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– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy

for

– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,

y:

– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,

Decentralized

Energy:

Close to Renewable Energ
Close
to
Renewable
Energ
– for y: Decentralized Energy: Close to Renewable Energ Generating Energy Point of Use Energy Efficiency,

Generating

Energy

Point of Use

Energy Efficiency,

Energy Security,

Taking Forward

of Use Energy Efficiency, Energy Security, Taking Forward the Gleneagles Dialogue and the G8 St Petersburg

the Gleneagles Dialogue and the G8 St Petersburg Summit

July 25 th 2006

Jeff Bell

Research

Executive

World Alliance

Decentralized

Energy (WADE)

the G8 St Petersburg Summit July 25 t h 2006 Jeff Bell Research Executive World Alliance
What What is Decentralized Energy is Decentralized Energy (DE)? (DE)? Electricity production at irrespective of
What
What
is Decentralized Energy
is Decentralized Energy
(DE)?
(DE)?
Electricity
production
at
irrespective
of
size, fuel
or
technology –
the point
on-grid
of use,
or off-grid:
High
efficiency cogeneration
(CHP)
On-site
renewable energy
Industrial energy
recycling
and
On-site
power
Otherwise known as:
• Distributed
Generation,
Captive Power,
Embedded Generation,
Microgeneration,
CHP, CCHP,
Trigeneration,
etc.
2
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop

3

3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV

Decentralized

Energy –

The Main

Choices

3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV
3 Decentralized Energy – The Main Choices Gas Turbines Reciprocating Engines Large & small Rooftop PV

Gas Turbines

Reciprocating

Engines

Large &

small

Rooftop PV

Gas Turbines Reciprocating Engines Large & small Rooftop PV Stirling Engines Fuel Cells Microturbines On-site wind

Stirling

Gas Turbines Reciprocating Engines Large & small Rooftop PV Stirling Engines Fuel Cells Microturbines On-site wind
Gas Turbines Reciprocating Engines Large & small Rooftop PV Stirling Engines Fuel Cells Microturbines On-site wind
Gas Turbines Reciprocating Engines Large & small Rooftop PV Stirling Engines Fuel Cells Microturbines On-site wind

Engines

Fuel Cells

Microturbines

Gas Turbines Reciprocating Engines Large & small Rooftop PV Stirling Engines Fuel Cells Microturbines On-site wind

On-site wind

AboutAbout WADEWADE Non-profit research & promotion organisation created June 2002 WADE is supported by:
AboutAbout WADEWADE
Non-profit research
&
promotion
organisation
created
June 2002
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
4
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of

1 st

1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE

1.

2.

3.

4.

5.

1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE

5

DE

DE

8th

1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE

5th

1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE
1 st 1. 2. 3. 4. 5. 5 DE DE 8th 5th WADE Network of DE

WADE Network

of

DE Promotional

Organisations

6th(NYC, 2005) (Washington, 2000) WADE Network 4th (Rio, 2003) In train
6th(NYC, 2005)
(Washington,
2000)
WADE Network
4th (Rio,
2003)
In train
2nd (Amsterdam, 2001) 7th (Prague, 2006) (Beijing, 2004) 3rd (Delhi, 2002) Other Events:
2nd (Amsterdam, 2001)
7th (Prague,
2006)
(Beijing,
2004)
3rd (Delhi,
2002)
Other
Events:
2006) (Beijing, 2004) 3rd (Delhi, 2002) Other Events: Conference, Toronto, September 2006 WADE Annual

Conference,

Toronto, September 2006

WADE Annual

International Conferences

Sugar Bagasse Cogeneration, Bangkok, November 2006

C20 Event, Municipal Energy

Self Sufficiency, NYC, April 2007?

and Energy Security,

? , 2007

Event, Municipal Energy Self Sufficiency, NYC, April 2007? and Energy Security, ? , 2007 Annual DE

Annual DE Conference, ? , 2007

WADE Research DE Market data Future Studies: Onsite Power in the Cement Industry, August 2006
WADE Research
DE
Market
data
Future Studies:
Onsite Power
in the
Cement
Industry,
August 2006
Cogeneration and
the CDM,
September 2006
Onsite Power
and
Security, ?
Sector Specific
DE
Research
Research on
Specific Challenges
facing DE
6
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)

7

7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)

1.

7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)

7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)
7 1. • Energy Madness – worldwide energy waste Prioritize opportunities: Electricity Generation Worldwide (TWh)

Energy Madness

– worldwide

energy

waste

Prioritize opportunities:

Electricity Generation Worldwide

(TWh)

Efficiency:

Electricity Generation Worldwide (TWh) Efficiency: End Use Efficiency • DSM • Supply Side 2. Renewables

End Use Efficiency

DSM

Supply Side

2. Renewables

3. CCS etc

End Use Efficiency • DSM • Supply Side 2. Renewables 3. CCS etc (Source: International energy

(Source: International energy

Agency 2002)

8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center

8

8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center
8 WADE Mission Source: Danish Energy Center

WADE Mission

8 WADE Mission Source: Danish Energy Center

Source: Danish Energy Center

8 WADE Mission Source: Danish Energy Center
DE share as % of total power generation Denmark 53.0 Finland 38.0 Netherlands 38.0 Latvia
DE share as % of total power generation
Denmark
53.0
Finland
38.0
Netherlands
38.0
Latvia
37.5
Czech
26.4
Hungary
21.5
Germany
20.5
Turkey
17.6
Slovakia
17.5
Poland
17.2
Japan
16.7
Portugal
15.0
Global DE Statistics
Austria
13.6
India
12.1
Canada
11.4
SouthAfrica
11.1
60.0
Estonia
11.0
WORLD
10.4
Chile
10.0
China
10.0
50.0
Korea
9.8
Lithuania
9.7
Mexico
8.4
Where does your country stand?
Uruguay
8.0
Luxembourg
7.9
40.0
Greece
7.8
Spain
7.8
Belgium
7.5
Italy
7.4
30.0
UK
7.2
Sweden
6.8
Slovenia
5.9
Indonesia
5.6
Uganda
5.6
20.0
Australia
5.4
France
4.9
US
4.1
Thailand
3.4
10.0
Brazil
3.3
Ireland
2.5
Argentina
1.9
0.0
Source WADE Annual World Survey of DE 2006
9
Different Areas Require Different Approaches Off-grid On-grid Micro-grids Village scale renewables Micro-grids
Different Areas
Require
Different
Approaches
Off-grid
On-grid
Micro-grids
Village
scale
renewables
Micro-grids
Community scale
renewables
Small scale
industrial CHP
Industrial CHP, large and
small
Building-integrated
Cooling
Heat
and
Power
Microturbines
Small wind
Solar PV
Micro hydro
Fuelcells
BIPV
10
Different Areas Require Different Priority Applications Water pumping Rural electrification Buildings:
Different Areas
Require
Different
Priority
Applications
Water pumping
Rural electrification
Buildings:
Universities
Hotels
Supermarkets
Textile mills
Sugar mills
Food products
Forestry
etc
Community
Heating and
Cooling
Heavy
Industry
Petrochemical
plants
Steel
plants
Cement
Etc
Individual homes
11
World All-Energy Investment, 2001 - 2030 Network investment needs exceed generation needs by 17% Gas
World
All-Energy Investment, 2001
-
2030
Network investment needs
exceed
generation needs
by 17%
Gas
19%
Coal
Power
generation
46%
2%
Electricity
60%
54%
Network
T&D
Oil
19%
$5.2
trillion of investment
Source:
International Energy Agency, 2003
Reference Scenario – Business-as-Usual
12
IEA Analysis - DE Scenario is lower cost OECD Investment in Reference (BAU) and Alternative
IEA
Analysis -
DE
Scenario
is
lower
cost
OECD Investment in Reference
(BAU)
and Alternative
Policy
Scenarios, 2001-2030
4000
20%
lower
investment
need;
CO 2 emissions
remain at 2000 level
Alternative scenario:
3000
More cogeneration
More efficiency
More renewables
2000
IEA comment:
1000
“However, the reliance
on more expensive
generating options in
the
Alternative Policy
0
Scenario is likely to
result in higher
Reference scenario
Alternative
scenario
electricity
prices.”
Distribution
Transmission
Generation
(new and
refurbishment)
Source: International Energy Agency,
2003
13
$US billion
WADE Economic Model Object To compare cost of DE and of central power in providing
WADE Economic Model
Object
To
compare
cost
of
DE
and of central power in
providing
new electricity demand
growth over
next 20 years
Model ‘builds’
new
capacity
to meet demand
growth
and
replace
old
plant
Takes
account of peak time
network
losses
Can
be applied to
any country / region / city
in
the
world
14
The DE Model – Inputs and Outputs Existing capacity and generation by technology Capital Costs
The DE Model
Inputs and Outputs
Existing capacity and
generation
by
technology
Capital
Costs
Pollutant emissions by technology
Heat rates, fuel
consumption and load
factor by technology
Retail
Costs
WADE
Capital and investment costs by technology and for T&D
Economic
Fossil Fuel
Operation and maintenance (O&M)
and fuel
expenses by technology
Model
Use
System growth
properties
CO2 and
Existing yearly capacity
retirement by technology
other
Pollutant
Emissions
Future growth in capacity by technology
15
Applications of the WADE Economic Model WADE would like to see model work replicated: In
Applications
of
the
WADE
Economic Model
WADE would like
to see
model work
replicated:
In major cities
In provinces/states
In more
countries
Australia - Commonwealth
Scientific and
Industrial
Research Organisation
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
Environment
UK -
Greenpeace
the Ministry of
UK
USA
-
Primary Energy Inc.
City
of Calgary-
Federal Government
of Canada
Province of
Ontario-
Federal Government
of Canada
16
An Example – UK Application – Scenarios Delivered Costs 9.00 8.00 7.00 6.00 5.00 4.00
An
Example –
UK
Application –
Scenarios
Delivered Costs
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Low
Fuel
High
Fuel
No Nuclear
No
New
Greenpeace
Price
Price
Centr Gas
No Nucl & No
Dmnd Grw th
Scenario
O&M
Fuel
Capital
T&D
17
Retail Costs (p/kWh)
Centr Nucl
DE/Renew
CG
DE
CG
DE
CG
DE
CG
DE
CG
DE
CG
DE
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy

18

18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy

IEA Analysis – T&D Savings from Decentralized Energy

18 IEA Analysis – T&D Savings from Decentralized Energy
18 IEA Analysis – T&D Savings from Decentralized Energy
Policy and DE What policies affect DE investment? Example Policy Drivers 1. Targets 2. Feed-in
Policy and
DE
What policies affect
DE investment?
Example
Policy Drivers
1. Targets
2. Feed-in
Tariffs
3. Renewable
Portfolio Standards
4. Disclosure labeling on
power
bills
5. Public
Benefits charges
6. Carbon
taxes
Example
Policy Obstacles
1. Interconnection
standards/rules.
2. Settlement
rules
19
Financing and DE Financial Drivers 1. Guaranteed financing for DE 2. Favorable loans for DE
Financing and DE
Financial Drivers
1. Guaranteed financing for
DE
2. Favorable
loans
for DE
3. Government
buy-downs
for
residential,
commercial
scale
systems
4. Import-export duty
exemptions
5. Grants
Financial Obstacles
1. High
Transaction costs
2. Shortage
of
precedence
3. Lack
of
institutional
capacity
20
DE and the Gleneagles Dialogue? Economic Development: Overall reduced energy costs: Lower capital costs Lower
DE and the Gleneagles
Dialogue?
Economic Development:
Overall reduced
energy
costs:
Lower capital
costs
Lower delivered energy costs
Reduced
emissions,
and
other
Climate Change:
air
pollutants
Less
Import
Dependence
Energy
Security:
Increased Grid
Reliability
More
democratic energy
system
Poverty:
Better access
to energy
21
Thanks! www. localpower.org 22
Thanks!
www.
localpower.org
22
PART 2. Climate for Decentralized Energy 23
PART
2.
Climate
for Decentralized
Energy
23
What makes up the climate for DE? Factors in the that make investment in DE
What
makes
up the
climate for
DE?
Factors
in the
that
make investment
in
DE attractive
have to
context
of
factors
which make
it unattractive.
The
climate
is made
up
of
ideals
and
realities.
Drivers +
Obstacles
= Climate.
24
Drivers/ Obstacles Grid Extent (geographic) Grid Extent (constraints) (natural gas, biomass Fuel Access
Drivers/
Obstacles
Grid
Extent
(geographic)
Grid
Extent
(constraints)
(natural
gas,
biomass
Fuel Access
Generation
Capacity
(surplus
or
etc )
shortage?)
Heat
Loads
Cooling
Loads
Power Loads
Public
perception
(environmental
concerns)
Policy
(interconnection and settlement)
Financing/economics
25
Grid Extent (geographic) Is the demand for power near the T&D network? If not then
Grid Extent (geographic)
Is
the demand
for
power
near the T&D
network?
If
not
then DE
is
an ideal
solution.
Onsite power applications
are a
much cheaper
alternative
to
grid
extension
26
Grid Extent (capacity) Transmission or distribution bottlenecks? If so DE may be attractive alternative to
Grid Extent (capacity)
Transmission
or distribution
bottlenecks?
If
so
DE
may
be
attractive
alternative
to T&D
upgrades.
Even
non-dispatchable capacity
can offer
grid relief
when
generation coincides
with
demand
e.g. solar
powered
air conditioning or refrigeratio
n
27
Fuel Access Natural Gas: Distribution network in place? Sparkspread (i.e. differernce between price per unit
Fuel Access
Natural
Gas:
Distribution
network in
place?
Sparkspread
(i.e.
differernce
between
price per
unit
of electricity and
natural
gas
– High
electricity price
combined
with
low
gas
price makes CHP attractive)
Biomass:
Distribution
network in
place?
Fuel seasonal?
(e.g. sugarcane)
Sufficient storage space
for
fuel? Biomass is
a
low
energy
density fuel
compared to
fossil
fuels.
28
Generation Capacity Generation Capacity (surplus or shortage?) Power surplus due to lumpy nature of central
Generation
Capacity
Generation
Capacity
(surplus
or
shortage?)
Power surplus
due
to lumpy nature of central
investment.Reduces incentive for
conservation.
Centralized
capacity
spending
Decentralized
capacity
50MW
investment
Power shortage due to
long
lead times for central plants
1
5
10
Year
29
Demand (GWh)
Heat Loads Is there local demand for heat? CHP investments are heat driven Is there
Heat Loads
Is
there
local
demand for heat?
CHP
investments
are
heat
driven
Is
there
need
for space heating?
Are
there
any factories
that
need
process
heat?
Food
processing?
Mills?
Manufacturing facilities?
etc.
Demand for heat
is
the single
biggest driver for CH
P
30
Cooling Loads Cooling Loads More demand Nations in Equatorial Regions/Developing Can be combined in CCHP
Cooling
Loads
Cooling
Loads
More demand
Nations
in
Equatorial
Regions/Developing
Can
be combined
in CCHP
applications
Space cooling (air conditioning)
applications
and
process
cooling
If
there
is a
predictable need for
cooling/heating
then
CCHP
will
likely be
economic and
power will
become a
valuable
biproduct.
31
Power Loads Is there demand for Power? Demand for power secondary to heat as driver
Power Loads
Is
there
demand
for
Power?
Demand for power
secondary to
heat
as driver for
CHP
Demand for reliability/independence from
driver
grid key
Power driver most
relevant to
building
sector especially
e.g
hospitals,
colleges, schools, condos
32
Public Perception (opinion of DE) Do people want DE or care about it? Public support
Public Perception
(opinion of
DE)
Do people
want
DE or
care
about
it?
Public
support for/demand for
DE
is the single
biggest
driver
for
DE investment
because
it
influences
so many
other factors
That people
don’t
or
care about
obstacle.
the benefits of DE
is the
most important
33
Public Perception (environment and DE) Is there demand for DE because of its environmental benefits
Public Perception
(environment
and
DE)
Is
there
demand
for
DE because
of its environmental
benefits compared
to
central generation?
DE
results in
reduces
fewer GHG
DE
other
air
pollutants associated
with
central
power
DE
results in
fewer overhead
power lines
34
PART 3. Experience from Abroad 35
PART
3.
Experience
from
Abroad
35
Policy Drivers EU Level European Cogeneration Directive European Energy Efficiency for Buildings Directive
Policy Drivers
EU Level
European Cogeneration
Directive
European Energy Efficiency for
Buildings Directive
European Emissions
Trading Scheme
Case
Studies
Portugal
Belgium
United
Kingdom
USA
Japan
36
European Cogeneration Directive Directive number 2004/8/EC Builds on Common Directive Rules for the Internal
European Cogeneration
Directive
Directive
number
2004/8/EC
Builds on Common
Directive
Rules for
the Internal
Market for
Electricity
Came
into
effect in
2004
Legally binding
Member states
Member states
must address key barriers
to CHP
are
encouraged
to
develop
their own, more
specific
and
ambitious rules
for
promoting
CHP
37
European Cogeneration Directive 5 main drivers Obliges the Commission to establish criteria for high-efficiency
European Cogeneration
Directive
5
main
drivers
Obliges
the Commission to
establish criteria
for
high-efficiency
CHP
(Article
4
)
Obliges
members
to implement certification system to
guarantee
that CHP
power is
from plants
that meet
established criteria
(Article
5)
Obliges
members
to evaluate the
national
(Article 6,
potential for
CHP
and report
progress in
realizing
it
Article
10).
Obliges
members
to address grid connection
barriers
(Article 8)
Obliges
regulatory authorities
of
member states to make
transparent back-up
and
top-up tariffs (Article
8)
38
European Energy Efficiency for Buildings Directive Directive number 2002/91/EC Came into effect January 2003
European Energy
Efficiency for
Buildings
Directive
Directive
number
2002/91/EC
Came
into
effect January 2003
Applies to buildings
over 1000
2 feet
Obliges
each
Member State to
buildings
define
minimum
energy
standards for
Calculation
of electricity
process “ must account for
the positive influence
produced
by
CHP”
Ultimate aim to
harmonize
standards
for all Member States.
39
European Energy Efficiency for Buildings Directive 3 possible drivers for DE Members benefits could require
European Energy
Efficiency for
Buildings
Directive
3 possible drivers
for
DE
Members
benefits
could require
developers
to
integrate
possible
of
DE
into
building
energy performance
calculations
Members
could require
mandatory
DE feasibility
studies
for
new buildings
and major
renovations
Members
could simply require DE
to be
installed
to
obtain the
energy performance
certificate
40
European Emissions Trading Directive Directive number 2003/87/EC Driven Came by into Kyoto commitments effect
European Emissions
Trading Directive
Directive
number
2003/87/EC
Driven
Came
by
into
Kyoto commitments
effect January 2005
Legally binding
National Allocation
Member States
Plans
have
now been submitted by
all
41
European Emissions Trading Directive Scheme will promote DE directly Member States in their national allocation
European Emissions
Trading Directive
Scheme
will
promote
DE
directly
Member States
in their
national allocation
plans
ca
n provide
incentives for
further
DE
development
e.g. In the
UK
a number of permits
CHP projects.
have
been
set
aside for
new entrant
Scheme
will
promote
DE
indirectly
General increase
power prices
expected from
the scheme
will make
onsite generation comparatively attractive.
Because DE
results in
lower carbon
be
better
suited for carbon
constrained
emissions projects will
market.
42
Portugal Feed-in Tariffs Renewables and tariffs Eff CHP of any scale are guaranteed generous feed-in
Portugal
Feed-in Tariffs
Renewables and
tariffs
Eff
CHP of
any scale are
guaranteed
generous
feed-in
carbon
reduced
savings
network use
PRIME Program
Many
costs incurred
by
investors
in
renewables, efficiency and
CHP,
are eligible for up to 50%
capital
cost
reduction
Eligible
costs include materials,
feasibility
studi
es,
land, field trials,
transport
etc…
Tax deductions
The
government
is
currently
considering a
applications
new
tax
regime
which
may favor
DE
43
Belgium CHP certificate Scheme Cap and trade type scheme to promote CHP Must be “high
Belgium
CHP certificate
Scheme
Cap
and
trade
type
scheme
to promote
CHP
Must
be
“high quality”, commissioned
after January 2002 and
generate
energy savings
in the
region
All electricity supply companies not submitting
suf
ficient
certificates are
subject to a
fine
44
United States National CHP Roadmap (Strategy Document) Has put CHP on political agenda Set target
United States
National CHP Roadmap
(Strategy
Document)
Has
put
CHP on political agenda
Set
target of 92GW
by
2010
Identified
main
barriers
State
Initiatives
California: air
output rather
pollution
regulations are
based
on
than pollution
in exhaust per
fuel
useful energy
input.
New
York: “systems
benefits
charge”
charges
small
surplus on
every kWh
used and
funds
collected
used
to
finance up
to
50% of
DE projects
Pennsylvania:
RPS
requires
renewables and CHP
45
Japan Rational Use of Energy Law (1993) All factories must hire energy manager and efficiency
Japan
Rational
Use
of Energy Law (1993)
All factories must hire energy manager and
efficiency measures including CHP
possible
are being
prove energy
taken whenever
Energy
Master Plan
Targets for
biomass, MSW, and
fuel
cells
as
well
as
reciprocating
engines
Feed-in Tariffs
Net
metering
for
PV
Financing
Low interest
loans
for
CHP and
renewables
Rebates for renewables
46
Remaining Obstacles Similar obstacles remain in place in many places all over the world 1.
Remaining Obstacles
Similar obstacles remain
in
place
in
many places all
over
the
world
1. Lack
of
clear
interconnection
rules/step-by-step
procedures
because of
concerns
over:
safety,
power quality,
dispatch.
2. Lack
of
clear
settlement
rules.
3. Lack
of
financing for
those
who do
decide
to invest
in
DE
47