Introduction - Theory - Exercises - Business Case - Summary Contracts … · Financing of ECM ... Modernisation of heating system ... our bank our energy supply utility the government

Co-funded by the Intelligent

Energy Europe Programme of

the European Union

Introduction - Theory - Exercises - Business Case - Summary 1



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Overview

Introduction Energy conservation measures (ECMs)

Financing of ECM

Theory Part I: Supply contracts

Part II: Load shifting

Exercises

Business Case

Summary




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Introduction.




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Initial Situation

There are two reasons to perform an

energy conservation measure (ECM):

Save energy

Save money

But performing an energy conservation

measure can be expensive. So you could

ask yourself:


Can I afford the ECM?



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Energy Conservation

Measures (ECMs) An ECM can be:

Installation of insulation

Replacing windows

Replacing light bulbs

Modernisation of heating system

Modernisation of machinery

…




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Financing ECMs

To minimize financial risks and to avoid investing

you can commission your energy supply

company or other companies (e.g. building

technology companies) to perform the ECM.

Benefits are:

Guaranteed improvements

Guaranteed savings (energy and financial)

No up-front capital costs

After the contract you keep the cost savings

[1]




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An energy savings

contract helps you

to perform ECMs

without financial

risks.

[1, 6]




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Theory.

Part I:

Supply Contracts




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Approach

1. Identify possible areas to perform

an ECM.

2. Contact a. energy supply company

b. building technology company

c. machine manufacturer

d. heating system manufacturer

e. etc.

3. Complete contract

4. Earn benefits

After contract: Earn complete

financial savings through ECM




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1. Identify possible areas to

perform an ECM

Insulation

Windows

Light bulbs

Heating system

Air Condition

Machinery

…

If you need help in identifying

ECMs, go to step 2 first.




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2. Find contract partner

Energy savings contract partner can be

energy supply company

building technology company

machine manufacturer

heating system manufacturer

…

Ask them how they can support your project!




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3. Complete contract

The energy savings contract should contain guaranteed

savings during a fixed time

period.

The energy cost savings ought

to be enough to pay for the

energy savings project.

During contract period you

should pay same or less than

without contract.

[6 (p. 383)]




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4. Earn benefits

Some benefits follow the energy savings contract:

If you save more energy than

guaranteed: Earn financial

savings.

Infrastructure improvement

Improvements without up-front

capital costs

Better financial planning

[1]




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Earn savings after contract

You keep the improved and more efficient infrastructure.

Hence you keep the energy

savings and financial savings

after contract period.

[1]




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Theory.

Part II:

Load Shifting




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“Energy efficiency (EE) and demand-side

management (DSM) projects are

implemented to achieve energy

consumption (kWh) and energy demand

savings (kW) at specific time periods during

the day, and ultimately cost savings for the

stakeholders.” [4]

Definition




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Problem

Producing energy at peak times means:

1. Inefficient

2. High emissions

3. Expensive

4. Risk of blackouts

Measure

1. Rather control/adjust the load than the power station output.

2. Implement load shifting to avoid peak load and balance electrical power

supply and demand.

3. Ask your electric supply company for assistance.

4. Load shifting implicates cost savings.

[2, 3, 6 (p. 382)]

Load shifting




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A matter of switching

Switch in the hand of the utility

Should be non-invasive

Details regulated in a

contract

Switching off or even on

(when demand is needed)

Communication signal e.g.

through power line

Switch in the hand of the consumer

Driven by price incentives

Electrical power is expensive

at peak load times and

cheap at base load times

Communication signal e.g.

through power line, radio

frequency or smart meters

[2, 3]




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Smart consumption

Smart

Generation

Smart

Consumption

Smart

Distribution and

Transmission

Smart Storage

Smart

Grid

Market Grid Operation

Communication between

system components

Load shifting is as smart

consumption

part of the

complex

cooperation of the “Smart

Grid”.


[cf. 7, p. 14]



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Exercises.




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Why do you conclude a supply

contract?

a. To have infrastructure improvements

and cost savings/reliable financing.

b. To get new machines and

better credit terms.

Introduction - Theory - Exercises - Business Case - Summary

Starting a supply contract

22



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Why do you conclude a supply

contract?

a. To have infrastructure improvements

and cost savings/reliable financing.

b. To get new machines and

better credit terms.


Starting a supply contract

23



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Gap text

Enter the correct, missing words.

After talking to ___________________ , we concluded a

supply contract, had a ten-year cooperation and

__________ the energy and money savings.

our bank our energy supply utility the government

lost changed kept

24



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Gap text

Enter the correct, missing words.

After talking to ___________________ , we concluded a

supply contract, had a ten-year cooperation and

__________ the energy and money savings.

our bank our energy supply utility the government

lost changed kept

25



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Think of a system in your

company that could be

improved by a supply

contract. Picture the period

before and during the

contract.


Analysis

26



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Did you find a specific system?

Did you think of a suited

partner?

Did you choose a specific

improvement method and

consider the savings?


Analysis

27



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Load shifting is …

a. …the shifting of electrical power

loads in order to balance the grid

and to avoid demand peaks.

b. …the switching of workload to the

evening in order to avoid high

workload during the day.


Load shifting

28



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Load shifting is …

a. …the shifting of electrical power loads

in order to balance the grid and to

avoid demand peaks.

b. …the switching of workload to the

evening in order to avoid high

workload during the day.


Load shifting

29



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Business Case.




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Supply contract: Example


Electricity Heat Water

Energy costs

before after

Initialsituation

Contractperiod

After contract

Operating costs

Contract costsMaintenanceEnergy costs

[5]



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Summary.




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Supply Contracts:

An energy supply contract performs energy conservation

measures without financial risks.

Benefits are guaranteed improvements, guaranteed

savings, no up-front capital costs and lasting savings.

Load Shifting:

The goal of load shifting is to reduce energy usage at

peak usage times.

Load shifting implies energy savings for the utility and cost

savings for both, the utility and consumer.

Repetition

33



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[1] Wikipedia: Energy Savings Performance Contract. URL: http://en.wikipedia.org/wiki/Energy_Savings_Performance_Contract

[2] Wikipedia: Load management. URL: http://en.wikipedia.org/wiki/Load_management

[3] Wikipedia: Demand response. URL: http://en.wikipedia.org/wiki/Demand_response

[4] Eskom (2010): The Measurement and Verification Guideline for Energy Efficiency and Demand-Side Management (EEDSM) Projects and Programmes. URL: http://www.eskom.co.za/IDM/MeasurementVerification/Documents/M_and_V_guideline_v10r5.pdf

[5] Vattenfall: Energiesparvertrag. URL: http://www.vattenfall.de/de/energie-sparvertrag.htm

[6] European Commission (2009): Reference Document on Best Available Techniques for Energy Efficiency. URL: http://eippcb.jrc.ec.europa.eu/reference/

[7] VDE, DKE: The German Roadmap E-Energy / Smart Grid. URL: http://www.dke.de/de/std/KompetenzzentrumE-Energy/aktivitaeten/Documents/DKE_Normungsroadmap_EN.pdf

Readings

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Pictures – 1

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Slide 1 – Nextors: Electric beauty – URI: http://www.flickr.com/photos/nextors/5191606971/sizes/l/in/photostream/ License: CC BY-NC-ND 2.0

(http://creativecommons.org/licenses/by-nc-nd/2.0/legalcode)

Slide 3, 15 – Alaska Center for Energy and Power: DSC_5748 – URI:

http://www.flickr.com/photos/acep_uaf/5934878595/sizes/l/in/photostream/ License: CC BY-NC-ND 2.0


Slide 4 – Images_of_Money: Heating a House – URI:

http://www.flickr.com/photos/59937401@N07/5857335756/sizes/m/in/photostream/ License: CC BY 2.0

(http://creativecommons.org/licenses/by/2.0/legalcode)

Slide 5 – dr. friendly: halogen glühlampe – URI:

http://www.flickr.com/photos/57777529@N02/5343580540/sizes/z/in/photostream/ License: CC BY-SA 2.0

(http://creativecommons.org/licenses/by-sa/2.0/legalcode)

Slide 6 – Tax Credits: Coins – URI: http://www.flickr.com/photos/76657755@N04/7027587393/ License: CC BY 2.0


Slide 7 – Michael Jefferies: Marriage contract – URI:

http://www.flickr.com/photos/ogcodes/2095054686/sizes/z/in/photolist-4c8GLw/ License: CC BY-NC 2.0

(http://creativecommons.org/licenses/by-nc/2.0/legalcode)

Slide 8, 16 – Aprilyn Podd: Theory Books – URI:

http://www.flickr.com/photos/apodd/5064813896/sizes/m/in/photostream/ License: CC BY-SA 2.0


Slide 9 – – Dennis Skley: *grübel* – URI: http://www.flickr.com/photos/dskley/8627475625/sizes/z/in/photostream/

License: CC BY-ND 2.0 (http://creativecommons.org/licenses/by-nd/2.0/legalcode)



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Pictures – 2

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Slide 10 – Jahel Aheram: To-Do List – URI: http://www.flickr.com/photos/aheram/409863531/sizes/m/in/photostream/ License: CC BY-ND 2.0

(http://creativecommons.org/licenses/by-nd/2.0/legalcode)

Slide 11 – Morgennebel: Heating in Basement (HDR) – URI:

http://www.flickr.com/photos/morgennebel/2619932507/sizes/l/in/photostream/ License: CC BY-NC-ND 2.0


Slide 13 – NobMouse: Contracts – URI:

http://www.flickr.com/photos/nobmouse/4052848608/sizes/z/in/photostream/ License: CC BY-NC 2.0

(http://creativecommons.org/licenses/by-nc/2.0/legalcode)

Slide 18 – Slack pics: Shift – URI: http://www.flickr.com/photos/slackpics/4261060942/sizes/z/in/photostream/

License: CC BY-NC 2.0 (http://creativecommons.org/licenses/by-nc/2.0/legalcode)

Slide 20 – VDE, DKE – The German Roadmap E-Energy / Smart Grid, p.14, Figure 2 – URI:

http://www.dke.de/de/std/KompetenzzentrumE-

Energy/aktivitaeten/Documents/DKE_Normungsroadmap_EN.pdf

Slide 21 – Florian Simeth: Arbeiten von zu Hause mit dem Laptop – URI: http://www.flickr.com/photos/hangout-

lifestyle/5865980513/sizes/o/in/photostream/ License: CC BY 2.0


Slide 22, 26, 28 – Bilal Kamoon: Question Mark Graffiti – URI: http://www.flickr.com/photos/bilal-

kamoon/6835060992/sizes/m/in/photostream/ License: CC BY 2.0




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Slide 23, 27, 29 – Photocapy: ! – URI: http://www.flickr.com/photos/photocapy/3834784192/sizes/m/in/photostream/ License: CC BY-SA 2.0


Slide 30 – Son of Groucho: Not Our Guide – URI:

http://www.flickr.com/photos/sonofgroucho/3855487710/sizes/z/in/photostream/ License: CC BY 2.0


Slide 31 – Vattenfall : Energiesparvertrag – URI: http://www.vattenfall.de/de/energie-sparvertrag.htm

Slide 32 – Kutchala Sutchi: Repetition, 23.03.'10, Abidjan-Yopougon (4640) – URI:

http://www.flickr.com/photos/kutchala/4469943694/sizes/o/in/photostream/ License: CC BY 2.0 (http://creativecommons.org/licenses/by/2.0/legalcode)

Pictures – 3

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