A Comparison Between Industrial Energy Efficiency Measures in Guatemala and the United States

Energy auditing has been cited as a key tool in closing the gap between the actual energy consumption in industrial facilities and what should be at an environmentally sustainable level. Several factors affect the likelihood that energy audits will be effective in closing that gap, and more analysis is needed to understand these factors, especially for developing nations. This study compares three energy efficiency measures (EEMs) frequently recommended in both the United States and Guatemala, namely, installing solar panels to generate electricity, installing higher-efficiency lighting, and upgrading to premium efficiency motors. The implementation of each of these EEMs contributes to more sustainable energy consumption, and each of these EEM’s payback periods is affected by capital costs, energy costs, and other local factors analyzed in this study. Projected payback periods for each EEM based on Guatemalan and U.S. capital cost and energy cost ranges are assessed via EEM-specific payback period calculations and compared to the energy audit data from each country. While lower capital costs incentivize EEM implementation and reduce payback periods, there is an interplay between energy cost and capital cost that impacts the trends in the U.S. and Guatemala. As in the case of the solar panel installation EEM, though Guatemalan companies pay ~110% more for electricity than U.S. companies, when Guatemalan capital costs are lower, payback periods are lower than in the U.S. Conversely, in cases where Guatemalan capital costs are higher—as for higher-efficiency lighting and motor installation—Guatemalan payback periods are roughly the same as those in the U.S. because of the higher Guatemalan energy costs.