6 Implementation of energy efficiency measures
2.6.1 Key element of implementation
2.6.2 Process of implementation
2.6.3 Constraint of implementation
2.6.3.1 Physical and design constraint
2.6.3.2 Loss in productivity
Chapter 3
3
Case study
Outline
3.1 Background of targeted building
3.2 Performance of The Building
3.2.1 Energy consumption
3.2.2 Building occupancy
3.2.3 Building maintenance
3.3

3.3.1 Reputation
3.3.2 Cost saving
3.4 Implementation of energy efficiency measures
3.4.1 Air-Conditioning System
3.4.1.1 Water side equipment
3.4.1.1.1 Feasibility study stage
3.4.1.1.2 Proposal and tendering stage
3.4.1.1.3 Construction stage
3.4.1.1.4 Energy performance
3.4.1.2 Air side equipment
7

3.4.2 Building Management System
3.4.2.1 Feasibility study stage
3.4.2.2 Proposal and tendering stage
3.4.2.3 Construction stage
3.4.2.4 Energy performance
3.4.3 Lighting system
3.4.4 Electrical system
3.4.5 Building operation approach
3.5 Constraint of implementation of energy efficiency measures
3.5.1 Structural / design limitation
3.5.1.1 Main chilled water risers
3.5.1.1.1 Situation and problems
3.5.1.1.2 Possible solutions and constraints
3.5.1.2 Wastage of A/C supply during non-office hour
3.5.1.3 Aging of AHU
3.5.1.4 E&M System
3.5.1.5 Building management system
8

3.5.2 Multi business nature
3.5.2.1 Situation and problems
3.5.2.2 Possible solutions and constraints
3.5.3 Multi-ownership
Chapter 4
4
Discussion and recommendation
Outline
4.1 First objective : Energy efficiency
4.2 Second objective : Rationale of energy efficiency
4.3
4.4
Third objective : Means of energy efficiency

Forth objective : Factors concerning energy efficiency
4.4.1 Subsidy from government
4.4.2 Recognition from green organization
4.4.2.1 Minimum energy performance

4.5 Fifth objective : Constraint of energy efficiency
4.6 Main objective : Evaluation of feasibility of implementing energy
efficiency
4.6.1 Payback period
4.6.2.1.1 Initial investment
4.6.2.1.2 Saving
4.6.2.1.3 Payback period
4.6.2.2.2 Saving
4.6.3.1 Initial investment
4.6.3.2 Saving
4.6.3.3 Payback period
9

4.6.4.2 Saving
4.6.5.2 Saving
4.6.6.2 Saving
4.7 Limitation
4.7.1 Uncountable factors
4.7.2 Inflation
4.7.3 Secondary data
Chapter 5
Conclusion
Reference
10
Chapter 1
Introduction
Outline
The importance of energy efficiency had being kept increasing in past few decades.
Building, being the largest sector of energy consumption in commercial city, like
Hong Kong, was one of the direct way on enhancing energy efficiency so as to
promoting green environment.
To have a full picture on this issue, the background and energy consumption figure in
Hong Kong will be reviewed in this chapter. Besides, by analyze relevant figures and
table, the objectives of this dissertation would be stated and relevant important
concepts and issued would also be highlighted.
11
1.1
Background of study
1.1.1 GHG emission sector in Hong Kong
As mentioned above, the main idea of the Kyoto Protocol target on reduction of GHG
emission. United Nations (1998) advised that GHG included numerous types of gases,
including
carbon
dioxide
(C02),
Methane
(CH4),
Nitrous
oxide
(N20),
Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), Sulphur hexafluoride (SF6).

As per study of Environmental Protection Department, the emission of GNG would
result in climate change, such as global warming. Besides, it would also lead to
temperature rise in urban area, increasing numbers of very hot days and hot nights and
rising sea level. In other words, the emission of GHG would cause disaster to our
living environment in long term.
In this regards, HKSAR had been manipulating in reduction of GHG emission with a
target of reduction in GHG emission by 25% in 2030 against the figure in 2005. In
most developed countries, the largest GNG generated sector was power station. Chan
& Yeung (2004) explained that GNG, like nitrogen oxide, sulfur oxide and carbon
12
dioxide, will be generated during electricity generation. As such, the content of the
fuel, like sulfur compound, used for power generation is restricted in Hong Kong.
However, only part of the GNG, like sulfur oxide, can be reduced by this restriction
and limited achievement can be promoted. In other words, reduction of GNG
emission should relay on reducing power consumption.
The same idea was also supported by EPD, according to their statistical study, the
GHG emission in Hong Kong for the period from 1990 to 2009 is summarized as in
figure 1 and 2.
13
Figure 1 Greenhouse Gas Emissions in Hong Kong by Sector

Source: Environmental Protection Department, Jan 2012
14
Figure 2 Greenhouse Gas Emission Trends of Hong Kong from 1990 2008
Source: Environmental Protection Department, Sept 2010
From the figure above, it was observed that there was a general increasing trend of
GHG emission in past decade. The total emission of GHG had been increased from
33,300 kilotonnes in 1999 to 42,900 kilotonnes in 2009 represented by an
approximately 29% increment. Meanwhile, such increment was contributed by
different source.
15
In terms of percentage, the data from EPD can be further interpreted as follow:
Figure 3 Percentages of Greenhouse Gas Emissions in Hong Kong by Sector
From figure 3, it can be observed that over 60 percent of GHG emission in Hong
Kong was generated by electricity generation throughout the past years. Besides, it
was also noticed that there was an increasing trend of the contribution of GHG
emission by electricity consumption in which the emission of GHG contributed by
electricity consumption was about 60% in 1999 but the same was about 68% in 2009.
In terms of numbers, the GHG emission contributed by electricity consumption was
20,100 in 1999 while the same was 29,100 in 2009. There was an about 45%
increment in 10 years. In this regards, it was strict forward to see that the most
efficient way to reduce GHG emission is to reduce the electricity consumption.
16
1.1.2 Electricity consumption sector in Hong Kong
In order to reduce the electricity consumption in Hong Kong, it was required to

understand the electricity consumption sector in Hong Kong, i.e. the energy end-use
in Hong Kong. According to the study of The Energy Efficiency Office of Electrical
& Mechanical Services Department (EMSD), "Energy end-use" refers to the
specific way of the energy is consumed, for instance, air-conditioning, lighting, office
equipments and other building services installation. There are numerous types of
energy, such as electricity, oil & coals, town gas & liquefied petroleum gas and other
fuels. As discussed above, this dissertation will focus on the data relating to the largest
sector, i.e. electricity consumption.
EMSD had further classified the electricity end-use data into four major sectors,
namely residential, commercial, industrial and transport. The 10-years electricity
consumption sector in Hong Kong can be summarized in figure 3.
17
Figure 4 Electricity Consumption by Sectors

Source: Electrical and Mechanical Services Department, Sept 2011
18
From the figure above, it could be seen that commercial sector remain the largest
sector of electricity consumption in past 10 years. In terms of percentage, the data
from EMSD can be further interpreted as follow:
Figure 5 Percentage of Electricity Consumption by Sectors
From figure 5, it can be concluded that commercial sector was the dominant sector of
electricity consumption represented by over 60 percents of total electricity
consumption in past decade. Besides, there was a increasing trend of electricity
consumption by commercial sector represented by about 58% in 1999 and 65% in
2009. In terms of numbers, the electricity consumption of commercial was 72,339
terajoule in 1999 and 96,728 terajoule in 2009. There was a about 34% increment in
10 years. In this regards, enhancement of energy efficiency in commercial sector
19
would achieve most efficient result in reduction in overall electricity consumption.
1.2
Significance of study
1.2.1 Implementation of energy efficiency measures
To achieve reduction on GHG emission and ensure sustainable development of a city,

as a global concern, the most direct way was to enhance the energy efficiency in
commercial building in a city. In the mean time, there were numerous types of energy
efficiency approaches available for stakeholders of commercial buildings, including
the building owners, occupants and building manager. These approaches were
provided by different parties, such as the Government, green organizations, scholars
and energy audit expertise etc. However, the result achieved by these measures was
different from case to case because of the actual situation in these commercial
buildings. Thus, it was important to know the feasibility of implement different type
of energy efficiency measures in commercial building.
Since promoting energy efficiency measures in building was a practical issue, instead
of merely a theoretical and calculation issues. Difficulties and constraints, which were
20
outside of scholastic study, existed which would limit the overall achievement. Even
there
were
assistants
from
Government
and
other
Green
Organizations,
implementation of energy efficiency measures in commercial buildings was not an

easy and smooth way. Nevertheless, given the prescribed constraints, it was still
feasible to implement green measures to these building with the assistance by the
building manager. This dissertation will conduct a walk through for both the
difficulties and feasibility of implementing energy efficiency measures in commercial
buildings in Hong Kong.
1.2.2 Study goal and objective
This main objective of this dissertation would be evaluated the feasibility of

implementation of energy efficiency in commercial building in Hong Kong. It target
to find out the feasible way of enhancing the energy efficiency in the commercial
building, with prescribed condition, from the management point of view. Since all
energy efficiency projects were much more than a theoretical issue, the actual
experience plays a critical role in this study.
In order to have a comprehensive view of this objective, this dissertation would walk
21
along a few critical concept. First, this dissertation would review the concept of
energy efficiency and its calculation. Afterward, it would review the rationale of
energy efficiency, i.e. what motivate people to implement energy efficiency in their
buildings or their managed building.
Later in this dissertation, it would study on the means of energy efficiency measure,
i.e. what is the possible ways of enhancing the energy efficiency of a commercial
building. While studying on this objective, it would review from different perspective,
including different types of technical appliance and running model of building
operation.
To recap, the issue of implementation of energy efficiency measure in commercial

buildings was not only a theoretical issue but a practical issue. Thus, it would be
important to review the process of implementation, including different stages of
implementation of an energy efficiency measures. During the implementation of any
energy efficiency, it was foreseeable that there would be constraints and limitation
which outside the expectation in the beginning. However, these constraints were the
major obstacles in implementing energy efficiency measures in real society. This
dissertation would also study the issue of constraints during implementation.
22
After reviewing all these issues, it would go back to the main objective, i.e. to
evaluate the feasibility of implementation of energy efficiency measures in
commercial building. It would be evaluated after considering the studies on rationale,
means, implementation and constraint of the energy efficiency measure etc..
1.3
Conceptual framework
In this section, it would stipulate the conceptual framework of this dissertation. It

would introduce the key concept and issue concerning the objective of this
dissertation, i.e. to evaluate the feasibility of implementation of energy efficiency
measures in commercial building. The inter-relation of each key concept and issue
would be explained.
The basic concept in this dissertation was energy efficiency. In the beginning, the
definition of energy efficiency should be identified. Afterward, the measurement of
the energy efficiency should be clarified before reviewing the energy performance of
a building. The identification of these concepts mainly relies on theoretical study from
different researchers.
23
After studying on the issue of what, this dissertation would move onward to the
issue of why. It would study on the rationale of energy efficiency in a commercial
building. In other words, it study why people was intent to promote energy efficiency
in building or how to convenience people to implement energy efficiency measure in
their buildings or managed buildings. These identification works relay on both
theoretical and practical study.
Afterward, this dissertation would move to the important issue of how, i.e. to review
and study the possible means of enhancing the energy efficiency of a building. The
most common mean was to promoting the use of technical appliance with better
energy efficiency. Nevertheless, other than that, this dissertation would also discuss
the method of change of operation model to suite the need of promoting energy
efficiency measures in building. These studies may refer more to the actual experience
than theoretical study.
While there were available means of energy efficiency measures for the buildings, it
still need some pushing and pulling factors for the decision maker in implement such
measures. For instance, the mandatory requirement by HKSAR, such as BEC, the
24
financial subsidy from ECF and recognition from Green Organization, such as LEED
and BEAM Plus etc would help in facilitating the energy efficiency measures in
building. The details would be obtained through reviewing relevant documents from
respective organizations.
At last, the process of implementation of energy efficiency would be concerned. As

energy efficiency achievement was a concrete achievement in reality, the process of
implementation was very important. The process involves different steps. Besides, all
buildings were different in nature, and thus, same practice would not be applicable in
all buildings. Besides, there was specific constraint would be faced and may not be
able to overcome and result in limiting the energy efficiency. To have a accurate
picture about the process of implementation and respective constraints, the study
would rely on the source of practical experience.
After reviewing all these concepts, with the results from the case study in later part of
this dissertation, the feasibility of implementing energy efficiency measures in
commercial buildings in Hong Kong can be evaluated.
25
1.4
Methodology
As mentioned above, this dissertation discussed on both theoretical and practical issue.
Thus, it required both the information from books and working experience. In this
regards, this dissertation would mainly source the required data from literature review
and case study.
It had been considered to conduct benchmarking on the energy efficiency measures

among commercial building so as to have a wider base for study. However, since the
process of efficiency measures implementation involve investment, expenditure,
business concern and privacy of the owners or building manger, seldom of them was
willing to provide their information for academic study. Thus, the approach of
questionnaire was not applicable. Nevertheless, the building manager and owners
incorporation of one of the commercial building was willing to carry out a
face-to-face interview concerning this issue.
On the other hand, since this dissertation concern every detail of the implementation
of energy efficiency measures, the in-depth case study approach sure can able to
26
obtain the essential information for study.
1.4.1 Literature review
Other than reviewing the secondary data provided by Government in the Chapter 1 of
this dissertation, in order to achieve the objectives of this dissertation, a numerous key
concepts were needed to be reviewed and studied, such as the issue of what, why,
how and constraint of energy efficiency. In this regards, detail literature review
would be carried out.
The coverage of literature review would include the documents from scholars,
researchers and green organization, such as journal and guideline. The coverage of
reference included Applied Energy, Energy and Buildings and Energy Policy etc.
Furthermore, for reference guideline, mechanism and assessment framework, the

publication and website HKSAR, like BEC and ECF, LEED and BEAM Plus would
be further elaborated.
27
1.4.2 Case study
However, merely reviewing on documents was not enough to achieve the objective of
this dissertation. Since implementation of energy efficiency was a practical issue, a
demonstration of case study would able to present what was happening in real
situation which would be essential. Besides, the case study would also able to review
the key concepts from different perspective, especially the rationale, successful factor
and constraints of implementation.
Thus, in the second half of this dissertation, it will work on a case study of a typical
commercial building in Hong Kong. As indicated by Lee & Yik (2002a) and Yik,
Burnett & Precott (2000b), new construction of commercial building represent less
than 1% of total commercial buildings in past few years. Thus, promotion of energy
efficiency measures in existing commercial buildings could achieve more significant
result than those of new buildings. As a result, the targeted building for case study in
this dissertation would be an existing building.
The chosen building was locating in tradition commercial district in Hong Kong and it
28
had been tried different approaches in implementing energy measures and had
encountered different difficulties which hard to be overcame. Nevertheless, some
alternative energy measures had been adopted by this building and achieved limited
result.
However, the energy performance and behavior of a building would only available for
the stakeholders of the building, such as owners, building manager and contractors etc.
Thus, these were difficulties in accessing the primary data of the building. In order to
have a comprehended review on the case and in-depth qualitative study was required,
site review, interview with the owner(s), owners incorporation, building manager
would be carried out. Besides, consultation of technical and professional services /
product provider had been conducted.
29
Chapter 2
Literature review
Outline
As mentioned, a few core concepts will be gone through in this chapter by reviewing
the documents and studies from researches and green organization. Those concepts
were closely related to the principle, rationale, implementation and constraint of
energy efficiency measures in commercial building. By having literature review for
these concepts, it will provide a clear conceptual framework for the case study so as to
review implementation of energy efficiency measures in commercial buildings in
Hong Kong.
2.1
Concept of energy efficiency
This section closely concerned with the first objective of this dissertation, i.e. what is
concept of energy efficiency. Both the concept of energy and efficiency would be
studied separately before acquiring the meaning of energy efficiency.
30
Energy can be existed and transformed in different form, such as mechanical and
electrical. In this dissertation, the energy form concerned is referring to electricity.
Electricity was generated through the process of transforming other form of energy,
such as coal, natural gas and nuclear, to electric energy. The principle of electricity
was firstly discovered by British scientist, Michael Faraday. Electricity can be used to
driven different building services installation (BSI) in building, such as
air-conditioning system, lighting systems, electrical system and vertical transportation
system.
In general, efficiency refers to the ratio between output and input. Providing the same
amount of input to a process, the higher the amount of output means higher the
efficiency of the process is, vice versa. In the view of energy, Patterson (1996) had
defined energy efficiency into four main models, namely thermodynamic,
physical-thermodynamic, economic-thermodynamic and economic. The difference
was mainly due to counting value, like power (Science) and market value ($).
However, the underlining principle was the same, i.e. the ratio between useful energy
output and energy input.
Chung, Hui & Lam (2006) had further clarified the concept of energy efficiency from
31
other perspective, it refers to use less amount of energy to produce same amount of
output. The output refers to the useful output only, such as the services from BSI
enjoyed by building occupants like air-conditioning supply. Chung, Hui & Lam (2006)
further expressed that this concept can be treated as a useful indicator to indicate or
evaluate the performance of an energy-consuming system. Similar to the practice of
"Mandatory Energy Efficiency Labelling Scheme" launched by EMSD in 2009, it
provided an energy label indicate the performance of electrical appliance from the
perspective of energy efficiency for the reference of the consumers.
2.2
Measurement of energy efficiency
After identifying the meaning of energy efficiency, it should be noted that the energy
efficiency of a building was not an abstract concept but a concrete figure. Thus, while
the energy performance of a building needed to be reviewed and accessed, the
measurement of the energy efficiency of the building is needed to be concreted. In this
section, the key factors of energy efficiency measurements would be discussed
through reviewing the study of researchers.
To have accurate measurement of energy efficiency of a building, a numerous key

32
factors should be considered. Chung & Hui (2009) summarized the major factors of
influencing the energy use and performance in a building, including building age,
building occupancy, climate and people end-use factors, such as the business nature of
the company, operation and behavior of the occupants.
The study of Chung, Hui & Lam (2006) provided the detail of measurement; they
obtained the energy-efficiency of a commercial buildings by normalizing the energy
use of the building with the gross floor area (GFA) and operational hours. The data
of degree-days information from observatory was taken into account for adjusting the
energy use data. Besides, Chung, Hui & Lam (2006) had indicated the importance of
maintenance of BSI which had played a critical role in long term.
The energy consumption figure of building would mainly base on the electricity bill
from Hong Kong Electrics (HKE) or CLP Power Hong Kong (CLP). Having
collected relevant information, through developing multivariate linear-regression
approach, correlation of different factors and energy use performance can be obtained
and resulted in knowing the energy efficiency of a building. Nowadays, a simpler way
of knowing the energy efficiency of building can be achieved by simulation by PC.
This approach had been adopted by major green organization.
33
2.3
This section closely concerned with the second objective of this dissertation, i.e. why
promoting energy efficiency measures in building. Despite the issue of energy
efficiency was a hot topic in the society; it was also needed to study the motivation of
carrying out these measures. The view of economic, environmental and sustainability
would be discussed in this section.
Other than reduction of GHG emission, there are other factors attracting people on
promoting energy efficiency. Chung & Hui (2009) mentioned that the data of energy
efficiency is closely related to the competitiveness of a commercial and industrial
business in terms of reputation and cost effectively. Besides, from macro point of view,
it helps enhancing the energy security, environmental benefit and sustainable
development of energy system.
2.3.1 Cost saving
Cost saving the most direct benefit for the building occupants for promoting energy
34
efficiency. Reduction of energy consumption would result in reduction on electricity

cost, provided that there is no substantial disturbance caused to the business operation.
Especially where Hong Kong is located in sub-tropical region, the reliance on heating,
ventilation and air-conditioning system (HVAC) is relatively high in order to
providing a comfort living and working environment.
In this regards, Yu & Chow (2001), Chung & Hui (2009) and Wong & Mui (2008)
found that power consumption of HVAC in commercial buildings normally consumed
more than 60% of the total electricity consumption. Thus, enhancement of energy
efficiency of HVAC in commercial building could substantially reduce the total power
consumption and electricity cost. The detail of reduction will be further discussed in
later part of this dissertation.
2.3.2 Environmental protection
Wong & Mui (2009) emphasized the serious of GHG emission problem in Hong
Kong. According to their study, the generation of carbon dioxide per unit in Hong
Kong was a higher value compared with the other developed country, such as
Australia and Taiwan. Scientists also warned that the current carbon dioxide
35
emissions should be reduced by at least by more than 50% in coming 50 years so as to

avoid a global warming disaster. Thus, environmental protection is the motivation of
promoting energy efficiency.
On the other hand, Wong & Mui (2009) also highlight that one of the most convincing
and available strategy in reducing carbon dioxide emission is to enhance the energy
efficiency in building. Their target was to decreasing the carbon dioxide emission by
about 1,000,000,000 tons per year until 2054 through optimizing the building
envelope thermal performance.
2.3.3 Sustainable development / energy crisis
From the historical point of view, Mui & Chan (2005) pointed the importance of
energy crisis since 1973. During that period, the supply of energy source was tight
and respective price had been increased sharply. Substantial impact had been caused
to the global economy. At this point, the engineers have been endeavored on
promoting energy efficiency in buildings, exploration on renewable energy and
energy conservation.
36
Hong Kong had been treated as an important financial centre in Asia and the world.
With fast growing of commercial sector in Hong Kong, Chan & Yeung (2004)
reminded that the available of energy is one of the key elements of the economical
development within a city. The success of Hong Kong in continual economical growth
over past few decades should also credit to the effort on securing the energy resource.
However, it was also noticed by Chan & Yeung (2004) that there is no indigenous fuel
available in Hong Kong. To generate electricity for the use by different parties, fossil
fuels were import from foreign, such as coal and oil product. Notwithstanding the
import of fossil fuel can cater for the increasing demands on electricity for building,
large amount of pollutants and GHG were emitted during combustion of fossil fuel.
Furthermore, other than the potential risk of global warming and greenhouse effect,
the pollutant emitted would sharply decrease the air quality and damaged peoples
health, especially the respiratory system, plants and animals within the entire region.
The fabric of building would also be deteriorated in a faster rate under this condition.
In this regards, there was an increasing awareness to environment protection through
enhancing the energy efficiency and conservation so as to ensure sustainable
development of a society. Similar idea was also discussed and agreed by Lam, Li &
37
Cheung (2002).
2.4
Means of energy efficiency
Having discussed the rationale of energy efficiency, this section closely concerned
with the third objective of this dissertation, i.e. how to enhance the energy efficiency
of the building. In other words, as motivated by the rationale of energy efficiency, it
moved onward to concern how to achieve energy efficiency in building.
To promote the energy efficiency for building, there are different approaches. Chan &
Yeung (2004) advised that this goal can be achieved by replacement of higher
efficiency equipment and using a good time management method. Furthermore, Lam
(2000) reminded that the issue of energy efficiency should be taken into consideration
of design stage of a building. However, as mentioned earlier, new construction of
commercial building only represent by less than 1% of total supply of commercial
building in Hong Kong. Thus, the detail of building design would be less discussed in
this dissertation.
38
Building design
Nevertheless, the concept of enhancing energy efficiency through better building

design was briefly discussed here. Lam (2000) emphasized the importance of
considering energy efficiency element during design stage. The idea was illustrated by
the example of the use of natural daylight. By allowing sunlight enter the building
through the dormer, the electricity demand for artificial lighting system would be
sharply decreased.
Besides, natural daylight has higher luminous efficacy than most common lighting
system, the developer and occupants can enjoy both lower installation and running
cost for lighting. Furthermore, with less operating hour of lighting system, less heat
will be generated and resulted in less demand in cooling requirement on the
air-conditioning system. Thus, there was double benefit.
2.4.1 Technical appliance
Replacement of higher efficiency equipment was the strict forward means of

39
enhancing energy efficiency for buildings. Numerous researches have been conducted
by both scholars and scientists on collecting data, reviewing and enhancing the energy
efficiency in commercial building continuously. As per finding of Yu & Chow (2001)
and Lam, Li & Cheung (2002), HVAC system was the largest electricity end user
(about 60%) in commercial building due to sub-tropical climate in Hong Kong. Other
BSI also contribute difference proportion to the overall electricity consumption, such
as lighting system (about 25%), lift & escalator system (10%) and other electrical
system (5%).
To achieve effective result on environmental protection and sustainable development

of the living environment in Hong Kong, the study on energy efficiency of technical
appliance was also focus on these main categories.
2.4.1.1 Lighting system
Chan & Yeung (2004) aware that energy used for lighting system represent more than
25% of overall electricity consumption in a modern commercial building. As per Fire
Safety Regulation in Hong Kong, some of the lighting system in specific area within a
building should under 24 hour operation, such as fire escape role, protected lobby and
40
exit signage which indicating the fire escape role. Traditionally, light tube and light
bulb were installed in these areas. With introducing light-emitting diode (LED) exit
sign box, the energy efficiency of lighting in these areas can be enhanced. With the
provision of same lighting illumination level, Li (2008) and Chan & Yeung (2004)
advised that LED consume only approximately 20% power compared with tradition
exit sign box. Besides, LED lighting has longer life span, which means less
maintenance cost was required for LED lighting.
Within office premises, most lighting system would adopt fluorescent fixture which
have better lighting distribution and effects compare with spot light bulb or lamp.
With the development of new technology, Li (2008) also advised that T5 electronic
ballast fluorescent lighting system can achieve 38% more energy efficient than the
conventional T8 electromagnetic ballast system. Further to the energy efficiency, the
illumination level can be increased by 40% to 700 lx if using T5 electronic ballast
fluorescent lighting system, i.e. double benefit could be enjoyed by replacement of T5
electronic ballast fluorescent lighting by T8 electromagnetic ballast system
Chan & Yeung (2004) also supported replacing the conventional ballasts with high
frequency electronic ballast. It would achieve at least 25% energy efficiency after
41
replacement work. Besides, the electronic ballasts produce less heat during operation.
The occupant can enjoy double benefit from saving on both lighting and air
conditioning.
Other than the lighting appliances itself, Chan & Yeung (2004) had suggested
improving the energy efficiency of lighting from the design perspective which three
main factors had been raised. First is to improve the efficacy of the lighting so as to
suite the need of office operation. Second is to replace the aged and deteriorated
electrical wire so as to reduce circuit power losses. The last is to relocate the lighting
which should operate closer to the work station. On contrast, less lighting is required
at storage area.
For energy consumption of air-conditioning system, Lam, Wan, Wong & Lam (2010)
emphasized the increasing trend over the past 30 years in Hong Kong (1979-2008).
On average, the annual growth rate was about 4%. The demand of air-conditioning
supply was not only increased with sharp economical growth, but also increased in
economical downturn, such as the Asian financial crisis in 1998 and SARS in 2003.
42
Lam, Wan, Wong & Lam (2010) concluded that the increasing of energy consumption
of air-conditioning supply was the result of the need of better thermal comfort,
especially where Hong Kong was located in sub-tropical region with hot and humid
summer months. In this regards, as air-conditioning system represent over 60% of
energy consumption end user for commercial building, there was a strong needs on
enhance the energy efficiency measures for the air-conditioning system, such as
tighter the building energy code and enhance the efficiency of the equipment, cooling
system and refrigeration systems.
Wong & Mui (2009) also affirmed that air-conditioning system plays an essential role
in providing a comfortable indoor environment for occupants in a commercial
building in Hong Kong. Otherwise, the problem of peoples psychosocial health and
mould growth problem may be incurred which result in reduction of productivity. The
source of heat load for a commercial building within sub-tropic region was divided by
Wong, Mui & Shi (2007) into three categories, namely envelope load, ventilation load
and internal load. Preliminary, envelope load refer to solar head gain and conduction
heat gain through the building fenestration; ventilation load refer to heat gain of
transporting outdoor fresh air for dilution of indoor air pollutants and internal load
43
refer to the presence of occupants, lighting and other head-generated equipments.

Under this circumstance, different approaches on enhancing the energy efficiency of
HVAC were suggested, including heat rejection method, water side equipment and air
side equipment.
2.4.1.2.1 Heat rejection method
For simplicity, type of chillers plants can be classified into two main categories in
terms of head rejection methods or medium for condenser cooling, i.e. water-cooled
chillers plants (WACS) and air-cooled chillers plants (AACS). Yik, Burnett &
Prescott (2000a) emphasized the different of two systems in terms of efficiency. The
rated at outdoor and the coefficient of performance (COP) of the AACS are about
35 degree centigrade and 2.6 2.9 respectively, while are about 27 degree centigrade
and 4 5 respectively for WACS.
In short, WACS is over 30% more energy efficiency than AACS. From the Macro
view, significant enhancement of energy efficiency can be achieved if WACS can be
widely adopted in Hong Kong. Li (2008) further elaborated that since the refrigerant
in WACS can be cooled to lower temperatures and condensed at lower pressures, thus,
44
less works is done by the compressor and hence less energy is consumed to achieve
same result compared with AACS.
However, since sufficient fresh water supplied is essential for operation of WACS, it
becomes an obstacle for WACS to be widely adopted in Hong Kong. Yik, Burnett &
Prescott (2000b) reminded that fresh water in Hong Kong is considered as scarce
resource as per Laws of Hong Kong, so fresh water was not allowed to be used as
medium of condenser cooling. As such, referring to the lesson in Europe, North
America and some Asian countries like Japan and Singapore, Yik, Burnett & Prescott
(2000a & 2000b) introducing 3 schemes for widening use of WACS in Hong Kong.
All these three schemes will use seawater, instead of fresh water, as medium of
condenser cooling. The first one is centralized piped seawater supply for condenser
cooling (CPSSCC) system, which comprise a centralized seawater pumping station
and a supply and return piping network for distribution of seawater to the connected
buildings for once-through condenser cooling, and for the used seawater to return to
the harbor. The second one is centralized piped seawater supply for cooling towers
(CPSSCT), which is similar to CPPSSCC. The main different between CPSSCC
and CPSSCT is that there is no return pipe for the later system as majority of the
45
seawater will be lost at the cooling towers. The third one is district cooling systems
(DCS), which comprise a centralized plant, that can supplies chilled water to a
group of buildings.
Since Hong Kong is situated along the costal of South China Sea and there is plenty
supply of seawater, it is feasible, in principle, to use above WACS. However, Yik,
Burnett & Prescott (2000a & 2000b) advised that all these system are capital-intensive
infrastructure developments. Besides, greater difficulties maybe encounter in
implementation of CPSSCC and DCS schemes in developed district, but much less so
in developing new town. In short, it may not economically and practically feasible for
adopting these schemes in Hong Kong. Thus, WACS with seawater as medium of
condenser cooling is applicable only to commercial building situated near the harbor
in Hong Kong.
2.4.1.2.2 Water side equipment
Water side equipment refers to the pumping, drainage and piping system concerning
the chilled water. Chan & Yeung (2004) advised that the water side equipments are
seldom operated in their maximum flow rate due to insufficient cooling demand. Thus,
46
it would be easily resulted in substantial energy loss during part load condition due to
low efficiency.
In this regards, some improvement measures had been suggested by scientists and
researchers. For instance, Chan & Yeung (2004) suggested installing variable speed
drive for the pumping system in order to cater for different cooling demand.
According to their research, more than half of the energy is required when the
pumping is operated in 50% of its maximum speed after installation. Compare with
the tradition pumping system, it still required about 90% of the energy when it is
operated in 50% of its maximum speed.
Besides, modification of piping was also suggested for enhancing the energy
efficiency during part load period. For example, by installation of differential bypass
pipe in the piping system, the circuit of the chilled water can be changed in different
loading period. The circuit of the chilled water would be controlled by sensor and
control valve and resulted in lower demand to the chilled water pump.
47
2.4.1.2.3 Air side equipment
Air side equipment refers to fan coil system, fan, air handling unit (AHU), dampers
and VAV boxes concerning the air flow, ventilation and humidity of the premises.
Applying the same concern in the pumping system, Chan & Yeung (2004) advised
that the energy efficiency of tradition AHU and other fan system was poor during part
load condition and resulted in energy wasted. Thus, it was suggested to install variable
speed drives or frequency inverters so as to enable the air side equipments can adopt
different cooling demand.
Besides, in summer season, the outdoor temperature in Hong Kong is over 33 degree
centigrade which required large cooling capacity to lower the temperature to a
comfortable level, say 23 25 degree centigrade as recommended by Wong & Mui
(2007). Thus, fresh air pre-treated unit (PAU) is introduced for making use of
discharge air to cool down the fresh air before it reaches the chilled water. As such,
less cooling capacity is required for the chillers plant to achieve same result.
Other than the use of PAU, Chan & Yeung (2004) advised that similar results can be
48
achieved by using thermal wheel. The basic principle is to make use of the discharge
air to cool down the fresh air intake. Furthermore, the thermal wheel itself requires
comparatively low maintenance and operation cost. According to their study, the
chiller capacity can be reduced by about 20% after upgrading the air side equipment
subject to the operation schedule.
2.4.1.2.4 Change of air-conditioning operation mode
Other than replacement of air-conditioning equipments, Lam, Li & Cheung (2002)

introducing another means of enhancing the energy efficiency of the air-conditioning
system. This approach is focus on distribution of cooling load, instead of medium of
condenser cooling.
The target of enhancing energy efficiency can be achieved by using stratified chilled
water storage or ice storage technology, in which cooling capacity could be charged
up during the night and used to meet the day time peak loads. If half of the chiller
load during the building peak were shifted to night time operation, the maximum
power consumption could be reduced about 20%. However, Lam, Li & Cheung (2002)
also reminded that additional space, which is highly valuable in Hong Kong, for
49
equipment is required.
2.4.1.3 Building operation approach
As upgrading of any electrical equipment (Lighting, HVAC and lift & escalator)
would involve capital investment, these measures may not be affordable for some
small scale commercial buildings. Thus, some low cost or even free of charges
enhancement measures were proposed in terms of equipment operation method or
people factors. For instance, Chung & Hui (2009) suggested people should turn off
the equipments when not in use and regular maintenance program should be
implanted for maintaining the efficiency of different electrical facilities.
Besides, providing that sufficient of cooling load in the building, the building
management could consider adjusting the chilled water operating temperature from
5 9 degree centigrade to 9 13 degree centigrade as Chan & Yeung (2004) advised
that raising the evaporator temperature 1 degree centigrade decreases energy
consumption by about 2.5 % and lowering the condensing temperature 1 degree
centigrade produces about 1.5 % saving.
50
2.5
Successful factor of energy efficiency
With the available of reasons and methods of enhancing the energy efficiency of the
building, it did not imply that the decision maker would implement such measures. It
still required for some key factors, including both pulling and pushing factors, to
stimulate the commencement of the works.
This section concerned with the forth objective of this dissertation, i.e. the key factors,
including pulling and pushing factors, in facilitating the energy efficiency measures in
building. These factors covered the range of economics concerns, mandatory
requirement and reputation.
While the rationale of energy efficiency had been well discussed above and was
acknowledged by most people, but, indeed, not all of them could motivate the
Landlord(s) or the manager and occupier to implement energy efficiency measures in
a commercial world.
Yu & Chow (2001) advised that most buildings in Hong Kong were built by
51
real-estate developers and they target for huge profit in sales and purchases of real
estate development. Compared with their profit, the energy bills for operating the
building services installation was only represented very small portion from their view.
Thus, they are very keen to work out how energy can be saved.
Nevertheless, it is still feasible to encourage people to promote energy efficiency in

commercial building in Hong Kong. In a commercial city, the concern of capital cost
and payback period was the basic and most motivated. Other than that, the role of
Government and act of other green organization also play a critical role in achieving
this target.
2.5.1 Capital cost and payback period
As mentioned, the technical appliance introduced above involves capital cost. The
capital cost not only incurred by the appliances itself, but also the necessary
alternation or modification work to the prescribed situation. For example, the
replacement of air-cooled chiller plants by water-cooled chiller plants involve
alternation of existing piping network as well as floor slab strengthen work. During
the cause of work, there is cost on suspension on air-conditioning services as well as
52
potential lost of rental. Besides, preparation by authorized person and submission to

Government Authority are also required. All of these are involve cost.
From economic point of view, payback period refers to the period of time required for
the return on an investment in order to recover the sum of the original investment. In
the case of energy efficiency, the investment usually refers to the initial capital cost
stated above while the payback usually refers to the saving from electricity cost over
period of time. The reduction on future maintenance cost is also can be taken into
consideration.
While propose any energy efficiency project in a commercial building, the factors of
capital cost and payback period should be well studied in order to be convincing.
However, in a fast growth economic, the cost of material, labor, professional charges
as well as the electricity charges had been kept rising sharply, an accurate figure of
capital cost and payback period of an energy efficiency project was more than an easy
task.
53
2.5.2 Role of Government
As discussed, HKSAR had a plan in manipulating on reduction of GHG emission with

a target of reduction in GHG emission by 25% in 2030 against the figure in 2005. To
achieve the goal of energy efficiency, EMSD had taken up the leadership role on the
behalf of HKSAR. As such, Chan & Yeung (2004) advised that EMSD had
established Energy Efficiency Office (EEO) in 1994 so as to facilitate the detail
works.
The primary duty was to promote different energy efficiency measures and energy
conservation programmes to the public, such as Energy Efficiency Registration
Scheme and Pilot Scheme for Wider Use of Fresh Water in Evaporative Cooling
Towers for Energy-efficient Air Conditioning System, enhancement of energy
management, promotion of best practice, and setting up energy consumption database
and exploration of the use of renewable energy. Among these programmes, EMDS
promote energy efficiency measures through a strong way, like enforcement of
Building Energy Codes (BEC), or a soft way, like setting up Environment and
Conversation Fund (ECF).
54
2.5.2.1 Environment and Conversation Fund
One of the most effective ways to encourage the Landlord(s) of a commercial

building to promote energy efficiency measures is to provide financial assistance. In
most cases, the capital investment cost of the energy efficiency project work scare
most Landlords. The set up of the Environment and Conversation Fund (ECF) was
to target the commercial buildings with financial difficulties.
In 2008, HKSAR had injected 1 billion in ECF. To be concrete, ECF helped the
building with Owners Corporation, such as the Incorporated Owners or Owners
Committee. In other words, they excluded the development from the major developers
as they are expected not to encounter with financial difficulties in energy efficiency
work.
According to ECF, they help the targeted buildings from two perspectives. First, to
partial subsidize the building to carry out energy audit by qualified service provider
(QSP). The QSP are required to audit the major BSI in a building, including
air-conditioning system, electrical system, lighting system and vertical transportation
55
system. An individual energy auditor report will be submitted to EMSD for review
and reference.
Second, upon confirmation from EMSD, the Owners Corporation is required to carry
out the energy efficiency improvement work base on the recommendation from the
energy auditor report with the consent of EMSD. ECF will also partial subsidize the
Owners Corporation on the improvement work. After completion of work, the energy
efficiency result will be audited by the QSP in coming couple of months and another
individual report will be submitted to EMSD for record.
If everything runs smooth, ECF will release the subsidy to the Owners Corporation.
The amount of subsidy of a single block building would be HK$500,000 or 50% of
the contract sum of the energy audit work and energy efficiency improvement work,
whichever is lower. However, it was found that only limited result can be achieved.
The detail will be further demonstrated in the case study in later parts of this
dissertation.
56
2.5.2.2 Building energy efficiency ordinance
The other major task of EMSD was to provide code of practice, reference, guideline,
which forms the basis of the Building Energy Code (BEC), for the reference of all
kinds of buildings in Hong Kong. Chan & Yeung (2004) had further concurred the
application of BEC had achieved the reduction of energy consumption as well as
GHG emission.
BEC were proposed and introduced to control the total building energy consumption
in Hong Kong as well as GHG emission. The energy codes apply to lighting systems,
air-conditioning systems, electrical systems and lift and escalators installations. The
aims of the codes are to tackle the energy waste problems for both existing and new
buildings. In this dissertation, we will focus on the codes concerning existing
buildings.
In the past, BEC was acted as a reference guideline and all buildings are welcome to
comply with the BEC requirement on a voluntary basis. Recently, HKSAR had taken
a step forward. In late 2010, the Building Energy Efficiency Ordinance (Cap. 610)
57
was gazette and the BEC would be mandatory implemented in prescribed buildings,
including commercial building, in 21 September 2012. In other words, after 21
September 2012, the prescribed buildings with poor energy efficiency performance
will be considered as against the Law and Ordinance.
Besides, the Building Energy Efficiency Ordinance also consisted of Energy Audit
Code (EAC) and the registration scheme of the registered energy assessor (REA).
These codes affirmed that the energy audit work on the mentioned four major types of
BSI in a prescribed building should be carried out by REA within certain time interval
(Cap. 610B, sub section of Building Energy Efficiency Ordinance).
2.5.2.3 Building energy code
Chan & Yeung (2004) had conducted a comprehensive reviewed on the BEC and they
affirmed that the code had grasped the key elements in relation to different types of
BSI. For instance, in air-conditioning systems, BEC emphasized the involvement of
electrical motors in several part of the air-conditioning system. Thus, the code
promoted the use of variable speed drive. Besides, the code also focuses on the COP
of different types of chiller system and suggested for replacement work when the
58
existing chillers plants found deteriorated. For lower scale retrofitting work, the
adoption of thermal wheel was also introduced so as to conserve the cooling capacity
in summer and heating capacity in winter from the exhaust air. At last, best practice
on resetting the temperature of the chilled water supply, chilled water return,
condenser water and evaporator water were also mentioned by the code.
In lighting system, the first task suggested by the code on saving lighting energy is to
reduce the lighting operation time. In real life, it encourages people to switch off the
lighting in non-critical area as well as during lunch break. Furthermore, it also
suggested the building users to review the existing lighting level and reduce it
wherever feasible. In addition, the code also promotes the use of energy efficiency
appliances, such as replacing the old lamp or light tube with advance T5 fluorescent
tube.
In electrical system, the energy code has give direction to the building users on power
distribution in the building where proper distribution of power could enhance the
overall stability and efficiency of the electrical system. Chan & Yeung (2004)
believed that when BEC comes to mandatory, the result on reduction of fossil fuel
consumption and GHG emission will be substantial.
59
However, some scholar held different position on the mandatory enforcement of BEC,
Yik, Burnett, Jones & Lee (1998) advised that when the code compliance become
mandatory, the assessment and criteria of evaluating the building energy performance
must be explicitly stipulated without ambiguity. Besides, the requirement must not be
too harsh and causing big impact or inconvenience to the industry. Otherwise, it will
be hard for the Ordinance and code to past the legislation and get the acceptance from
the public. Under this circumstance, it can be expected that only moderate
improvement can be achieved by the BEC. In this regards, they suggested seeking
assistance from Green Organization on encouraging energy efficiency improvement in
building.
2.5.3 Green organization
Other than the action of the Government, there are other international organizations
which aim at promotion of Green Building. Their works include promotion of
energy efficiency in buildings from different perspective which covering different
stage of work. They also give assessment framework for the guideline of the buildings
users, and upon their compliance, certification will be granted. In this section, two
60
common green organizations will be introduced.
2.5.3.1 LEED
One of the famous organizations is U.S. Green Building Council (USGBC).

USGBC was formed in 1993 and had developed an individual rating system called
Leadership in Energy and Environmental Design (LEED) which provide the
framework for the owner(s) and operator(s) of the building to achieve Green in
building, sustainable site development, water savings, energy efficiency, materials
selection and indoor environmental quality. The scope of LEED covers design,
construction, operations and maintenance solutions of a building.
In past decades, USGBC advised that LEED had implemented thousands projects all
over the world. Over 9 billion square feet of development area had been participated
in this rating system. It gives tools to the participants to the measure the performance
of their building. By achieving the certification from LEED, the participants can earn
both environmental and financial benefits. However, to participate in LEED, there are
a few prerequisite items need to be fulfill.
61
Under the section of Energy and Atmosphere in the LEED reference guide, USGBC
(2009) described there are 3 prerequisite items for applying certification, namely
fundamental commissioning of building energy systems, minimum energy
performance and fundamental refrigerant management. In later part of this
dissertation, the difficulties of fulfillment will be illustrated and discussed.
2.5.3.2 BEAM Plus
For local organization which aims at promotion of Green, there is Hong Kong
Building Environmental Assessment Method Society, i.e. HK-BEAM Society.
HK-BEAM Society was formed on 2002 and had been working on developing
building environmental assessment method, performance improvement, certification
and labeling for various types of building in Hong Kong. Their primary goal was to
improve the environmental performance of buildings and enhance the sustainable
development in Hong Kong.
This society target local developers and landlords, government departments, academic
and research institutions and the headquarter building of some of the corporate clients.
It had accessed and provided recognition for over 210 green building developments in
62
Hong Kong, represented by over 10 million square meters of space.
Nevertheless, just like LEED, the recognition from HK-BEAM Society can bring both
environmental and financial benefits to the participants. For instance, according to
practice note from Buildings Department (APP-151) regarding building design to
foster a quality and sustainable built environment, the green features of new
development can be calculated as gross floor area (GFA) concession. However, the
green features must be certified by Hong Kong Green Building Council or BEAM
Plus. Besides, there is requirement in minimum energy performance in applying
labeling from HK-BEAM Society. The difficulties of fulfillment will also be
discussed in later part of this dissertation.
2.6
Implementation of energy efficiency measures
Having elaborated the successful factor of enhancing energy efficiency in building,

this section came to the fifth objective of this dissertation, i.e. to review the process of
implementation as well as its difficulties during implementation.
In short, it concerned with how to implement the energy efficiency measures in a

63
building including the process of implementation. Energy efficiency projects various

from scale. Nevertheless, it would involve different stages of work. Besides, the
constraints encountered during the implementation would be different due to different
site situation.
2.6.1 Key element of implementation
Mui & Chan (2005) reminded that the implementation of energy efficiency measures
is pursuing the effective use of energy; people should not consider it as a trade-off or a
conflicting of priorities. In the past, people would imagine there is a balance which
the green earth is put on the one side and the commercial gain is on the other. The
idea of Mui & Chan (2005) is that such kind of mind set is outdated and the right
positioning of energy efficiency is the key element of implementation.
2.6.2 Process of implementation
The process of implementation can be reference to the guideline from the HKSARs
practice of ECF. However, both the auditing and improvement work may not
necessary to be carried out by registered energy assessor and qualified services
64
provider as their work involved cost, which is substantial for medium to small scale
commercial building.
These works can be arranged and coordinated by the building manager. If the building
manager is not able to work out independently, they can cooperate with other energy
services or energy product provider on a cost sharing basis. For instance, various
energy saving sharing scheme had been provided by major air-conditioning system
manufacturer. These schemes required lower initial investment cost which is more
affordable by medium to small scale commercial building.
Nevertheless, the process of implementation consists of a few major stages. First is

the feasibility study stage, it refers to the collection of basic information of the
building, including the previous electricity bill, the performance and specification of
existing BSI and occupancy as well as their operation model. Second is the invitation
of proposal from different scope of services provider and respective tendering
exercise. In this stage, the scope of work, cost implication as well as the payback
period should be well analyzed for the reference of the decision maker. The last one is
the construction and installation stage. Coordination among different stakeholders
would be most critical. Notwithstanding the stages of implementation of energy
65
efficiency measures, continuously monitoring on the energy performance of the

building would always be required.
2.6.3 Constraint of implementation
While there are good reasons on promoting energy efficiency measures, however, it
was also foreseeable by scholar that there are constraints and limitation. Their views
were also supported by the factual findings in real case.
Chung, Hui & Lam (2006) classified the factors of affecting the energy efficiency
performance in a building into two categories, manageable and unmanageable. The
example of the former includes the practices or behavior of the building occupants.
With proper education and guideline, the energy efficiency management can be
enhanced. Same idea was also apply on the efficiency of the different BSI system. For
the later one, it mainly refers to the physical indicators that are not indeed amenable in
order to suite the target of energy efficiency enhancement.
66
2.6.3.1 Physical and design constraint
The idea of unmanageable factor can be expressed by Lee, Yik, Jones & Burnett
(2001). They found that the oversized equipments, such as air-conditioning system,
are one of the common reasons of poor energy performance of commercial buildings
in Hong Kong. Those oversized equipments had poor energy efficiency performance
when they are running in a part load condition. However, replacement of oversized
equipments always involves significant alternation work.
Yik, Burnett, Jones & Lee (1998) raised another concern related to the energy
performance monitoring. In most building, there are only few numbers of sub-meter
installed for BSI. Besides, the distribution of power was not properly categorized in
which one zone of power maybe connected to different type of BSI or different type
of equipments of the same BSI. In this regards, it is difficult to install sub-meter to
monitor the energy performance of specific equipment and collecting respective
energy consumption data. It would result in hard to implement some of the energy
efficiency project work.
67
2.6.3.2 Loss in productivity
Wong & Mui (2009) highlighted another type of constraints on implementing energy
efficiency in air-conditioning system. According to the Environmental Protection
Department, the air temperature of an excellent office should be set at 20 25.5
degree while that of a good office should not be exceeding 25.5 degree. However, in
real life practice, this temperature setting may causing thermal discomfort to the
occupant in the air-conditioned office and resulted in loss in productivity.
Even a higher temperature setting would result in electricity cost saving, but this
saving may not able to compensate the loss in productivity from the business. There is
a trade-off between energy saving and occupant comfort as mentioned by Wong &
Mui (2009). Thus, people may prefer operate the room temperature at 2 degree lower
than the recommended temperature from EPD so as to avoid thermal discomfort
caused to the occupants.
Furthermore, Mui & Chan (2005) brought out a more serious hazard than merely
indoor un-satisfaction. After energy crisis in 1973, it was required to reduce the
energy consumption on the air-conditioning system and the air flow rate had been
68
reduced. Since then, it had been reported that more building occupants were suffered
from ailments in their upper respiratory system. It was believed that this health
problem was due to poor ventilation and in-door air quality. They suggested that there
is much to concern when implement energy efficiency measures in building. More
examples will be elaborated in the case study in later part of this dissertation.
69
Chapter 3
Case study
Outline
As mentioned above, promotion of energy efficiency measures in existing commercial

building would be an effective way to achieve reduction of GNG emission due to
building portfolio in Hong Kong and the energy consumption end-use pattern of the
building. While there are numerous studies and researches working on this topic, there
was deviation between the expectation and the real situation. In this chapter, an
in-depth case study will be carried out in order to demonstrate a real situation.
To have a comprehensive view of energy efficiency measures in a commercial

building, site visit and inspection and interview with stakeholders in a target building
will be carried out, including the owners, owners incorporation, building manager,
management staffs, building users, maintenance services contractor of different BSI
and energy efficiency services providers.
The flow of this chapter would follow the conceptual framework as mentioned in
previous chapter. Besides, the discussion in each section would closely connect to the
70
sequent of objectives of this dissertation.
3.1
Background of targeted building
District like Central, Wanchai and Tsimshatsui was the tradition commercial district in
Hong Kong, many commercial building were located in these district. Many of these
were built in 1970s 1980s which environmental concern was not the main stream
during that period of time. However, these building contribute to the major supply of
commercial building in Hong Kong. Meanwhile, there were also new commercial
district like Kwun Tong and Kowloon Bay which had been grown rapidly in last
decade. Nevertheless, they were not the target of this dissertation as most of them
were built withthe design and concept of environment protection.
The targeted building (The Building) was built in 1978 and located in Gloucester
Road of Wanchai. It was a common commercial building. As advised by Yu & Chow
(2001), the common commercial building in Hong Kong is consisted of an office
tower on top of a shops and car parks. The Building was consisted of 28 storeys with
a basement contributing over 240,000 sq. ft. gross floor area (GFA). There are 4
levels for car parking purpose (1/F 4/F) and a shop on the ground floor with
71
independent entrance.
The Building was ordinary designed as a back office of a commercial bank.

According to the requirement as stated in Rates and Valuation Services Department,
The Building can be graded as Grade B commercial building which the building was
ordinary design with good-quality finishes, flexible layout, average-sized floor plates,
adequate lobbies, central air-conditioning system, adequate lift services and was under
good management.
As the back office of a bank, The Building was equipped with standard Building
Services provision in the year of 70s, including but not limited to the central air
conditioning system, lighting system, lifts system, pumping and drainage system, fire
service system and building management system (BMS). The detail of the BSI will
be gone through one by one in later part of this chapter.
Since there was a change in major ownership, the new owner intended to implement
and improve the energy efficiency of the building. Thus the Incorporated Owners of
The Building (The IO) and its Building Manager (The Manager) had been
worked closely on achieving this goal since 2008. After about 3 years of time,
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significant improvement was observed.
3.2
Performance of The Building
This section targeted to understand the energy performance and behavior of The
Building, i.e. the first objective of the dissertation. The factors concerning the energy
efficiency measurement as stipulated in literature review would be discussed so as to
give a comprehensive view in accessing its energy performance.
3.2.1 Energy consumption
There are three numbers of electricity meters from HKE which are undertaken by the
co-owners of The Building. As the building was designed by single use of the bank,
there is no clear cutoff on the power distribution between common use and private use.
Nevertheless, to handle this problem, a numbers of sub-meter had been installed so as
to monitor the performance of BSI.
Having excluded the portion of private used electricity, the electricity cost of The
Building ranged from $200,000 to $400,000 for the year of 2007, represented by from
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220,000 to 440,000 in terms of electricity consumption units. After the cost of

management staffs and headcount, electricity expenditure contributed about 20% in
winter season and 35% in summer season of building expenses and was the second
largest sector.
3.2.2 Building occupancy
The occupancy of The Building remains constant at the level of 80% 90%
throughout the year from 2007 to 2011. However, there was certain change on the
business nature and behavior of the occupants.
In the past, The Building was solely occupied by the bank as back office. Other than
the costumer services centre and server room were 24-hr operation, the rest offices
occupied by the supporting team, such as accounting, finance, auditing and office
administration department, were run from 9:00 to 18:00 from Monday to Friday, from
9:00 to 13:00 on Saturday and close office on Sunday and Public Holiday. For the
shop at ground floor, it operated from 10:00 to 21:00 from Monday to Sunday.
Since 2000s, the bank had sold out some floors to different type of business, such as
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architect firm, government office, trading company, training centre and services centre
of equipment store. Furthermore, in 2010, the bank had relocated their back office,
including the work station, costumer services centre and server room, to Island East
district and leased out the vacant office at the same time.
3.2.3 Building maintenance
Ordinary, the building was managed by the in-house management team of the bank.
With the formation of the Incorporated Owners in 2002, in view of the building age
was over 20 years, IO had employed an corporate agency management firm, The
Manager, to undertake the management work at common area of The Building.
Building maintenance plan had been implemented by The Manager which covered the
major type of BSI in The Building, including air-conditioning system, lighting system,
lifts system, pumping and drainage system, fire service system and building
management system. Some of the maintenance works were mandatory required, such
as fire services system and lift system, while some of them were not, such as pumping
and drainage system and BMS.
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International Organization for Standardization (ISO) policy was adopted by The

Manager on their management system (ISO 9000). Thus, there was at least one time
ISO audit would be carried out by internal or external auditor so as to ensure the
compliance of the maintenance plan. Their auditing scope cover the maintenance
schedule, services report, completion report and certificate as mandatory required by
respective Ordinance.
3.3
This section closely concern with the second objective of the dissertation, i.e. why the
owners of The Building intend to carry out energy efficiency measures in The
Building. In the mean time, the possible reasons mentioned in literature review would
be applied and reviewed in this section.
Since 2006, the concern on enhancing the energy efficiency of the building had been
raised and the issues had been brought to the discussion in the Owners Meeting.
Having discussed subsequently, the intention of most owners, in terms of numbers of
shares, had been roughly united and this intention was mainly driven by two type of
force, namely reputation and cost saving.
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3.3.1 Reputation
Despite The Building was multi-owned, there was a major undivided share holder
(The Major Owner). The Major Owner was a global banking firm which is based in
Singapore. As a global bank, reputation and branding are critical. With the concern of
increasing awareness in environmental protection, The Major Owner would like to
enjoy the benefit in earning the reputation in promoting Green practice in
management. Thus, they had taken the first step in promoting Green idea in this
building.
Thus, it was firstly introducing by The Major Owner on the Green practice in The
Building to the rest owners in general meeting. In view of holding the majority shares
was held by The Major Owner, no big obstacle had been faced in commencing the
Green project. During that time of 2006, the registration scheme of energy auditor
was not legalized and this kind of business was not very popular in Hong Kong. In
this regards, the role of leader was assigned to The Manager.
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3.3.2 Cost saving
After the financial crisis in late 1990s and early 2000s, the cost control of all type of
business industries had been enhanced tightly, including government office and
private office. As a result, the most common and strong driven force on implementing
energy efficiency measures in The Building was the benefit from cost saving. No
businessman would reject the temptation from operation cost deduction.
Furthermore, according to the Deed of Mutual Covenant of The Building (DMC),

all owners of The Building were required to contribute sinking fund to a trust account
on a monthly basis. As at the end of 2006, the sinking fund balance was about
HK$16,000,000.00. Thus, it was easily foreseeable by all owners that there is no
pressure on calling contribution from all owners when implementing different kind of
energy efficiency project. In other words, there is sufficient initial capital
improvement fund.
Besides, it was foreseeable by all owners that the building expenses will be decreased,
in terms of electricity cost and maintenance cost, after completion of the energy
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efficiency project. At the same time, the needs of increasing the management fee level
in a fast growing economics will be less likely required. As such, the comparative
competitiveness of their premises in leasing market would become higher status due
to lower management fee per sq. ft.
3.4
Implementation of energy efficiency measures
This section would closely concern with the third and forth objective of this
dissertation, including the possible means of enhancing the energy efficiency
measures in The Building and the process of implementation. The means of measure
include application of technical appliance and the process of implementation would
follow the stages mentioned in literature review.
As mentioned in previous chapter, there are several stages of implementing energy

efficiency project, namely feasibility study stage, proposal and tendering stage and
construction stage. Besides, it was also mentioned that the business of energy audit
was not popular before energy audit comes to mandatory. In this regards, it was
targeted by the all owners of The Building to assign The Manager to lead the project
of energy efficiency in view of lower cost and convenience.
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However, it was not the duty of a building manager to carry out the energy efficiency
project. The work of energy efficiency simply was not falling in the scope of building
management services. Thus, negotiation had been undergoing between all owners of
The Building and The Manager. By the end, it was agreed to pay The Manager the
project coordination fee, being 5% of the project sum, upon completion of each
energy efficiency enhancement work.
To reiterate, building manager was neither the expert in energy auditing nor energy
service provider. Thus, The Manager needed to work with outside contractors in
achieving this target, such as contractors of air-conditioning system, electrical system
and lighting system.
As the largest electricity consumption sector in The Building, The Manager began the
energy efficiency project from the field of air-conditioning system. The current
maintenance contractor for air-conditioning system and the BMS had been invited for
studying this issue. Preliminary, there are three approaches on enhancing the energy
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efficiency of air-conditioning system, i.e. water side equipment, air side equipment
and control system.
Ordinary, according to the A/C layout plan from the air-conditioning system
manufacturer, there was only 5 nos. of 100 RT Carrier brand air-cooled chiller plants
at the roof of The Building. In later time, it was found that A/C supply was
insufficient. It may due to increasing heat gain from raising numbers of occupant and
various types of appliance as advised by Lee, Yik, Jones & Burnett (2001). Thus, 2
nos. of additional chiller plants, with same specification, had been installed.
In the view of 7 nos. of chiller plants in The Building had been operated for about 30
years. It can be visually observed that the equipment had been deteriorated and the
COP of the chiller plants was expected to be dropped much. By requested, during the
summer season in 2007, the current maintenance contractor had conducted
measurement on the COP of all chiller plants. It was found that the average COP of
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the chiller plants was less than 2. In other words, the efficiency of the chiller plants
was only about 50% of the manufacture standard and there was a strong reason on
replacing the chiller plants.
Besides, it was understood that the energy performance of WACS is better than AACS.
The feasibility of using WACS was also carried out by The Manager and the
maintenance contractor. Firstly, it was confirmed by the maintenance contractor that
there are sufficient space at roof for installing 3 nos. of 250 RT WACS and 3 nos. of
evaporative cooling tower. Secondly, The Manager had counter checked with EMSD
that The Building was falling into the scheme of Pilot Scheme for Wider Use of Fresh
Water in Evaporative Cooling Towers for Energy-efficient Air Conditioning Systems.
Thus, it was feasible to adopting WACS system in The Building.
Since the chiller plants replacement work involve large contract sum, the estimated
contract sum was $6,000,000.00 as advised by the maintenance contractor, tendering
exercise must be proceed as required by the Building Management Ordinance
(BMO). Nevertheless, in preparing the tendering documents, The Manager had
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included the options of AACS and WACS and origin from different countries in the
tender specification.
Following the requirement of BMO, the contract had been awarded to the nominated
contractor in an Extraordinary General Meeting. Since The Building was fully
occupied during that period, there was no room for disturbance on A/C supply.
Having measured the space of roof, the nominated contractor advised that there was
sufficient space for deploying 3 nos. of WACS, 3 nos. of evaporative cooling tower
and 3 nos. of old AACS at the same time.
By the end of 2008, winter, 4 nos. of air-cooled chillers were demolished and 3 nos. of
Trane brand WACS and 3 nos. of evaporative cooling towers, at total cooling capacity
of 750 RT, had been installed on the roof of The Building. Section valve was also
installed in the main chilled water pipe so as to allow the nominated contractor to
swap the system if needed.
After 1-month observation period, the nominated contractor found that the new
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installed WACSwas in stable and good operation. Thus, they had demolished and
removed the remaining 3 nos. of oldAACS. As a result, there was no suspension of
A/C supply during the whole changeover of chillers system. From the building user
point of view, nothing had interrupted their business but the quality of A/C supply had
been improved.
About 1 year time after replacement work, The Manager advised that the COP of the
new WACS was about 4.3 which indicate the energy efficiency of the air-conditioning
system had been largely improved. Besides, in the past, during the peak summer
season, 6 out of 7 nos. of AACS were needed to operate at the same time in order to
provide a comfort environment. After replacement of AACS with WACS, only 2 of
them were needed to operate at the same time in order to provide the same result. In
addition, 1 of the 2 plants was not required to operate in full load condition. In order
words, the owners of The Building enjoy double benefit from this replacement
project.
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There were 8 nos. of Air-Handling-Unit (AHU), Carrier brand, installed at the AHU
room of designated floors (4/F, 8/F, 11/F, 14/F, 17/F, 20/F, 23/F & 26/F) which each
AHU serve 3 floors (expected the AHU on 8/F which serves 8/F and 9/F only). Since
each floor was about 7,000 sq. ft., strong power of the AHU is needed.
Within each floor, VAV boxes were installed according to the interior design of each
office. Those VAV box were controlled by independent temperature sensor owned by
individual owners or occupants. The total air flow inside air duct will be varies
according to the loading at different time and weather.
While there are VAV box controlling the air flow inside the premises according to the
demand load, there is no such measures for the AHU. It was observed by The
Manager and the maintenance contractor that the air flow of the AHU was constant
through the operation and cannot adjust during different demand load. In other words,
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there was power wastage during part load period.
In resolving this problem, the maintenance contractor suggested installing 1 set of

frequency inverter to each AHU. Besides, it was also suggested to connecting the
frequency inverter to the BMS so as to enhance the efficiency in daily monitoring and
supervising the AHU operation.
Since the estimated cost of each frequency inverter was about $80,000.00, the total
contract sum required the owners to follow the procurement procedure as stipulated in
BMO. The Manager is required to proceed tendering exercise and submit the result in
the General Meeting for the discussion and resolution.
Upon contract award on the installation of frequency invertor, The Manager studied
the schedule of installation work with the nominated contractor. Suspension of A/C
supply for 2 days for the floor in the same zone of AHU was required during
installation of frequency invertor at that zone.
86
To avoid inconvenience cause to the building occupants, The Manager requested

proceeding the installation work on Saturday and Sunday only. Besides, it was
required by the Manager that only 2 nos. of frequency invertors were allowed to be
installed at the same time frame so as to minimize the risk and area of affect in case of
failure.
After 1 month time, 8 nos. of frequency invertors were installed. Having testing and
commissioning (T&C) of the frequency invertors, the new system was in full
services. As advised by The Manager, except during the noon in summer season, most
of the condition required the AHU operated in part load condition only.
Besides, the nominated contractor was also invited to give a checking and inspection
for the VAV boxes inside the premises without cost implication. Suggestion and
recommendation would be given to respective owner or occupant if abnormality was
found.
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Ordinary, the BMS panel was located at A/C control room at roof which all control
signals and data information of chiller system was running through between the A/C
control room and chiller plants. From the management point, it is important to
maintain stable A/C supply, as one of the core building services of the building, to all
building occupants. Thus, it is the basic duty of building manager to keep close
monitor the A/C system through BMS.
While the management staffs was required to monitor the BMS panel frequently, the
management staffs were stationed at the management office at 4/F. Thus, the
management staffs were required to travel between 4/F and R/F from time to time for
the pursue of regular, ad hoc or emergency maintenance. Extra energy would be
required for such practice as observed by the Manager.
Besides, the nominated contractor of the chiller plants replacement work advised that
the current BMS had been outdated. It could not able to cater for the requirement of
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the new WACS. For instance, there were 2 water circuits for WACS, one is chilled
water and one is condenser water, while AACS system did not have the later one. In
addition, the nominated contractor also suggested installing more sensors, such as
flow sensor and temperature sensor in order to enhance the sensitivity of the
air-conditioning systems to the demand load. However, there was no spare sensor
point for the current BMS.
In this regards, the nominated contractor suggest 2 proposals in improving the energy
efficiency of the control system for the air-conditioning system. One is to upgrading
the BMS in order to provide a more sophisticated A/C supply service to the building
occupant, such as control of air flow and automation system etc. On the other hand, it
was suggested to relocate the BMS panel from roof to the management office for easy
monitoring.
Since this suggestion was proposed by the nominated contractor after contract
awarded, the specification was not include in the original tender. Besides, it was not
feasibility to proceed another tender exercise in view of tight time allowed and wrong
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timing. This BMS upgrading and relocating work should be carried out during the
time of replacing AACS with WACS.
Nevertheless, the nominated contractor was required to submit variation order (VO)
for this suggestion. The cost quoted by them was lower than $200,000.00 which is
under the authority of Management Committee (MC) and tendering exercise was
not mandatory required.
A MC Meeting, which required shorter notice period and fewer quorums than General
Meeting, was called for the purpose of the BMS upgrading and relocating work. The
Manager and the nominated contractor explained the benefit of the proposal to the
MC members and gained their consents and approval.
Since the approval process was run smooth, no disturbance was caused to the main
schedule of chiller plants replacement work. Furthermore, during the installation of
new WACS and BMS panel, the old AACS and old BMS panel were still in operation.
Thus, sufficient T&C work was carried out before implement of new system.
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After completion of the BMS upgrading and relocating work, The Manager reported
that they enjoyed efficiency enhancing in terms of energy, operation and management.
On the one hand, they can closely monitor to the air-conditioning system. In case
there is any false signal from the chiller plants, they can be informed by the BMS
panel right next to them. Besides, the new BMS can show them the prelim diagnose
report before they arrive the chiller plants.
On the other hand, they can response to the request from the building occupants
efficiently as they can receive the queries and make the feedback at the same location.
For instance, if there is complaint on insufficient A/C supply, The Manager can adjust
the temperature of chilled water supply through the BMS. Both energy and time can
be saved with the present of new BMS.
Other than the air-conditioning system, it was also acknowledged by The Manager
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that lighting system was the second largest sector of power consumption. Thus, The
Manager was also study on enhancing the energy efficiency for lighting system.
Nevertheless, assistance from the electrical contractor and lighting product supplier
had been sought.
According to DMC, The Manager was required to provide general lighting for the
common area, including the lobbies and staircase. Other than the main lobby at
ground floor, the lift lobby of each floor was assigned as common area, despite the
whole floor was solely owned by one party.
There were 4 nos. of staircase which 2 of them were connected from ground floor to
roof and the 2 others were connected from basement to ground floor. According to
sale and purchase agreement of each floor and the DMC, the floor toilet was owned
by each floor owner despite the numbers of occupants on each floor. In this regards,
all BSI provisions, including lighting and A/C supply, were provided by each floor
owner.
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Despite there was a major owner of car parking spaces, represented by over 90% of
undivided shares of car parking space, and the deployment of a car park operator,
assigned by the major owner, the general lighting inside the car parking area was
provided by The Manager, including the lighting on the car parking space, driveway
and ramp as per DMC.
As per the requirement of the fire service ordinance, all staircases and floor lobbies
were designated as means of escape and protected lobbies respectively. Thus, there
were additional requirement concerning the fire safety implemented in these area. One
of the requirements was to provide 24-hour lighting and exit sign box inside these
areas.
In view of 24-hr lighting operation would consume electricity continuously, it was

easily to conclude by The Manager that substantial electricity saving can be rewarded
from enhancing the energy efficiency of these lighting.
According to the fire services improvement direction in 2003, all exit sign boxes had
93
been replaced so as to comply with new fire services requirement. During such
replacement, LED exit sign box already introduced to The Building and the benefit of
better energy efficiency was enjoyed since then.
Meanwhile, for the sake of convenience and easy management, one single type of
lighting was applied for all staircase area and floor lobbies, except the main lobby. 4
feet T8 fluorescent tube was used. In 2007, as per suggestion from the lighting
products services provider, the energy efficiency can be enhanced by about 30% if
replacing the T8 fluorescent tube with T5 electronic fluorescent tube. However, such
replacement work involved more than the replacement of a tube as the lighting fixture
and transformer replacement works were also required.
In the meantime, it was also advised by the services provider that the illumination
level of T5 electronic fluorescent tube is much higher than T8 fluorescent tube.
Besides, there was a common issue observed by them that there was over provision of
lighting at staircase area which resulted in power wastage. Thus, they further
suggested replacing the 4 feet fluorescent tube with 2 feet fluorescent tube along the
staircase area. Having counter checked with the fire services system maintenance
contractor by The Manager, the suggestion by the lighting product services provider
94
was concurred.
However, the proposal of replacement of T8 fluorescent tube by T5 electronic

fluorescent tube involved initial investment cost. Unlike replacement of AACS with
WACS, the owners can enjoy the benefit on energy performance of the
air-conditioning system and better A/C supply right after completion of work. The
proposal of lighting tube replacement did not sound convincing to them due to no
immediate apparent improvement and substantial initial capital cost.
In this regards, The Manager requested the services provider to study alternative
proposal. Having studied back and forth, a second proposal was suggested by the
services provider. In this proposal, all lighting fixtures and tube were supplied by the
services provider while the replacement work was undertaken by The Manager. On
the other hand, IO was required to enter in a 6-years services agreement to stipulate
the sharing of the profit from the power saving with the services provider.
Having discussed with the MC and The Manager, in view the lighting fixture
replacement can be carried out the in-house technical team; the initial cost of the
replacement work was relatively slow. Thus, MC was agreed to go for this proposal
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and The Manager had signed the services agreement on the behalf of the IO. The
work was kick-off in mid of 2007.
First, two zone of lighting area were chosen for mock up testing. To avoid any
inconvenience caused to the building occupants, The Manager had assigned the area
at staircase and highest level of car parking area for the demonstration of 2 feet and 4
feet lighting tube respectively. 2 nos. individual sub-meters were installed in these
zones in order to monitor the electricity consumption of 10 nos. of ordinary lighting
tube in each zone for two weeks. After two weeks time, The Manager replaced these
tube tubes with the products offered by the services provider and further monitored
the electricity consumption of those tubes for two weeks of time.
Afterward, the result of unit electricity saving each type of tube was confirmed and
verified by relevant parties. Second, the services provider had counted the total
numbers of lighting tube planned to be replaced. After gather these information, the
amount of electricity unit saving could be predicted based on the mock up resulted
and a services agreement was prepared accordingly.
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In the agreement, the services provider was required to provide material for replacing
the agreed amount and types of lighting tube. Besides, they would provide 10% stock
and kept at The Building for necessary replacement. On contract, the IO had to
reimburse 50%, 40% and 30% of the saving amount to the services provider on the
first, second and third 2-years of time respectively. The unit rate of the electricity
would be subject to the figure from HKE.
For the replacement work of 4 feet lighting tube by 2 feet of lighting tube at staircase,
additional touch up and painting work was carried out by the Manager so as to
maintain the building image.
Base on records from The Manager, it was observed that there was dropping of
electricity consumption from the electricity bill connecting to the lighting system at
common area. Besides, at car parking area, compliment was received from the car
parking space user due to enhancement of illumination level at car parking area.
Double benefit was enjoyed by the IO.
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There were 3 nos. of electricity meters applied from HKE for the services of all
common BSI. At the same time, there were individual meters applied from HKE for
each individual owner serving their owned electrical appliance, such as data server
and other office equipments. Nevertheless, all these meters were connected between
The Building and HKE through a 2,500 kw and 2,000 kw transformers.
In view of substantial BSI and office equipments were provided in The Building, The
IO had applied Bulk Tariff from HKE in order to enjoy better unit rate on electricity
cost.
In order to renew the WR2 certificate for the fixed electrical installation, checking and
inspection for all electrical installation over 100A had to be carried out every 5 years
as required by EMSD. In view of the current WR2 certificate would be expired by end
of 2008, The Building had arranged the required checking and inspection by
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registered electrical contractor.
While there was not major defect on the electrical installation in the Building, it was
reminded by the electrical contractor that the requirement of the application of Bulk
Tariff from HKE. They reminded that there was pre-requisite requirement on the
power factor corrector and requirement on the power factor on the building.
Since The Building was over 30 years, there was not power factor corrector provided
inside The Building. Besides, according to the checking and inspection report from
the electrical contractor, the power factor of the building was very margin to meet the
requirement of Bulk Tariff of HKE. Thus, preliminary, they suggested installing two
nos. of capacitor bank at main switch room and A/C control room so as to enhancing
the power factor and efficiency of electricity usage.
Having detail check with the site condition, it was found that the space inside the
main switch room was very tight. Nevertheless, having visited by the electrical expert,
it was finally decided the possible location for the capacitor bank at main switch room.
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Meanwhile, no such spatial concern in A/C control room. Besides, the specification of
the capacitor bank was also suggested by the electrical contractor.
The electrical contractor estimated that the unit rate of each capacitor bank was less
than $100,000 which was not mandatory required tendering exercise according to the
BMO. However, to ensure smooth procurement procedure thereafter, the MC decided
to go for tendering exercise and instructed The Manager accordingly. After
completion of the standard tendering exercise, the work was awarded to the same
electrical contractor who carried out the WR2 checking and inspection as well as
defect rectification work.
Since the installation of capacitor bank involved work at main switch board and the
switch board for the power supply of air-conditioning system, suspension of power
supply for the whole building was inventible. To minimize the inconvenience cause to
the building users, The Manager decided to proceed the work at the mid night of
Saturday.
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Prior to the power suspension, The Manager had served one month notice to all
building users and carry out unit visit in order to explain the situation as well as
potential risk to them. They were also reminded to backup the data in computer and
arrange emergency power supply if needed. Furthermore, The Manager had also
informed HKE, tele-service provider, maintenance services contractor for major BSI,
including lift and air conditioning system, about the power suspension.
After 8 hours of installation, the work was completed and power resumed. However,
the lift system was not able to resume at the beginning. Since the lift maintenance
contractor had been prior informed, they have arranged emergency services efficiently
and resumed the lift services within a comparatively short period of time.
After T&C of the new installed capacitor bank, the electrical contractor advised that
the power factor of The Building was about 0.9 which meet the basic requirement of
HKE. Thus, The Building can continue to enjoy the rate of Bulk Tariff.
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Prior to any installation or replacement works of the electrical appliance which

involve long period of procurement procedure or tendering work, right after receiving
the direction from The IO on enhancing the energy efficiency, The Manager had
immediately reviewed and implemented certain measures on improvement the energy
performance.
To achieve reduction on overall electricity consumption, The Manager reviewed the

operation of each type of BSI and see if there was any room of reduction on BSI
provision. Having considered the occupancy, their business nature and their operation
hours, the following suggestion had been raised:
There are six numbers of lifts which three of them served high zone floors and three
of them served low zone floors. In view of most occupants would have left the
building after 20:00, it was suggested to shut down the four nos. of lifts and remain
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one lift for high zone and one lift for low zone for the period from 21:00 to 07:00.
For the same reason above, it was also suggested to dimmer the lighting at common
floor lobby for the period from 21:00 to 07:00. Meanwhile, the lighting requirement
of fire service ordinance would be complied.
Fine tuned the temperature of chilled water supply and return from 9 degree Celsius
and 14 degree Celsius respectively to 10 degree Celsius and 15 degree Celsius
respectively.
Despite these suggested improvement work did not involve cost implication, they
involve change of building operation model. To minimize the adverse effect from the
building users, The Manager had discussed their suggestions with MC in order to
have their consents and intentions.
Due to sub-tropical climate in Hong Kong, the demand on A/C supply was very
important and critical, thus, MC rejected the suggestion on fine tuning the chilled
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water temperature. For the lift and lighting operation schedule, MC found it no harm
to have a trial.
The Manager acknowledged that sufficient prior communications with the building
users was the successful factor on implementing new operation schedule. Once again,
The Manager had issued circular to all occupants stipulating the detail of new
measures as well as the reasons behind.
Furthermore, The Manager had spent time on providing training to their management
staffs and ensured that they have been well comprehended with the new schedule of
the operation. Technically, The Manager had instructed the technical to install
additional timer on the lighting system so as to control the on / off time.
Given certain time for all parties on adopting new operation model, people had been
got used to it after two weeks of time.
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Since the service period of relevant BSI had been reduced, The Manager confronted
that the electricity consumption had been reduced right after new operation model is
adopted.
3.5
Constraint of implementation of energy efficiency measures
This section closely concerned with the fifth objective, i.e. to review the contriant of
implementation of energy efficiency measures in The Building. As mentioned,
implementation of energy efficiency was a practical issue. Thus, it could be observed
that some of the constraints were universal but some of them were only apply to this
case. Some possible would be raised for the constraint found. However, it was found
that most of the obstacles were hard to be overcome.
Having invested of substantial capital cost and implemented certain new operation
models on promoting energy efficiency, while The Manager had observed that certain
improvement on energy performance was achieved, they also noticed that there were
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numerous constraints within The Building, as a building of over 30 years, while lead
to the degree of energy efficiency improvement was limited. The constraints were fall
under the following categories:.
3.5.1 Structural / design limitation
3.5.1.1 Main chilled water risers
In The Building, the chilled water was cooled down at roof and supply to individual
AHU at designated floors. After replacement of WACS, it was observed that the COP
was largely improved. However, due to aging and deterioration of insulation material
of main chilled water riser, substantial heat gain of chilled water was found during
travelling. Besides, due to lower temperature of chilled water after the chiller plants
replacement work, the problem of condensation was found getting more serious. Thus,
factors of deterioration of insulation material and problem of condensation at main
chilled water riser brought negative effects to the energy efficiency of the
air-conditioning system.
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Preliminary, the most direct way to rectify the problem was to replace the insulation
material for main chilled water raiser. However, due to design and spatial constraint, it
was less likely to carry out such replacement work. First, there were duct rooms on
each floor where the main chilled water riser and cut off point were located. However,
the floor duct room was found too small for allowing the workers to carry out the
replacement work unless the partition wall was removed. It was obvious that the
removal of partition wall was not cost effective.
Second, assume that there were sufficient spaces in the duct room, replacement of
insulation material still required suspension of chilled water supply from the technical
point of view. However, since there were only two risers, one for chilled water supply
and one for chilled water return, in The Building, suspension of chilled water supply
would result in suspension of A/C supply for the whole building which was hard to be
accepted by any building users.
Meanwhile, the above mentioned problems would not be found in new design
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building such as International Commercial Centre (ICC) in West Kowloon. In ICC,

there are three nos. of chilled water risers for the air conditioning system. Normally,
all of them were in normal operation. However, in case there was breakdown of any
one of the riser or maintenance work was needed as per maintenance schedule, it was
possible for their building manger to change the circuit of the water flow in order to
free any one of the risers for carry out the work in needed which, in the mean time,
the chilled water supply for the whole building would not be suspended. In other
words, total replacement work for riser or replacement work for any insulation
material, if needed, would be allowed without suspension of A/C supply for building
users. However, same concept of design was not developed in 30 years ago.
3.5.1.2 Wastage of A/C supply during non-office hour
While the energy efficiency for water sides was largely promoted after replacement of
WACS, there are critical constraints in the design of air side equipment which lead to
power wastage.
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First, 7 out of 8 nos. of AHU were designed for serving three whole floors at the total
approximate area of 21,000 sq. ft. During office hour (say 08:00 19:00 on normal
working day), A/C supply would keep providing as usual. However, during non-office
hour, if any one of the single occupant, occupying 7,000 sq. ft., for whole floor
occupant, or less, for unit occupant, require for additional A/C supply, The Manager
need to operate one nos. of AHU, which ordinary design for 21,000 sq. ft., in order to
fulfill their additional A/C supply demand. Thus, it implied that at least about 2/3 of
the A/C supply generated was wasted.
Ordinary, the VAV boxes in each unit could be closed up during non-office hour in
order to minimize the A/C supply wastage. However, since the VAV boxes and
respective control were owned by individual owners, they were not under the control
of The Manager. Thus, the building manager cannot reduce or minimize the A/C
supply for the vacant floors during non-office hour.
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To tackle this problem, the maintenance contractor of air-conditioning system had

advised The Manager to consider installing ventilation control damper (VCD) in
each AHU in order to separate the air duct of each floor. However, it was soon
discovered by The Manager that installation of VCD requires cooperation of three
floors, which they were or were not owned by the same party. All three floors were
needed to suspend A/C supply at the same time during course of work. Besides, such
installation work also required access to their private premises and demolishing their
existing decoration work. As a result, the installation of VCD would face many
obstacles in The Building as it was multi owned and multi occupied.
3.5.1.3 Aging of AHU
All AHU in The Building had been used for 30 years. Deterioration of fan motor and
other parts had been observed and reported by the maintenance contractor. These
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factors would lead to low energy efficiency performance. Besides, different business
types of occupants were moved in to same AHU zone, such as training centre and
multi functional room and their demands on A/C supply were higher than the ordinary
design.
As a result, replacement of AHU with higher efficiency would be the direct solution
to this problem. However, the large size AHU had occupied over 70% space volume
of AHU room which was the strongest obstacle to replace the AHU.
The maintenance contractor believed that the AHU was built in by Carrier during
construction of The Building. Besides, the developer did not plan for any future
replacement work. As advised by building maintenance contractor, it was less likely
to deliver a new AHU to site due spatial constraints of lift and staircase. They also
considered to breakdown the AHU into smaller parts, they still did not confident to
bring the largest part, the fan which is more than two meters diameter, to the AHU
room.
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Besides, same problem would be faced by replacing the AHU as that of installation of
VCD, it also require suspension of A/C supply for 3 whole floors which is less likely
to be accepted by building users.
3.5.1.4 E&M System
During installation of capacitor bank at main switch room, it was found that the
busbar and distribution board was installed closely. After repeated detail study by the
nominated contractor, the capacitor bank was finally installed horizontally on top of a
switch board in order to fit with existing condition.
However, it was reminded by the electrical contractor that the close distance of busbar
and distribution board, at the total supply of 4,500 kw, would lead to high operating
temperature and low energy efficiency. Besides, the shaking effect of the busbar and
distribution board would also lead to higher risk for furthering serious electrical
breakdown.
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To tackle with the problem of high operating temperature, split type A/C units were
installed in the main switch room in order to lower the temperature. However, due to
limited space inside the main switch room, the louver of A/C unit was directly point at
the switch board.
In this regards, the maintenance contractor remind that it would likely lead to
condensation and water droplet may be formed on the switch board due to large
temperature different. It was a major potential hazard to both building users as well as
management staffs. As a result, the split type A/C unit never could operate in full load
and thus, only limited cooling effect could be provided to the busbar and distribution
board and resulted in limited energy efficiency achieved.
3.5.1.5 Building management system
To enhance the efficiency of air-condition system, the BMS was updated and
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relocated. However, to have throughout enhancement of overall efficiency, the

maintenance contractor of BMS suggested consolidating all BSI provision to one
BMS system, including air-conditioning system, fire system, pumping and drainage
system and security system (such as door lock and CCTV camera) etc.
However, in a building which was designed and built 30 years ago, most signal cable
were hidden in the concealed conduit inside the wall which were covered up by
decoration work. Besides, since The Manager was not day-one manager, there was no
schematic diagram available for the reference of BMS maintenance contractors. It
increased the difficulties on building a consolidated BMS.
In this regards, the remaining solution, as advised by the BMS maintenance contractor,
was to do the re-wiring work and connecting the signal circuit between the BMS and
respective BSI provision.
However, it is neither practical nor economical for such rewiring work. First, it was
strict forward to see that it involve huge capital cost due to large numbers of labour
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was involve in inspection, checking, installation and T&C. It would look cost
ineffective in proceeding such work.
Second, there were two duct rooms in The Building, one was provided for main
chilled water riser and one was provided for power cable. In other words, there was
no dust room provision for low voltage devices. It was also considered to install the
wiring work at external wall. However, such arrangement was not feasible for future
maintenance and management. Up to now, none proposal and cost estimation could be
provided by any contractors about this BMS upgrading work.
3.5.2 Multi business nature
During the time of implement new operation model, everything was run smooth as
The Manager had proper communication with the building users. In Hong Kong, sales
and purchase of office premises was very common for the purpose of investment. In
2009, a training centre and association were moved in The Building. Right after that,
the situation became less harmony.
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Due to their business nature, they object the arrangement on shutting the part of the
lifts and lighting after 21:00 on weekday to suite their schedule of training lesson or
dinner events at night. They advised that their objection was not only due to
insufficient BSI provision to cater for their students or guess. They concern that such
arrangement would downgrade their company and causing adverse effect to their
business.
Furthermore, they requested extend the operation hour of A/C supply as there were
night events and training courses organized by them. Besides, they less likely to pay
for the additionally air-conditioning charges which was $200 per hour.
To resolve this issue, their requests had been brought to the discussion in MC meeting.
However, according to the BMO and DMC, all resolutions must follow the simple
majority rule. Since they only represent minority, in terms of undivided share, their
requests were not accepted and rejected by the majority.
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The resolution was relied on the original idea of on electricity cost saving. Besides,
most owners operated normal office and did not encounter the problems of those new
occupants suffered. At last, there was no point for the majority owners to spend
additional money on extending A/C supply service hour in order to benefit the
minority owners.
It was easily to foresee that the minority owners would not sincerely accept the
resolution of the meeting as their requests were unhandled. However, due to different
business nature and their status of minority, the problems they faced would be
persisted.
3.5.3 Multi-ownership
The problem of multi-ownership had been briefly introduced during the discussion of
replacement of AHU and installation of VCD. It incurred when coordination between
three floors with different owners was needed. Furthermore, another side of problem
also faced this difficulty by The Manager.
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After upgrading and relocating the BMS for air-conditioning system, The Manager
found it difficult to operate comprehensively in The Building. As mentioned above,
all VAV were owned by individual floor owners which respective temperature sensors
were worked independently. As a result, The Manager was not able to reach the
day-to-day data of individual floor premises. Thus, the new BMS cover the operation
of AHU, chillers plants and frequency inverter only. In view of the absent of critical
data, the overall A/C system operation cannot be optimized for the best energy
efficiency.
Furthermore, it was found that the VAV box inside premises was poor maintained and
most of them were out of services which the damper of the VAV boxes cannot be
controlled by the temperature sensor. In other words, the dampers of VAV boxes were
fully opened all the time. As a result, the BMS would think that full load of A/C
supply was required at all time. It was obviously wastage of energy. However, owning
to the ownership of VAV boxes and temperature sensor, The Manager only can
suggest the owners to do proper maintenance and repairing to the VAV boxes and
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temperature sensor and explain the advantage of energy efficiency resulted from
proper maintenance. In short, there was no way to force individual owner to do
maintenance to their property.
There were two proposals on handling this problem. The first one was proposed by
The Manager. It was suggested to include the VAV boxes and temperature sensors in
the building maintenance plan so that one-stop service can be provided by one single
management and maintenance party. In such way, the coverage of the scope of work
would be most comprehensive and the efficiency of the air-conditioning system and
BMS would be mostly enhanced.
However, while the owners understood the benefit of such proposal, there was second
thought in their mind. Basically, they concern the real status of the equipments in
question, including the numbers and condition. They afraid that the condition of these
equipments would be largely vary from owner to owner. Thus, there was a potential
risk of subsidizing the owner with poor maintenance work by the owner with good
maintenance work.
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Another proposal was suggested by the air-conditioning system maintenance

contractor, they proposed change the air-conditioning system of the floor unit form
VAV system to fan coil (FCU) system. The benefit of the later system was
simplicity. Under FCU system, The IO or The Manager only required to provide
chilled water, instead of cooled air, to each unit which the water flow would be easily
controlled by the electronic valves. The chance of A/C supply wastage could be
largely eliminated.
To repeat, not to mention the change of air-conditioning system would involve

substantial capital cost, the critical point was that the decision of The IO or The
Manager or even the power authorized by the DMC could not override the ownership
of sales and purchase agreement. The change of air-conditioning system or other
maintenance issues was solely relying on the autonomy of each owner.
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Chapter 4
Discussion and recommendation
Outline
Having demonstrated the implementation of energy efficiency measures in a typical

commercial building in Hong Kong, the effectiveness of the energy efficiency will be
discussed in this chapter. The effectiveness will be mainly base on the different of
electricity consumption reduction before and after the implementation of such
measure. Furthermore, the payment payback period will be also calculated in order to
evaluate the feasible means of energy efficiency in commercial building. The figure
and data involved will mainly base on the secondary data provided by The Manager.
Prior to the evaluation of feasibility of implementing energy efficiency measures in

commercial building, the objectives of this dissertation would be reviewed based on
the finding from literature review and case study.
4.1
First objective : Energy efficiency
Considered the study of different scholars, energy efficiency refers to the ratio
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between electricity input and the output of BSI. Higher energy efficiency means lower
electricity required for producing same quality of building services provision, such as
cooling load of air-conditioning system and lighting level. This concept was widely
accepted by building owners and manager.
For measurement, while researchers had given sophisticated measurement of energy

efficiency, but in reality, few owners would likely adopt. It was mainly due to the cost
implication in adopting their method, like computer simulation. Thus, the owners
would like to choose to rely on the comments from the building manager as well as
the maintenance report from the maintenance service contractor. For instance, they
would rely on the COP of chiller plants and the energy consumption of the lighting
equipments.
4.2
Second objective : Rationale of energy efficiency
While there was good reason from the view of the environmental protection and
sustainable development in promoting the energy efficiency in building, however,
such concerns would not be taken in consideration in reality.
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In a commercial city like Hong Kong, the most effective driven force in promoting
the energy efficiency measures in building was closely related to the commercial
outcome. For instance, the profit could be brought by enhancing the reputation
through enhancing the energy efficiency of building was a good reason for implement
energy efficiency measure. Besides, the future saving in electricity cost would be
most direct way to convene people in adopting energy efficiency measures.
4.3
Third objective : Means of energy efficiency
Chan & Yeung (2004) advised that the goal of enhancing energy efficiency can be
achieved by replacement of higher efficiency equipment and using a good time
management method. Under each category, there were numerous options for the
consideration of decision maker.
Both approaches had been adopted by the owners of The Building. They also agreed
to commence the energy efficiency measures from the two largest electricity
consumption sector, the air-conditioning system and lighting system. However, it was
observed the owners less likely to invest on the items without immediate appearance
result, such as investment on T5 electronic ballast fluorescent tube.
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Furthermore, it was observed that they focus on their own business which overrides
the achievement of energy efficiency. They intend not to risk the potential loss in
productivity and comfort of their employee so as to reject the proposal of adjusting
the temperature of chilled water.
4.4
Forth objective : Factors concerning energy efficiency
While there were numerous external factors in facilitating the energy efficiency
projects in building, it was regretted to notice that the effectiveness was marginal. The
case of subsidy from HKSAR and recognition from green organization would be
discussed in the section below.
4.4.1 Subsidy from government
In 2008, HKSAR had injected 1 billion in the ECF. As there was Owners
Incorporation in The Building. The IO had joined the programme and applied for
subsidy from the government in 2009. According to the requirement of ECF, The
Manager had appointed QSP to conduct energy audit in The Building and seek for
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energy efficiency improvement proposal.
However, during that period of time, most of the energy efficiency measures had been
studied, tendered and implemented by The Manager, it was not surprised that there
was no suggestion from the QSP. It was also noticed that the requirement of the
HKSAR was not too harsh. Thus, the works done by The Manager already fulfilled
the requirement of HKSAR. The HKSAR did not provide any subsidy to The
Building on enhancing the energy efficiency but both HKSAR and The IO had to pay
$24,000 to the QSP for obtaining the report with any positive suggestion
4.4.2 Recognition from green organization
Other than the subsidy from government, The Building also tried seeking assistance
and gaining recognition from green organization, such as LEED and BEAM Plus.
However, The Building had encountered problems during the application. It was
mainly due to the prerequisite items.
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4.4.2.1 Minimum energy performance
One of the main problems was related to the minimum energy performance in The
Building, which was required by both LEED and BEAM Plus. While The Manger had
submitted the electricity consumption data and BSI information to the green
organization, a critique was raised. They criticized that the main electricity meter of
The Building was connected to both common and private facilities.
During the development of The Building, there was no concern of common and
private as The Building was solely owned by The Bank. Thus, the concern of common
and private use was not taken into consideration during the zone design of electrical
schematics. However, the meter in-question consumed over 50% of the total power
consumption. Despite there was a check meter monitoring the energy consumption by
the private portion, The Manager had no idea what private electrical devices were
connected to this meter. Thus, such arrangement was not accepted by both
professional green organization and their prerequisite items could not be fulfilled.
Nevertheless, The Manager had tried seeking proposal on modifying the existing
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electrical system in order to rezoning the power system. Due to spatial constraint of
the main switch room, substantial alternation to the electrical as well as structural
work were required and great disturbance would be caused to the occupants during
the cause of work, most electrical contractors were reluctant to submit proposal in the
very beginning.
The other main obstacle in applying recognition from green organization was deal
with the problem of the air-conditioning system. Other than the temperature of the
supply and return of chilled water, these green organizations also required for the data
of air flow and in-door air quality of the premises. Furthermore, they also required for
regular maintenance work of the air duct.
In order to fulfill these requirements, having preliminary studied by the service

provider, it was required to install sensor and thermometer inside the air duct. Besides,
cleaning of air duct should be proceeded by contractors in order to obtain the
certification from qualified services provider.
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It was easily seen by The Manager that the difficulties in meeting such requirement.
First, the air duct was installed inside the private premises and was concealed with
decoration. Installation of sensor and thermometer required substantial alteration to
the decoration. Second, the air duct was owned by individual floor owners and
respective air duct cleaning was solely relying on their autonomy.
4.5
Fifth objective : Constraint of energy efficiency
Most scholars were corrected that one of the main constraint of promoting energy
efficiency measures was closely related to the building design. The spatial constraint
of a building would limit some of the enhancement work, such as replacement of
chilled raiser.
However, those constraints may still be overcome if substantial investment was input.
The real obstacle in promoting energy efficiency in a commercial building was the
problem of multi ownership. If the energy efficiency project required coordination of
different owners or involvement of their owned private decoration work alternation,
there was no way to enforce the work as their right of ownership cannot be override.
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4.6
Main objective : Evaluation of feasibility of implementing energy

efficiency measure
In this section, the payback period of each energy efficiency measures would be
reviewed base so as to evaluate the feasibility of implementation energy efficiency
measure.
4.6.1 Payback period
To reiterate, payback period refers to the period of time required for the return on an
investment in order to recover the sum of the original investment. The payback period
of the energy efficiency measure will be reviewed according to different type of BSI
as mentioned in the case study.
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The lump sum cost of replacement of AACS by WACS with other accessory
modification work was about HK$5,700,000. During the course of replacement work,
an individual check meter was installed in the A/C control room in order to monitor
the energy consumption of the chiller plants. In the past, there is no separate check
meter for the whole chiller plant system which 7 nos. of AACS was connected to two
different HKE meter. Nevertheless, The Manager had kept close monitoring to the
energy consumption as well as the fluctuation of consumption from time to time.
Besides, since the replacement work did not involve interruption of A/C supply, there
was no business lost claim from the occupant of The Building during the replacement
period.
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4.6.2.1.2 Saving
From the data provided by The Manager, the electricity consumption for the peak
season in 2009 was about 30% less that in the same period in 2006, represented by
about $150,000 in terms of money. Throughout the whole year, the total saving in
electricity was about $800,000.
Besides, other than saving in electricity cost, there are saving from the maintenance
and expected repairing work for the old AACS system. Since 1-year warranty
guarantee was provided by the nominated contractor, the monthly maintenance fee
had been reduced by $10,000 per month for the first 12 months. In addition, according
to the budget of The Building, the provision for repairing air-conditioning system was
about $15,000 per month. It was expected that the general condition of the WACS was
good in first 3 years, thus, there was an additional $500,000 saving from the repairing
works for chiller plants.
In this regards, the payback period would be investment cost (Cost of replacement
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minus the saving from repairing cost) divided by the annual saving represented by
($5,700,000 - $500,000) divided by $800,000 per year, i.e. 6.5 years.
In view of substantial saving can be promoted by replacement of chillers plants right

after replacement of the chiller plants, this measure was accepted by owners. Thus, it
would be a feasible measure in enhancing the energy efficiency if there was sufficient
initial fund.
The lump sum cost of installation of 8 nos. of frequency inverters were $450,000. To
minimize the inconvenience caused to occupants, it was chosen to carry out the work
in non-working date. However, during the cause of work, assessment of some of the
individual units was needed for the sake of security.
Thus, attendance works by particular floor occupants were required. Nevertheless, all
occupants had taken a corporative attitude towards this energy efficiency work; no
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cost implication was incurred for their extraordinary attending services.
4.6.2.2.2 Saving
To quantify the electricity saving incurred by the installation of frequency inverter,

some problems had been encountered by The Manager. One of the main problems was
there was no individual check meter connected to each AHU. There was only a check
meter connected to all AHUs and other BSI.
Nevertheless, The Manager can monitor the energy consumption of each AHU
through the control panel from the frequency inverter and estimate the saving on
electricity consumption. However, it was found by The Manager that there were large
variances on electricity consumption among different AHU, especially during the
winter season.
Having studied the detail by The Manager, it was estimated that the large variance
was due to the condition of the VAV boxes in the office premises. It was found that
the energy consumption of the AHU in the floors owned by the Major Owner was less
than that of others. It was also believed that the in house equipments and facilities of
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the Major Owner was proper maintained by their facility management team while the
same services was not available in other floors. Thus, the AHU and frequency
inverters connected to the floor owned by the Major Owner were well functioning
while the others were not.
Since there was no saving from maintenance cost on the air side equipments from the
installation of frequency inverters, the payback was solely rely on the electricity
saving from the electricity reduction.
According to the estimation from The Manager, the overall saving benefit from this
installation was only 10%, after including the effect resulted from the poor
maintenance of VAV boxes. In terms of money, the overall saving was only about
$20,000 a year. Thus, it would take more than 20 years to recover the investment for
this installation work.
In view of long payback period, most owners found the investment on this measure
not worthy. Given the existing constraint of the ownership nature, this energy
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efficiency measures was found not feasible.
Since the upgrading and relocating of BMS was served as VO of the replacement
work of WACS, there was discounted rate offered by the nominated contractor on this
project. Having negotiated with the nominated contractor back and fore, The Manager
had bargained for the best offer of $180,000. This lump sum cost including the supply
and replacement of BMS as well as necessary builders work, such as coring work and
bamboo scaffolding work.
4.6.3.2 Saving
After completion of this project, it was reported by the maintenance contractor that
the performance of the chiller plants was largely improved, especially during the part
load period. The high efficiency of the chiller plants was benefited from higher
sensitivity of the sensor and sophisticated programme of BMS.
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There were 4 nos. of compressors in each WACS and there were 2 nos. of
compressors in each AACS. In winter, the new system only operated 0.5 to 0.75
chiller plants, represented by 17% - 25% of total cooling load, while the old system
need to operated 1.5 2 chiller plants, represented by 21% - 28% of total cooling load.
In summer, the new system only operated 1.5 to 2 chiller plants, represented by 50% 67% of total cooling load, while the old system need to operated 5 6 chiller plants,
represented by 71% - 86% of total cooling load.
On the other hand, there was additional saving from manpower resource on daily
maintenance and monitoring on the operation of the air-conditioning system,
represented by 0.1 nos. of technician which the average monthly salary was about
$15,000. Besides, the efficiency in handling the request from the building occupant
and emergency case had been enhanced. However, such benefits were hard to be
reflected in terms of numerical.
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Excluding the uncountable part, the annual saving of this project was about $50,000
which $32,000 was benefited from electricity saving caused by better programming
and $18,000 was contributed by saving in manpower. In this regards, the payback
period would be investment cost divided by the annual saving represented by
$180,000 divided by $50,000 per year, i.e. 3.6 years.
Since the building occupants can enjoy better A/C services in response to their actual
need and the payback period was relevant short, they found it acceptable. Thus, this
energy efficiency measure was found feasible.
Since the owners of The Buildings was not intend to invest on improving the energy
efficiency of the lighting system, after subsequent coordination and negotiation work,
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The IO had entered a profit share agreement with an lighting product supplier on
adopting T5 electronic fluorescent tube.
In such arrangement, there was no cost incurred on the material side of lighting
system as all lighting tube and fixture were provided by the suppliers. However,
indeed, there was cost incurred during the inspection stage and the installation of the
lighting fixture and tube. Nevertheless, in view of long business partnership between
The Manager and The IO, no extra cost was charged. In other words, there was no
investment cost for the energy efficiency project for lighting.
4.6.4.2 Saving
During the inspection and pre-agreement stage, trial was carried out in designated
zone area. According to the agreed figure, the energy consumption of the T5
electronic fluorescent tube was 25% less than the original tube. In terms of electricity
cost, the new tube could save about $30 a year.
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In first 6 years, there would be no investment cost for The IO according to the
agreement. Thus, there was no concern on payback period during this length of time.
However, on the 7th year, The IO had to undertake the repairing and maintenance cost
of the tube subject to renewal of such agreement.
According to the study by The Manager, the material cost of each T5 electronic
fluorescent tube was about $120 while the tradition tube was about $15. Thus, in case
The Manager need to purchase the T5 electronic fluorescent tube by themselves, there
was an additional cost of $105 each tube.
Since the annual saving of each T5 electronic fluorescent tube was $30, the payback
period would be the material cost divided by the annual saving of electricity
represented by $105 divided by $30 per year, i.e. 3.5 years.
Since no initial investment was required for this project, all owners welcome such
replacement work. Thus, this energy efficiency measure was found feasible.
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The lump sum cost of the capacitor bank installation work was $190,000. However,
since the work had to be carried out in midnight in order to minimize the
inconvenience caused to the building occupants, extra attendance services and
supporting were arranged. For instance, as there was a customer services centre and
data server in The Building, the facility management team of The Bank need special
arrangement to ensure smooth operation of their services.
It was unavoidable that there was extra cost implication. However, as stipulated in the
DMC, The Manager had full power to suspend some of the BSI services, including
electricity supply, in order to proceed necessary repair and maintenance work
provided that sufficient notice period was given. Thus, these extra charges had to be
absorbed by the owners themselves.
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4.6.5.2 Saving
After completion of work, the power factor of The Building had been largely
improved to 0.9 which enable The Building to stay with the Bulk Tariff. Besides, the
efficiency of the electrical system was believed to be improved and stabilized.
However, such improvement was hardly to be quantified.
In case HKE refused to offer Bulk Tariff to The Building due to poor power factor,
The Building must adopt normal non-domestic tariff. Preliminary, The Manager
expected that the electricity cost would be increased by about $13,000 in the peak
season and the annual different between two tariff was about $40,000.
In this regards, the payback period would be the installation cost divided by the
annual saving, represented by $190,000 divided by $40,000 per year, i.e. 4.75 years.
Since all owners can enjoy better rate of electricity charge and stable electricity supply,
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they welcome such measures. Thus, this energy efficiency measure was found
feasible.
The attractive advantages of enhancing energy efficiency of a building through

changing the building operation approach were convenience, direct and low
investment cost. In this case, the change of schedule of lighting in common life lobby
and lift operation schedule did not involve any cost investment and the benefits result
could be enjoyed immediately.
4.6.6.2 Saving
According to the data provided by The Manager, normally there were 15 nos. of
fluorescent tubes provided in each floor lift lobby. As discussed with the fire services
system maintenance contractor, operation of 5 nos. of fluorescent tubes could meet
the requirement of emergency lighting. Thus, while The Manager had rescheduled the
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lighting period, 2-hours of lighting energy could be saved. Applying the same
principle to all floors, The Manager could achieve electricity saving of $5,000 per
year excluding the concern of the different between tradition fluorescent tube and T5
electronic fluorescent tube.
For lift operation, since the energy consumption during standby of lift was very low
as advised by the lift system maintenance contractor, the achievement on energy
efficiency benefited from change of lift services schedule was very margin, say about
$100 per month. However, the lift contractor highlighted that the major benefit
achieved was enhance the life span of the parts of the lift system, such as main rope
and engine of the lift, which was another aspect of promoting green building
management.
Since there was no investment cost for the change of building operation model, there
was no concern on the payback period. Except the occupant with extraordinary
business hours, all owners welcome such measure in promoting energy efficiency.
Thus, this energy efficiency measure found feasible.
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4.7
Limitation
Base on the analysis above, the issue of investment cost, saving and payback period
had been well discussed. However, it was also observed that some limitation had been
encountered during course of work, including the issues of uncountable factors,
inflation and availability of data.
4.7.1 Uncountable factors
While calculating the payback period of each of the energy efficiency measures,
major factors would be taken into consideration, such as installation and replacement
work cost and the saving from electricity consumption reduction.
However, some of the factors were hard to be quantified as they were uncountable.
For instance, The Manager had input extra resource and manpower on studying and
implementing energy efficiency measures, such as changing the operation model and
coordinating with the lighting tube supplier, without extra paid. But indeed The
Manager had invested on these energy efficiency projects.
144
On the other hand, other than the saving from electricity consumption reduction, there
were another type of reward from implemented those energy efficiency projects. For
instance, prolonging the life span of BSI, such as the parts of lift system, and
reduction on responding time in the event of air-conditioning system breakdown, they
were benefit from the energy efficiency measures.
At last, there were also adverse effects from the building occupants in response to
these energy efficiency measures. They had claimed for business lost and loss in
reputation during implementation, such as put forward the closure of partial lighting
and lift services. The Manager had to do extra work when handling these problems.
All of these were negative factor in calculating the effectiveness of an energy
efficiency measures but hard to be quantified.
4.7.2 Inflation
It was obvious that the payback period of major energy efficiency project would take
a couple of years, such as the replacement of AACS to WACS and installation of
capacitor bank. In past decade, the economic growth in Hong Kong was sharp and at
145
the same time Hong Kong had been suffered from rapid inflation.
While the initial investment cost was determined during contract award, the saving
from electricity consumption reduction and manpower resource would be fluctuated
from time to time. It came to the attention that recently both CLP and HKE proposed
increment in electricity cost which their proposed rate of increment was substantial.
Thus, as the electricity cost was the critical factor in calculation of payback period,
the payback period would be strongly varied with the change of unit rate of electricity
cost. In case the electricity cost increase continuously, the payback period would be
shorter, vice versa.
Besides, the material and labour cost of those energy efficiency projects were found
increasing from time to time. Thus, the payback period advised in above sections may
not be applicable to other buildings in later time due to sharp inflation.
4.7.3 Secondary data
The analysis above was based on the secondary data provided by The Manager,
maintenance contractor, nominated contractor and product providers. While they had
146
enthusiastic on promoting the energy efficiency in The Building, they, on the other
hand, were doing business. Thus, they had their own business interest in those
projects and, thus, would present it in a feasible and pleasurable way. Besides, some
of the negative factors may not be mentioned by them, such as the problem of VAV
boxes. As a result, their proposal and payback period were opened to further review
by the factual data.
Nevertheless, a building manger was not the true expertise in energy efficiency. Their
opinions were sometimes inaccurate and their services had no guaranteed in energy
efficiency. However, a manager was the best position in coordinating all stakeholders
to come up for energy efficiency work in view of convenience and low initial running
cost.
In short, a better way to reviewing the energy performance of a building was to access
the raw data, such as electricity bill, energy consumption data, specification of tender
scope as well as some of the agreement. However, all of these involved private and
confidential data and business concerned data. All parties were reluctant to release
such data for studying purpose.
147
.
Chapter 5
Conclusion
Having gone through an energy efficiency enhancement campaign of a commercial

building in Hong Kong, the rationale, feasibility, implementation and constraint of
energy efficiency measure in a typical commercial building had been discussed. It was
undoubtedly that campaign was not totally success but the overall results had been far
accepted by most owners of The Building.
Nevertheless, the key successful factor of implementing energy efficiency measure in

The Building was the position of Major Owner and the existence of sinking fund. The
decision of the Major Owner in certain sense overrides the rest of the owners in
proceeding the energy efficiency works in common area. Besides, as all owners had
contributed to the sinking fund on monthly basis from time to time, there was no
problem on financing the energy efficiency project. Thus, the process of the overall
campaign was found smooth.
However, there were constraints existed which hard to be overcome. The basic
problem was the design constraint. Due to outdated design, including structural design
148
and BSI provision, the effective of the energy efficiency measure was limited and
some of the measure even cannot be implemented. Besides, this old type commercial
building was hard to participate in the programme from green organization with new
green standard.
Nevertheless, the biggest problem was deal with the problem of multi-ownership
nature of The Building which the mindset of all owners were not united. Even with
the existence of Major Owner in The Building, the extent of energy efficiency
measure still limited as the decision of co-owners cannot override the enjoyment and
exclusive possession of a private premise.
In this regards, it seems that there is only one way to enforce energy efficiency
measure in commercial building, i.e. the action by the government. However, as
reminded by Yik, Burnett, Jones & Lee (1998), the existing arrangement for
mandatory enforcement of the ordinance regarding building energy efficiency would
only achieve moderate improvement as their requirement cannot be too harsh. The
same had been support by the case in The Building which the action of The Manager
already fulfilled the requirement of the QSP. Thus, it would further require the policy
maker to fine tune the position of HKSAR
149
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Title

An evaluation of the feasibility of implementing energy efficiency

The author retains all proprietary rights, (such as patent rights)

An Evaluation of the Feasibility of Implementing Energy Efficiency Measures in

Hsiao House Yip, Bonson

Submitted in partial fulfillment of the requirements for

I declare that this dissertation, entitled An Evaluation of the Feasibility of

To promote energy efficiency so as to accomplish reduction on electricity

As advised by Electrical and Mechanical Department, the Building Manager is one of

Measurement of energy efficiency

2.4.1.2.4 Change of air-conditioning operation mode

Rationale of energy efficiency

3.4.1.2.2 Proposal and tendering stage

3.5.1.5.1 Situation and problems

Discussion and recommendation

Third objective : Means of energy efficiency

4.4.2.1 Minimum energy performance

4.6.4.1 Initial investment

1.1.1 GHG emission sector in Hong Kong

Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), Sulphur hexafluoride (SF6).

Figure 1 Greenhouse Gas Emissions in Hong Kong by Sector

Figure 3 Percentages of Greenhouse Gas Emissions in Hong Kong by Sector

1.1.2 Electricity consumption sector in Hong Kong

In order to reduce the electricity consumption in Hong Kong, it was required to

Figure 4 Electricity Consumption by Sectors

Figure 5 Percentage of Electricity Consumption by Sectors

would achieve most efficient result in reduction in overall electricity consumption.

1.2.1 Implementation of energy efficiency measures

To achieve reduction on GHG emission and ensure sustainable development of a city,

implementation of energy efficiency measures in commercial buildings was not an

1.2.2 Study goal and objective

This main objective of this dissertation would be evaluated the feasibility of

To recap, the issue of implementation of energy efficiency measure in commercial

In this section, it would stipulate the conceptual framework of this dissertation. It

At last, the process of implementation of energy efficiency would be concerned. As

It had been considered to conduct benchmarking on the energy efficiency measures

obtain the essential information for study.

1.4.1 Literature review

Furthermore, for reference guideline, mechanism and assessment framework, the

1.4.2 Case study

Concept of energy efficiency

Measurement of energy efficiency

To have accurate measurement of energy efficiency of a building, a numerous key

Rationale of energy efficiency

2.3.1 Cost saving

efficiency. Reduction of energy consumption would result in reduction on electricity

2.3.2 Environmental protection

emissions should be reduced by at least by more than 50% in coming 50 years so as to

2.3.3 Sustainable development / energy crisis

Means of energy efficiency

Nevertheless, the concept of enhancing energy efficiency through better building

2.4.1 Technical appliance

Replacement of higher efficiency equipment was the strict forward means of

To achieve effective result on environmental protection and sustainable development

2.4.1.1 Lighting system

2.4.1.2 Air-conditioning system

refer to the presence of occupants, lighting and other head-generated equipments.

2.4.1.2.1 Heat rejection method

2.4.1.2.2 Water side equipment

2.4.1.2.3 Air side equipment

2.4.1.2.4 Change of air-conditioning operation mode

Other than replacement of air-conditioning equipments, Lam, Li & Cheung (2002)

2.4.1.3 Building operation approach