Transcript The Smart Grid Enabling Energy Efficiency and Demand Response

The Smart Grid
Enabling Energy Efficiency and
Demand Response
Clark W. Gellings
Chapter 9: Policies & Programs to Encourage
End-Use Energy Efficiency
Brevard Community College
ETP1400 Distributed Electrical Power
Generation and Storage
Bruce Hesher
433-5779
Acronyms used in this chapter (not complete):
OPEC: Organization of Petroleum Exporting Countries
member countries
MENA: Middle East and North Africa
OECD: Organization for Economic Co-operation and Development
member countries
PG&E: Pacific Gas & Eclectic
IEA: International Energy Association
LED: Light Emitting Diode
CFL: Compact Fluorescent Light
GDP: Gross Domestic Product
RPS: Renewable Portfolio Standard
Note: It is not enough to just know the acronym; you should also
know what it is!
Why should the U.S. care about energy efficiency in other
parts of the world?
Most of the world, especially
the U.S., is addicted to oil.
Oil is a finite, non-renewable
resource. “Peak Oil” may
already have or will one day
occur.
There is only one atmosphere around the Earth. No
matter who pollutes it, it still gets polluted. As the native
Americans say “ We do not own the Earth, we borrow it from
our children”. Q: Do we help the atmosphere by buying
cheap products made in countries that use low cost
production methods that are less environmentally friendly?
Regulations and Free Markets
There are many ways to achieve energy efficiency. Some
are regulation driven others are free-market.
Regulations can be effective but have consequences.
They tend to pick and choose winners in the market place
and discourage entrepreneurship. They can have fast
results. They can make government bigger trying to enforce
regulations. Regulation can be good if done for the right
reasons. They increase the price of goods.
Free market solutions will not get traction
unless the end users like them. Dollar votes
are powerful but may not be concerned with
national or environmental issues. Free market
solutions increase consumer choice and freedom.
A variety of policy and program instruments that have been
used successfully and have the potential to yield significant
energy efficiency improvements. p171
Policies and Programs In Action
The following slides present nine examples of the types of
energy efficiency policies and programs currently underway
at the multi-national, national, state, city, and corporate
levels.
Some entities are much more aggressive about promoting
renewable energy and energy cost savings.
Some entities are more interested in reducing CO2 than in
reducing energy consumption! If energy consumption is
reduced, expenses and CO2 emissions will follow. The
opposite is not necessarily true.
Multi-National Level
In 1999 the International Energy Agency (IEA) proposed
that all countries harmonize energy policies to reduce
standby power to 1 watt or less per device by 2010. Further
they proposed that all countries adopt the same definition
and test procedure, but that each country use measures and
policies appropriate to its own circumstances.
A policy of reducing standby by power to less than 1 watt for
all devices is a perfect example of policy makers making
policy about something for which they have no
understanding. A better approach would require
manufacturers to label products with operating and standby
power consumption. Consumers would then have the ability
to select lower power products. Designing products so that
they do not need to be always plugged in enables them to be
turned off when not in use and avoid the “phantom load”.
“1 Watt Initiative”
The G8 has committed to the 1 Watt Initiative. Japan and
California have adopted regulations.
The primary lesson learned for the 1-Wattt Initiate is that
it is difficult and expensive to target policies toward
individual devices. Simply setting a goal without any idea
what it takes to get there is poor policy.
My stove and microwave
oven do not need to have a
clock, but if I want appliances
with a clock, I should have the
freedom to buy them and I
should be aware of the power
requirements before
purchase.
National Level:
Norway
In 2002 the Norwegian Ministry of Petroleum and Energy
established and energy efficiency agency: Enova. Enova is
funded by electricity distribution tariffs. Enova’s mission is to
promote energy efficiency and renewable energy generation
is a consistent and comprehensive manor in Norway. The
goal is to achieve a reduction of 5% in energy use through
efficiency and renewables. Enova relies primarily on
industrial energy efficiencies. They provide grants of up to
40% of the cost to businesses for energy efficiency projects.
If the project does not meet it energy saving projections,
funds are returned to Enova. As of 2006 an estimated
8.3TWh/year.
National Level:
Ghana
African countries primarily focus on energy-efficient and
sustainable supply-side energy initiatives. Renewable
energy production is popular but, it is typically more cost
effective to address demand-side energy efficiency.
Far greater numbers of people need to be educated to
improve demand side energy use than is needed to
improve the supple-side.
Ghana submitted a Technology Needs Assessment (TNA)
to the U.N. and received major funding and technical
support from the U.S. National Renewable Energy Lab
(NREL). The use of CFLs is estimated to have reduced
Ghana’s energy demand by 6%.
National Level:
Germany p178
Energy Efficiency in both energy supply and end-use are critical to
success in Germany’s ambitious plan to reduce greenhouse gas emissions
by 40% by 2020. Energy Efficiency policies affecting the supply-side and
the demand-side are being implemented.
Energy producers are required to increase energy efficiency by 3% each
year, primarily through the use of high efficiency gas and coal power plants
with carbon capture and storage and the increased use of combined heat
and power plants. Starting in 2008 German energy companies receive
15% fewer emissions allowances to stimulate innovations in energyefficient power plant technology! A motor vehicle tax that is calculated on
the basis of CO2 emissions will soon be introduced.
These policies will destroy the German economy! They will make
the cost of German products uncompetitive.
Google “Cap and Trade”.
National Level :
China
China’s Five Year Plan for 2005-2010 established an
ambitious goal of reducing energy intensity, defined as
energy use per unit of gross domestic product (GDP) by
20%. This translate to an average annual reduction of 4%
and assumes an annual GDP growth rate of 7.5% thus
energy use can only increase at a rate of 2.8%. However,
both GDP and energy use increased at about 10%. China
created the “Top-100 Energy-Consuming Enterprises”
program which sets energy saving targets for the top 1000
largest energy-consuming enterprises. Steel and chemical
companies account for most of the enterprises. China has
had a hard time meeting these goals so the U.S. DOE has
signed a memorandum of understanding that will provide
U.S. energy audit experts to assist them.
National Level:
Japan p180
Japan has been a world leader in energy efficiency. They
have one of the lowest level of greenhouse gas emissions
per GDP.
Industrial energy use is at 1970 levels even though there
has been large economic growth. Factories have energy
conservation administrators who are required to submit
conservation plans.
Buildings: Although energy efficiency continues to
improve in appliance, energy consumption in this sector
continues to rise due to increased numbers of devices,
growing population, and desire for convenience. They have
developed the “Top Runner” program which sets
mandatory efficiency requirements.
As result energy efficiency has improved considerably.
For example air conditioners have reduced their power
consumption by 40% (2004 relative to 1997).
Transportation: Japan has introduced “Top Runner”
standards for fuel efficiency in passenger vehicles. In
addition the government offers incentives for hybrid
vehicles in the form of tax breaks, subsidies, and lowinterest loans. For shippers and large transportation
businesses, the government requires that energyconservation plans and reports be submitted.
Google Lean Manufacturing
and The 5-S Philosophy
U.S. Energy Policy
The text does not cover U.S. policy. What is the U.S.
energy policy! Google “United States Energy Policy”.
Nonrenewable fossil fuels account for more than 85% of
U.S. energy use. It’s unrealistic to claim that we can
meaningfully reduce consumption of oil in the short term
because there are currently no real alternatives.
There is a 30% federal tax incentive for qualifying energy
efficiency and renewable energy products.
State Renewable Portfolio Standards (RPS) are regulations
that require electric utilities to increase production of energy
from renewable energy sources.
An all of the above approach that emphasizes domestic
energy while we phase in renewables is the only viable
approach.
State Level
(California and Florida)
California is one of the leading states in terms of energy
efficiency (and debt). There are a large number of energy
efficiency programs with billions in funding. California also
does energy legislation. See www.dsireusa.org.
Florida is requiring electric utilities to promote demand
side management. Energy surveys and audits to help
consumers reduce are popular. Some funding is available
for renewables.
Florida is taking a more educational approach. The
Florida Banner Center for Energy and the Florida Banner
Center for Clean Energy is based on the BCC/UFC Cocoa
campus
City Level p183
The city of Portland Oregon is a leader in community
based energy policy. In 1979 they introduced the first local
energy policy in the U.S. as a response to the OPEC oil
embargo. They established an energy office and an
Energy Commission. They emphasize research and
community involvement.
The city first focused on a goal of reducing energy
consumption by 10% in buildings and facilities. They
achieved savings of over 15% by doing weatherization,
using bicycles, LED traffic lights, energy use codes on new
construction, and etc.
Corporate Level
Any funds not spent on energy go strait to the bottom line.
Companies have a lot of reasons to $ave energy. Many
companies are investing in renewable energy to offset their
energy bills.
Google
Walmart
Energy Efficiency Challenges in the
Middle East and North Africa
The region of the Middle East and North Africa (MENA)
was a focus of the IEA’s World Energy Outlook 2005. The
region has high potential for savings both on the supply
and demand side. They are less efficient than OECD
countries.
The region has some of the lowest energy prices in the
world so there is less financial payback. Much of the
electricity is government subsidized. Losses due to illegal
connections and non-payment of bills are common.
The two primary areas for improvement are cooling and
water desalination.
Conclusion
There is renewed interest in energy efficiency due to
increasing energy costs and environmental issues. energy
efficiency supports sustainable development, energy
security, environmental stewardship, and saves money for
both the energy suppliers and consumers.
Efficiency is environmentally friendly and cost-effective
relative to building new capacity.
Entities must evaluate the cost benefit tradeoffs of energy
efficiency and renewable technologies.