The Cape Milner Hotel has 3 hot water boilers with a combined storage capacity of 5 000 liters. The water in these boilers was traditionally heated by 10 x 4Kw electrical heating elements that consumed about 960Kw of electricity per day. Project scope: We replaced the conventional electric heating elements, that were running 24/7, with 5 x 24.5 kW industrial heat pumps (input power of each heat pump is 6Kw per hour) delivering the same amount of hot water in less than 12 hours per day. We then converted 1 536 halogen and fluorescent lights (including downlights, tube lights, flood lights and incandescent bulbs) to new LED technology. Projected energy saving per annum = 262 000 kWh.