Abstract: Building Sector is the major electricity consumer and
it is costly to building owners. Therefore the application of thermal
energy storage (TES) has gained attractive to reduce energy cost.
Many attractive tariff packages are being offered by the electricity
provider to promote TES. The tariff packages offered higher cost of
electricity during peak period and lower cost of electricity during off
peak period. This paper presented the return of initial investment by
implementing a centralized air-conditioning plant integrated with
thermal energy storage with partially operation strategies. Building
load profile will be calculated hourly according to building
specification and building usage trend. TES operation conditions will
be designed according to building load demand profile, storage
capacity, tariff packages and peak/off peak period. The Payback
Period analysis method was used to evaluate economic analysis. The
investment is considered a good investment where by the initial cost
is recovered less than ten than seven years.