Decentralized Energy a Local Solution for Global...

Decentralized Energy a Local

Solution for Global Problems

David Sweet – Executive DirectorWorld Alliance for Decentralized Energy (WADE)

Edinburgh, USA, Canada, China, India, Thailand

Associate Partner:Funded by:

European Union

Partner:

Non-profit research, promotion and advocacy organisation started in 1997

Mission is to accelerate the worldwide deployment of high-efficiency cogeneration, on-site power and decentralized energy systems

WADE is supported by:

National DE organisations UK CHPA, USCHPA, Cogen Europe etc.

CHP/DE companies with international interests Thermax, Capstone, Siemens, Caterpillar , Solar Turbines, FuelCell

Energy, MTU, Marubeni, Primary Energy, Wärtsilä, etc

About WADEAbout WADE


European Union

Partner:

WADE Mission

WADE Research activities

Reports, market surveys and studies

WADE Economic Model

WADE Advocacy activities

Policy advise for governments

Participation in legislative and regulatory proceedings

Cooperation with International Organisations, Institutions and

NGOs

WADE Promotion activities

WADE Conferences and events

WADE NewslettersAssociate Partner:Funded by:

European Union

Partner:

WADE Communications

Research Reports

COSPP MagazineWeekly Member Updates

Market Information Website

Monthly Newsletter

Applications of the WADE Economic Model

Australia - Commonwealth Scientific and Industrial Research Organization Canada - Federal Government of Canada (Natural Resources Canada) China - UK Government (Foreign Office), for China EU - European Commission – DG-FER programme Ireland - Government of Ireland (Sustainable Energy Ireland) Sri Lanka - European Commission Germany - IZES for the Ministry of Environment UK - Greenpeace UK UK – Department of Trade and Industry

USA - Primary Energy Inc.

City of Calgary- Federal Government of Canada

Province of Ontario- Federal Government of Canada

Scotland- Greenpeace Scotland Iran – Greenpeace International G8+5 – IEA Turkey - REC

WADE would like to see model work replicated, at a municipal level, in the world’s major cities.


European Union

Partner:

World Population Growth and Energy Demand

Sources: U.S. Energy Information Administration (EIA),

International Energy Outlook 2006

http://www.eia.doe.gov/oiaf/ieo/world.html

Sources: United Nations Population Division

Wasted energy is a huge opportunity

Sources: IEA/OECD, 2008

2/3 of the fuel we use to produce power is wasted

CHP can more than double this efficiency

Energy Flows in the Global Electricity System


European Union

Partner:

What are We Waiting For?


European Union

Partner:

Electricity production at the point of use, irrespective of size, fuel

or technology – on-grid or off-grid:

• High efficiency cogeneration (CHP)

• On-site renewable energy

• Industrial energy recycling and On-site power

Otherwise known as:

• CCHP (Combined Cooling Heat and Power), Distributed Generation, Captive

Power, Embedded Generation, Microgeneration, CHP, Trigeneration,

Recycling Energy, etc.

What is Decentralized Energy (DE)?What is Decentralized Energy (DE)?


European Union

Partner:

Decentralized Technologies

Computing:Internet vs. Mainframes

Telecommunications:Cell phones vs. land lines

Broadcasting:Television Eg. You TubeRadio Eg. Podcasts

Electricity:Decentralized energy technologies


European Union

Partner:

The Move to Decentralized Technology

vs.

vs.


European Union

Partner:

Decentralized Energy – Fossil-fuel Technologies

Microturbines

Reciprocating

Engines

Large & small

Gas Turbines

Stirling Engines

Steam Turbines


European Union

Partner:

http://images.google.com/imgres?imgurl=http://www.itsm.uni-stuttgart.de/public_html/institut/images/img4.gif&imgrefurl=http://www.itsm.uni-stuttgart.de/public_html/institut/turbines.html&h=459&w=697&sz=145&tbnid=q2XQ7jqtMqpwjM:&tbnh=92&tbnw=139&prev=/images?q=steam+turbine+picture&start=3&sa=X&oi=images&ct=image&cd=3

Decentralized Energy – Renewable Technologies

Rooftop PV

Fuel Cells

On-site wind

Municipal Waste

Biomass

WADE Outreach - IPCC

In the Intergovernmental Panel on Climate Change 4th Report on Climate Change Mitigation there is a section on “Decentralized Energy”.

WADE work is cited in the report

Benefits cited include: Reduced need for costly transmission systems

Shorter lead times

Substantially reduced grid power losses

Deferred costs for upgrading transmission and distribution infrastructure

Improved reliability

Increased total energy recovery from 40–50% up to 70–85% with corresponding reductions in CO2 emissions of 50% or more

Source: IPCC Fourth Assessment Report, Working Group III, Chapter 4 Energy Supply


European Union

Partner:

WADE Outreach - DTI

In the recent UK Energy White Paper there is a chapter on DE which calls for:

providing more flexible market and licensing arrangements for distributed, low carbon electricity supply to be implemented by 2008

greater clarity on the terms offered by energy suppliers to reward micro generators for the excess electricity they produce and want to export back to the grid

provision of information and advice to those individuals, communities and developers considering distributed energy solutions, and

incentives for Distributed Network Operators to ensure more efficient and speedy connection to networks

WADE work is cited in the paperSource: Energy White Paper 2007


European Union

Partner:

DE and Climate Change - Asia Pacific Partnership

Seen as key agreement for engaging those that have not yet ratified the Kyoto protocol as well as major developing countries who have not yet made targets under their Kyoto commitments

Partnership of 7 countries1. Australia,

2. China,

3. India,

4. Japan,

5. Republic of Korea

6. United States

7. Canada


European Union

Partner:

Asia Pacific Partnership

WADE Receives $ 1 Million China Project

WADE Economic Model – 5 Provinces

Develop detailed study for CHP and DG in China

Analysis of the local fuel resources and supply and an

estimate of potential energy and CO2 savings

Develop recommendations and action plans to cultivate high

level provincial champions that will take ownership of and

help implement the provincial CHP strategy

Develop a “Handbook of best practices” for successful

CHP/DG development.

5 workshops between U.S. and Chinese companies and

Site visit by key Chinese provincial stakeholders and suppliers

to the U.S.


European Union

Partner:

18

The International CHP/DHC Collaborative

Who: The IEA, working with DHC and CHP leaders worldwide

What: Raise the profile of CHP/DHC among policy makers, industry

When: Launched March 2007 with a 2-year Work Plan

Activities:

Roundtables and seminars

IEA publications with Improved global DHC/CHP data and prospects, by country/sector Benefits globally and on a region/country basis Documentation of successful DHC/CHP policies

Outreach strategy targeted at policy makers key growth regions (Asia, Middle East, E Europe/Russia)


European Union

Partner:

19

Gleneagles 2005:

“The IEA will advise on alternative energy scenarios and strategies

aimed at a clean, clever and competitive energy future.”

Heiligendamm 2007:

Paragraph 67: “We invite the IEA to create a Sustainable Buildings Network…[to] develop practical instruments for assessing and advising on the use of renewable energies, especially for cooling and heating…”

Paragraph 70: “Making power generation more efficient, climate friendly and sustainable is …crucial…we aim to increase average power plant efficiencies in each of our countries...[we will] adopt instruments and measures to significantly increase the share of combined heat and power (CHP) in the generation of electricity.”

G8 Communiqués


European Union

Partner:

Why is DE better?

Benefits of DE compared to centralised generation

DE is more efficient

DE is cheaper

DE is cleaner

DE is more reliable

DE is more secure

DE provides access to electricity in remote areas

DE can be sited quicker and with less opposition


European Union

Partner:

DE Benefits – WADE Economic Model – Selected Past Results

Estimated Total Savings (%) by Increasing Proportion of DE in New Power Sector Investments

(Source: WADE various)

Note: Proportion of total investment that is DE varies from region to region and from scenario to scenario-( ie in some cases savings are

resultant from all new capacity being DE compared to baseline and in other cases only 25% of new capacity is DE compared to baseline)

Estimated Total Savings (%) by Increasing Proportion of DE in New Power Sector Investments

-100

-75

-50

-25

0

25

50

75

100

World China Sri Lanka Iran EU Ireland UK Scotland Brazil USA Calgary Ontario

Capital Costs Delivered Energy Costs

CO2 Emissions Fossil Fuel Consumption


European Union

Partner:

21© Wärtsilä

Azerbaijan

5 GW

installed

+

5 * 90 MW

distributed

each

consisting

of

10 * 9 MW

units

They ordered another 250 MW


European Union

Partner:

Average Power Plant Efficiency (%) Over Time (US Plants)

0

10

20

30

40

50

60

70

80

90

100

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Average Pow er Plant Eff iciency (no heat recovery)

Estimated Average Pow er Plant Eff iciency w ith Market Competition

Best Electric Only Pow er Plant Eff iciency

Combined Heat and Pow er Plant Eff iciency

Average Power Plant Efficiency (%) Over Time


European Union

Partner:

1957 vs 2007


European Union

Partner:

Coal

2%

Gas

19%

Electricity

60%Oil

19%

World All-Energy Investment, 2001 - 2030

Source: IEA World Energy Outlook, 2006

46%

54%

Generation

Capacity

Wires

Network investment needs

exceed generation needs

by 17%

$6.1 trillion of investment


European Union

Partner:

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Central DE Central DE Central DE Central DE Central DE Central DE Central DE

Reference case 3% (low) demand

growth

high coal capacity high gas capacity T&D cost +1/3 High nuclear and

renewables capacity

8% (high) demand

growth

Scenario

Bil

lio

n U

S$

fo

r N

ew

Ca

pa

cit

y

in 2

02

1

Investment in new Central Generation Investment in new DE Investment in T&D

Example – Sensitivity Analysis for China Model Run


European Union

Partner:

China – retail costs for new capacity to 2021

Retail Costs per KWh for Incremental 2021 Load

0

2

4

6

8

10

100% CG / 0% DE 75% / 25% 50% / 50% 25% / 75% 0% CG / 100% DE

% DE of Total Generation

US

$ C

en

ts / K

Wh

O&M of New Capacity FuelCapital Amortization + Profit On New Capacity T&D Amortization on New T&D


European Union

Partner:

China – capital cost for new capacity to 2021

Capital Cost to Supply Incremental Electricity Load to 2021

0

200

400

600

800

1,000

1,200

100% CG / 0% DE 75% / 25% 50% / 50% 25% / 75% 0% CG / 100% DE

% DE of Total Generation

Bill

ion

US

$ f

or

Ne

w C

ap

acity

Inv. In New CG Inv. in new DE Inv. In T&D


European Union

Partner:

China – CO2 emissions from new capacity to 2021Added Annual CO2 Emissions for Incremental Year 20 Load

0

100

200

300

400

500

600

700

800

100% CG / 0%

DE

75% / 25% 50% / 50% 25% / 75% 0% CG / 100%

DE% DE of Total Generation

Mill

ion

Me

tric

Ton

ne

s /

Ye

ar

CO2 emitted for added CG CO2 emitted for added DE


European Union

Partner:

China – fossil fuel use for new capacity to 2021

Added Annual Fossil Fuel Use for Incremental year 20 Load

0

2

4

6

8

10

12

14

16

18

20

100% CG / 0%

DE

75% / 25% 50% / 50% 25% / 75% 0% CG / 100%

DE% DE of Total Generation

Exa

jou

les

(EJ)

of

Fossi

l F

ue

l /

Ye

ar

Total "New" CG Fuel Use Total "New" DE Fuel Use


European Union

Partner:

CHP share national power generation

Sources:IEA, CHP: Evaluating Benefits of Greater Global Investment, 2008


European Union

Partner:

Don’t Worry – Be Happy


European Union

Partner:

Global DE Market Growth

36

26

22

1311

0

5

10

15

20

25

30

35

40

45

50

20

02

20

03

20

04

20

05

20

06

Perc

en

tag

e m

arg

inal g

en

era

tio

n f

rom

DE

Source: WADE World Survey of Decentralized Energy, , 2007


European Union

Partner:

What is Possible for a Country

Source: Danish Energy Center


European Union

Partner:

35

Disruptive Technologies are Ready

Volvo:

ReCharge Concept Plugin Hybrid Vehicle

Whispertech:

WhispergenStirling Engine micro CHP unit


European Union

Partner:

36

Conclusions:

DE is a win-win form of power generation;

DE has great potential to reduce CO2 emissions and reduce overall costs of supplying power;

DE can provide energy access for those in rural areas and developing countries;

Barriers tend to be policy barriers;

Organizations like WADE can help breakdown barriers through advocacy and education.


European Union

Partner:

37

Local Power is a Global Solution!

www. localpower.org

[email protected]

Thank you!


European Union

Partner:

Decentralized Energy a Local Solution for Global...

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