Transcript Slide 1
DSM, energy modesty, energy efficiency
and energy intensity
Demystified ?
Albrecht Kaupp, Manager
Indo-German Energy Programme, IGEN,
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Demand Side Management, DSM
Original definition coined 1972 by Gelling, EPRI, USA.
“The planning and implementation of those utility
activities designed to influence customer use of
electricity in ways that will produce desired changes in
the utility’s load shape”.
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History of DSM
DSM was promoted by over 2000 DSM programmes of
about 1000 utilities in the USA between 1973 and 1998.
After deregulation of the power sector in the USA, most
DSM programmes collapsed and about 40 programmes
were left in 1999.
Utilities in Germany and Japan never bothered about
national DSM programmes.
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Power utility intention behind DSM
Cut the “kW-load peaks” and fill up the “kW-load
valleys”
without
reducing
kWh
electricity
consumption of well paying customers, since they
are a source of profit for a power utility.
Electricity savings (kWh) was a side effect of DSM
but never the objective.
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DSM makes only sense for a power utility, if
•
DSM is applied to all non paying or below
delivery cost paying customers, or
•
DSM activities strictly reduce peak load without
cutting into revenues from well paying
customers.
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No win-win situation
A professional consulting firm offering services to an industrial
customers to reduce electricity costs is not in the interest of a
power utility.
Why?
The consulting firm gets only business from industry/
commerce that pay high power tariffs and do not steal power.
In other words a professional energy auditor will always cut
into the profit of a power utility.
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Sharing of global responsibilities !
Energy efficiency and energy modesty is not any
longer a national issue.
It is a global responsibility of every country to
practice energy modesty in particular industrialised
and highly urbanised consumer societies.
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Energy Conservation Day
14th December 2004
“We cannot blindly ape the west and pursue a highly resource
intensive development or for that matter, resource intensive
consumption patterns.
We must be under no illusion that we can in fact approximate
consumption levels as we see them in the affluent western society.
Indeed, in the interest of humanity and the sustainability of our life
support system on this planet, it is the West that must bring its
energy consumption level closer to ours rather than the other way
round”.
Honourable Prime Minister of India
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Per capita electricity consumption is the best
indicator of “quality of life”
Check for excessive consumption despite high
energy efficiency
Electricity consumption per capita (kWh)
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Energy intensity (TOE/ GDP)
Energy intensity is a good indicator of the development stage of a country
in terms of
(i) Industrialisation
(ii) Urbanisation
(iii) Electrification
(iv) Consumerism
(v) Saturation of market for electrical appliances and cars
However it is a poor and perhaps irrelevant indicator to judge the “energy
efficiency and energy modesty” of a nation. High energy intensities had
been the past trademark of development of today’s highly industrialised
countries and are therefore not so unusual for emerging economics.
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How important is energy efficiency
for the power sector
1.
Non-paying customer # 1 the “T+D system” at speculatively
estimated 10% - 25% technical loss.
2.
Non-paying customer # 2 “station use” at speculative 8%
loss. In other words two large consumers, Mr. Station loss and
Mrs. T+D loss may consume > 25% and don’t pay for it.
3.
Add to this the fuel energy loss of power generation at a
average national power plant efficiency of 30.5%. The later
figure however may be debatable.
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Which plant efficiency do you fancy?
Lignite coal 3500 kCal/kg
GCV
NCV
Net MWh
34.5
36.7
Gross MWh
38.3
40.8
Difference between GCV and NCV is 6.2%
12
How efficient are Indian power plants?
This may be the wrong question. It is better to ask how can we
better establish and verify the present performance at the present
configuration with the least effort.
Mapping
software
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Do you want energy efficiency for charity or
aim for financial and
economic attractiveness?
There is always a most economic power plant efficiency
based on fuel costs, expected IRR, technical life and plant
load factor. The calculation principle is simple and based on
the question.
“What premium could be paid for a plant if system efficiency
is say better by 4% points” under the assumption that
premium is recovered through fuel cost savings.
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How much premium could be paid ?
(qn – 1) 8760 PLF CMWh (new - as is)
Imax =
qn (q - 1) new as is
Imax =
(1.1625 -1) 8760 500 (0.40 – 0.36)
1.1625 (0.16)
0.4 0.36
= 0.74 Crore Rs/MW
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Which are the important industries for energy
efficiency and conservation
Order of magnitude rating
#
Sectors
Criteria Ranking
Sum
A
B
C
1.
Thermal Power Station
1
2
1
4
2.
Fertilizer
2
1
3
6
3.
Cement
5
6
4
15
4.
Iron & Steel
4
5
7
16
5.
Chlor-Alkali
10
4
2
16
6.
Aluminium
9
3
8
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A = Total energy consumption in TOE
B = Energy cost as percentage of total cost
C = Energy intensity “TOE/ Annual turnover”
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Important impact check
Whatever policies, projects and programmes will be
formulated and implemented in the power sector under the
headings of energy efficiency, energy modesty or DSM asking
the questions
“Does the measure help to decouple economic growth
from growth in power consumption”
is a good way to start a discussion about the merit of the
measure.
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My equation for a global sustainable
energy policy, GSEP
GSEP
= energy modesty + energy efficiency +
renewable energy
Exactly in this order of priority
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Forcing more energy efficient electrical
appliances into the market ! Which way to go?
Two major policy choices are
Choice 1: Believe in market forces and goodwill of a
consumer. In other words believe in the existence of a
well informed and cosmopolitan consumer who
understands global energy supply and consumption
issues and even acts rational by buying equipment
with the lowest life cycle cost .
Choice 2: Remove the inefficient appliances from the market.
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Electricity saving potential
Equipment
Annual electricity
savings GWh
Organised sector
%
Industrial motors
1,231
98
Fluorescent tube lights
1,110
90
Agricultural pump sets
900
55
Refrigerators
695
100
Air conditioners
441
85
Ceiling & table fans
276
6
Industrial pumps
265
90
Ballasts
223
30
Industrial fans
218
85
Distribution transformers
202
50
Geysers (hot water)
147
?
Compressors
79
95
CFLs (60W incandescent lamp) replacements
41
?
Total
5,845
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Relation between active material cost and efficiency in electric
motors - 3 HP
1800
85
1600
Rupees
1200
75
1000
800
70
600
400
65
200
0
60
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Motor 3hp
Active material cost
Efficiency
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Efficiency (%)
80
1400
Thanking you
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