Energy efficiency and Demand Side Management Program ... - Eskom

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1 Introduction The South African economy is experiencing a generally healthy growth period that has been reflected in consistently high national electricity demand growth. As a result, Eskom is faced with a fast diminishing reserve margin across the load profile. The surplus capacity under which Eskom operated within the last several years has been largely depleted and Eskom’s power system will remain tight while new capacity is built and old capacity is reinstated. In recent years, energy efficiency has proven its worth in being able to limit the capacity needed through managing the demand. Current planned capacity expansion initiatives are not expected to meet the demand requirements cost effectively within the required timeframes. Planning has therefore been reconsidered and a comprehensive strategy to address demand, incorporating both supply and demand management solutions, has been developed. Comprehensive energy efficiency (EE) and demand side management (DSM) programs are led by ESKOM which will reduce Eskom’s peak demand supply requirement by approximately 3,000 MW by March 2013 and a further 5,000 MW in the subsequent 13 years to March 2026 in order to alleviate the imminent supply constraints and to displace the need for more costly supply options currently under consideration. EEDSM interventions have been proven very successful in assisting (on a much smaller scale) with the alleviation of the short term capacity constraints during the 2006 Western Cape power crisis. In order to further promote EEDSM activities, an important strategy is to evaluate existing EEDSM projects and programs, recognize achievements, so that the impact of the EEDSM measures and further improvement opportunities can be identified. Existing evaluation on EEDSM programs are usually based on the energy and power saving, with an emission reduction assessment based on given conversion ratios from energy consumption to greenhouse gas (GHG). This environmental evaluation based only on GHG emission is obviously not enough since there are many environmental aspects need to be addressed. Furthermore, recent research indicates that when the technological EEDSM measures reach their energy saving limit, there is still the potential of further energy savings when the social behaviour changes are promoted. For any EEDSM program, people are also interested to find out the corresponding social and economic impact, for instance, how many new jobs created each year, how is it aligned with the strategic positioning and restructuring of national economy, etc. Therefore, the EEDSM program can provide more energy savings from social behavioural approaches, and the impact of this program can be evaluated not only from conventional engineering point of view, but can also be evaluated from comprehensive environmental, social, and economic aspects. Such a comprehensive evaluation for EEDSM program can be established with the help of a new energy efficiency classification approach which classifies general energy efficiency in terms of the efficiencies of performance, operation, equipment and technology (POET) [15‐17]. Note that conventional evaluation on EEDSM program is based on the measurement and verification (M&V) guidelines [6,7], and M&V teams with a strong engineering background are contracted by ESKOM for the M&V of EEDSM projects. With the help of the POET framework, this document will present this comprehensive evaluation guideline for EEDSM programs so that the existing M&V teams and professionals with strong engineering background are still able to evaluate EEDSM programs not only 4
from the engineering and environmental point of view, but also the social and economic point of view. 2 International EEDSM Evaluation—A Measurement and Verification Approach According to [12], physical evidence to evaluate an EEDSM program needs to be collected so that calculations based on measured quantitative data can give a rigorous evaluation on this EEDSM program, which is the so‐called M&V process that consists of mainly the baselining, performance assessing and tracking procedures. Therefore, M&V for EEDSM program evaluation will be discussed in this document. [1], [6], [7], and [14] focus primarily on the evaluation of energy/power savings, with also, but relatively less, emphasis on emission reductions. These documents provide comprehensive M&V methodologies for the evaluation of engineering aspects of EEDSM programs, particularly [14] provides detailed M&V plans for different scenarios such as lighting systems, motors, chillers, geothermal heat pump, water, and renewable projects. Besides the engineering aspects of energy and power consumptions, a full evaluation on environmental, social, and economic aspects need also be evaluated for the EEDSM programs. [12] lists many protocols which includes not only the general energy/power saving impact, but also the market effects evaluation where the change of market structure or behaviour of market participants with respect to an increase in the adoption of energy efficient measures in the EEDSM program is evaluated. [3] and [4] focus more on the economic analysis of DSM projects. [8] provides the monitoring and evaluation technique for forestry projects in carbon emission reduction. Environmental and socioeconomic impacts of an EEDSM project are also briefly discussed in [8], where the impacts on the following factors are mentioned: dams and reservoirs, hazardous and toxic materials, indoor air quality, industrial hazards, insurance claims, occupational health and safety, water quality, wildlife and habitat protection or enhancement, cultural properties (archaeological sites, historic monuments, and historic settlements), distribution of income and wealth, employment rights, gender equity, induced development and other sociocultural aspects (secondary growth of settlements and infrastructure), long‐term income opportunities for local populations plants (jobs), public participation and capacity building, quality of life (local and regional). The European Union (EU) project in [2] focuses on the socio‐economic impacts on renewable energies, for instance the impact of renewable energy on social welfare, migration flows, technology status, culture, security of energy supply, and environment are discussed. [13] discusses the socio‐ economic measurement and validation for pilot building energy efficiency projects in several EU countries, where psychological model of human behaviour, human‐machine interaction, and some socio‐economic evaluation indicators are discussed. [10] summarises lessons learnt from Denmark practice on socio‐economic assessment of wind power systems. There are also discussions written in Danish language on the effects of Danish energy policy on employment and export [9] which are not included here. These international guidelines and practices provide very helpful discussions on the general EEDSM evaluations, however, none of them provides a full discussion on the evaluation of all the engineering, environmental, social, and economic evaluation of EEDSM programs at an operational level. To resolve this problem, this document will provide an operational guideline on the full 5
Page 1 and 2: Energy efficiency and Demand Side M
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Page 9 and 10: 5.1 Objective The purpose of this g
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