The true cost of infrastructure investment goes far beyond the initial capital expenditure. Upgrading to more efficient equipment leads to faster returns on investment and more long-term savings.
A commonly used method to calculate the actual cost of an asset purchase is the total cost of ownership (TCO). Assessing product cost across the entire lifecycle, TCO considers the price of purchasing, operating, managing, and disposing a product. When purchasing motors, which are used in pumps, compressors, fans, and refineries, the TCO includes the effective price of the motor, and the costs of both running and not running the motor. Given that motors and other machines have an average lifetime exceeding 20 years, the costs of running and not running far exceed the initial purchase price, which usually sits at less than three per cent of the TCO.
The cost of running a machine is the associated energy, operation, and maintenance costs. The cost of not running is calculated as the impact unplanned machine failure has on production and even a company’s brand and image. For an IE5 Synchronous Reluctance (SynRM) motor, the upfront cost is just two per cent of its TCO, while maintenance accounts for one per cent and the remaining 97 per cent is spent on electricity.
Older motors have higher cost of running and cost of not running because they are less energy efficient and may be more prone to downtime. Many older motors are also installed direct online, meaning that there is no way to optimise or control electricity usage. A more efficient motor paired with a variable speed drive (VSD), consumes even less energy and decreases payback time despite the additional cost of a VSD.
By upgrading to motors like the new ABB ultra-premium efficiency IE5 SynRM Increased Safety motor designed specifically for better energy efficiency in hazardous areas, sites can experience almost immediate energy savings and reduction of CO₂ emissions.
ABB customers have been able to reduce annual energy consumption by 22MWh, and save $4400 in energy costs and 7.651kg in CO₂ emissions just by upgrading a single IE3 direct online motor powering a 110kW pump to IE5 SynRM paired with a VSD. Given that motors are used for an average of 20 years, an IE5 SynRM motor upgrade provides returns on investment within the first one to three years of ownership. This leads to direct cost, energy, and emissions savings for the remaining 17 years of service.
Understanding how energy efficiency affects cost of ownership can lead to better returns on investment. To find out more about reducing cost of ownership through efficiency upgrades, visit the ABB website.
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