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Demand Side Management Workshop Fiji Islands
November 2-6,2009
Introduction to Demand Side Management
Day 1 - Dr. Herb Wade
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Demand Side Management for Utilities
Course outline
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Program Days 1-4 Start at 0800 Review of previous day’s work Morning Lectures and Demonstrations Lunch Case studies, practical work, exercises Daily Comprehensive quiz Finish about 1700
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Day 5
• Visit to a government facility to do an energy audit
• Course review and comprehensive examination
• Presentation of certificates of participation
• Closing
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Course Content
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Focus is on DSM and Utilities
• How DSM programmes affect utilities both technically and financially
• Why utilities do DSM programmes
• 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
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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
– Impact of meeting external requirements for implementing DSM
– Planning, forecasting and DSM
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Technical Aspects of DSM
• Energy auditing – Commercial – Industrial – Government – Residential
• Energy management technology
• Utility technical operations and DSM
• Renewable energy and DSM
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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 • DSM in rising fuel price conditions
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DSM Programming
• Energy Surveys and Audits
• Designing programmes for each class of customers
• Public Information programmes
• Appliance efficiency rating programmes
• ESCO type activities
• DSM programmes and government
• Energy codes for buildings
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Energy Service Companies and DSM
• ESCO Services
• ESCO type operations by utilities
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So What Really is DSM?
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Demand Side Management
• Actions carried out by the utility on the customer’s premises that help manage the customer’s electrical usage
– 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
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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.
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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 Fuel efficiency improvements Reduce parasitic loads Reduce transformer losses Reduce line losses
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• 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 Incorporating compensators to keep generation power
factor high
– Managing the distribution system optimally Substation management Power routing management
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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
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Comparison of DSM and SSM Actions
• Longevity of results – Supply side 20-30 years – Demand Side much shorter term unless continually
promoted
• Quantification – Supply side benefits easily measured – Demand side benefits often difficult to quantify
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• Non-Technical losses are often not considered in either SSM or DSM programmes
– Typically treated as an administrative issue
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• This course covers only DSM. Neither SSM nor non-technical loss reduction will be covered
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Objectives of DSM by Utilities
• Financial benefits
• Political benefits
• Socio-Economic benefits
• Improved quality of electrical services
– Avoiding the need for power cuts and rolling blackouts
– Improving voltage stability in distribution
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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
• Conservation includes energy efficiency but also adds reducing energy use through the reduction of non-essential services
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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
– May allow increased generation efficiency and lower fuel bills
– Marginal Costs are higher than average costs
– Load patterns cause inefficiencies in generation or distribution
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• DSM is Mandated by Government
– Reduction in fuel imports – Carbon emission reduction goals – Donor programmes
• Public Relations
– Customer’s perceive the utility in a more favourable light
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How can a Utility Make More Money by Selling Less Electricity?
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Tariff is too Low
• Government forces the utility to sell electricity below actual cost
– 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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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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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
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Inadequate Capacity Forces DSM
• Rolling blackouts
– the ultimate DSM measure is turning off the power to the customer
– 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.
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Distribution Capacity Inadequate
• DSM may allow the utility to avoid investment in distribution upgrading
– DSM measures specifically focused on customers connected to feeders that are at or above the proper loading level
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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
– DSM applied specifically to loads that cause the peaks/valleys can help level the load over the day
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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
– 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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Desired Results of DSM Actions
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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
• 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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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
– 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
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Selection of DSM Technologies
• Technologies that have the greatest potential for overall energy saving
• Technologies that are cost effective (payback in less than 10 years)
• Technologies that can be installed and maintained locally
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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
– 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.
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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
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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.
– This value can be stated as an “annual interest rate”, the percentage of increase in money value each year
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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
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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.
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)
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Compound Interest
• Based on the increasing value of the investment as interest is added to the principal as it comes in.
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
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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.
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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 $5000 X 1.262477 = $6312.38 (the same thing we got earlier when calculating it a year at a time)
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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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The effect of the time interval in compounding
• The more frequently you add in the interest, the higher the final value of the investment.
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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)
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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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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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
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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)
– Due to inflation plus other factors such as a depleting resource, market demand, etc.
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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) For Present Value calculation purposes the
discount rate for utility investments can reasonably be assumed to be 6%
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Formula for Present Value
• To calculate the Present Value of a future payment use the formula:
PV = Future Payment/(1+discount rate)N
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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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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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
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• 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
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
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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.
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• 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 Total PV of electrical use = $126.37
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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
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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 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
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• 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:
$133.07 - $43.29 = $89.78
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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
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• Simple Payback Example:
– Solar water heater costs $2000 to install and $25 per year average maintenance cost. 15 year life expectancy
– 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
Demand Side Management Workshop Fiji Islands
November 2-6,2009
DSM and the Utility Day 3 – Dr. Herb Wade
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Economics of DSM
For the Utility and for the Nation
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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
– Some PICs doubled their import expenditures – with no corresponding increase in export revenues – due to the increased price of fuel
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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
– Financial planning for the utility or for its customers was not possible
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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
– DSM Can be rapidly deployed to provide quick
benefits
– SSM Stable benefits and improved long term
profitability
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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
– Profits can increase through reduced sales of electricity when rates are below real costs
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•Effect of DSM on Cash Flow
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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
• 5. Determine total kWh sold and revenue in the target sector after DSM
• 6. Determine the per kWh cost of operations after DSM
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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
• 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.
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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
– More stable environment for business development
– Better customer relations
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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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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
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Residential revenue = 25,500,000 X $0.30 = $7,650,000
Cost of residential sales = 25,500,000 X $0.48377 = $12,336,135
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
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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
Total added cost on other sales = $263,900 Net improved cash flow = $713,865 - $263,900
= $449,965 - cost of DSM = benefit
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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
– Government revenues are down and non-payment 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
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• 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
• 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.
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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?
• 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
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Government Actions Likely
• Mandate DSM and use of renewable energy
• Government utility owners avoid energy system capital investments where possible
• Politicians force rates below a cost level that allows for good maintenance
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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
• 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
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• 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
– 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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Energy Standards for Buildings
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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
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
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– Standards are focused on comfort without air-conditioning 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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Appliance Energy Standards
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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
– 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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A Babel of Labels
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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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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
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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
– Donors assume that the equipment used for renewable energy and DSM projects does not have a carbon footprint. Not true but they ignore it.
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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
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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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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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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Designing DSM Projects for Donors
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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
– Should show multiple benefits including Poverty reduction Small business development Reduction in gender bias Carbon emission reduction
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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”
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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)
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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)
7. Cover letter from government official stating that this
is a formal request from government.
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• 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?_
– 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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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
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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
• 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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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)
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Resources needed • Expertise to develop the course
• Expertise to train trainers
• Enough CFLs to replace incandescent bulbs
• Audit analysis skills to extract useful data for home DSM
project development
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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
• 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
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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
• Printing and audio-visual support for the course
• Cost of analysis of home energy audits received
• Report writing
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Time line
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Herb Wade [email protected] = regular email [email protected] = email & attachments over 500kb
Demand Side Management Workshop Palau
March 22-26,2010
Illustrations of Commercial or Government DSM
Takashi Yoshida
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Where I came from.
Japan
Palau Osaka
Tokyo
“KANSAI”( The KANSAI Electric Power Co., Inc.) is located in Osaka, middle western city of Japan mainland.
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Climate of Japan
Japan’s national land lies long from north to south, and therefore climate varies by each region.
Osaka Tokyo (Capital )
Kansai Region
Subarctic zone
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.
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Today’s Outline
1. Outline of Energy Consumption in Japan
2. Energy Audit for DSM
3. Example of Actual Implementation
3-1. Lighting 3-2. Air- conditioners 3-3. Others
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1. Outline of energy consumption in Japan
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Energy Consumption in Various Buildings
• Type of Buildings
Type of Buildings
Commercial
Industrial
Residential House
Store
Factory
Office
Governmental Office
Private Sector
Public Sector
Hotel Hospital
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Energy Consumption in Various Buildings
Depends on what the factory
produce
Lighting
Air-Con (Cooling)
(Other Electricity Demand)
Type of Building
House Store Factory Office
Hot Water
Hotel Hospital Energy usage
Air-Con (Heating)
(Other Thermal Demand)
Depends on what the factory
produce
Depends on what the factory
produce
• Energy Usage by Type of Building
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Consumption by Each Building Type • Breakdown of energy use (Primary energy equivalent)
Based on ECCJ (The Energy Conservation Center, Japan) Guide Book
Department Store
Lightingand outlet,
40%
Heatconveyance
, 8%
Heatsource, 32%
Others, 4%Power, 16%
Office
Lightingand outlet,
36%
Heatconveyance
, 13%
Heatsource, 26%
Others, 13%
Power, 12%
Hotel
Power, 13% Others, 5%Heat
source, 36%
Heatconveyance
, 11%Hot water
and steam,12%
Lightingand outlet,
23%
Hospital
Power, 11%Others, 5%Heat
source, 32%
Heatconveyance
, 12%Hot water
and steam,18%
Lightingand outlet,
21%
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Energy Consumption by Business Types
• Energy consumption per-floor of building (MJ/m2/year) Governmental Office Community Center
College
Office
Hotel
Grocery Store
Hospital Shopping Center Medical school
( ): Number of samples [ ]: Average floor space in m2
Source) ECCJ Guide Book
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Energy Consumption in Commercial/Residential Sector of Japan
Energy consumption in Japan had risen every year until mid-90’s, and recently has peaked.
Law for Energy Conservation and Recycling Support enacted in1979
Law Concerning the Promotion of the Measures to Cope with Global Warming enacted in 1998
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Energy Consumption Per-floor Space of Building in Japan
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Primary energy and Secondary energy
EF gb =×× ηηPrimary Energy Secondary Energy
Is energy found in nature that has not been subjected to any conversion process
ex. Fossil Fuels (fuel oil, fuel gas)
Is energy obtained by converting primary energy to more convenient forms ex. Electric power
Conversion Process
(Generation, Refining)
Generator (generation)
Boiler (combustion)
Heat Electric Power Fossil Fuel
Efficiency
P.E. S.E.
Efficiency
Loss Loss
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Generator (generation)
Boiler (combustion)
Heat Electric Power Fossil Fuel
Primary energy and Secondary energy
90% 40%
Various type of energy consumption is often expressed as primary energy for evaluation on common ground.
Boiler (combustion)
Heat Fossil Fuel
90% When H (heat) is utilized, primary energy F=H/0.9 (=1.1H) is consumed.
When E (electric power) is utilized, primary energy F= E/0.4/0.9 (=2.8E) is consumed.
Primary energy is often expressed as fuel combustion heat energy, or as equivalent amount of crude oil.
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Hot water supply Fossil Fuel
(Primary Energy) Boiler
Combustion Heat
Generation
Example of Energy Cascading
Electricity (secondary energy)
Air-conditioning (heating)
Air-conditioning (cooling)
Lighting
Primary energy and Secondary energy
End Use Other Generation (Solar PV, Wind Power etc.)
Others
Demand Side Supply Side
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Units of Energy
Thermal Electrical Mechanical
“1kW” is
A little bit “confusing”?
1kW=860kcal/h 1kW=1000W 1kW=1000Nm/s can boil 1litre water of 14deg C in 6min.
860,000cal/h
=(100-14)deg
×1deg/g×1000g /(6/60)h
can light up 20 candescent lamps of 50W.
1000W=1000Nm/s
=(1000/9.8)kgf-m/s
can lift 102kg of something up at speed of 1m/s.
1000W=20×50W
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Conversion Table of Energy Units
kJ ( kilo-joule )
kcal ( kilo-calorie )
W-h ( watthour )
kgf-m (kilogram force-meter)
1 0.2388 0.2778 102 4.187 1 1.163 426.9 3.6 0.860 1 367.1
“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.
• Table for energy unit conversion
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Conversion Table of Units • Unit System (Length – Mass - Time) of MKS and FPS
MKS( meter - kilogram - second) FPS( feet - pound - second)
lengthm(meter) in(inch) ft(feet) yd(yard) ml(mile)
1 39.3707 3.28089 1.09363 0.0006210.025399 1 0.08333 0.027777 0.0000150.304794 12 1 0.333333 0.0001890.914383 36 3 1 0.0005681609.31 63360 5280 1760 1
mass/weightg(gram) kg(kilogram) oz(ounce) lb(pound) US ton
1 0.001 0.035273 0.002204 0.0000011000 1 35.2739 2.20462 0.001102
28.3495 0.028349 1 0.0625 0.000031453.592 0.453592 16 1 0.0005907178 907.178 32000 2000 1
aream2 km2 ac(acre) ml2
1 0.000001 0.000247 0.00000038611000 1 61.024 0.0353
4046.87 0.004046 1 0.0015622589879 2.58998 640 1
volumecm3 l(litre) in3 ft3 gal(gallon)
1 0.001 0.06102 0.000035 0.000261000 1 61.024 0.0353 0.26418
16.387 0.001639 1 0.00058 0.004228317 28.317 1728 1 7.453785 3.785 231 0.134 1
degree Celsius 80 70 60 50 40 30 20 10 0 -10 -20 -30 -40 -50degree Fahrenheit 176 158 140 122 104 86 68 50 32 14 0 -22 -40 -58
temperature
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Units of Energy • Units specific to air conditioner capacity
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.
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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2. Energy audit for DSM
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How to Manage Consumption on Demand Side
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)
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)
Utilities support the customers’ activities as below in order to manage their consumption in DSM programs.
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Demand Side Management
Demand Side
Supply Side
Users
Utilities
*Eliminating waste (change attitude for energy saving) *Minimizing system loss (Improvement system efficiency) *Increasing capacity of generation
Subsidy for new installation
Public Information
Government
Energy price policy
Increasing Load Factor (contributes to optimal system investment)
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How to Manage Consumption on Demand Side
• Example of High Efficiency Air Conditioning Equipment
“ECO-ICE”“ECO-ICE”
Refrigerates water in storage with brine circulation during nighttime
Feeds cooled water Feeds cooled water melting ice in storage
ThermalStorage(ICE)
refrigeration
(Brine)
(Cold Water)
(Air conditioning)
“ECO-ICE”“ECO-ICE”
Refrigerates water in storage with brine circulation during nighttime
Feeds cooled water Feeds cooled water melting ice in storage
ThermalStorage(ICE)
refrigeration
(Brine)
(Cold Water)
(Air conditioning)
daytime nighttime daytime nighttime Heat load Actual Operation of Refrigeration
Assists to suppress demand at daytime
(1)
(1) (1)
(2)
(2)
(3)
(3)
at daytime at daytime
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How to Manage Consumption on Demand Side
• Example of High Efficiency Cogeneration System
Engine
(Hot Water)Air conditioning
GeneratorFuelElectricity
(Cold Water) Absorption refrigeration
Cooling Tower
Engine
(Hot Water)Air conditioning
GeneratorFuelElectricity
(Cold Water) Absorption refrigeration
Cooling Tower
Cogeneration system creates both electric and thermal energy simultaneously. Even cooling can be available using absorption refrigeration unit.
Waste heat
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Demand response program
• Change of customers’ behavior on energy consumption by demand response program
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Demand response program
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Demand response program
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Demand response program
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An example of tariff menu of KANSAI • Tariff menu for managing demand side consumption
TOU ( Time Of Use) pricing for commercial use
12 0 24
Jul-Sept (summer)
10 8 17 22
0 12 24
Other seasons
22 8
Period of time
“heavy load”
“daytime”
“nighttime”
17.29 yen/kWh
12.21 yen/kWh
8.05 yen/kWh
Price rate of energy charge
Price rates according to period of time induce users shift electrical load to off-peak hours, which contributes to improve load factor.
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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)
PV
Utility
Utility
Conventional
Demand [kW]
Time
Time
Supply [kW]
Time
Supply [kW]
Time
PV generation [kW]
Introduction of PV
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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.
Utility
Utility
Conventional
Introduction of renewable energy source as PV
Utilities have to purchase electricity generated by renewable energy source at higher price rate under FIT policy, than they sell.
electricity bill
electricity bill
Users can cut down introducing cost of renewable energy source by selling generated electricity.
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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
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Importance of Energy Audit (2)
Benefits of energy audit - Customers (demand side) First step toward comprehensive energy management - 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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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
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Introduction of Energy Management
• “Do you have any questions about your energy systems? We will offer the knowledge toward saving energy, reducing cost and protecting environment.”
Saving energy
Protecting environment
Reducing cost
Investment in plant and equipment
QC* activity
Renewal
Preparation of manual
We will propose effective energy utilizing methods.
*Quality Control
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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
Air conditioning
Lighting
Pump and fan
Air compressor
Boiler Industrial furnace
Hot water supply Other systems
Current System Conditions
Quick investigation
Measuring investigation
Finding out improving methods through investigation of actual system operating conditions!
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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 2. Optimization of Operating Conditions - Introduction of multiple units control (for refrigerator) - Optimization of combustion control (for boiler and industrial furnace)
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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) 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)
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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) 6. Eliminating wastes - Turning off lighting and air conditioning equipment when
nobody is in the room - Cleaning of filter (for air-conditioner)
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Concept of Energy Audit (4)
7. Natural/ Solar Power Utilizing System - Use of daylight - Cooling with external air during intermediate seasons
(spring/autumn) - Heat pumps using external air, river water or groundwater
as heat source - Positive use of rainwater or other natural energies
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Concept of Energy Audit (5)
Large
Effect Small Large
6. Eliminating wastes
5. Saving energy without disturbing comfortableness
1.System/equipment efficiency improvement
3. Exhaust heat recovery
7.Natural/solar power generation system
Inve
stm
ent c
ost
2. Optimization of operating conditions
“We propose energy-saving methods that can be achieved at low investment cost.”
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3.Example of Actual Implementation
3-1. Lighting
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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 power-saving effect.
(replacement on condition that an equal light intensity is provided)
socket
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Energy Saving Method for Lighting (2)
2. Using highly-efficient light source and illumination equipment - Use energy-saving type (5 to 10%) fluorescent lamps - Use high-frequency-operation fluorescent lamp
equipment (Hf [high frequency] fluorescent lamp equipment) (Saving energy by approx. 25%)
- Use LED for ornament lighting
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Energy Saving Method for Lighting (2) • LED (Light Emitting Diode) lighting
LED cover
power circuit board
case (heat sink)
*Luminous efficiency
Candescent lamp 15 lm/W
Fluorescent lamp 110 lm/W
LED lamp 100lm/W (200lm/W or more can be possible theoretically)
*Price per Luminance ( Japanese yen/lm)
Candescent lamp 0.2 yen/lm
Fluorescent lamp 1 yen/lm
LED lamp 4 -10 yen/lm
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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. (Note that color rendering property deteriorates.)
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Total Efficiency by Light Source Type
0 20 40 60 80 100
Fluorescent mercury lamp
High-pressure sodium lamp
Metal halide lamp (Diffusiontype)
Metal halide lamp (High colorrendering type)
Compact-type fluorescentlamp
Fluorescent lamp (High-frequency operation)
Fluorescent lamp (Rapid start)
Lamp-shaped fluorescentlamp (Electronic ballast)
Candescent lamp
Total efficiency (lm/W)
If equal luminance is provided, higher efficiency reduces power consumption more.
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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 - Adoption of localized lighting
TAL (Task Ambient Lighting)
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Keeping Appropriate light intensity • Example of light intensity standard (Japanese Industrial Standard)
Room for Fine Work, Drawing, Design
General OfficeMeeting Room
Consultation RoomDining Room Kitchen
Room for Guards AuditoriumElevator
Safe Room Bath RoomCorridorStairsLobby
StorehouseLocker Room
Illuminance（ｌｘ） Place
Emergency Staircase
2000
1500
1000
750
500
300
200
150
100
75
50
30
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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 brand-new 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
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Motion detectors
Reducing power consumption by adopting motion detectors
Sensor
This method is effective for locker rooms, restrooms of halls, stairs and so on.
Saving effect depends on the duration that the lights can be turned off.
Light control systems with motion detectors that detects people in the vicinity and to control lighting to the necessary brightness .
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Energy Saving Method for Lighting (6)
6. Effective control and maintenance for lighting is indispensable.
- Turn off unnecessary illumination at appropriate timing. - 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.
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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)
(2)
(3) Sunshine through window
(4) Lighting and other appliance
(5) Radiation heat from a person
(1)Penetrating heat through wall or roof
(2) Outdoor air heat by ventilation
(3)
(4)
(5)
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Implementation of Lighting (1)
• Changing candescent lamps to fluorescent lamps creates energy cost reduction to around ¼.
Fluorescent lamp (12W)
＝ Candescent lamp (54W)
• Life time of fluorescent lamp is six times longer than that of candescent lamp
Energy Saving by Replacing with High Efficiency Lamps
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Effect of Fluorescent Lamps
Fluorescent lamp (12W) Candescent lamp (54W)
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
Implementation of Lighting (1)
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Economic Evaluation
• Payback Period for Introducing Higher Efficiency System
*Not in consideration of interest or discount rate for simple
Accumulated Cost (A) Introducing system of low initial cost and low efficiency(=high energy cost)
(B) Introducing system of high initial cost and high efficiency(=low energy cost)
yr
yr
Annual energy cost
Initial cost
(A)
(B)
Payback Period
yr
IA
IB
EB
EA
Comparing (B) to (A), payback period
= (IB-IA)/(EA-EB)
(when just replacing newer system, IA=0)
(machine and its installation)
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Economic Evaluation
• Lifecycle (or Lifetime) Cost
*Lifecycle Cost for 10yrs (A)
yr
yr
Annual energy cost
Initial cost
IA
IB
EB
EA
(machine and its installation)
(B)
(A) (B)
LCCA=IA + EA×10
LCCB=IB + EB×10
Total owning cost of period for use = I + E ×( Period of use )
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Economic Evaluation
• Annual Equivalent Cost *Annual Equivalent Cost for Lifetime of 10yrs
AECA=IA /10 + EA (=LCCA/10)
AECA=IA /10 + EA (=LCCA/10)
(A)
yr
yr
Annual energy cost
Initial cost
IA
IB
EB
EA
(machine and its installation)
(B)
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Figure
Before improvement
After improvement
Hanger
5.0m
3.0m
Implementation of Lighting (2)
Example of Factory (Machines)
Efficiency improvement through relocation of lighting equipment mounting position keeping necessary light intensity
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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
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
Implementation of Lighting (2)
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Energy reduction effect: 1. Reducing number of fluorescent lamps to half (from 660 to 330 pieces) 2. Reduction of power consumption 40W✕(660-330)✕6400h/year＝84,480kWh/year Period for cost recovery Around 5 years in this case
Implementation of Lighting (2)
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3.Example of Actual Implementation
3-2. Air-Conditioners
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Principle of air-conditioning • Air conditioning utilizing “heat pump” technology
(1) Hot liquid refrigerant is cooled by outdoor air through heat exchanger.
(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.
Compressor (driven by electrical motors, etc.)
Evaporator Condenser
(Outdoor) (Indoor)
expansion valve
Heat Pump Cycle
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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.
Efficiency must be between 0 and 1
Conventional Heat source (Ex. Boiler)
loss L
Energy Input E
H Heat Output
efficiency= H/ E
COP can be larger than 1 theoretically.
COP= ΔQ/ ΔW
Energy Input
Heat pump Air-con
(cooling)
loss
ΔQ
L
ΔW=E-L
E
ΔW+ ΔQ
(outdoor) (indoor)
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Chronological Improvement of COP
•Recent improvement of air-con COP is remarkable.
year
Water Cooled Centrifugal Refrigeration
Air Cooled Type Heat Pump Air-Con COP (cooling/refrigerating)
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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
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Energy Saving Method of Air-conditioners (1)
2. Change of temperature setting for A/C
Changing air conditioning temperature setting a little lower results in significant effect.
When the temperature setting for cooling an office or a plant is changed lower by 1 deg, it results in 7-10% load reducing.
1. Replacement of Air Conditioner with high efficiency type
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0
50
100
150
26℃ 27℃ 28℃
Cooling temperature setting
Max
imum
load
per
uni
t spa
ce a
rea
(W/m
2 ）
Maximum change in Maximum change in coolingcooling load resulting from load resulting from temperature setting changetemperature setting change
113 10 (8.8%) 17 (15%)
10396
Effect of setting temperature reduction
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Is 28℃ Comfortable?
• 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.
Source) ECCJ Material (Average)
Others 28℃ 27℃ 26℃ 25℃
Office
Factory
Total
24℃ No set
(Samples)
Actual setting temperature of buildings in Japan (questionnaire result)
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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
Energy Saving Method of Air-conditioners (2)
Air Conditioner Outdoor unit
(compressor unit)
exhausted hot air
“Short circuit” of hot air
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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
- Adoption of shading film for window
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Implementation of Air Conditioners (1)
1. Replacement of old low efficiency units with new higher efficiency units
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
Energy Reduction Effect: 331,215 kWh/year ✕(1-2.4/4.9) = 168,920 kWh/year (-51%)
<Calculation for trial>
Replacing to a new machine with higher COP reduces energy consumption effectively.
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Implementation of Air Conditioners (2)
Conditions: Office
Temperature setting 26deg C → 28deg C
Rate of power reduction 7.5 %/deg
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%)
2. Change of temperature setting for Air Conditioner
<Calculation for trial>
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Implementation of Air Conditioners (3)
3. A/C condensers shaded and in cool area (Experiment)
Before After
Measurement of current [Ampere] (proportionate to power consumption [Watt])
Shading with reed blind (Japanese “Sudare”) prevents heat exchanger of air-con condenser from being heated by direct sunshine at midsummer.
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Implementation of Air Conditioners (3)
3. A/C condensers shaded and in cool area (experiment result)
Before After (Shaded with Blind)
-
2
4
6
8
10
12
7:00
9:00
11:00
13:00
15:00
17:00
8:00
10:00
12:00
14:00
16:00
18:00
7:00
9:00
11:00
13:00
15:00
17:00
8:00
10:00
12:00
14:00
16:00
18:00
電流
［Ａ
］
-1
3
7
11
15
19
23
27
31
35
外気
温度
［℃
DB
］
よしず無 よしず有
Cur
rent
(A)
Tem
pera
ture
(℃)
Current Cut down By 28%
Temperature
Time
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Implementation of Air Conditioners (3)
3. A/C condensers shaded and in cool area (Product)
* needs countermeasures for tropical storm (typhoon!)
Shading sheet prevents air-con condensers from being heated by direct ray.
air heat exchanger (condenser inside)
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Implementation of Air Conditioners (3)
3. A/C condensers shaded and in cool area (Summary)
- 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.
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Implementation of Air Conditioners (4)
4.Change in color and material of the roof
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.
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Implementation of Air Conditioners (4)
4. Change in color and material of the roof (Experiment)
Temperature sensor (Thermocouple)
Temperature sensor (Thermocouple)
Data Recorder
Blue Painting Light Blue Painting
White Ceiling (Insulating material)
Temperatures of roof surfaces and inside of boxes are measured.
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Energy Saving Method of Air-conditioners (4)
4. Change in color and material of the roof (Experiment Results)
10
15
20
25
30
35
0 2 4 6 8 10 12 14 16 18 20 22
Blue Painting （33.5℃）
Temperature （27.4℃）
White painting （29.9℃）
White ceiling (insulating material)
（29.1℃）
0
10
20
30
40
50
60
0 2 4 6 8 10 12 14 16 18 20 22
Light blue painting （40.1℃） White ceiling
(Insulating material) （36.4℃）
Blue painting （47.7℃）
Temperature (27.4℃）
Temperature inside box
Temperature of surface of roof
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3.Example of Actual Implementation
3-3. Others
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Implementation of Pump and Fan
1. Control by valves or dampers
2. Adoption of inverters for 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.
Figure. Relation of fan load and power input
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0
0 2 0 4 0 6 0 8 0 1 0 0
Damper control
Inverter control
Flux (%)
Inpu
t pow
er (%
)
(Air Flow)
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Implementation of Pump and Fan
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)
Pump or Fan
Flow
E( rotational power) ∝ R3 (cube of rotation)
F ( fluid flow) ∝ R (rotation)
P ( fluid pressure) ∝ R2 (square of rotation)
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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.
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Implementation of Escalator
Introduction of human sensor for escalator
LED indicators LED indicators
“No Entry” “Out of service” “Upstairs” “Downstairs”
Only when someone comes nearby, the escalator works.
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Implementation to Raise Attention toward Energy Saving
Putting an instruction plate on the appropriate position
The plate says “ set temperature should be 28℃ in summer 20℃ in winter ”
Controller of Air-conditioner
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Thank you very much for your attention!
http://www.kepco.co.jp/english/index.html “KANSAI” Website is
