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?