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Introduction to Demand Side Management
Day 1 - Dr. Herb Wade
Demand Side Management Workshop
Fiji Islands
November 2-6,2009
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Fiji Islands November 2-6, 2009
Demand Side Management for Utilities
Course outline
Fiji Islands November 2-6, 2009
Program Days 1-4
Start at 0800
Review of previous day’s work
Morning Lectures and Demonstrations
Lunch
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Case studies, practical work, exercises
Daily Comprehensive quiz
Finish about 1700
Fiji Islands November 2-6, 2009
Day 5
• Visit to a government facility to do an energy audit
• Course review and comprehensive examination
• Presentation of certificates of participation
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• Closing
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Fiji Islands November 2-6, 2009
Course Content
Fiji Islands November 2-6, 2009
Focus is on DSM and Utilities
• How DSM programmes affect utilities both technically
and financially
• Why utilities do DSM programmes
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• Creating DSM programmes to provide benefits to
utilities
• Case studies of DSM activities by utilities
• Practical work in energy audits, financial analysis and
with tools for DSM
Fiji Islands November 2-6, 2009
Utility Management Issues and DSM
• Determining the financial effects of DSM activities on the
utility
– How lowering kWh sales through DSM changes
cash flow for a utility
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– Impact of meeting external requirements for
implementing DSM
– Planning, forecasting and DSM
Fiji Islands November 2-6, 2009
Technical Aspects of DSM
• Energy auditing
– Commercial
– Industrial
– Government
– Residential
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• Energy management technology
• Utility technical operations and DSM
• Renewable energy and DSM
Fiji Islands November 2-6, 2009
Analyzing Cost/Benefits of DSM
• Life cycle costing for DSM investment
• Concept of “payback period” for DSM investments
• DSM in situations where tariffs are below service
delivery cost
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• DSM in rising fuel price conditions
Fiji Islands November 2-6, 2009
DSM Programming
• Energy Surveys and Audits
• Designing programmes for each class of customers
• Public Information programmes
• Appliance efficiency rating programmes
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• ESCO type activities
• DSM programmes and government
• Energy codes for buildings
Fiji Islands November 2-6, 2009
Energy Service Companies and DSM
• ESCO Services
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• ESCO type operations by utilities
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Fiji Islands November 2-6, 2009
So What Really is DSM?
Fiji Islands November 2-6, 2009
Demand Side Management
• Actions carried out by the utility on the customer’s
premises that help manage the customer’s electrical
usage
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– To modify energy use patterns including electricity
demand timing or amount of demand
– To encourage actions by the customer to modify
the electrical usage to meet some goal, usually a
reduction in electricity cost
Fiji Islands November 2-6, 2009
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• While load management can be implemented by
customers without any interaction by the utility, usually
the term Demand Side Management (DSM) refers to
actions taken on the customer’s premises that are
actively encouraged or carried out by the utility.
Fiji Islands November 2-6, 2009
Supply Side Management (SSM)
• Actions carried out by the utility on its own premises to
manage electricity supply
– Usually incorporates efficiency improvements to
reduce technical losses
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Fuel efficiency improvements
Reduce parasitic loads
Reduce transformer losses
Reduce line losses
Fiji Islands November 2-6, 2009
• May also incorporate generation and
distribution management
– Operating the optimum mix of generators
 Improving fuel efficiency by shifting generators on and
off line to keep generator loads at optimums
– Maintaining a high power factor
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 Incorporating compensators to keep generation power
factor high
– Managing the distribution system optimally
 Substation management
 Power routing management
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Fiji Islands November 2-6, 2009
What about Non-Technical Losses?
• Non-Technical losses include such things as:
– Excess use by customers having electricity
provided without metering (24 hour street lights,
un-metered government customers, broken
meters, etc.)
– Electricity stolen through customers wiring around
meters, tapping feeders or modifying metering
– Non payment of bills by customers
Fiji Islands November 2-6, 2009
Comparison of DSM and SSM Actions
• Longevity of results
– Supply side 20-30 years
– Demand Side much shorter term unless continually
promoted
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• Quantification
– Supply side benefits easily measured
– Demand side benefits often difficult to quantify
Fiji Islands November 2-6, 2009
• Non-Technical losses are often not considered
in either SSM or DSM programmes
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– Typically treated as an administrative issue
Fiji Islands November 2-6, 2009
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• This course covers only DSM. Neither SSM
nor non-technical loss reduction will be
covered
Fiji Islands November 2-6, 2009
Objectives of DSM by Utilities
• Financial benefits
• Political benefits
• Socio-Economic benefits
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• Improved quality of electrical services
– Avoiding the need for power cuts and rolling
blackouts
– Improving voltage stability in distribution
Fiji Islands November 2-6, 2009
Does DSM Differ from Energy Conservation?
• DSM strives to improve the efficiency of energy use
without any reduction in the services that the energy
provides
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• Conservation includes energy efficiency but also adds
reducing energy use through the reduction of nonessential services
Fiji Islands November 2-6, 2009
Why Do DSM?
• Maybe advantageous to the utility because:
– Can avoid capital investment in higher capacity
for generation and/or distribution
– Currently losing money on each kWh sold due to
rates set below cost of service delivery
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– May allow increased generation efficiency and
lower fuel bills
– Marginal Costs are higher than average costs
– Load patterns cause inefficiencies in generation
or distribution
Fiji Islands November 2-6, 2009
• DSM is Mandated by Government
– Reduction in fuel imports
– Carbon emission reduction goals
– Donor programmes
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• Public Relations
– Customer’s perceive the utility in a more
favourable light
Fiji Islands November 2-6, 2009
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How can a Utility Make More Money by
Selling Less Electricity?
Fiji Islands November 2-6, 2009
Tariff is too Low
• Government forces the utility to sell electricity below
actual cost
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– Often residential rates are substantially below the
real cost of service and are subsidised by higher
commercial and government customers rates.
 residential DSM allows the utility to keep more
of the revenue from commercial and
government customers
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Fiji Islands November 2-6, 2009
Tariff cannot keep up with fuel price increases
• In times of rising fuel prices, tariff increases lag behind
fuel prices.
– DSM helps reduce fuel cost and losses due to tariffs
consistently below the real cost of service.
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Fiji Islands November 2-6, 2009
Marginal Costs Higher than Average Costs
• For each kW of new capacity needed the per kWh
generation cost is higher than current costs
– Slow down rate of demand growth to limit the need
for higher cost new capacity
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Marginal Cost
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Generation Capacity Barely Adequate
• Improving the efficiency of customer energy use may
keep the peak load within existing capacity and avoid or
at least put off new investment in generation
Fiji Islands November 2-6, 2009
Inadequate Capacity Forces DSM
• Rolling blackouts
– the ultimate DSM measure is turning off the power
to the customer
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– Rolling blackouts possibly can be avoided through
other DSM measures
 Small rural hydro based utility in Bhutan could
not meet demand until all incandescent lights
were changed to CFLs.
Fiji Islands November 2-6, 2009
Distribution Capacity Inadequate
• DSM may allow the utility to avoid investment in
distribution upgrading
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– DSM measures specifically focused on customers
connected to feeders that are at or above the
proper loading level
Fiji Islands November 2-6, 2009
Load Levelling
• The more constant the system load, the more efficient
the system can be. High peaks and/or deep valleys in
the daily load curve usually cause increased losses and
higher costs to the utility
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– DSM applied specifically to loads that cause the
peaks/valleys can help level the load over the day
Fiji Islands November 2-6, 2009
Increasing/Shifting Demand
• DSM is not just applied to lowering demand, it
also can be used to increase or shift the timing
of demand either globally, seasonally or at
particular times of the day
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– During the wet season in a country with
diesel+hydro, energy costs are lower so increased
demand at that time will increase utility net income
– Shifting electric water heating to late at night may
improve generation efficiency
– Ice making/fish freezing can be shifted to times
when loads are too low to allow efficient generation
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Fiji Islands November 2-6, 2009
Desired Results of DSM Actions
Fiji Islands November 2-6, 2009
Providing Services Associated with DSM
• Renting customers energy efficiency equipment
(e.g. solar water heaters) and charging a fee
equivalent to the non-fuel cost of generating the
kWh saved by the equipment
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• Joint venture with a gas company to shift
customers from electric cooking to gas
• Joint venture with a local engineering firm to
provide ESCO type services to industrial,
government and commercial users
– Determine equipment needs, provide finance and
maintenance for a fee that covers costs plus the
non-fuel cost of generating the kWh saved
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Fiji Islands November 2-6, 2009
How are Users Encouraged to do DSM?
• Usually by financial incentives
– Lower electric bills
– Lowered rates for desired actions
– Higher rates for undesired actions
– Finance for investing in energy efficiency
measures
– Provision of low or no cost CFLs to replace
incandescent lights
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• Technical assistance services
– Energy audits to determine where energy use can
be reduced without reducing services
– Advice/assistance in specifying and locating
equipment that can provide higher efficiency
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– Joint ventures/cooperative agreements with local
engineering firms to provide technical advice for
energy efficiency improvements in commercial
and industrial facilities
– Training and information programmes
 Workshops for hotel, office building and government
building managers
 Public information programmes through local media,
events, public meetings and school activities
Fiji Islands November 2-6, 2009
Selection of DSM Technologies
• Technologies that have the greatest potential for overall
energy saving
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• Technologies that are cost effective (payback in less
than 10 years)
• Technologies that can be installed and maintained
locally
Fiji Islands November 2-6, 2009
Financial Analysis of Energy Alternatives
• Typically used to compare the “before” and the
“after” financial results of implementing DSM.
– Financial Rate of Return (FRR)
 The effective interest rate received for the investment
through energy savings
 Often required by financiers but actually not always a
good objective measure of DSM effectiveness
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– Payback period
 The amount of time needed before the savings pay for
the investment
 Good mainly to eliminate clearly poor options and to
provide an easily understandable measure of
effectiveness.
Fiji Islands November 2-6, 2009
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– Life Cycle Cost (or Net Present Value)
 The total cost of implementing an energy
efficiency measure compared to BAU
(Business As Usual) energy costs
 Includes capital investment, energy cost,
repairs, replacements, maintenance,
interest and inflation
 Most realistic measure of the financial
effectiveness of a DSM action
 Requires a good understanding of costs
and their timing
Fiji Islands November 2-6, 2009
Understanding Life Cycle Costing
• Time value of money
– Through investing money, more money can be
made over time. This gives today’s money
increased value over time.
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– This value can be stated as an “annual interest
rate”, the percentage of increase in money value
each year
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Fiji Islands November 2-6, 2009
Interest Calculation
• Period = amount of time the investment is
increasing value due to interest (day, month,
year, etc)
• Interest rate is the % growth for each period (6%
per year, .5% per month, etc.). If no period is
stated, a year is assumed.
So $5000 invested at 6% for 1 year will increase
in value $5000 X .06 = $300
Fiji Islands November 2-6, 2009
Simple Interest
• Calculations are made as though each year had
no effect on other years. This is equivalent to
spending the interest as soon as it comes in.
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Year 1: $5000 X .06 = $300 ($5300 total)
Year 2: $5000 X .06 = $300 ($5600 total)
Year 3: $5000 X .06 = $300 ($5900 total)
Year 4: $5000 X .06 = $300 ($6200 total)
Fiji Islands November 2-6, 2009
Compound Interest
• Based on the increasing value of the
investment as interest is added to the principal
as it comes in.
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Year 1: .06 X $5000 = $300.00 ($5300)
Year 2: .06 X $5300 = $318.00 ($5618)
Year 3: .06 X $5618 = $337.08 ($5955.08)
Year 4: .06 X $5955.08 = $357.30 ($6312.38)
So compounding shows increased value of
$112.38 over that of simple interest
Fiji Islands November 2-6, 2009
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Future Value = Today’s value times ( 1+i )N
Where N = the number of periods (years, months, etc.) at
the interest rate “i” for one of those periods.
Fiji Islands November 2-6, 2009
Future value after 4 years of investment of $5000 at
6% per year =
$5000 X (1.06)4 where (1.06)4
(1.06) X (1.06) X (1.06) X (1.06) = 1.26247696
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$5000 X 1.262477 = $6312.38
(the same thing we got earlier when calculating it a
year at a time)
Fiji Islands November 2-6, 2009
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4 years of $5000 invested at 6% annual
interest compounded annually:
Year 1: .06 X $5000 = $300.00 ($5300)
Year 2: .06 X $5300 = $318.00 ($5618)
Year 3: .06 X $5618 = $337.08 ($5955.08)
Year 4: .06 X $5955.08 = $357.30 ($6312.38)
or using the formula $5000 X (1.06)4
$5000 X 1.262477 = $6312.38
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Fiji Islands November 2-6, 2009
The effect of the time interval in compounding
• The more frequently you add in the interest, the higher
the final value of the investment.
Fiji Islands November 2-6, 2009
Assume $5000 at 6% compounded every 12 months for
4 years:
$5000 X (1.06)4 = $6312.38
Assume $5000 at 6% compounded every 6 months for
4 years:
$5000 X (1_.06/2)8 = $6333.85 ($21.47 more)
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Assume $5000 at 6% compounded every month for 4
years
$5000 X (1_.06/12)48 = $6352.45 ($40.07 more)
Assume $5000 at 6% compounded every day for 4
years
$5000 X (1+.06/365)1460 = $6356.12 ($43.70 more)
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Fiji Islands November 2-6, 2009
Present Value (PV)
• The present value of a future payment is equal to the
amount of interest bearing money needed to be invested
today in an interest bearing account in order to exactly
pay off that future payment when it occurs
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Fiji Islands November 2-6, 2009
Present Value example:
If we need to make a payment of $6356.12 four years
from now and we can get 6% interest compounded daily
for money invested today, then the Present Value (PV)
of the $6356.12 payment to be made 4 years from now
will be $5000
Fiji Islands November 2-6, 2009
Inflation and Escalation
• Inflation is the increase in overall cost of
operations over time
– Essentially due to the decrease in the value of a
country’s currency over time relative to goods and
services
• Escalation is the increase in cost of a specific
commodity over time (e.g. fuel)
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– Due to inflation plus other factors such as a
depleting resource, market demand, etc.
Fiji Islands November 2-6, 2009
Discount Rate
• The time value of the money invested today to pay off
the stream of payments.
– Typically the inflation rate (or escalation rate if
known) minus the rate of interest for low risk
investment (e.g. government bonds)
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 For Present Value calculation purposes the
discount rate for utility investments can
reasonably be assumed to be 6%
Fiji Islands November 2-6, 2009
Formula for Present Value
• To calculate the Present Value of a future
payment use the formula:
PV = Future Payment/(1+discount rate)N
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Where N = the number of compounding periods used in
the calculation and the discount rate is the interest rate
for one compounding period
So the present value of a future payment 4
years from now of $6356.12 with a discount rate
of 6% compounded daily will be:
PV= $6356.12 / (1+.06/365)1460 = $5000
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Fiji Islands November 2-6, 2009
Present Value of a stream of payments
• For a long series of payments (such as needed in
figuring life cycle cost) you figure the Present Value of
each payment and then add them all together
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Fiji Islands November 2-6, 2009
Example of CFL vs Incandescent bulb
• 60 Watt incandescent lamp used 4 hours a day
used about 88 kWh per year. If the kWh rate is
$0.34 (about the current cost of diesel
generation) then that is $30 per year in
electricity cost. Life about 1 year ( 1460 hours)
and costs about $1.50
• 15 Watt CFL uses about 25 kWh per year
costing $8.50 in electricity but provides about
the same level of lighting. Life is about 5 years
(7300 hours) and costs about $7.50
Fiji Islands November 2-6, 2009
• For a 5 year period, calculate the Present Value
of an Incandescent light that costs $1.50 to buy,
costs $30 per year to operate and has to be
replaced every year
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PV of bulb purchases =
Bulb 1 = $1.50/1.060=$1.50
Bulb 2 = 1.50/1.061=$1.42
Bulb 3 = 1.50/1.062=$1.33
Bulb 5 = 1.50/1.063=$1.26
Bulb 4 = 1.50/1.064=$1.19
Total PV for the stream of bulb purchases = $6.70
Fiji Islands November 2-6, 2009
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• That means that if you invest $6.30 today at 6%, you will
be able to buy a new bulb each year for 5 years.
Fiji Islands November 2-6, 2009
• PV of the electrical use:
Year 1= $30/1.061= $28.30
Year 2 = $30/1.062= $26.70
Year 3 = $30/1.063= $25.19
Year 4 = $30/1.064= $23.76
Year 5 = $30/1.065= $22.42
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Total PV of electrical use = $126.37
Fiji Islands November 2-6, 2009
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• Total Life-Cycle Cost of incandescent bulb over 5
years =
PV of investment + PV of operations =
$6.70 +$126.37 = $133.07
Fiji Islands November 2-6, 2009
PV of CFL over 5 years
• Purchase price of CFL = $7.50
• CFL uses $8.50 per year in electricity
• CFL lasts 5 years
PV of investment = $7.50
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Year 1 cost = $7.50/(1.06)1 = $8.02
Year 2 cost = $7.50/(1.06)2 = $7.57
Year 3 cost = $7.50/(1.06)3 = $7.14
Year 4 cost = $7.50/(1.06)4 = $6.73
Year 5 cost = $7.50/(1.06)5 = $6.35
PV of cost = $35.79
Total PV of CFL = $43.29
Fiji Islands November 2-6, 2009
• Present Value of CFL = $43.29
• Present Value of Incandescent = $133.07
So this means that over a 5 year period, the real
savings of the CFL bulb in today’s money will be
about:
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$133.07 - $43.29 = $89.78
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Fiji Islands November 2-6, 2009
Payback Period
• The amount of time it takes to recover the added
investment for energy efficiency from energy savings
– True payback period considers the time value of
money
– Simple payback period ignores the time cost of
money
 Easy for the layman to understand
 Reasonable for actions that have fast payback
such as solar water heating
 Simply divide the added cost for energy
efficiency by the annual savings in energy
Fiji Islands November 2-6, 2009
• Simple Payback Example:
– Solar water heater costs $2000 to install and $25
per year average maintenance cost. 15 year life
expectancy
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– Electric water costs $200 to install and has an
average annual cost of operation of $350. 10 year
life expectancy
– Simple payback time
= (2000-200)/(350-25) = 5.54 years
DSM and the Utility
Day 3 – Dr. Herb Wade
Demand Side Management Workshop
Fiji Islands
November 2-6,2009
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Fiji Islands November 2-6, 2009
Economics of DSM
For the Utility and for the Nation
Fiji Islands November 2-6, 2009
Fuel prices
• The high fuel prices of 2008 are an indication of the
future
– Some utilities had fuel contributing to 80% of their
operating cost
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– Some PICs doubled their import expenditures – with
no corresponding increase in export revenues – due
to the increased price of fuel
Fiji Islands November 2-6, 2009
Price Volatility
• Not only was there a problem due to the high fuel prices,
the rate of change of the prices made it impossible to
adjust to the higher prices
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– Financial planning for the utility or for its customers
was not possible
Fiji Islands November 2-6, 2009
The Good News
• The scare of 2008 woke up both the utilities and PIC
governments to the need to reduce dependence on
foreign oil as much as possible through
– Renewable energy
 Offer relatively fixed generation costs for a long
term so more price stability
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– DSM
 Can be rapidly deployed to provide quick
benefits
– SSM
 Stable benefits and improved long term
profitability
Fiji Islands November 2-6, 2009
Utility revenues
• During times of rising fuel prices, utility revenues may go
to record highs but profits may go to new lows due to the
inability of rates to keep up with fuel costs
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– Profits can increase through reduced sales of
electricity when rates are below real costs
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•Effect of DSM on Cash Flow
Fiji Islands November 2-6, 2009
Fiji Islands November 2-6, 2009
Calculating cash flow after DSM
• 1. Calculate non-fuel costs of utility operation
without DSM
• 2. Determine the per kWh cost of fuel
• 4. Determine total kWh sold and the revenue for
target sector customers without DSM
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• 5. Determine total kWh sold and revenue in the
target sector after DSM
• 6. Determine the per kWh cost of operations
after DSM
Fiji Islands November 2-6, 2009
Change in cash flow due to DSM
• 7. Calculate the revenues for the target sector
after DSM
• 8. Calculate the change in cash flow of the rate
group due to DSM
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• 9. Calculate the reduction in cash flow for the
rest of the customers after DSM
• 10. Subtract the reduction in cash flow for the
rest of the customers from the change in cash
flow for the target group. This is net cash flow.
Fiji Islands November 2-6, 2009
If cash flow is reduced is DSM still advisable
• Probably it is because it still reduces
dependence on diesel fuel
– Lowered risk for the future
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– More stable environment for business
development
– Better customer relations
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Fiji Islands November 2-6, 2009
Case without DSM:
Sales 100,000,000 kWh per year
Fuel cost $40,000,000 ($0.40 per kWh)
Fixed costs $8,000,000 ($0.08 per kWh)
Residential rate = $0.30 per kWh
Residential sales = 30,000,000 kWh
Residential revenues = $9,000,000
Cost of residential electricity = $14,400,000
30,000,000 x $0.48/kwh = $14,400,00
14400000-9000000=5400000
Net loss in residential sales = ($5,400,000)
DSM Saves 4,500,000 kWh/year
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Fiji Islands November 2-6, 2009
Case with 15% residential DSM
Residential sales reduces from 30,000,000 to
25,500,000 kWh per year (4,500,000
reduction) due to DSM
Total energy sold becomes 95,500,000
kWh/year
New cost per kWh of operations =
$8,000,000 / 95,500,000 = $0.08377 (because
operations cost does not change with lower
kWh). An increase of $0.00377
Fiji Islands November 2-6, 2009
Residential revenue = 25,500,000 X $0.30 =
$7,650,000
Cost of residential sales = 25,500,000 X
$0.48377 = $12,336,135
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Losses on residential sales = $12,336,135 $7,650,000 = $4,686,135
Net improved cash flow on residential sales
$5,400,000 - $4,686,135 = $713,865
Fiji Islands November 2-6, 2009
Added cost per kWh on remaining kWh sold
$0.00337 for all sales
95,500,00 – 25,500,000 = 70,000,000 non DSM
70,000,000 x $0.00377 = $263,900 added cost of
delivery to non residential customers
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Total added cost on other sales = $263,900
Net improved cash flow = $713,865 - $263,900
= $449,965 - cost of DSM = benefit
Fiji Islands November 2-6, 2009
Long Term Effects of High Fuel Prices
• Economic growth halts or reverses
– Utility sales growth halts or reverses
– More customers default on payments
 Hundreds of customers in RMI had to be disconnected
due to non-payment in 2008 many have not
reconnected now that prices are back down
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– Government revenues are down and nonpayment of electric bills becomes more common
 In most PICs government owns the utility plus
government services are considered to be essential so
disconnection of government facilities often is not
allowed
Fiji Islands November 2-6, 2009
• Maintenance of utility equipment tends to be reduced
– Since rates usually don’t keep up with rising fuel
prices, funds at the utility become scarce and
maintenance – and reliability – usually suffers
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• Capital investment in new equipment may slow
– Prospects for future income are poorer than usual
and borrowing money for capital investments
becomes more difficult and risky.
Fiji Islands November 2-6, 2009
A New Business Model for PIC Utilities?
• Old model concentrated on growth and increased return
on investments (ROI) but how can you predict ROI when
you cannot predict the cost of 50-80% of your costs?
Does ROI mean anything when rates are below costs?
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• New model must concentrate on survival with high fuel
prices, stable or reduced level of sales and a ROI that is
largely out of the hands of management due to such a
high percentage of costs being uncontrollable
Fiji Islands November 2-6, 2009
Government Actions Likely
• Mandate DSM and use of renewable energy
• Government utility owners avoid energy system capital
investments where possible
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• Politicians force rates below a cost level that allows for
good maintenance
Fiji Islands November 2-6, 2009
Utility Actions
• Improve system efficiency with minimal capital
investment through DSM
– DSM places efficiency improvement costs on the
consumer not the utility and engages the financial
resources of the whole population, not just that of
the utility
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• Increase the use of grants from donors
– Donor money is easily accessed for capital
investment in DSM and renewable energy
– Donor money is sometimes available for SSM
investment
– Donor money is rarely available for fossil fuel
generation investment
Fiji Islands November 2-6, 2009
• In order to reduce the trauma of another round
of rising fuel prices Pacific utilities dependent
on diesel generation need to consider a
changed business model
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– Not strive for load growth but for stable and
reliable operations with gradually reducing sales
likely
– Concentrate on all avenues that can lead to
reduced reliance on imported fuel
 DSM
 SSM
 Renewable Energy
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Fiji Islands November 2-6, 2009
Energy Standards for Buildings
Fiji Islands November 2-6, 2009
Building Standards to Support DSM
• Energy Standards for new buildings
– May be voluntary for residences and commercial
buildings if incentives for following the standards are
included
 Should be mandatory for government
– Practical for the conditions in the country
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 Not so complicated that local officials cannot easily
enforce the rules
 Fit the climate conditions
 Most PICs do not require A/C for comfort if the building
design is appropriate
Fiji Islands November 2-6, 2009
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– Standards are focused on comfort without airconditioning where practical
– Includes renewable energy where practical
 Solar water heating
 Grid connected solar
– Standards are enforced
 Through financing agencies
 By a government agency
 Voluntarily but with incentives to offset the
added cost of their application
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Fiji Islands November 2-6, 2009
Appliance Energy Standards
Fiji Islands November 2-6, 2009
Appliance Standards and Labelling
• All appliances in the PICs are imported. Many
countries provide efficiency labels on appliances
but they are not consistent and many include
information not accurate for the PIC
environment
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– PICs cannot afford energy testing laboratories and
their own labeling tests
– Some labels (Chinese mainly) are not government
labels but manufacturer labels and cannot be relied
on to be accurate.
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Fiji Islands November 2-6, 2009
A Babel of Labels
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Fiji Islands November 2-6, 2009
Label Translation
• Local labels that fit PIC conditions can be
applied based on a translation of the label
information provided by the governments of the
manufacturers of the imported equipment
– Locally prepared labels based on other
governmentally applied labels provides PIC
consumers with consistent and more accurate
information on energy use and efficiency
– Cost of this type of local labelling is low and
acceptable even for small countries
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Fiji Islands November 2-6, 2009
Incentives to Buy Efficient Appliances
• Importers are willing to import high efficiency
appliances only if customers will buy them over
cheaper low efficiency units.
– Lobby government to add extra duty to low
efficiency appliance imports to make their cost
about equal to that of high efficiency appliances
– Utility can arrange low cost finance for customers
on terms that allow monthly payments for high
efficiency appliances to be about the same as
payments for low efficiency equipment
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Carbon Emission Calculations
Fiji Islands November 2-6, 2009
Fiji Islands November 2-6, 2009
Carbon Emission Savings
• Many donor programmes focusing on energy
will require the calculation of carbon emission
savings for DSM and renewable energy projects
– For utility energy projects, Carbon Dioxide (CO2) is
the only concern
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– Donors assume that the equipment used for
renewable energy and DSM projects does not have
a carbon footprint. Not true but they ignore it.
Fiji Islands November 2-6, 2009
Calculating Carbon Savings
1. Determine the kWh saved by the project
2. Determine the amount of fuel needed to
deliver those kWh to users
-- Can be complicated for utilities that include hydro or geothermal
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3. Using published data determine the number
of tons of carbon emitted per ton of fuel
burned (may be slightly different method for
different agencies who are asking for data)
4. Calculate the carbon saved based on the
number of tons of fuel saved by the project
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Fiji Islands November 2-6, 2009
Example carbon emission calculation
• Assumptions:
– Project claims to provide 6,000,000 kWh per year
reduction for the utility
– System fuel efficiency (kWh sold per gallon of fuel
used for generating that kWh ) = 13.20
– Assume diesel fuel produces 217.5 lbs of CO2 per
gallon when burned
– The utility uses diesels for 70% of generation
6,000,000/13.2 =454,545 gallons X 70% = 318,182
gal.
318,182 gal X 217.5 = 69,204,000 lbs of CO2
= 34,602 tons
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Fiji Islands November 2-6, 2009
What About Carbon Credits
• If a major DSM project is to be implemented, can the
utility get paid for the carbon reduction?
• Yes – but:
– There has to be an application before the project is
implemented. The carbon credit concept is not to
reward saving carbon emissions but to make it more
likely that the decision to save will be made.
– Verification is required. An independent auditor will
have to verify the savings
 Difficult for many types of DSM
– Costly process. Only practical for very large savings
that are clearly tied to the project
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Fiji Islands November 2-6, 2009
Designing DSM Projects for Donors
Fiji Islands November 2-6, 2009
Creating Donor Projects for DSM
• Projects for DSM and renewable energy are
presently of great interest to donor agencies.
However, to get donor grants, a proper project
document meeting the donor requirements must
be submitted
– Must follow the documentation requirements of the
donor being sought
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– Should show multiple benefits including




Poverty reduction
Small business development
Reduction in gender bias
Carbon emission reduction
Fiji Islands November 2-6, 2009
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Components common to all project documents:
1.
Background information about the country and the
need for the project
2.
The goals and objectives of the project (include
economic, financial, social and energy specific
goals)
3.
The organization and people that are to manage
the project and their capability to perform
4.
Who will be the beneficiaries and who are the
“stakeholders”
Fiji Islands November 2-6, 2009
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4. The budget for the project including:
- Capital investment (equipment)
- Cost of external expertise
- Installation cost
- Support cost (communications, etc.)
- Monitoring and evaluation cost
- How will the project be sustained after
implementation?
- Locally provided inputs (in-kind services
land, personnel, money)
Fiji Islands November 2-6, 2009
5. The time line for all phases of the project
6. The government Agency to be responsible for proper
implementation of the project (donors usually will not
provide grant money directly to the utility, they will
provide it to government who will have overall
responsibility for proper management of the project)
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7. Cover letter from government official stating that this
is a formal request from government.
Fiji Islands November 2-6, 2009
• Remember to include how the current priorities of donor
agencies will benefit – with numbers estimating the
benefits, if practical.
– Carbon emissions (will there be a reduction in
carbon emissions? If so how much?)
– Poverty (are the poor affected? If so how do they
benefit?_
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– Small Enterprise Development (will small, local
businesses benefit? If no how?
– Gender equality (will the project increase the
participation of women in decision making or in
economic terms? If so how?)
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Fiji Islands November 2-6, 2009
Project concepts for donor funding
• Provide businesses free energy audits and finance
assistance for implementing changes needed
• Energy awareness “fair” with energy related exhibits
from local businesses, organizations and NGOs
• Government facility energy audits and technical
assistance for implementation
• Appliance energy labelling to fit local conditions
• Awareness workshop for retail businesses selling air
conditioners and large appliances
• Public awareness programmes through the media
• School curriculum development for energy efficiency
• Incandescent light replacement programme
• Air conditioner maintenance programme
Fiji Islands November 2-6, 2009
Sample project concept
• Goals:
– To get households involved in energy efficiency
– To provide school children with education in the concepts of
energy efficiency
– To distribute CFLs to replace incandescent bulbs
– To get information on the type of appliances in homes
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• Concept:
– Middle schools teach a module on home energy efficiency and
how to do home energy audits
– School children do energy audit with the support of family
– Bring in incandescent lamp bulbs and take home CFLs in
trade
– Utility gets home audits for analysis
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Fiji Islands November 2-6, 2009
Actions
• Work with Education Department to develop course
materials and home audit procedures
• Train persons to train teachers how to present the
course
• The trainers train science teachers from middle schools
through a one day course
• Teachers provide the students with information about
energy and home energy auditing
• Students do the home energy audit and get the
completed audit signed off by parents
• Students hand in audits and incandescent bulbs
collected from home
• Teachers provide CFL replacements and turn over audit
forms to the utility (no user identification on audit forms)
Fiji Islands November 2-6, 2009
Resources needed
• Expertise to develop the course
• Expertise to train trainers
• Enough CFLs to replace incandescent bulbs
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• Audit analysis skills to extract useful data for home DSM
project development
Fiji Islands November 2-6, 2009
Benefits that can be listed
• Helps the poor through provision of CFLs and a better
understanding of how to save energy and its cost
• Helps children through an introduction to the importance
of energy efficiency and the techniques for saving
energy
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• Lowers carbon emissions through CFLs replacing
incandescent bulbs
• Provides for long term benefits because the course
module becomes a permanent part of the school
curriculum
• Provides for public information through the interaction of
the students with families
Fiji Islands November 2-6, 2009
Costs
• Personnel time for expert support in curriculum
development and training of trainers
• Personnel time for interaction with Department of
Education in planning and execution of the project
• CFL purchase
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• Printing and audio-visual support for the course
• Cost of analysis of home energy audits received
• Report writing
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Fiji Islands November 2-6, 2009
Time line
Fiji Islands November 2-6, 2009
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Herb Wade
[email protected] = regular email
[email protected] = email & attachments over 500kb
Illustrations of Commercial
or Government DSM
Takashi Yoshida
Demand Side Management Workshop
Palau
March 22-26,2010
Palau March 22-26, 2010
Where I came from.
Japan
Tokyo
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Palau
Osaka
“KANSAI”( The KANSAI Electric Power Co., Inc.) is located in Osaka, middle western
city of Japan mainland.
Palau March 22-26, 2010
Climate of Japan
Subarctic zone
Japan’s national land lies long from north
to south, and therefore climate varies by
each region.
Kansai
Region
Osaka
Tokyo
(Capital )
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Temperate zone
Tropic zone
In Osaka it is rather hot and humid in
summer, and the electric power demand
rises high mainly for the air-conditioning in
the season.
Palau March 22-26, 2010
Today’s Outline
1. Outline of Energy Consumption in Japan
2. Energy Audit for DSM
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3. Example of Actual Implementation
3-1. Lighting
3-2. Air- conditioners
3-3. Others
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Palau March 22-26, 2010
1. Outline of energy consumption in
Japan
Palau March 22-26, 2010
Energy Consumption in Various Buildings
• Type of Buildings
Type of Buildings
Store
Hospital
Commercial
Office
Private
Sector
Industrial
Factory
House
Residential
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Hotel
Public
Sector
Governmental
Office
Palau March 22-26, 2010
Energy Consumption in Various Buildings
• Energy Usage by Type of Building
Type of Building
Energy usage
Office
Store
Hotel
Hospital
Factory
Air-Con (Cooling)
Air-Con (Heating)
Hot Water
(Other Thermal Demand)
Depends
Depends
onon
what
what
the
the factory
factory
produce
produce
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Lighting
(Other Electricity
Demand)
Depends on
what the
factory
produce
House
Consumption by Each Building Type
Palau March 22-26, 2010
• Breakdown of energy use
(Primary energy equivalent)
Department Store
Office
Others, 13%
Power, 12%
Lighting
and outlet,
36%
Heat
source, 26%
Heat
conveyance
, 13%
Others, 4%
Power, 16%
Lighting
and outlet,
40%
Hotel
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and steam,
12%
Heat
conveyance
, 8%
Hospital
Power, 13% Others, 5%
Lighting
and outlet,
23% Hot water
Heat
source, 32%
Heat
source, 36%
Heat
conveyance
, 11%
Power, 11%Others, 5%
Lighting
and outlet,
21%
Heat
source, 32%
Heat
Hot water conveyance
and steam,
, 12%
18%
Based on ECCJ (The Energy Conservation Center, Japan) Guide Book
Palau March 22-26, 2010
Energy Consumption by Business Types
• Energy consumption per-floor of building (MJ/m2/year)
Governmental
Office
Community
Center
( ): Number of samples
[ ]: Average floor space in m2
College
Office
Hotel
Grocery Store
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Hospital
Shopping
Center
Medical
school
Source) ECCJ Guide Book
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Palau March 22-26, 2010
Energy Consumption in Commercial/Residential
Sector of Japan
Law for Energy
Conservation and
Recycling Support
enacted in1979
Law Concerning the
Promotion of the
Measures to Cope
with Global Warming
enacted in 1998
Energy consumption in Japan had risen every year until mid-90’s, and
recently has peaked.
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Palau March 22-26, 2010
Energy Consumption Per-floor Space of Building
in Japan
Palau March 22-26, 2010
Primary energy and Secondary energy
F ×η b ×η g = E
Primary Energy
Secondary Energy
Is energy found in
nature that has not
been subjected to
any conversion
process
Is energy obtained by
converting primary
energy to more
convenient forms
Conversion
Process
(Generation,
Refining)
ex. Fossil Fuels
(fuel oil, fuel gas)
ex. Electric power
Loss
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Efficiency
Fossil
Fuel
P.E.
Loss
Efficiency
Boiler
Heat Generator Electric Power
(generation)
(combustion)
S.E.
Palau March 22-26, 2010
Primary energy and Secondary energy
Various type of energy consumption is often expressed as primary energy for
evaluation on common ground.
Fossil
Fuel
Boiler
(combustion)
Heat
90%
When H (heat) is utilized, primary energy F=H/0.9
Fossil
Fuel
Boiler
Heat Generator Electric Power
(generation)
(combustion)
90%
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(=1.1H) is consumed.
40%
When E (electric power) is utilized, primary energy F= E/0.4/0.9
is consumed.
(=2.8E)
Primary energy is often expressed as fuel combustion heat energy, or as
equivalent amount of crude oil.
Palau March 22-26, 2010
Primary energy and Secondary energy
Example of Energy Cascading
Supply Side
Fossil Fuel
(Primary Energy)
Demand Side
Hot water supply
Boiler
Combustion
Heat
Air-conditioning
(heating)
Air-conditioning
(cooling)
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Generation
Electricity
(secondary energy)
Lighting
Others
Other Generation
(Solar PV, Wind Power etc.)
End Use
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Palau March 22-26, 2010
Units of Energy
“1kW” is
Thermal
Electrical
1kW=860kcal/h
1kW=1000W
can boil 1litre water of
14deg C in 6min.
can light up 20
candescent lamps of
50W.
Mechanical
1kW=1000Nm/s
can lift 102kg of
something up at speed
of 1m/s.
860,000cal/h
=(100-14)deg
×1deg/g×1000g /(6/60)h
1000W=20×50W
1000W=1000Nm/s
=(1000/9.8)kgf-m/s
A little bit “confusing”?
Palau March 22-26, 2010
Conversion Table of Energy Units
• Table for energy unit conversion
kJ
kcal
W-h
kgf-m
( kilo-joule )
( kilo-calorie )
( watthour )
(kilogram force-meter)
1
4.187
3.6
0.2388
1
0.860
0.2778
1.163
1
102
426.9
367.1
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“J” is used for thermal, electric and mechanical energy.
“cal” is used for thermal energy.
“Wh“ is mainly used for electricity (billing).
“kgf-m” is used for mechanical energy.
Palau March 22-26, 2010
Conversion Table of Units
• Unit System (Length – Mass - Time) of MKS and FPS
MKS( meter - kilogram - second)
length
m(meter)
1
0.025399
0.304794
0.914383
1609.31
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volume
cm3
1
1000
16.387
28317
3785
in(inch)
39.3707
1
12
36
63360
ft(feet)
yd(yard)
3.28089
1.09363
0.08333 0.027777
1 0.333333
3
1
5280
1760
l(litre)
0.001
1
0.001639
28.317
3.785
in3
0.06102
61.024
1
1728
231
FPS( feet - pound - second)
ml(mile)
0.000621
0.000015
0.000189
0.000568
1
ft3
gal(gallon)
0.000035
0.00026
0.0353
0.26418
0.00058
0.0042
1
7.45
0.134
1
area
m2
1
1000
4046.87
2589879
km2
ac(acre)
0.000001 0.000247
1
61.024
0.004046
1
2.58998
640
ml2
0.0000003861
0.0353
0.001562
1
mass/weight
g(gram) kg(kilogram) oz(ounce) lb(pound)
0.001 0.035273 0.002204
1
2.20462
1000
1
35.2739
28.3495 0.028349
1
0.0625
16
1
453.592 0.453592
2000
907178
907.178
32000
temperature
degree Celsius
80 70 60 50 40 30 20 10 0 -10 -20 -30 -40 -50
degree Fahrenheit 176 158 140 122 104 86 68 50 32 14
0 -22 -40 -58
US ton
0.000001
0.001102
0.000031
0.0005
1
Palau March 22-26, 2010
Units of Energy
• Units specific to air conditioner capacity
USRt (United States Ton of Refrigeration)
Is a unit for larger refrigeration (centrifugal type, screw type) capacity.
1USRt is defined as a capacity to freeze up 2,000 pounds (1 US ton)
of water to ice at 0deg C in 24hours,equivalent to 3,024 kcal/h or
3.515kW.
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1 HP (Horsepower)
Is a unit often used for rotational power of compressing refrigerant in
air conditioner of smaller type.
1HP of rotational power is converted 2400 kcal/h or 2.8kW to cooling
or heating capacity with heat pump cycle.
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2. Energy audit for DSM
Palau March 22-26, 2010
Palau March 22-26, 2010
How to Manage Consumption on Demand Side
Utilities support the customers’ activities as below in order to
manage their consumption in DSM programs.
1. Adoption of high efficiency equipment
ex) Financial support for the replacement and new
installation of equipments like high efficiency air-conditioner
and thermal storage system using ice etc.
(Subsidy, Leasing package, Energy efficiency program)
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2. Change of customers’ behavior on energy consumption
ex) Demand response, Public information
3. Increase generating capacity at demand side
ex) Subsidy for new installation of solar PV
FIT (Feed-In Tariff)
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Palau March 22-26, 2010
Demand Side Management
Demand
Side
Users
*Eliminating waste
(change attitude for
energy saving)
*Minimizing system
loss (Improvement
system efficiency)
*Increasing capacity
of generation
Government
Public
Information
Subsidy for
new
installation
Supply
Side
Utilities
Energy price
policy
Increasing Load Factor
(contributes to optimal
system investment)
Palau March 22-26, 2010
How to Manage Consumption on Demand Side
• Example of High Efficiency Air Conditioning Equipment
Refrigerates water in
(1) storage with brine
“ECO-ICE”
circulation during nighttime
refrigeration
Thermal
Storage
(ICE)
(Brine)
(Air conditioning)
(Cold Water)
(2)
Feeds cooled water
at daytime
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Feeds cooled water melting ice in storage at daytime
Actual Operation of Refrigeration
Heat load
nighttime
(3)
daytime
nighttime
daytime
Assists to suppress
demand at daytime
(3)
(1)
(2)
(1)
Palau March 22-26, 2010
How to Manage Consumption on Demand Side
• Example of High Efficiency Cogeneration System
Electricity
Generator
Fuel
Waste heat
(Hot Water)
Air conditioning
(Cold Water)
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Engine
Absorption refrigeration
Cooling
Tower
Cogeneration system creates both electric and thermal energy
simultaneously.
Even cooling can be available using absorption refrigeration unit.
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Palau March 22-26, 2010
Demand response program
• Change of customers’ behavior on energy consumption
by demand response program
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Palau March 22-26, 2010
Demand response program
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Palau March 22-26, 2010
Demand response program
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Palau March 22-26, 2010
Demand response program
Palau March 22-26, 2010
An example of tariff menu of KANSAI
• Tariff menu for managing demand side consumption
TOU ( Time Of Use) pricing for commercial use
Jul-Sept (summer)
Period of time
Price rate of
energy charge
“heavy load” 17.29 yen/kWh
0
8
10
12
17
“daytime”
12.21 yen/kWh
“nighttime”
8.05 yen/kWh
22 24
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Other seasons
Price rates according to period of time
induce users shift electrical load to offpeak hours, which contributes to improve
load factor.
0
8
12
22 24
Palau March 22-26, 2010
How to Manage Consumption on Demand Side
• Increase generating capacity at demand side
3. Increase generating capacity at demand side
ex.) Subsidy for new installation of solar PV (Photovoltaic
system), FIT( Feed-in Tariff)
Conventional
Supply [kW]
Demand [kW]
Utility
Time
Introduction of PV
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Supply [kW]
PV
Time
Utility
[kW] PV
Time
generation
Time
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Palau March 22-26, 2010
How to Manage Consumption on Demand Side
• FIT
Feed-in tariff or feed-in law is a policy mechanism
designed to encourage the adoption of renewable
energy sources.
Conventional
Utility
Utilities have to
purchase electricity
generated by
renewable energy
source at higher price
rate under FIT policy,
than they sell.
electricity bill
Introduction of renewable energy source as PV
Utility
electricity bill
Users can cut down
introducing cost of
renewable energy
source by selling
generated electricity.
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Palau March 22-26, 2010
Importance of Energy Audit (1)
What can you know from energy audit?
1. The exact amount of energy consumption
2. How much energy is used in each part of building
3. How the equipment is operating
4. Actual efficiency of equipment
How does energy audit work?
1. To compare with the average of the same type buildings
2. To know where energy waste is likely to exist
3. To make plans for reduction of energy consumption
4. Verification of cost-effectiveness about the plans
Palau March 22-26, 2010
Importance of Energy Audit (2)
Benefits of energy audit
- Customers (demand side)
First step toward comprehensive energy management
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- Utilities (supply side)
First step to design effective DSM program
In Japan, some utilities and foundation are providing
their customers “energy audit service” to help their
energy management activities.
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Palau March 22-26, 2010
Achievement of Energy Audit by ECCJ
• ECCJ (The energy conservation center, Japan)
proposed the methods for energy saving to more than
1562 buildings. (as of 2006)
- Average rate of energy saving in
their proposal
4% - 11% (as of 2006)
- Types of buildings they proposed
Office (Government, Private),
Hotel, Hospital,
Shopping center, Department
store, University,
School, Theater, Library, Museum
etc…
http://www.asiaeec-col.eccj.or.jp/index.html
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3. Example of Actual Implementation
Palau March 22-26, 2010
Palau March 22-26, 2010
Introduction of Energy Management
We will propose effective energy utilizing methods.
• “Do you have any questions about your energy systems?
We will offer the knowledge toward saving energy,
reducing cost and protecting environment.”
Investment in
Protecting
plant and
environment
equipment
Preparation of
manual
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Renewal
Saving
energy
QC* activity
*Quality Control
Reducing
cost
Palau March 22-26, 2010
Energy audit
• “We propose the effective way to operate customer’s
energy systems by analyzing energy consumption data
and system operating conditions.”
Energy Consumption Status
Energy
management status
Energy
consumption status
Current System Conditions
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Quick
investigation
Air conditioning
Pump and fan
Lighting
Air compressor
Boiler
Industrial furnace
Hot water supply
Other systems
Measuring
investigation
Finding out improving methods
through investigation of actual
system operating conditions!
Palau March 22-26, 2010
Concept of Energy Audit (1)
• We check energy-saving conditions from comprehensive
viewpoints.
1. System/Equipment Efficiency Improvement
- Optimization and improvement of equipment capacity
- Replacement with higher efficiency equipment
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2. Optimization of Operating Conditions
- Introduction of multiple units control
(for refrigerator)
- Optimization of combustion control
(for boiler and industrial furnace)
Palau March 22-26, 2010
Concept of Energy Audit (2)
3. Exhaust heat recovery
- Heat exchange of intake/exhaust air at external air inlet
(Pre-heating of intake air by exhausted gas of industrial
furnace and boiler)
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4. Suppressing energy loss attributable to buildings and
systems
- Change color of roof, attaching blind (for air-conditioner)
- Prevention of air leak from ducts (for air-conditioner)
- Intensification of insulation for piping and ducts (for boiler)
Palau March 22-26, 2010
Concept of Energy Audit (3)
5. Saving energy without disturbing comfortableness
- Review of set temperature, air volume, external air intake
volume (for air-conditioner)
- Review of light intensity (for lighting)
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6. Eliminating wastes
- Turning off lighting and air conditioning equipment when
nobody is in the room
- Cleaning of filter (for air-conditioner)
Palau March 22-26, 2010
Concept of Energy Audit (4)
7. Natural/ Solar Power Utilizing System
- Use of daylight
- Cooling with external air during intermediate seasons
(spring/autumn)
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- Heat pumps using external air, river water or groundwater
as heat source
- Positive use of rainwater or other natural energies
“We propose energy-saving methods that can be achieved
at low investment cost.”
Large
Investment cost
Palau March 22-26, 2010
Concept of Energy Audit (5)
7.Natural/solar
power generation
system
3. Exhaust
heat recovery
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5. Saving energy
without disturbing
comfortableness
1.System/equipment
efficiency improvement
2. Optimization of
operating conditions
6. Eliminating wastes
Small
Effect
Large
Palau March 22-26, 2010
3.Example of Actual Implementation
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3-1. Lighting
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Palau March 22-26, 2010
Energy Saving Method for Lighting (1)
1. Using lamp-shaped fluorescent lamps instead of
candescent lamp
- Existing lamp bases (sockets) can be used. Fluorescent
lamps provide longer service life and higher powersaving effect.
socket
(replacement on condition that an equal light intensity is provided)
Palau March 22-26, 2010
Energy Saving Method for Lighting (2)
2. Using highly-efficient light source and illumination
equipment
- Use energy-saving type (5 to 10%) fluorescent lamps
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- Use high-frequency-operation fluorescent lamp
equipment (Hf [high frequency] fluorescent lamp
equipment) (Saving energy by approx. 25%)
- Use LED for ornament lighting
Palau March 22-26, 2010
Energy Saving Method for Lighting (2)
• LED (Light Emitting Diode) lighting
*Luminous efficiency
Candescent lamp 15 lm/W
cover
LED
Fluorescent lamp 110 lm/W
LED lamp
100lm/W
(200lm/W or more can be possible
theoretically)
case (heat sink)
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power circuit board
*Price per Luminance ( Japanese yen/lm)
Candescent lamp 0.2 yen/lm
Fluorescent lamp 1 yen/lm
LED lamp
4 -10 yen/lm
Palau March 22-26, 2010
Energy Saving Method for Lighting (3)
3. Using high-pressure sodium lamp
- For a site using mercury lamps, consider to replace
the mercury lamps with high-pressure sodium lamps.
-Using high-pressure sodium lamps results in 40%
power reduction, if equal luminance is provided.
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(Note that color rendering property deteriorates.)
Palau March 22-26, 2010
Total Efficiency by Light Source Type
Candescent lamp
Lamp-shaped fluorescent
lamp (Electronic ballast)
Fluorescent lamp (Rapid start)
Fluorescent lamp (Highfrequency operation)
Compact-type fluorescent
lamp
Metal halide lamp (High color
rendering type)
Metal halide lamp (Diffusion
type)
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High-pressure sodium lamp
Fluorescent mercury lamp
0
20
40
60
80
Total efficiency (lm/W)
If equal luminance is provided, higher efficiency reduces power
consumption more.
100
Palau March 22-26, 2010
Energy Saving Method for Lighting (4)
4. Adaptation to appropriate light intensity for actual operating
conditions
- Conform to the light intensity criterion
(Based on the data of periodic light intensity
measurement)
- Use of daylight
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- Adoption of localized lighting
TAL (Task Ambient Lighting)
Palau March 22-26, 2010
Keeping Appropriate light intensity
• Example of light intensity standard
Illuminance
（ｌｘ）
(Japanese Industrial Standard)
Place
2000
1500
1000
Room for Fine Work, Drawing, Design
750
General Office
Meeting Room
Consultation Room
500
300
200
Dining Room
Kitchen
Room for Guards
Auditorium
Elevator
Safe Room
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150
100
Lobby
Storehouse
Locker Room
75
50
30
Emergency Staircase
Bath Room
Corridor
Stairs
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Palau March 22-26, 2010
Energy Saving Method for Lighting (5)
5. Adoption of detection and control system to turn off the
lights when no one need lights
- Infrared sensor and ultrasonic sensor, suitable for a
room to be irregularly used
- Optimum light intensity adjustment/control for brandnew lamps with initial high light intensity, immediately
after construction of building or after lamp
replacement, (suitable for Hf fluorescent lamp)
- Time scheduled control
Illumination control based on a specified time
schedule (lunch break, etc.)
- Illumination control depending on intensity of sunlight
through window
Palau March 22-26, 2010
Motion detectors
Reducing power consumption by adopting motion detectors
Light control systems with motion detectors that detects
people in the vicinity and to control lighting to the
necessary brightness .
Saving effect depends on the
duration that the lights can be
turned off.
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Sensor
This method is effective for
locker rooms, restrooms of halls,
stairs and so on.
Palau March 22-26, 2010
Energy Saving Method for Lighting (6)
6. Effective control and maintenance for lighting is
indispensable.
- Turn off unnecessary illumination at appropriate timing.
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- Set up illumination so that it can be easily turned on/off.
a. For spot illumination in an operation area that needs
high light intensity, provide switches for each spot.
b. Conduct wiring by dividing a room into several blocks,
and provide switches for each block.
c. To implement the above methods, prompt workers to
be earnest in energy-saving activities, and prepare an
environment to implement them.
Palau March 22-26, 2010
Energy Saving Method of lighting (7)
Note that an illumination is a big heat source.
- Heat radiation from illumination increases heat load of air
conditioning.
- High efficiency illumination decreases not only its energy
consumption but also air conditioning energy consumption.
Contents of air-con heat load
(1)
(4)
(1)Penetrating heat through wall or roof
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(2) Outdoor air heat by ventilation
(3) Sunshine through window
(3)
(2)
(4) Lighting and other appliance
(5)
(5) Radiation heat from a person
Palau March 22-26, 2010
Implementation of Lighting (1)
Energy Saving by Replacing with High Efficiency Lamps
• Changing candescent lamps to fluorescent lamps
creates energy cost reduction to around ¼.
＝
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Fluorescent lamp (12W)
Candescent lamp (54W)
• Life time of fluorescent lamp is six times longer than that
of candescent lamp
Palau March 22-26, 2010
Implementation of Lighting (1)
Effect of Fluorescent Lamps
Candescent lamp (54W)
Fluorescent lamp (12W)
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Conditions
Operating time: 8 hours per day (200days)
Cost of fluorescent lamp: 5$
Energy price: 10cent/kWh
Effect
Saving energy cost: (54-12)W/1000✕8h✕200day/yr✕$0.1/kWh
=$6.72/year
Simple payback period: $5/($6.72/yr)=0.74year
Palau March 22-26, 2010
Economic Evaluation
• Payback Period for Introducing Higher Efficiency System
(A) Introducing system of low initial cost
and low efficiency(=high energy cost)
Accumulated Cost
(A)
Initial cost
(machine and its installation)
(B)
Payback Period
IA
Annual energy cost
EA
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yr
(B) Introducing system of high initial cost
and high efficiency(=low energy cost)
Comparing (B) to (A), payback period
IB
EB
yr
= (IB-IA)/(EA-EB)
(when just replacing newer system, IA=0)
yr
*Not in consideration of interest or discount rate for simple
Palau March 22-26, 2010
Economic Evaluation
• Lifecycle (or Lifetime) Cost
Total owning cost of period for use = I + E ×( Period of use )
(A)
Initial cost
(machine and its installation)
*Lifecycle Cost for 10yrs
IA
LCCA=IA + EA×10
Annual energy cost
EA
yr
(B)
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LCCB=IB + EB×10
IB
(A) (B)
EB
yr
Palau March 22-26, 2010
Economic Evaluation
• Annual Equivalent Cost
*Annual Equivalent Cost for Lifetime of 10yrs
AECA=IA /10 + EA (=LCCA/10)
(A)
Initial cost
(machine and its installation)
IA
Annual energy cost
EA
yr
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(B)
AECA=IA /10 + EA (=LCCA/10)
IB
EB
yr
Palau March 22-26, 2010
Implementation of Lighting (2)
Efficiency improvement through relocation of lighting
equipment mounting position keeping necessary light
intensity
 Figure
Before improvement
Hanger
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After improvement
5.0
m
3.0
m
(Machines)
Example of
Factory
Palau March 22-26, 2010
Implementation of Lighting (2)
Point:
1. Keep appropriate light intensity for operation in the room
2. Measurement of light intensity at major parts in the room
light intensity meter
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Implementation:
1. Replacement with high efficiency lamps
2. Reducing number of lamps (“Thin-Out”)
3. Dividing lighting sections (every 7 to 9 lamps) so that
unnecessary lighting can be turned off
Palau March 22-26, 2010
Implementation of Lighting (2)
Energy reduction effect:
1. Reducing number of fluorescent lamps to half
(from 660 to 330 pieces)
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2. Reduction of power consumption
40W✕(660-330)✕6400h/year＝84,480kWh/year
Period for cost recovery
Around 5 years in this case
Palau March 22-26, 2010
3.Example of Actual Implementation
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3-2. Air-Conditioners
Palau March 22-26, 2010
Principle of air-conditioning
• Air conditioning utilizing “heat pump” technology
expansion valve
(Outdoor)
Heat Pump Cycle
(Indoor)
Evaporator
Condenser
Compressor (driven by
electrical motors, etc.)
(1) Hot liquid refrigerant is cooled by outdoor air through heat exchanger.
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(2) Liquid refrigerant evaporates through valve and its temperature falls.
(3) Cold gas refrigerant removes air heat indoor (air conditioning).
(4) Compressor compresses and liquefy refrigerant.
• Heat pump technology is also used as heating, and for hot water
supply in Japan.
Palau March 22-26, 2010
What is COP (Coefficient Of Performance)?
• COP is the factor showing the “efficiency” of air- conditioning
using heat pump cycle.
COP= ΔQ/ ΔW
ΔQ is the change in heat at the heat reservoir of interest.
ΔW is the work consumed by the heat pump.
(indoor)
efficiency= H/ E
L
Conventional
Heat source
(Ex. Boiler)
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COP= ΔQ/ ΔW
loss
H
Heat Output
E
Energy Input
Efficiency must be between 0 and 1
ΔQ
(outdoor)
L
loss
Heat pump
Air-con
(cooling)
ΔW+ ΔQ
ΔW=E-L
E
Energy Input
COP can be larger than 1 theoretically.
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Palau March 22-26, 2010
Chronological Improvement of COP
•Recent improvement of air-con COP is remarkable.
Water Cooled Centrifugal Refrigeration
COP (cooling/refrigerating)
Air Cooled Type Heat Pump Air-Con
year
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Palau March 22-26, 2010
Energy Saving Method of Air-conditioners (1)
• The exchange to a new and high efficiency equipment
creates significant energy saving. But it costs high at the
same time.
• In Japan, many financial support programs are prepared
for the installation of high efficiency air-conditioning
systems.
- Subsidy for the introduction of high efficiency
system (assists to share initial cost)
- Lower interests rate for fund raising
Palau March 22-26, 2010
Energy Saving Method of Air-conditioners (1)
1. Replacement of Air Conditioner with high efficiency type
2. Change of temperature setting for A/C
Changing air conditioning temperature setting a little
lower results in significant effect.
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When the temperature setting for cooling an office or a
plant is changed lower by 1 deg, it results in 7-10%
load reducing.
Effect of setting temperature reduction
2
Maximum load per unit space area (W/m ）
Palau March 22-26, 2010
150
113
10 (8.8%)
17 (15%)
100
103
96
50
0
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26℃
27℃
28℃
Cooling temperature setting
Maximum change in cooling load resulting from
temperature setting change
Palau March 22-26, 2010
Is 28℃ Comfortable?
Actual setting temperature of buildings in Japan
(questionnaire result)
28℃
27℃
24℃
26℃ 25℃
No set
Others
Total
Office
Factory
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Source) ECCJ Material
(Samples)
(Average)
• 28 deg C may not be sufficiently cool.
• But temperature difference (outdoor/indoor) by 5 deg or more may
cause the symptom like autonomic dysfunction.
Palau March 22-26, 2010
Energy Saving Method of Air-conditioners (2)
3. Careful maintenance could improve the efficiency of air
conditioners significantly.
- Cleaning of filters
- Improved location of condensers
・ Location considering air flow of exhausted hot air
・ Good ventilation of rooms for condensers
・ A/C condensers shaded and in cool area
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exhausted
hot air
Air Conditioner
Outdoor unit
(compressor unit)
“Short circuit”
of hot air
Palau March 22-26, 2010
Energy Saving Method of Air-conditioners (3)
4. Reduction of air-conditioning load
- Adoption of spot cooling
- Maintenance of building insulation
・Change in material and color of the roof
・Tree-planting for the roof
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- Adoption of shading film for window
Palau March 22-26, 2010
Implementation of Air Conditioners (1)
1. Replacement of old low efficiency units with new higher
efficiency units
<Calculation for trial>
Condition: Existing Air-Con (COP=2.4) ,Installed 20 years ago
New Air-Con (COP= 4.9)
Energy Consumption of Heat Pump 331,215 kWh/year
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Energy Reduction Effect: 331,215 kWh/year ✕(1-2.4/4.9)
= 168,920 kWh/year (-51%)
Replacing to a new machine with higher COP reduces
energy consumption effectively.
Palau March 22-26, 2010
Implementation of Air Conditioners (2)
2. Change of temperature setting for Air Conditioner
<Calculation for trial>
Conditions: Office
Temperature setting 26deg C → 28deg C
Rate of power reduction 7.5 %/deg
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Power for heat pump 331,215 kWh/year
Energy reduction effect: 331,215 kWh/year✕7.5%/deg✕(28-26)deg
=49,682 kWh/year (-15%)
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Palau March 22-26, 2010
Implementation of Air Conditioners (3)
3. A/C condensers shaded and in cool area (Experiment)
Shading with reed blind (Japanese “Sudare”) prevents
heat exchanger of air-con condenser from being heated by
direct sunshine at midsummer.
Before
After
Measurement of current [Ampere]
(proportionate to power consumption
[Watt])
3. A/C condensers shaded and in cool area (experiment result)
Before
After (Shaded with Blind)
よしず無
12
Temperature
31
10
Cut down
By 28%
23
19
6
15
4
11
7
2
3
:00
:00
18
:00
16
:00
14
12
0
:00
10
8:0
:00
:00
17
:00
15
13
0
:00
0
9:0
7:0
:00
:00
18
:00
16
:00
14
12
0
:00
8:0
10
:00
:00
17
:00
15
:00
13
11
9:0
0
-1
0
7:0
電流［Ａ］
Current (A)
8
Time
Temperature
外気温度［℃ (℃)
DB］
27
Current
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よしず有
35
11
Palau March 22-26, 2010
Implementation of Air Conditioners (3)
Palau March 22-26, 2010
Implementation of Air Conditioners (3)
3. A/C condensers shaded and in cool area (Product)
Shading sheet prevents air-con condensers from being
heated by direct ray.
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air heat exchanger
(condenser inside)
* needs countermeasures for tropical storm (typhoon!)
Palau March 22-26, 2010
Implementation of Air Conditioners (3)
3. A/C condensers shaded and in cool area (Summary)
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- About 20% of cutting down was achieved on energy
consumption by this product we have developed.
- Simple payback period was within 1 year at Japanese
conditions.
Palau March 22-26, 2010
Implementation of Air Conditioners (4)
4.Change in color and material of the roof
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Bright color reflects more light (including radiation heat )
than dark color, and prevents roof from being heated.
By adopting insulating material and bright color painting for
roof of the building, heat load to be air-conditioned can be
decreased.
Palau March 22-26, 2010
Implementation of Air Conditioners (4)
4. Change in color and material of the roof (Experiment)
Light Blue
Painting
Blue Painting
Temperature sensor
(Thermocouple)
Temperature sensor
(Thermocouple)
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Data Recorder
White Ceiling
(Insulating material)
Temperatures of roof surfaces and inside of boxes are measured.
Energy Saving Method of Air-conditioners (4)
Palau March 22-26, 2010
4. Change in color and material of the roof
(Experiment Results)
Temperature of surface of roof
60
Blue painting （47.7℃）
Light blue painting
（40.1℃）
50
White ceiling
(Insulating material)
（36.4℃）
40
30
20
Temperature(27.4℃）
10
0
0
2
4
6
8
10
12
14
16
18
20
22
Temperature inside box
35
Blue Painting （33.5℃）
30
White painting （29.9℃）
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25
20
Temperature （27.4℃）
15
White ceiling（29.1℃）
(insulating material)
10
0
2
4
6
8
10
12
14
16
18
20
22
Palau March 22-26, 2010
3.Example of Actual Implementation
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3-3. Others
Palau March 22-26, 2010
Implementation of Pump and Fan
Variable load control matching the load at the moment is the
key in order to reduce power consumption for pump and fan.
1. Control by valves or dampers
2. Adoption of inverters for pump and fan
Figure. Relation of fan load and power input
Input power (%)
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120
100
Damper control
80
60
Inverter control
40
20
0
0
20
40
60
80
Flux (%) (Air Flow)
100
Palau March 22-26, 2010
Implementation of Pump and Fan
F ( fluid flow) ∝ R (rotation)
P ( fluid pressure) ∝ R2 (square of rotation)
Pump or Fan
Flow
E( rotational power) ∝ R3 (cube of rotation)
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Energy consumption is proportional to cube of rotation, therefore
adjusting fluid flow creates remarkable energy savings.
When rotation (flow) is reduced by 20% with inverter control, energy
consumption decreases about in half.
(0.8×0.8×0.8=0.512)
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Palau March 22-26, 2010
Implementation of Showcase at Grocery Store
Insulation of showcase at stores during night
Frozen food showcase
Beverage showcase
Insulation sheets prevent cooled items from being
warmed, when showcase refrigeration is not running.
Palau March 22-26, 2010
Implementation of Escalator
Introduction of human sensor for escalator
Only when someone comes nearby, the escalator works.
“No Entry” “Out of service”
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LED indicators
“Downstairs” “Upstairs”
LED indicators
Palau March 22-26, 2010
Implementation to Raise Attention toward Energy Saving
Putting an instruction plate on the appropriate position
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Controller of
Air-conditioner
The plate says
“ set temperature should be
28℃ in summer
20℃ in winter ”
Palau March 22-26, 2010
e8 / PPA DSM Workshop
Thank you very much for your attention!
“KANSAI” Website is
http://www.kepco.co.jp/english/index.html