ENERGY EFFICIENCY DEMAND SIDE MANAGEMENT FOR SUSTAINABILITY: APPLICABILITY OF NEW METHODS IN ZIMBABWE AND THE SADC REGION..

Eng. Martin ManuhwaPresident – Southern African Federation of Engineering Organisations (SAFEO)

Chairman – Engineering Council of ZimbabwePast President - Zimbabwe Institution of Engineers (ZIE)

Managing Director: Industrial Energy Solutions IES (P/L))e-mail: mmanuhwa1@yahoo.com 1

This Paper Explores the Technological, Regulatory & Behavioural Options Available Now and in the Future to

Create Energy Savings & Efficiency in Zimbabwe and other SADC Countries.

OUTLINE OF PRESENTATION

1. Introduction2. Sustainable Energy Development And Poverty3. Regulatory mechanisms for energy savings and

efficiency.4. Technological options for energy savings and

efficiency .5. Energy consumption behavioural changes 6. Recommend possible policy interventions in the

short, medium and long terms.7. Conclusion

Introduction Access to energy is very low in the Sub-Saharan African More than 2 billion people lack clean, safe cooking fuels

and must depend on traditional biomass sources to meet their basic energy needs.

Think of the time spent by women and children collecting fuel wood when they could be more productively employed; and the children helping them who should be in school getting an education.

The use of Renewable Energy is costly but remains most viable option.

The Southern African Development Community (SADC) still faces a region-wide energy deficit which started in 2007.

Net importers of power like Zimbabwe will find it difficulty to augment their internal generation deficit

WITHOUT ENERGY WE WILL HAVE DESERTS, POVERTY AND LOTS OF SUFFERING FOR PEOPLE

IN THE DEVELOPING WORLD!!

INTRODUCTION…

Energy availability is critical to firm operations and basic survival of our people.

By utilizing energy efficient equipment and controlling the peak demand huge sums of money can be saved and the shortage can be mitigated.

Privatization, increasing competition, unbundling of monopolies, deregulation has brought some energy access issues.

The use of Sustainable Energy Policies in advocating Renewable Energies and Energy Efficiency is mooted as one of the solutions of Energy Access in the Developing World.

Introduction

Energy is big “business”Turnover of about

US$ 3.0 trillion in 2010

Access to energy1 billion people in industrialized

countries consume 60% of total energy supply;

5 billion people in developingcountries consume 40 %

The productivity of 1/3 of world’s people is compromised

by lack of access to commercial energy.

Another third suffers economichardship due to unreliable energy supplies

Energy necessary to achieving sustainable

development

Electricity in Africa

GDP growth of 4.5%, while capacity growth of 1.2% Average electrification rate of 24% compared to global average of

40%. Investment needed $27 Billion per year compared to ~$4 Billion

actually being invested per year 25 of 54 African nations are in an energy crisis of one form or the

other. Aging networks and systems require up keep and refurbishment

against a back drop of poor capitalisation.

Sources: Fact Sheet: World Bank and Energy in Africa; Infrastructure Africa Org

“Service providers need to close the energy gap, meet high growths in demand with minimal investment, with existing generation &

distribution networks.”

Back-ground of The Regional Energy Shortage The integrated demand forecast for Southern African Power

Pool (SAPP) assumed that various extensions to existing plant and additional power stations will be constructed.

This is not the case because most of the projected power stations in SAPP did not materialize.

There is a general state of poor maintenance standards due to lack of finance for spares and the managerial political will to do so.

Power Sector Reforms did not translate into management efficiency or increased investments in generation and transmission projects as expected.

Poor workmanship and other utility issues in SADC e.g. generation is far below design capacity .

ENERGY COSTUMER CONCERNS

Lack of Access to the Grid or off-grid systems Prohibitive Connection Fees Poor Coverage and continuity of service Affordability/ Electricity Pricing Poor System Reinforcement Lack of Capacity Blackouts/brownouts and other outages Inefficiency Poor Customer Services Vandalism Lack of Environment/Sustainability

awareness

Impact of Power Outages

Loss of equipment up- time leads to production and other economic losses.

Some processes result in losses of raw materials and semi-processed products because the reactions are not reversible.

Switching on and off machines repeatedly damages and reduces their life cycles as well as increasing maintenance cost. (Switching surges and sags).

Social ills often happen in the dark, or due to idleness some people tend to do or plot evil.

Energy & Poverty

The No. of peoplewithout electricity has

increased in the last 20yrs and will grow by 25% in the next 20

yrs on current trends

•1/2 of humanity, 3 billion people, live on less than $2 a day•More than 2 billion people have no access to modern energy •One third of the world cooks on wood, dung or charcoal

Indoor air pollution, due tosmoke from cooking fires,causes 1.8 million deaths

per year

In most sub-SaharanAfrican countries less than

20 per cent of the peoplehave electricity

Sustainable Energy Development And Poverty

Energy dimension of poverty– The energy dimension of poverty - energy poverty - is the

absence of sufficient choice in accessing adequate, affordable, reliable, quality, safe and environmentally benign energy services to support economic and human development. (World Energy Assessment 2000, Sept 1999 draft.)

SED- Sustainable Energy Development – economic, social & environmental concerns– Renewable energy

Direct Solar Heating and Solar Home Systems Biomass Geothermal Wind Small Hydros etc

– Energy efficiency– Poverty alleviation objective

The Role of Engineering, Technology and Other Stakeholders

Support sustainable strategies for energy– Integrated resource planning– Life cycle costing– Energy efficiency and Alternative Renewable Sources– Demand side management– Energy Management

Power systems development– SADC 2007 deficit– Power projects, Inga Dam Project in the DRC– Regional Cooperation

Capacity and Institutional Development Finance Facilitation Knowledge Management Systems implementation

Background Information

Energy is the most important enabler for the economic turn around of Zimbabwe.

Zimbabwe is currently facing a shortage of electrical energy due to internal generation shortfalls and has to import more than 35% of its electricity requirements from neighbouring countries, Mozambique, South Africa, Zambia and the Democratic Republic of Congo.

Energy is largest operational cost therefore the need for energy savings and energy efficiency.

The use of energy can be optimized in order to improve the bottom-line.

The Case for Energy Management

By utilizing energy efficient equipment and controlling the peak demand huge sums of money can be saved.

This saving is essential since less power usage means less emissions and hence a cleaner environment.

There is an ethical responsibility to decrease carbon emissions.

This paper explores the technological, regulatory and behavioural options that are available now and in the future to create energy savings and efficiency in Zimbabwe and other SADC Countries?

Major options for reducing greenhouse gas emissions

LOW CARBON growth options exist for reducing our net greenhouse gas emissions, particularly carbon dioxide, which could be implemented over different time horizons.

These include: 1) improved efficiency in energy use, especially over the short to

medium term, through technological and behavioral changes;

2) producing energy which minimizes carbon dioxide emitted, especially for new power plants, and realistically over the medium to long term; and

3) reducing carbon dioxide produced in non-energy sectors, such as agriculture and forestry, and industries, such as cement production.

In addition to these, technologies are being developed to capture and permanently store greenhouse gases, especially carbon dioxide.

Major options for reducing greenhouse gas emissions

Need to reduce energy intensity, (the amount of energy used to produce a unit of GDP or to perform

some desirable service.)

“Energy efficiency” means economically efficient reductions in energy intensity.

Regulatory mechanisms & Framework for energy savings and efficiency.

The short-term and long term energy needs for residential, industrial, commercial, and governmental customers should be met in an optimum manner that assures a reliable, safe, clean, and affordable supply.

POSSIBLE REGULATORY INTERVENTIONS Establishment of an independent energy regulatorMandatory appliance efficiency standards by an

independent regulator Compulsory Demand Side Management

programmes by utility and its customers Compulsory Energy Audits

Regulatory mechanisms & Framework for energy savings and efficiency.

The Energy Regulator (RERA at SADC Level and Energy Regulators for Each Country e.g. ZERA for Zimbabwe):

Guarantees the promotion of competition and efficiency and ensures adequate quality standards in the electricity, petroleum and gas sector.

Major activity fields:

Tariff setting Definition of service quality standards Definition of technical and economic conditions for access and

interconnection to the networks Advice on market structure and promotion of competition Settlement of disputes and complaints Definition of technical and economic regulation, administration,

monitoring and enforcement of the White Certificates Mechanism for the promotion of end-sue energy efficiency

Regulatory mechanisms for energy savings and efficiency.

Optimal and economic pricing of electricity Compulsory energy audits and returns to

regulator and utility for rebates and other incentives

Energy penalty tax Congestion pricing Energy cost labeling

Technological options for energy savings and efficiency .

Central Control and Management Systems

Demand limiting by Implementing preheat and pre-cool cycleso Chilled water or supply air temperature reset to reduce peak

loads.o Switching off of cooling or heating equipment under peak

conditions.o Cycling of terminal equipment (room air conditioners and

heaters) under peak conditions. Cycling of cooling equipment should be thoroughly investigated before implementation.

Terminal Heatingo If heating is done with thermal equipment such as electrical

panels or ducting heaters determine the efficiency of control and of the operation with respect to external air temperature, limiting of peak load and switching off above a specific external air temperature.

Effective Technologies For Saving Energy in DSM Programmes.

Variable Speed Driveso VSD (variable speed drives)(AC, DC and

including soft starters): Many machines, plant and equipment run on unnecessarily high speed and therefore, waste vast quantities of energy.

Energy Efficient Motorso Pumping is the biggest single application of

motive power. Fans also use significant amounts of electrical energy. Prevention of leaks is important to DSM delivery.

Energy Efficiency & DSM

Energy market dynamics are challenging. Energy intensive firms survival depends on adroitly

managing the purchase and use of energy through DSMoperational strategies such as:o peak shaving or demand control, o load shedding, o fuel switching, o abnormal situation management, o interruptible energy supplies,o real-time optimization.o Temporary production curtailment by shutting down marginal

plantso accelerating maintenance turnarounds

What Is Demand Side Management?

DSM is a system whereby the capacity is provided (released) by customers through either efficient use of energy and/or overall improvement in the diversity of loads and load factors.

Refers to all those activities that enhance end-use efficiency, as well as fuel switching and load shifting that alter the consumers (demand) load profile.

This is achieved by use of energy saving end-use devices on the system as well as customer education to change power user habits.

Benefits Of DSM Programmes.

DSM leads to a delayed (or reduced) capital expenditure in generation, transmission and distribution.

DSM reduces the cost of electricity to enterprises and hence improves the bottom-line of organisations.

DSM programmes for electricity use consist of the planning, implementing, and monitoring activities of electric utilities that are designed to encourage customers to modify their level and pattern of electricity usage.

Forms of a DSM Programme.

Examples of Demand Side Efficiency Issues.

Energy efficiency programmesA wide range of measures from improvements to building design, insulation and lighting through to investments in energy efficient motors, production equipment and sophisticated control schemes.

Load shiftingChanging the pattern of energy usage so that peak demands are reduced. At the industrial scale, this could involve running energy intensive operations, such as smelting processes, overnight or at a domestic level, one can ensure that appliances such as dishwashers and washing machines are not run at the same time as peak air-conditioning requirements

Load curtailmentThe reduction of load by a consumer on request from their utility, typically this will result in some inconvenience to the consumer, which is compensated. Options may also include operation of stand-by generation plant.

More Examples of DSM Efficiency Issues.

Tariff structures and intelligent (Smart) meters.The range of meters currently installed at consumers’ premises range from simple single tariff meters through to half hourly metering facilities. Without sophisticated metering it is difficult to implement tariffs to reflect the actual cost of electricity production at any time

Embedded generation, including fuel switching issuesGeneration installed local to demands effectively reduce distribution system loads and can often lead to environmental improvements.

Distribution network constraintsConstraints on networks provide an opportunity for DSM activities to compete with further investment in the distribution system infrastructure.

Industry regulation, licensing and the impact of the National Electricity Market also require consideration in respect of the above items.

Summary Of An EEDSM ProgrammeDSM = Energy Efficiency + Load Management

•Load Management shifts peak load

•Residential Load Management (RLM)

•Agricultural/Commercial/Industrial Load Management (AICLM)

•Energy Efficiency reduces overall electricity consumption

•Residential Energy Efficiency (REE)

•Agricultural/Industrial/Commercial Energy Efficiency (AICEE)

•Additional impacts of Energy Efficiency (EE)

Environmental

Social

Economic

•Utilities AND Customers could engage in the Following :

•REE: Lighting Retrofits, Hot Water Cylinder and Pipes Insulation, Residential Energy Management Systems

•AICEE: Lighting Retrofits, VSD, HVAC, Building Energy Management Systems

•AICLM: Conveyor, Pumping Applications, HVAC etc.

•RLM: Ripple Control, Pool Pumps, heaters

•DSM Awareness - Marketing

•Demand Market Participation (DMP) ,Customer Responds to real time price signal,Interruptible Contracts,Co-Generation

•DSM=(REE + AICEE) + (AICLM + RLM) + WARENESS

Energy Management Essentials

Senior management support by setting up corporate energy management system.

A culture of energy management, strategy and processes are universally understood.

A plan to enable identification, quantification, definition and implementation of solutions.

The first step is to carry out audits to find out where savings can be made.

Systematically monitor use, efficiency and improvements continuously.

Knowledge management to consolidate and enhance capabilities.

Continuous improvement and reporting of results to staff and shareholders.

Carrying Out Energy Audits.

A preliminary audit should establish whether adetailed audit is necessary.

A detailed audit is concerned primarily with the energy consumption of the largest energy users and quantifying the potential savings.

The components forming the detailed audit include:o Establishing the cause of any cyclical tendencies.

o Identifying opportunities for energy saving potential, quantifying the saving and if applicable estimating the capital cost required to effect the saving.

o Carrying out a cost benefit analysis to justify proposed solution.

Understanding electricity-related risk

Electrical energy is almost always mission-critical and therefore comes with a high risk.

The true value of energy commodities is a balance between cost, reliability and quality.

Technologies that are supposed to deliver the information needed to manage these three attributes often operate in isolation, if at all.

Technologies have been a mix of utility metering, billing or energy management systems to quantify cost and revenue, SCADA systems to measure operating parameters of the infrastructure, and dedicated portable instruments to measure power quality .

The result is usually high cost for poor access to incomplete information. The impact is that there is only limited knowledge of the risk exposure due to each business-critical commodity.

An EEM system offers a holistic approach to managing this exposure to risk.

Recommendations1. The short-term and long term energy needs for residential,

industrial, commercial, and governmental customers should be met in an optimum manner that assures a reliable, safe, clean, and affordable supply.

2. The future development of Zimbabwe’s electric infrastructure shall further the state’s competitive business climate, grow jobs, and provide affordable rates for all customers.

3. The appropriate use and application of energy efficiency, alternative energy technology , and renewable energy technologies shall be consistent with the goal of assuring reliable, safe, clean and affordable energy.

4. Zimbabwe’s natural resources and the environment shall be protected from pollution, physical or visual impairment, or destruction, and future risks associated with fossil fuels shall be mitigated.

Recommendations

5. A renewable portfolio standard shall be created that establishes targets for the share of this state’s energy consumption derived from renewable energy sources.

6. New technology options to generate, transmit, or distribute energy more cleanly or more efficiently shall be identified.

7. The state’s economic interest in ensuring development of the intellectual capital, financing, infrastructure, and other resources necessary for continued growth of alternative and renewable energy technologies within the state shall be fostered.

8. The energy policy and strategy should identify any legislative or regulatory changes necessary to its implementation, together with any financial, funding, or incentive mechanisms needed to best position Zimbabwe to meet the energy challenges of the future.

The Way Forward for Developing Countries

International and local funding Technology transfer Green technology Renewable Energy Policies Research Engineering & Development Multi-sector Private Public Partnerships

(PPPs) Pro-poor policies Energy management

Sparsely populated countries should use their potential of renewable energy by implementing feasible projects to benefit vulnerable groups.

Developing Countries are in need of strong energyprogrammes to enable development to take off, andhence, alleviate poverty.

Those countries with developed grids should applyproper Energy Management in order to sustain theirdevelopment.

On a regional basis, cooperation is needed topromote transfer of technology and know-how aswell as the circulation of information.

CONCLUSIONS

International cooperation will go a long wayinto favouring the penetration of renewableenergy in the developing world.

Finally, access to energy should berecognized as a basic social right for allcitizens of the world.

Funding mechanisms must be put into place to raise capital from the public and industry for power infrastructural development.

CONCLUSIONS

Conclusion DSM and Energy Efficiency should be part of our business culture in order to

improve our bottom-line, conserve our environment and be good corporate citizens.

Energy is a mission-critical commodity that must be managed to reduce the exposure to risk for an enterprise.

An enterprise energy management system (EEMS) can mitigate this risk by providing the data, information, and knowledge required about the cost, reliability and quality of the power supply.

The EEM system in turn requires tariff-class accuracy to provide good cost information; embedded analysis capabilities to ensure that useful reliability and quality metrics can be tracked; and Internet-based communications infrastructure that makes the system cost effective for large enterprises.

An EEM system, which will provide the necessary key performance indicators, is required to make business decisions that lead to reduced risk and improved profitability.

ConclusionsAccess to sustainable green

energy is crucialfor development

Freer trade in energy services may

facilitate access to energy

Energy access is universal in achieving MDGs therefore

a basic social right

Concrete action plans forPractical implementation of

the identifiedinterventions must

be mapped out.

Rapid developments in thesector: need to better understand

the implications

Systems automation (Smart metering, smart grids) will ensure efficiency, and increase productivity without the need for heavy investment.

Network & System technologies are becoming distributed and less capital intensive allowing utilities to focus on their core business.

African Utilities need to leverage System Integrators, and Network Services providers with significant African footprint in partnerships with global service providers.

African Network Providers and Systems Integrators have now matured to global standards and serve complex and critical industry verticals hence the need for win-win technology and skills transfer for an effective energy efficiency and demand

Conclusions – What can be done?

Creating a Renewable and Energy Conservation Culture is a daunting task but not Impossible if we Work Together

THANK YOU VERY MUCH FOR YOUR

ATTENTION