An Investigation of the Utilization of Energy and
Water Conservation Technologies in Bahrain:
Entrepreneur opportunity
College of Business and Finance
Professor Mukhtar AL-Hashimi
and Sayed Dheya Hassan Ahmed
Introduction & Background
•
Increasing consumption of electricity, water, and other
forms of energy around the world continues to be a major
challenge for many country.
•
On the other hand, the sharp decline in oil prices since
2014 has resulted in significant shortages in revenue for
many oil energy exporting nations, making it difficult to
continue subsidizing the energy sectors for its local
consumers.
•
The electricity and water sector is directly affected by the
global fall in oil prices. As a result, governments in the
gulf producing countries were forced to reduce the
subsidizing of local oil price and increase the cost of
power and water to local consumers.
•
This has created an opportunity for consumers and
entrepreneur to investigate the potential of accepting Oil prices decline impact
on Power Generation and
energy and water conservation technologies in Bahrain.
the need for conservation
Introduction & Background
What is Energy Conservation ?

It is the process of reducing the consumption of energy through the use of lesser
amount 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)
Benefits of Energy Conservation
Benefits of
Energy
Conservation





Lower energy costs
Reduce energy services
Increase environmental quality
Higher savings
Increase personal financial & national
securities.
 Prevent future resource depletion .
Question to be answered?
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?
Objectives of the Research
1.
To determine the current status of
utilization of EWCT in the Kingdom of
Bahrain in terms of the devices used,
extent and frequency of utilization,
acceptance of EWCT and awareness on
the Government Energy Conservation
Programs.
3.
To come up with customer
preference of proposed current market
Electricity and Water Conservation
Products.
2.
To study the EWCT that can be
available in the market of Bahrain in
terms of Financial Profitability,
Government Support, Regulation and
Technological Aspects.
4.
To propose an appropriate
Business Model for the conservation
products in the market of Bahrain.
What is the business opportunity from
customer preference among these
energy and water conservation
technologies?
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 Map
Literature Reviews
EWCT Theoretical and
Empirical
Research Questioner
Awareness and Acceptance
Proposed an propitiate Business Model for
EWCT in Bahrain
Bahraini Preference
EWCT Devices
Market Study
Literature Review Overview
Authors/
Researchers
Objective of
study
Results
Variables measured &
Instruments used
There is a considerable global effort being made
Reihart, et al(2013)
To study the benefits of
mobile technology, to Conservation
monitor
home
automation and energy awareness/
usage.
Experimental survey and
questioners
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)
Gibbon (2014)
To study Consumers
attitude towards saving
energy
Consumers are positive about saving energy and
Consumers attitude
expect business and the government to take the
towards conservation/
Market research(UK)
lead on the journey toward the low-energy
home.
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-use
efficiency at home, in businesses, and in
government. At home, adoption of water-saving
appliances, fixtures and replacement of lawns
with water-efficient landscapes, could reduce
total residential water use by 40 to 60%,
Literature Review Overview, cont.
Authors/
Researchers
Kappel
&Grechenig(2009)
Randolph (2008)
Jordon Water Efficiency
and Public Information
for Action(2000)
Objective of
study
Variables measured &
Instruments Used
To study
Consumers
behaviour
towards water
conservation
Consumers attitude
towards water
conservation/
To study public
policy in reducing
water
consumption and
providing
alternative
domestic supplies
Households attitudes
towards energy
conservation
Evaluating
Retrofitting
programs for
sustainable and
sufficient water
savings over time.
Profile of different energy
and water conservation
systems
Experimental research and
questioners
Telephone and focus group
interviews
Questioners , checklist and
focus groups
results
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.
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 of
the socio-demographic composition of households in different
kinds of dwellings, as well as the cultural, behavioral and
institutional aspects of consumption.
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.
Theoretical Framework of the study
Research Design and Methodology
Target 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
Ages
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%
Major Finding
Living
Area
Demographic Profile
Natio
nality
Living area
Type
of
Resid
ence
Accep
tance
of
EWCT
Educa
tion
Level
Gend
er
Mont
hly
Incom
Categories
Frequencies
Percent
Muharraq
24
6.78%
Capital Directorate
79
22.61%
Northern Directorate
205
58.54%
Southern Directorate
42
12.06%
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
Major Finding
Conservation
Programs
and
Customer Needs
government support
Question
Accept
. Level
With
the
rise of
oil
and power prices, I think the
conservation technologies will High
help me in reducing electricity
and water bills
Bahrain Government should
formulate a policy frameworks
that imposes the utilization of
conservation technologies and High
force implementing them in
new public buildings
The following technologies
used for conservation are
available in my house: Roof
and walls thermal insulation,
windows
double
glazing, High
energy
efficient
lighting,
Power on/off timers, Faucet
aerators, Electronic water
mixers and Irrigation timers
I am aware of the conservation
programs
provided
by
Electricity
and
Water Med
Authority in Bahrain to public
Willingness & Acceptance for proposed EWCT
Question
Question
Accept
Level
The local supplier of
conservation products
should be certified by
Electricity and Water High
Authority/Ministry of
commerce
Warranty period and
quality of conservation
products is the most High
priority before buying
them
I
prefer
to
buy
conservation products
from local supplier
rather than overseas
buying, because the High
local one will provide
warranty and after
sale service
I
am
willing
to
implement and use the
electricity and water
conservation devices in High
my house if they are
available with a price
of 70 BD in average
1
Energy Efficient Lighting for
rooms
Mea
Accept
n
Level
4.03
High
High
2
Faucet Aerators
4.02
3
Smart Meters
3.92
4
Wireless Motion Sensors
3.90
5
Leak Detection Tablets
3.90
6
Leak Detection Refill Valves
3.83
7
Save a Flush Bags
3.79
8
Retrofit Energy Saving Device
3.71
9
Mobile Phone Energy Saver
Adapter
3.61
11
Irrigation Timers
3.49
12
Shower Timers
3.28
14
basins
Pressure Assisted Tank Toilets
Total Section
for
High
High
High
High
3.70
Power Down Devices
Electronic water mixers
High
High
10
13
High
High
High
Medium
Medium
3.22
3.16
3.68
Medium
Major Finding
Top 10 EWCT Devices accepted
Selling
price(BD)
Device benefits
lighting
2-5
Saves 25% of energy consumption
(www.manta.com), Columbus
Faucet aerators
4-5
Mixes water with air and reduces 12% of water
consumption (www.wessexwatershop.co.uk)
15
Monitors electricity consumption and provides
real time information about usage
(www.diehl.com)
10
Switches equipment/lights on or off and cuts
off unnecessary power (www.samsung.com)
1.5
Detect water leaks in toilet and warns about
the repair to be done
(www.amconservationgroup.com.), USA
Conservation Device
Energy efficient
Smart meters
Wireless motion
sensors
Leak detection
tablets
Major Finding
Top 10 EWCT Devices accepted, cont.
Conservation Device
Selling
price(BD)
Leak detection
50
refill valves
Save a flush
Detect water leaks in toilet and warns about the
repair to be done
(www.amconservationgroup.com.), USA
10
Saves water with every flush
(www.wessexwatershop.co.uk)
30
Save energy, power quality benefits or surge
suppression (www.coolnomix.com)
10
Saves energy and provide safety against fire
accidents (www.go-green.ae), Dubai
16
Cuts the power from all PC related devices
when PC is switched off and turns them on
when switched on
(www.Powerdowntimer.com),USA
bags
Retrofit energy
saving device
Mobile phone
energy saver adapter
Personal computer
power down devices
Device benefits
Local Market Feasibility
Individual
customer
Enterprise
customer
Family
Small business
Government
Large organization
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 big
businesses. These segments can market these devices
directly into the local market through the
development of professional relationship with their
customers.
Competitors analysis
Operating Income
Revenues
Cost of revenues (BD)
Gross profit
%Gross profit
Operating expense
sales and marketing (BD)
Supply & Transport
(BD)
General and Admin (BD)
Startup Expense Y1 (BD)
Startup Expense Y2
Startup Expense Y3
Total
(BD)
Operating income (BD)
Year 1
Year 2
Year 3
29135
987.725
28147.275
43702.5
1481.6
42220.9
96.6%
58270
1974
56296
3900
3900
3900
460
460
460
2400
1300
0
0
8060
20087.275
2400
0
0
0
6760
35460.9
2400
0
0
0
6760
49536
96.6%
96.6%
Hypothesis Testing Results
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
Accepted
7-2 Education level
Accepted
7-3 Monthly Income
7-4 Gender
7-5 Living area
7-6 Nationality
Hypothesis 8:
The local supplier of EWCT devices with high quality of product don’t
contribute to raise the level of demand.
Rejected
Accepted
Accepted
Rejected
Rejected
Conclusions

Participants are aware, accept and willing to use EWCT devices beside government
regulation and incentives play plays an important roles towards utilizing these
technologies 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 on
energy saving appliances that will have a major financial and production savings in
power 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