For many years, diesel generators, in combination with UPS systems, were the standard solution for outages, voltage sags and brownouts. But as we have seen, these devices provide only a partial solution, and at considerable and often unpredictable levels of risk and expense.
This paper explored the compelling financial analysis used by more and more hospitality industry decision makers when adding an EVR as the third component of their power conditioning system. A hard analysis of total ownership costs shows that the EVR helps other mitigation tools (UPS systems and generators) operate more efficiently and effectively. Those who invest in EVRs quickly realize a return on investment and benefit from fuel-cost savings that can amount to more than twice the purchase price of the EVR in just 10 years.
It is important to note that there are soft costs that further strengthen the argument for consideration of an EVR that are not included in these calculations. These soft costs include:
- Reimbursements to dissatisfied guests for stays or conference events impacted by power-quality issues
- Adverse impacts on carefully cultivated marketing assets, such as customer loyalty, ranking, and reputation
- Reductions in sales volumes generated from attractions including, but not limited to casino gaming, directly or indirectly related to power outages, brownouts, and other power-related disturbances
These soft or “hidden” costs can significantly add to a property’s bottom line and positively impact an EVR’s actual return on investment. Adding an EVR improves power continuity and reduces total ownership costs. Because the generator and UPS can be reserved for providing supplementary power during true power outages and not for under-voltage situations, the total system operates more effectively, minimizes preventable downtime, prevents premature equipment failure and data corruption, and preserves all-important guest-service scores.