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An Investigation of the Utilization of Energy and Water Conservation Technologies in Bahrain:
Entrepreneur opportunity
College of Business and Finance
Professor Mukhtar AL-Hashimiand Sayed Dheya Hassan Ahmed
Introduction & Background• Increasing consumption of electricity, water, and other
forms of energy around the world continues to be a majorchallenge for many country.
• On the other hand, the sharp decline in oil prices since2014 has resulted in significant shortages in revenue formany oil energy exporting nations, making it difficult tocontinue subsidizing the energy sectors for its localconsumers.
• The electricity and water sector is directly affected by theglobal fall in oil prices. As a result, governments in thegulf producing countries were forced to reduce thesubsidizing of local oil price and increase the cost ofpower and water to local consumers.
• This has created an opportunity for consumers andentrepreneur to investigate the potential of acceptingenergy and water conservation technologies in Bahrain.
Oil prices decline impact on Power Generation and the need for conservation
What is Energy Conservation ?
It is the process of reducing the consumption of energy through the use of lesseramount of services that generate energy. Zehner (2012)
Basically, energy conservation refers to using less energy and it is a behavioral habit,turning lights off or setting thermostat lower are examples. The Canada Natural Resources(2014)
Importance of Energy Conservation
It is at the top of hierarchy of the sustainable energy. Leslie, et al(2012)
Introduction & Background
Benefits of Energy
Conservation
Lower energy costs Reduce energy services Increase environmental quality Higher savings Increase personal financial & national
securities. Prevent future resource depletion .
Benefits of Energy Conservation
What is the public awareness of these devices them?
What is the public acceptance of them?
Which among these EWCT devices are consumer preference for entrepreneur opportunity in Bahrain?
Question to be answered?
Objectives of the Research
3. To come up with customerpreference of proposed current marketElectricity and Water ConservationProducts.
2. To study the EWCT that can beavailable in the market of Bahrain interms of Financial Profitability,Government Support, Regulation andTechnological Aspects.
1. To determine the current status ofutilization of EWCT in the Kingdom ofBahrain in terms of the devices used,extent and frequency of utilization,acceptance of EWCT and awareness onthe Government Energy ConservationPrograms.
4. To propose an appropriateBusiness Model for the conservationproducts in the market of Bahrain.What is the business opportunity fromcustomer preference among theseenergy and water conservationtechnologies?
Significance of the Study• Understand the people attitude and awareness and acceptance of conservative
technologies.• Identify what conservation appliances are applicable in Bahrain• Underline the entrepreneur opportunities for EWCT in Bahrain this study.• Contribute to the area of knowledge for both the government and among businesses
Road MapLiterature Reviews
EWCT Theoretical and Empirical
Research Questioner Awareness and Acceptance
Bahraini Preference EWCT Devices
Market Study Proposed an propitiate Business Model for
EWCT in Bahrain
Authors/Researchers
Objective of study
Variables measured & Instruments used
Results
Reihart, et al(2013)To study the benefits of
mobile technology, tomonitor homeautomation and energyusage.
Conservation
awareness/
Experimental survey and questioners
There is a considerable global effort being made
towards identifying ways of reducing energy
consumption to cope with growing demands.
The study shows the potential benefits of mobile
technology, a system which combines home
automation and energy usage monitoring
technologies.
Busnelli, et al (2013) To study Consumers attitude towards saving energy
Consumers attitude towards conservation/Market research(UK)
Consumers are positive about saving energy and expect business and the government to take the lead on the journey toward the low-energy home.
Gibbon (2014) To study Water-use efficiency in Adoption of water-saving appliances in different sectors
Public attitude towards power and water conservation/Experimental survey and checklists
There remains a potential to increase water-useefficiency at home, in businesses, and ingovernment. At home, adoption of water-savingappliances, fixtures and replacement of lawnswith water-efficient landscapes, could reducetotal residential water use by 40 to 60%,
Literature Review Overview
Authors/ Researchers
Objective of study
Variables measured & Instruments Used
results
Kappel&Grechenig(2009)
To study Consumers behaviour towards water conservation
Consumers attitude towards water conservation/
Experimental research and questioners
Two types of people:Who thinks they are ecologically conscious, changed their
behavior and turned the water down/ off while soaping and willing to pursue this behavior.
who did not have the goal to act, were surprised about their water consumption, tried to reduce it. After the removal of the show-me device they did not maintain their behavior.
Randolph (2008)
To study public policy in reducing water consumption and providing alternative domestic supplies
Households attitudes towards energy conservation
Telephone and focus group interviews
For public policy is to be successful in reducing consumption and/or providing alternative domestic supplies of potable water.Forces shaping demand needs to be understood in the context ofthe socio-demographic composition of households in differentkinds of dwellings, as well as the cultural, behavioral andinstitutional aspects of consumption.
Jordon Water Efficiency and Public Information for Action(2000)
Evaluating Retrofitting programs for sustainable and sufficient water savings over time.
Profile of different energy and water conservation systemsQuestioners , checklist and focus groups
Retrofitting alone is insufficient to sustain savings over time. It is need to begin policy and regulatory incentives to encourage and facilitate the use of WSDs. The variability in sanitary and plumbing fixtures in terms of type, make, and condition . Variations in flow rates and water quality . Many of the toilets leaked due to scale and sediment manufacturing deficiency. All these factors indicate that future retrofitting programs should consider a comprehensive water audit for all selected sites before purchasing fixtures.
Literature Review Overview, cont.
Theoretical Framework of the study
Research Design and MethodologyTarget Population:The population is Bahrain Families/ household irrespective to their Living
Area(151,000 households based on Bahrain Census 2010)
Sample Criteria and Sample Size:The convenient, snowball-sampling and purposive(according to area
population) sampling technique were applied. The sample size was 384 participants required, valid questionnaire were 350. Questionnaire;400 distributed by hand and via web link.Structured interviews for engineers from EWA & Ministry of Commerce.
Methods for data analysis :Analysis: Using SPSS V. 20 Software Package.
Reliability and Validity & Hypothesis Tests:
Cronbach’s Alpha pilot questionnaire's constructs 0.697 ~ 0.921
Internal Consistency (Achieved) item-item correlation (≥ 0.3)
item - total correlation (0.5)
Descriptive statistics, Frequency and percentage, Mean score
Hypothesis Tests: Regression analysis, ANOVA test. &Person product moment correlation
Research Approach= Quantitative & Qualitative
Major Finding Demographic Profile
Categories Frequencies Percent
25-34 135 38.6%
35-44 109 31.1%
45-54 66 18.9%
Under 25 35 10%
>55 5 1.4%
Ages
Demographic Profile
Categories Frequencies Percent
Muharraq 24 6.78%
Capital Directorate 79 22.61%
Northern Directorate 205 58.54%
Southern Directorate 42 12.06%
Living area
Major Finding Acceptance
of EWCT
Type of
Residence Gend
er
Monthly
IncomEducation
Level
Nationality
Living Area
Categories (BD) Frequencies Per cent
Less than 500 86 24.6%
501-1000 135 38.6%
1001-1500 65 18.6%
1501-2000 29 8.3%
More than 2000 35 10.0%
Descriptive Analysis
Conservation Programs and
government support
QuestionAccept
. Level
With the rise of oiland power prices, I think theconservation technologies willhelp me in reducing electricityand water bills
High
Bahrain Government shouldformulate a policy frameworksthat imposes the utilization ofconservation technologies andforce implementing them innew public buildings
High
The following technologiesused for conservation areavailable in my house: Roofand walls thermal insulation,windows double glazing,energy efficient lighting,Power on/off timers, Faucetaerators, Electronic watermixers and Irrigation timers
High
I am aware of the conservationprograms provided byElectricity and WaterAuthority in Bahrain to public
Med
Customer Needs
QuestionAccept
LevelThe local supplier ofconservation productsshould be certified byElectricity and WaterAuthority/Ministry ofcommerce
High
Warranty period andquality of conservationproducts is the mostpriority before buyingthem
High
I prefer to buyconservation productsfrom local supplierrather than overseasbuying, because thelocal one will providewarranty and aftersale service
High
I am willing toimplement and use theelectricity and waterconservation devices inmy house if they areavailable with a priceof 70 BD in average
High
Willingness & Acceptance for proposed EWCT
QuestionMea
n
Accept
Level
1Energy Efficient Lighting for
rooms4.03 High
2 Faucet Aerators 4.02High
3 Smart Meters 3.92High
4 Wireless Motion Sensors 3.90High
5 Leak Detection Tablets 3.90High
6 Leak Detection Refill Valves 3.83High
7 Save a Flush Bags 3.79High
8 Retrofit Energy Saving Device 3.71High
9Mobile Phone Energy Saver
Adapter3.70
High
10 Power Down Devices 3.61High
11 Irrigation Timers 3.49High
12 Shower Timers 3.28Medium
13Electronic water mixers for
basins3.22
Medium
14 Pressure Assisted Tank Toilets 3.16Medium
Total Section 3.68
Major Finding
Top 10 EWCT Devices accepted
Conservation DeviceSelling
price(BD)Device benefits
Energy efficient
lighting 2 - 5Saves 25% of energy consumption
(www.manta.com), Columbus
Faucet aerators 4-5Mixes water with air and reduces 12% of water
consumption (www.wessexwatershop.co.uk)
Smart meters 15Monitors electricity consumption and provides
real time information about usage (www.diehl.com)
Wireless motion
sensors10
Switches equipment/lights on or off and cuts off unnecessary power (www.samsung.com)
Leak detection
tablets1.5
Detect water leaks in toilet and warns about the repair to be done
(www.amconservationgroup.com.), USA
Major Finding
Top 10 EWCT Devices accepted, cont. Conservation Device
Selling price(BD)
Device benefits
Leak detection
refill valves50
Detect water leaks in toilet and warns about the repair to be done
(www.amconservationgroup.com.), USA
Save a flush
bags10
Saves water with every flush (www.wessexwatershop.co.uk)
Retrofit energy
saving device30
Save energy, power quality benefits or surge suppression (www.coolnomix.com)
Mobile phone
energy saver adapter10
Saves energy and provide safety against fire accidents (www.go-green.ae), Dubai
Personal computer
power down devices16
Cuts the power from all PC related devices when PC is switched off and turns them on
when switched on (www.Powerdowntimer.com),USA
Major Finding
Local Market Feasibility
Enterprise customer Government
Large organization
Individual customer
Family Small business
Individual customer. The reasonable prices of these devices will develop a better market prospect for the families and smaller businesses.
Enterprise customers They manage projects and bigbusinesses. These segments can market these devicesdirectly into the local market through thedevelopment of professional relationship with theircustomers.
Operating Income Year 1 Year 2 Year 3
Revenues 29135 43702.5 58270Cost of revenues (BD) 987.725 1481.6 1974
Gross profit 28147.275 42220.9 56296
%Gross profit 96.6% 96.6% 96.6%
Operating expensesales and marketing (BD) 3900 3900 3900Supply & Transport (BD) 460 460 460
General and Admin (BD) 2400 2400 2400Startup Expense Y1 (BD) 1300 0 0Startup Expense Y2 0 0 0Startup Expense Y3 0 0 0Total (BD) 8060 6760 6760Operating income (BD) 20087.275 35460.9 49536
Competitors analysis
Hypothesis Number Hypothesis Statement Status
Hypothesis 1: The utilization of EWCT among segments is not equal. Rejected
Hypothesis 2: There is no preference for the different devices of EWCT among the households and families of Bahrain
Rejected
Hypothesis 3: There are no significant differences in EWCT utility in households according to type of residence differences
Accepted
Hypothesis 4: There are no significant differences in awareness according to educational level differences.
Rejected
Hypothesis 5: There is no significant relation between awareness and willingness to implement EWCT.
Rejected
Hypothesis 6: There is no significant relation between willingness to implement EWCT and acceptance of EWCT.
Rejected
Hypothesis 7: The demographic variables have no impact on acceptance of EWCT devices.
7-1 Type of residence
7-2 Education level
7-3 Monthly Income
7-4 Gender
7-5 Living area
7-6 Nationality
Accepted
Accepted
Rejected
Accepted
Accepted
Rejected
Hypothesis 8: The local supplier of EWCT devices with high quality of product don’t contribute to raise the level of demand.
Rejected
Hypothesis Testing Results
Conclusions
Participants are aware, accept and willing to use EWCT devices beside governmentregulation and incentives play plays an important roles towards utilizing thesetechnologies which lead to a better business opportunities
Business in EWCT is profitable based on market feasibility study .
Participants prefer to buy EWCT from local supplier with a warranty of quality.
This study recommend that the Government should proceed with the subsidy onenergy saving appliances that will have a major financial and production savings inpower Generation.
Educate the public regarding all aspect of the EWCT rational and benefits.
Contribution of Research to Knowledge Provided the empirical data on the market potentials, financial feasibility of EWCT
business. An Investigation of the Utilization of Energy and Water Conservation Technologies
in Bahrain: Entrepreneur opportunity
Which of Worldwide Electricity and Water Conservation Products has Entrepreneur potential for Bahrain?