Insights for global energy interconnection from China renewable energy development

Vigorously developing global renewable energy such as wind energy, solar energy, and hydropower and realizing global clean resource sharing are paramount driving forces for building the Global Energy Interconnection (GEI). With the help of a comparative analysis of renewable energy development and global renewable energy development scenarios, this paper expounds on the similarities between China1 and global renewable energy development. Based on the analysis of renewable energy development and the status of global renewable energy development in China, this paper summarizes the relevant experience and problems of renewable energy development in China. According to these problems, this paper also puts forward the corresponding solutions and measures, that is, to promote the healthy and steady development of renewable energy in China through the source-network-load-storage and market coordination. Finally, by analyzing the development requirements and current foundation of GEI, insights and suggestions are proposed for the future development of renewable energy for the GEI construction.     

Application research on large-scale battery energy storage system under Global Energy Interconnection framework

In the context of constructing Global Energy Interconnection (GEI), energy storage technology, as one of the important basic supporting technologies in power system, will play an important role in the energy configuration and optimization. Based on the most promising battery energy storage technology, this paper introduces the current status of the grid technology, the application of large-scale energy storage technology and the supporting role of battery energy storage for GEI. Based on several key technologies of large-scale battery energy storage system, preliminary analysis of the standard system construction of energy storage system is made, and the future prospect is put forward.     

Research on big data applications in Global Energy Interconnection

Construction of Global Energy Interconnection (GEI) is regarded as an effective way to utilize clean energy and it has been a hot research topic in recent years. As one of the enabling technologies for GEI, big data is accompanied with the sharing, fusion and comprehensive application of energy related data all over the world. The paper analyzes the technology innovation direction of GEI and the advantages of big data technologies in supporting GEI development, and then gives some typical application scenarios to illustrate the application value of big data. Finally, the architecture for applying random matrix theory in GEI is presented.     

Mechanism of CO2 Emission Reduction by Global Energy Interconnection

The challenge of global warming has become a driving force for a global energy transition. The Global Energy Interconnection (GEI) is a modern energy system aimed at meeting the global power demand in a clean and green manner. With the development of clean replacement, electricity replacement, and grid interconnection strategies, GEI contributes to the global temperature control by dramatically reducing the level of energy-related CO₂ emissions. This study proposes an integrated framework for analyzing the mechanism of CO₂ emission reduction via GEI implementation. The obtained results demonstrate that the total cumulative contribution of GEI to mitigating the effects of CO₂ emissions (estimated by conducting a scenario analysis) corresponds to a total reduction of 3100 Gt CO₂. The contributions of the clean replacement, electricity replacement, and carbon capture and storage GEI components to this process are equal to 55, 42, 5%, respectively. Using GEI, the utilization of clean energy in 2050 will increase by a factor of 4.5 at an annual growth rate of 4.4%, and the electrification rate will be 2.4 times greater than the current one.     

Technical and economic demands of HVDC submarine cable technology for Global Energy Interconnection

Power transmission across the sea is an important part of global energy interconnection (GEI). To support the construction of GEI and to serve the needs of future clean energy trans-sea transportation and offshore wind power development, this study a) analyzes the requirements of the GEI backbone network pertaining to direct current (DC) submarine cable technology, and b) defines the key technical and economic indices of ultrahigh-voltage direct current (UHVDC) submarine cable based on theoretical computations. The research is based on the thermoelectric coupling model and the finite element method. It is shown that the dielectric strength of the insulating materials of the ± 800 kV ~±1100 kV/ 4000 MW ~ 12000 MW UHVDC submarine cable (extrusion insulation) should be not less than 43 ~ 65 kV/mm, while the heat resistance is not less than 110 °C. As the cost of submarine cable is 5 ~ 10 times higher than that of the overhead line, the project investment need to be decreased to a level within the economical carrying capacity to guarantee extensive applicability of the HVDC submarine cable technology.     

Real options valuation of fusion energy R&D programme

This paper aims to perform a real options valuation of fusion energy R&D programme. Strategic value of thermonuclear fusion technology is estimated here based on the expected cash flows from construction and operation of fusion power plants and the real options value arising due to managerial flexibility and the underlying uncertainty. First, a basic investment option model of Black–Scholes type is being considered. Then, a fuzzy compound real R&D option model is elaborated, which reflects in a better way the multi-stage nature of the programme and takes into account the imprecision of information as one of the components of the overall programme uncertainty. Two different strategies are compared: “Baseline” corresponding to a relatively moderate pace of fusion research, development, demonstration and deployment activities vs. “Accelerated” strategy, which assumes a rapid demonstration and massive deployment of fusion. The conclusions are drawn from the model calculations regarding the strategic value of fusion energy R&D and the advantages of accelerated development path.     

Australia: Approaching an energy crossroads

This paper considers energy policy in Australia in the context of its considerable energy resources, climate change and a recent change in government. It examines the possible paths that future energy use and policy in Australia could take, including published projections based largely on a “business as usual” approach and projections based on a dramatic shift towards more efficient use of energy and renewable energy technologies. It also considers the various factors affecting future policy direction, including energy security, the advocacy in Australia for establishing nuclear electricity generation and other parts of the nuclear fuel-cycle, responses to climate change, and carbon sequestration. It concludes that while the Australian Government is currently reluctant to move away from a dependence on coal, and unlikely to adopt nuclear energy generation, a low-emissions future without waiting for the deployment of carbon capture and storage and without resorting to nuclear power is within reach. However, in the face of strong pressure from interest groups associated with energy intensive industry, making the necessary innovations will require further growth of community concern about climate change, and the development of greater understanding of the feasibility of employing low carbon-emissions options.     

Optimal policy of energy innovation in developing countries: Development of solar PV in Iran

The purpose of this study is to apply managerial economics and methods of decision analysis to study the optimal pattern of innovation activities for development of new energy technologies in developing countries. For this purpose, a model of energy research and development (R&D) planning is developed and it is then linked to a bottom-up energy-systems model. The set of interlinked models provide a comprehensive analytical tool for assessment of energy technologies and innovation planning taking into account the specific conditions of developing countries. An energy-system model is used as a tool for the assessment and prioritization of new energy technologies. Based on the results of the technology assessment model, the optimal R&D resources allocation for new energy technologies is estimated with the help of the R&D planning model. The R&D planning model is based on maximization of the total net present value of resulting R&D benefits taking into account the dynamics of technological progress, knowledge and experience spillovers from advanced economies, technology adoption and R&D constraints. Application of the set of interlinked models is explained through the analysis of the development of solar PV in Iranian electricity supply system and then some important policy insights are concluded.     

Innovation in the energy sector: Lessons learnt from R&D expenditures and patents in selected IEA countries

Long time series of the IEA and international patent offices offer a huge potential for scientific investigations of the energy innovation process. Thus, this paper deals with a broad literature review on innovation drivers and barriers, and an analysis of the knowledge induced by public research and development expenditures (R&D) and patents in the energy sector. The cumulative knowledge stock induced by public R&D expenditures in 14 investigated IEA-countries is 102.3 bn EUR in 2013. Nuclear energy has the largest share of 43.9 bn EUR, followed by energy efficiency accounting for 14.9 bn EUR, fossil fuels with 13.5 bn EUR, and renewable energy with 12.1 bn EUR. A regression analysis indicates a linear relation between the GDP and the cumulative knowledge, with each billion EUR of GDP leading to an additional knowledge of 3.1 mil EUR. However, linearity is not given for single energy technologies. Further, the results show that appropriate public R&D funding for research and development associated with a subsequent promotion of the market diffusion of a niche technology may lead to a breakthrough of the respective technology.     

Impact assessment of emissions stabilization scenarios with and without induced technological change

The main aim of this paper is to investigate quantitatively the economic impacts of emissions stabilization scenarios with and without the inclusion of induced technological change (ITC). Improved technological innovations are triggered by increased research and development (R&D) expenditures that advance energy efficiencies. Model results show that ITCs due to increased investment in R&D reduce compliance costs. Although R&D expenditures compete with other investment expenditures, we find that increased R&D expenditures improve energy efficiency, which substantially lowers abatement costs. Without the inclusion of ITC, emissions targets are primarily reached by declines in production, resulting in overall welfare reductions. With the inclusion of ITCs, emissions mitigation can result in fewer production and GDP drawbacks.     

Export orientation and domestic electricity generation: Effects on energy efficiency innovation in select sectors

Why are some countries developing many energy efficiency innovations, while others are lagging behind? I argue that export orientation and electricity at low variable cost from nuclear and hydropower plants have an interactive effect on energy efficiency innovation. Export-oriented countries have strong incentives to invest in energy efficiency innovation, as they are in a position to export these technology innovations for global markets. But if inexpensive electricity is supplied in a country, the domestic demand for energy efficiency innovation is missing, and so the home market cannot serve as a springboard for international commercialization. I test this theory against international patent data on energy efficiency innovation in insulation, heating, and lighting for 22 OECD countries, 1991–2007. The statistical analysis indicates that export orientation has large positive effects on energy efficiency innovation in countries that do not rely on nuclear and hydroelectricity.     

Industrial electricity demand and energy efficiency policy: the case of the Swedish mining industry

The purpose of this paper is to analyze long-run electricity demand behavior in the Swedish mining industry with special emphasis on the impact of energy prices and private research and development (R & D) on electricity use. Methodologically, we estimate a generalized Leontief variable cost function using a panel data set of nine mining operations over the time period 1990–2005. Since the lower boundary of a set of short-run cost functions confines the long-run cost function, we can compute the long-run own- and cross-price elasticities of electricity demand. The empirical results indicate that long-run electricity demand in the mining industry is sensitive to changes in the own price, and already in a baseline setting Swedish mining companies tend to allocate significant efforts towards improving energy efficiency, in part through private R & D. From a policy perspective, the results imply that taxes (and tax exemptions) on electricity can have significant long-run impacts on electricity use. Moreover, future evaluations of so-called voluntary energy efficiency programs must increasingly recognize the already existing incentives to reduce energy use in energy-intensive industries.     

Impact of energy technology patents in China: Evidence from a panel cointegration and error correction model

Enhancing energy technology innovation performance, which is widely measured by energy technology patents through energy technology research and development (R&D) activities, is a fundamental way to implement energy conservation and emission abatement. This study analyzes the effects of R&D investment activities, economic growth, and energy price on energy technology patents in 30 provinces of China over the period 1999–2013. Several unit root tests indicate that all the above variables are generated by panel unit root processes, and a panel cointegration model is confirmed among the variables. In order to ensure the consistency of the estimators, the Fully-Modified OLS (FMOLS) method is adopted, and the results indicate that R&D investment activities and economic growth have positive effects on energy technology patents while energy price has a negative effect. However, the panel error correction models indicate that the cointegration relationship helps to promote economic growth, but it reduces R&D investment and energy price in the short term. Therefore, market-oriented measures including financial support and technical transformation policies for the development of low-carbon energy technologies, an effective energy price mechanism, especially the targeted fossil-fuel subsidies and their die away mode are vital in promoting China's energy technology innovation.     

Dynamic life cycle assessment (LCA) of renewable energy technologies

Before new technologies enter the market, their environmental superiority over competing options must be asserted based on a life cycle approach. However, when applying the prevailing status-quo Life Cycle Assessment (LCA) approach to future renewable energy systems, one does not distinguish between impacts which are ‘imported’ into the system due to the ‘background system’ (e.g. due to supply of materials or final energy for the production of the energy system), and what is the improvement potential of these technologies compared to competitors (e.g. due to process and system innovations or diffusion effects). This paper investigates a dynamic approach towards the LCA of renewable energy technologies and proves that for all renewable energy chains, the inputs of finite energy resources and emissions of greenhouse gases are extremely low compared with the conventional system. With regard to the other environmental impacts the findings do not reveal any clear verdict for or against renewable energies.Future development will enable a further reduction of environmental impacts of renewable energy systems. Different factors are responsible for this development, such as progress with respect to technical parameters of energy converters, in particular, improved efficiency; emissions characteristics; increased lifetime, etc.; advances with regard to the production process of energy converters and fuels; and advances with regard to ‘external’ services originating from conventional energy and transport systems, for instance, improved electricity or process heat supply for system production and ecologically optimized transport systems for fuel transportation.The application of renewable energy sources might modify not only the background system, but also further downstream aspects, such as consumer behavior. This effect is, however, strongly context and technology dependent.     

Prioritizing the weights of hydrogen energy technologies in the sector of the hydrogen economy by using a fuzzy AHP approach

KIER, government supported research institute, establishes a long-term strategic energy technology development roadmap essentially with selection and specialization of energy technology R&D and for Korea's national security. In this paper, we establish a strategic hydrogen energy technology roadmap taking economic impact, commercial potential, inner capacity, and technical spin-off into account. We suggest a methodology to prioritize the relative weights of hydrogen energy technologies of hydrogen energy technology roadmap (ETRM) as we allocate R&D budget effectively using a fuzzy analytic hierarchy process (AHP), which reflects the vagueness of human thoughts instead of crisp numbers efficiently. In the sector of the hydrogen ETRM which is composed of 6 hydrogen energy technologies, PEMFC technology is the most preferred and technology (0.29), followed by DEFC tech (0.28), SOFC tech (0.24), Hydrogen separation & storage tech (0.10), and Hydrogen production tech (0.09).     

Energy consumption in typical Caribbean office buildings: A potential short term solution to energy concerns

This paper examines the feasibility of energy efficiency as a short term solution to the Caribbean’s energy problems. It considers energy consumption across selected office buildings in Barbados, typical of Caribbean architecture. By comparing their energy consumption to that of the energy consumption for the building with the “best observable” consumption in the selected group, the energy efficiency is determined. Data for five (5) buildings with similar characteristics were collected, analyzed and normalized to facilitate a direct comparison between them. The selected indicator was Energy Consumption per Unit Area (I_E = E/A).On examining the equipment and technology (E&T) currently being used in these buildings a definite inefficiency resulting from this was identified. The undetermined inefficiency was allocated to management and operations (M&O).The “best observable” building had an E&T inefficiency of 10%. Results suggest that E&T is responsible for between 10% and 14% additional energy wastage while the inefficiency due to business processes is believed to be largely responsible for inefficiency beyond 14%. Overall inefficiency rose as high as 56%, indicating an opportunity for significant energy savings through an efficiency response.Electrical energy consumed in a building is shown to be not only related to physical space and E&T inefficiency, but also to an x-efficiency factor that is peculiar to the management and operations of that building.     

The innovation process in the energy field

The development of innovative technologies in the energy field constitutes one of the major difficulties facing the future. The repercussions for the environment will be crucial. What are the various types of innovations in the field of energy: are they incremental or radical? What are the main driving forces behind these innovations? We describe the various mechanisms behind these types of innovation in both a French and European context using three different examples: compact heat exchangers, refrigeration equipment, hydrogen and fuel cells.     

Drivers for renewable energy: A comparison among OECD countries

The difference in the shares of renewable energy in total primary energy supply among OECD countries is immense. We attempt to identify some key factors that may have driven this difference for renewable energy in general and bioenergy in particular. We found that besides country-specific factors, gross national product (GDP) and renewable energy and bioenergy market deployment policies have significant and positive impacts on the per capita supply of both renewable energy and bioenergy in OECD countries. R&D expenditures, energy prices, CO₂ emissions, and other energy policies are statistically insignificant in terms of their impact on renewable energy and bioenergy supply. However, this does not necessarily mean that they are not potential drivers for renewable energy and bioenergy, but rather suggests that their magnitudes have not been big enough to significantly influence energy supply based on the historical data from 1994 to 2003. These findings lead to useful policy implications for countries attempting to promote renewable energy and bioenergy development.     

Integration of thermal energy and seawater desalination

Energy and freshwater shortage are the bottlenecks restricting China's economic development. The integration of energy utilization system and seawater desalination is considered as an innovative technology enabling efficient simultaneous use of middle or low temperature thermal energy and supply freshwater. Three feasible approaches to integrate seawater desalination with energy utilization system are presented in this paper, including combinations of the desalination process with a Combined Cooling Heating & Power system (CCHP), a power plant, or a solar thermal utilization system. In addition, the feasibility and advantages of a seawater desalination system combined with a power plant are described. The findings indicate that combining seawater desalination with industrial processes is a feasible and promising way to solve the problems of the lack of freshwater and low efficient use of low temperature thermal energy in coastland areas.     

Impact of innovation programs on development of energy system: Case of Iranian electricity-supply system

The paper presents further experiments with an extended version of a comprehensive model for assessment of energy technologies and research and development (R&D) planning to evaluate the impact of innovation programs on development of Iranian electricity-supply system. This analytical instrument is a model of energy R&D resource allocation with an explicit perspective of developing countries which has been linked to a bottom-up energy-systems model. Three emerging electricity generation technologies of solar PV, wind turbine and gas fuel cell are considered in the model and the impact of innovation programs on cost-reducing innovation for them is examined. The main results provided by the modeling approach include optimal allocation of R&D resources, induced capacity expansion policies to guarantee the effectiveness of R&D activities, competitive cost of emerging technologies, impact of innovation programs on optimal structure of electricity-supply system and benefits of innovation programs in the long-run.