Analytical Modeling of Specific Energy Consumption and Cost Share in Comprehensive Textile Industry: Case Study of Ethiopia

Abstract

Energy is one of the primary inputs in textile processing industries that have a significant impact on the cost of a cotton product. The energy cost-share is reported between 5-10% of the total production cost of woven cotton fabric in textile factories of developed countries. However, it is far higher in developing countries. This study aims to contribute to the understanding of energy use and energy efficiency in Ethiopian cotton textile industries through multi-level comparisons and analyses. Determination of specific energy consumption, specific cost-share and specific energy consumption and cost estimation model is developed in cotton textile processing industries of Ethiopia to show the level of energy utilization practice effectiveness and to point out specific energy conservation measure. Actual and designed energy consumption data has been gathered from machine nameplate and factory design documents. Then important performance indicating data is collected through on-site measurement. This research pointed out that, the actual energy consumption per unit textile product is higher than the estimated consumption of each involved textile processing stage. The cost-share of energy in Ethiopian cotton textile industries accounts for an average of 16.01% of the total production cost of a cotton product and it is the second-highest cost of a product next to cotton. This indicates the existing of poor energy management practices in the textile industries. As a result, they face high production costs, poor product quality, and non-conducive working environment. This study shows that any productivity improvement measure in the textile industries of Ethiopia has to give more emphasis on the reduction of energy cost than any other production inputs.