A bounty on low efficiency motors

The Electricity Commission recently contracted Energy Associates to launch an electric motors bounty scheme with the aim of providing an incentive to remove low efficiency three-phase motors from New Zealand industry. A pilot programme is now underway and a national roll-out is expected for September 2008. Three phase motors have been subject to MEPS (Minimum Energy Performance Standards) in New Zealand since July 2002 with a major revision in 2006. [To get a good understanding of the latest standards go to] Under the bounty scheme motor users will receive attractive bounties for removing certain old electric motors and be rewarded for getting new high efficiency ones into service. There are also the obvious flow-on benefits of reduced electricity costs and improved reliability. The bounty scheme will be time-limited and the rates reviewable. The Electricity Commission says that it’s important for motor users to begin preparations now so they can take immediate advantage of the national scheme when it is launched in September.  They can do this by identifying qualifying motors and making appropriate provisions in their capital budgets for new motor purchases. Motors that qualify under the bounty scheme are three-phase induction motors manufactured prior to 2002, with outputs from 22kW to 185kW. Submersible motors or motors that are integral with, or inseparable from, the equipment being driven, do not qualify. Replacement motors must be 2006 MEPS compliant (meaning that they meet or exceed the efficiency levels provided in Table A2 or Table B2 of AS/NZS 1359.5:2004. Motors larger than 185kW may be considered for a bounty if a 2006 MEPS motor is being purchased as a replacement. The motor bounty paid in these instances will be based on a motor size of 185kW. The current pilot scheme bounty payment rates are $4 per kW for failed motors, and $24 per kW for operational motors. There is an additional in-service bounty of $3 per kW per 1000 hours). Therefore if the motor is 150kW and has failed, the total bounty paid when replaced by a 2006 MEPS compliant motor within one year is $2625. If the motor is still operational, that figure climbs to $5625. In certain circumstances a bounty for stored motors that are not put into service within the one year time frame might still be paid – but this is subject to negotiation. How does the scheme work? Users identify their motors that qualify and they want to bounty. This could be done by suitably qualified staff, qualified external contractors or an accredited service provider, and is at the user’s expense. A bounty application form is completed and submitted. The details will need to be checked by an accredited service provider. Once the application is approved and the motor removed and disabled, the user receives the ‘motor bounty’ part of the bounty payment. Once confirmation that a suitable replacement motor has been installed, the additional ‘in-service’ bounty payment is paid. reader enquiries quote: D080528-1

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