A win–win marginal rent analysis for operator and consumer under battery leasing mode in China electric vehicle market

Recently battery leasing has been introduced into the market by automobile manufacturers and power suppliers due to its potential to reduce the purchase cost of electric vehicles (EVs). However, the profit prospect of battery leasing is still uncertain. This paper takes the views of both the operators and consumers and calculates the ‘win–win’ marginal rent, which not only ensures the profitability of operators, but also allows consumers a lower expenditure than using Internal combustion engine vehicles (ICVs) and EVs with embedded batteries. Battery cost, vehicle weight, gasoline and electricity price, and the discount rate have impacts on the rent. Battery cost plays a dominant role and a battery cost >5 ¥/W h fails to enable the survival of battery leasing to all types of EVs. Battery leasing would be more competitive when focusing on heavier EVs. At least one of the three thresholds is required for the existence of rent pricing range for a 1000 kg EV: gasoline retail price >6 ¥/L, electricity price <0.6 ¥/kW h, or the discount rate <7%. Typically, the feasible battery rent range is 0.34–0.38 ¥/W h/year for a 1000 kg EV under the present battery cost 2 ¥/W h and China current gasoline and electricity prices.     

The impact of widespread deployment of fuel cell vehicles on platinum demand and price

Current automotive fuel cells rely on platinum catalysts. At today’s platinum loading and price, a 50-kW fuel cell contains approximately 46 g of platinum costing $2200. Analysts expect that with further development of fuel cell technology, the platinum loading per car will decline perhaps by an order of magnitude, which will tend to reduce platinum costs per car. However, cost reductions from a decline in platinum loading might be partially offset by an increase in the price of platinum. Historically, platinum prices have been sensitive to changes in demand, and the widespread substitution of fuel cell vehicles (FCVs) for internal-combustion engine vehicles (ICEVs) might significantly drive up platinum demand and hence platinum prices. The possible impact of rising platinum prices has been raised as a potential barrier to the commercialization of FCVs.In this paper, we estimate the total cost of platinum in future FCVs considering the impact of worldwide introduction of hydrogen FCVs on platinum loading, platinum demand and price. The total platinum cost per FCV is the product of the platinum per FCV and the price of platinum. Using historical data and a scenario for platinum recycling, we estimate the price of platinum as a function of demand, which in turn is a function of the amount of platinum per FCV and the total number of FCVs. For a scenario where FCVs reach 40% of light-duty vehicle (LDV) sales globally by 2050, we find that the average platinum price increases by around 70%, but that the average platinum loading declines by about 90%, so that the overall the cost per FCV declines by almost 80%, from current values of about $2200 to about $500 in 2045 and beyond. In 2045, platinum cost accounts for about 12.6% of the fuel cell system cost and about 4% of the vehicle cost.     

Hybrid electrode effects on polymer electrolyte membrane fuel cells

Research on membrane electrode assemblies (MEA) is focused on reducing cost and increasing durability in polymer electrolyte membrane fuel cells (PEMFC). Development of the electrode structure and reduction of platinum (Pt) contents are studied to improve the efficiency of Pt catalysts. We studied the combined effects of improved electrode structure and reduced Pt loading. To enhance the performance of an MEA, a commercial Pt/C catalyst with micro graphite (MG) was used. The 40 wt% Pt/C catalyst content was reduced about 5, 15, 30 and 60 wt% at the cathode. MG was added as a reduced weight percent of Pt/C. Cell performance was significantly dependent on the content of MG. The MEA with 15 wt% of MG was seen to best performance compare with other MEA. These results showed that the catalyst with mixed MG improved both performance and cost savings with reduced Pt content of PEMFC.     

Cost targets for domestic fuel cell CHP

Fuel cells have the potential to reduce domestic energy bills by providing both heat and power at the point of use, generating high value electricity from a low cost fuel. However, the cost of installing the fuel cell must be sufficiently low to be recovered by the savings made over its lifetime. A computer simulation is used to estimate the savings and cost targets for fuel cell CHP systems.     

Assessment of methods to reduce the energy consumption of food cold stores

Energy is a major cost in the operation of food cold stores. Work has shown that considerable energy savings can be achieved in cold stores. Results from 38 cold store audits carried out across Europe are presented.Substantial savings could be achieved if operation of cold storage facilities were optimised in terms of heat loads on the rooms and the operation of the refrigeration system. Many improvements identified were low in cost (improved door protection, defrost optimisation, control settings and repairs). In large stores (>100 m³) most improvements identified were cost effective and had short payback times, whereas in small stores there were fewer energy saving options that had realistic payback times. The potential for large energy savings of at minimum 8% and at maximum 72% were identified by optimising usage of stores, repairing current equipment and by retrofitting of energy efficient equipment. Often these improvements had short payback times of less than 1 year.In each facility the options to reduce energy consumption varied. This indicated that to fully identify the maximum energy savings, recommendations need to be specific to a particular plant. General recommendations cannot fully exploit the energy savings available and therefore to maximise energy savings it is essential to monitor and analyse data from each facility.     

Economic evaluation and optimization of solar heating systems

A procedure is developed for assessing the economic viability of a solar heating system in terms of the life cycle savings of a solar heating system over a conventional heating system. The life cycle savings is expressed in a generalized formby introducing two economic parameters, P₁ and P₂, which relate all life cycle cost considerations to the first year fuel cost or the initial solar system investment cost. Using the generalized life cycle savings equation, a method is developed for calculating the solar heating system design which maximizes the life cycle savings. A similar method is developed for determining the set of economic conditions at which the optimal solar heating system design is just competitive with the conventional heating system. The results of these optimization methods can be presented in tabular or graphical form. The sensitivity of the economic evaluation and optimization calculations to uncertainties in constituent thermal and economic variables is also investigated.     

Implementation and rejection of industrial steam system energy efficiency measures

Steam systems consume approximately one third of energy applied at US industrial facilities. To reduce energy consumption, steam system energy assessments have been conducted on a wide range of industry types over the course of 5 years through the Energy Savings Assessment (ESA) program administered by the US Department of Energy (US DOE). ESA energy assessments result in energy efficiency measure recommendations that are given potential energy and energy cost savings and potential implementation cost values. Saving and cost metrics that measure the impact recommended measures will have at facilities, described as percentages of facility baseline energy and energy cost, are developed from ESA data and used in analyses. Developed savings and cost metrics are examined along with implementation and rejection rates of recommended steam system energy efficiency measures. Based on analyses, implementation of steam system energy efficiency measures is driven primarily by cost metrics: payback period and measure implementation cost as a percentage of facility baseline energy cost (implementation cost percentage). Stated reasons for rejecting recommended measures are primarily based upon economic concerns. Additionally, implementation rates of measures are not only functions of savings and cost metrics, but time as well.     

Leasing wind turbines (and its alternatives)

The financing of wind farms has historically consisted of a mixture of traditional debt and equity, with debt generally being provided by high street or specialist banks, through inter-company loans, or from International Funding Agencies (IFA's) via National Funding Agencies in developing countries. The use of more innovative financing methods has to date been limited. One possible method of attracting finance for wind farms is the leasing of wind turbines, and this paper sets out the reasons leasing is particularly appropriate for renewable energy (RE) projects (in particular wind farms), the effect leasing may have on returns available to investors, and some of the obstacles that have to be overcome by the RE and wind industry to increase the utilisation of leasing.This paper concludes by discussing the possibility of using a pan-European leasing company as a means of providing overseas aid to developing countries, thereby facilitating the implementation of wind energy in these important regions.     

Advanced cycles and replacement working fluids in heat pumps

Heat pumps will continue to make a strong positive contribution to the reduction of carbon dioxide emissions associated with energy production. They are energy efficient under certain conditions and also cost effective (especially when displacing electric heating). It is this problem of cost effectiveness that affects market penetration and limits their use. One method of improving the payback period is by improving the efficiency so as to increase the energy savings, and thus the cost savings. This also has, of course, a positive effect on the environment. This paper examines a number of alternative fluids and systems in an attempt to improve performance of heat pumps for both space heating and industrial processes.     

Electrocatalytic oxidation of methanol by platinum nanoparticles on nickel–chromium alloys

In this paper, a novel platinum nanoparticle electrode was prepared by electrodeposition from a platinum salt solution onto a nickel–chromium substrate. The electrocatalytic activity of the electrode for methanol oxidation was studied in acidic solution. Scanning electron microscope (SEM) and cyclic voltammetry were used to characterize the electrode surface and its electrochemical behavior. The results indicated that the platinum nanoparticle modified electrode improved the properties of the substrate material and enhanced the catalytic activity for methanol electrooxidation. The content of platinum metal on the electrode and the cost of the prepared catalyst were remarkably reduced.     

Projected regional impacts of appliance efficiency standards for the US residential sector

Minimum efficiency standards for residential appliances have been implemented in the US for a large number of residential end-uses. This analysis assesses the potential energy, dollar, and carbon impacts of those standards at the state and national levels. We explicitly account for improvements in efficiency likely to occur in the absence of standards, but because our method for characterizing these exogenous improvements probably overestimates them, both the energy and cost savings presented in this article represent lower bounds to the true benefits. Cumulative present-valued dollar savings after subtracting out the additional cost of the more efficient equipment are about $30 billion from 1990 to 2010. Each dollar of federal expenditure on implementing the standards will contribute $165 of net present-valued savings to the US economy over the 1990 to 2010 period. Average benefit/cost ratios for these standards are about 3.5 for the US as a whole. Projected carbon reductions are approximately 9 million metric tons of carbon per year in the years from 2000 to 2010. Because these standards save energy at a cost less than the price of that energy, the resulting carbon emission reductions are achieved at negative net cost to society.     

Results of the walnut creek house doctor project

We present the results of an experiment designed to measure the additional energy savings achieved by adding two person-days of house doctoring to a standard energy audit. We compare a house doctor and audit treatment to an audit alone and to a passive control group. The treatments were applied to randomly selected groups of 10 houses each in Walnut Creek, California.The difference in energy savings between the treatments, based on monthly utility bills, were not statistically significant due to wide variation in savings and the loss of several houses from each group. Predicted energy savings, based in part on measured air leakage area reductions, indicated that the retrofit package completed during house doctoring had a cost of conserved energy of $4.00/GJ.     

Micro-level energy planning in India—A case study of bangalore north Taluk

Demand for energy in India is constantly on the rise and the conventional supply options available have failed to cope with this increase. The emergence of efficiency improvement, carrier substitution and renewable energy as alternative sources of energy supply, make adherence only to macro-level energy planning unrealistic. A micro-level (district/taluk) energy planning becomes pragmatic under these circumstances to pursue the goal of sustainable development and to harness locally available energy resources. This paper considers the energy consumption pattern in Bangalore North taluk in 1987–88 and projects the demand for energy in 1995–96. Taking into account the different energy sources used to provide different end-use services through different end-use devices, the paper presents a linear programming formulation for optimum allocation. The model considers the conventional and new alternative technologies for meeting the demand for energy service. The results show that substantial savings could be achieved by this optimal allocation. The cost savings could be to the tune of Rs 41.879 million in Bangalore North taluk during 1995–96 (terminal year of Eighth Five-Year Plan). Energy savings of about 27% and cost savings of 16% could also be achieved.     

Employing cost sharing to motivate the efficient implementation of distributed energy resources

We consider the design of cost-sharing policies to motivate electricity distribution utilities to manage the costs of distributed energy resource (DER) projects. The optimal share of realized cost savings (s) that is awarded to the utility takes a relatively simple form in certain settings. More generally, s can vary with the prevailing environment in subtle and sometimes counterintuitive ways. For instance, s may increase as cost savings become less onerous for the utility to secure. Gains from affording the utility a choice among cost-sharing policies typically are minimal.     

An economic analysis comparison of stationary and dual-axis tracking grid-connected photovoltaic systems in the US Upper Midwest

This paper presents an economic analysis of stationary and dual-axis tracking photovoltaic (PV) systems installed in the US Upper Midwest in terms of life-cycle costs, payback period, internal rate of return, and the incremental cost of solar energy. The first-year performance and energy savings were experimentally found along with documented initial cost. Future PV performance, savings, and operating and maintenance costs were estimated over 25-year assumed life. Under the given assumptions and discount rates, the life-cycle savings were found to be negative. Neither system was found to have payback periods less than the assumed system life. The lifetime average incremental costs of energy generated by the stationary and dual-axis tracking systems were estimated to be $0.31 and $0.37 per kWh generated, respectively. Economic analyses of different scenarios, each having a unique set of assumptions for costs and metering, showed a potential for economic feasibility under certain conditions when compared to alternative investments with assumed yields.     

Refueling-station costs for metal hydride storage tanks on board hydrogen fuel cell vehicles

Refueling costs account for much of the fuel cost for light-duty hydrogen fuel-cell electric vehicles. We estimate cost savings for hydrogen dispensing if metal hydride (MH) storage tanks are used on board instead of 700-bar tanks. We consider a low-temperature, low-enthalpy scenario and a high-temperature, high-enthalpy scenario to bracket the design space. The refueling costs are insensitive to most uncertainties. Uncertainties associated with the cooling duty, coolant pump pressure, heat exchanger (HX) fan, and HX operating time have little effect on cost. The largest sensitivities are to tank pressure and station labor. The cost of a full-service attendant, if the refueling interconnect were to prevent self-service, is the single largest cost uncertainty. MH scenarios achieve $0.71–$0.75/kg-H₂ savings by reducing compressor costs without incurring the cryogenics costs associated with cold-storage alternatives. Practical refueling station considerations are likely to affect the choice of the MH and tank design.     

Technical and economic performance of residential solar water heating in the United States

This paper examines the regional, technical, and economic performance of residential rooftop solar water heating (SWH) technology in the U.S. It focuses on the application of SWH to consumers in the U.S. currently using electricity for water heating, which currently uses over 120 billion kWh per year. The variation in electrical energy savings due to water heating use, inlet water temperature and solar resource is estimated and applied to determine the regional “break-even” cost of SWH where the life-cycle cost of SWH is equal the life-cycle energy savings. For a typical residential consumer, a SWH system will reduce water heating energy demand by 50–85%, or a savings of 1600–2600 kWh per year. For the largest 1000 electric utilities serving residential customers in the United States as of 2008, this corresponds to an annual electric bill savings range of about $100 to over $300, reflecting the large range in residential electricity prices. This range in electricity prices, along with a variety of incentives programs corresponds to a break-even cost of SWH in the United States varying by more than a factor of five (from less than $2250/system to over $10,000/system excluding Hawaii and Alaska), despite a much smaller variation in the amount of energy saved by the systems (a factor of approximately one and a half). We also consider the relationships between collector area and technical performance, SWH price and solar fraction (percent of daily energy requirements supplied by the SWH system) and examine the key drivers behind break-even costs.     

Methodology to estimate the economic,emissions, and energy benefits from combined heat and power systems based on system component efficiencies

This paper presents a methodology to estimate the economic, emissions, and energy benefits that could be obtained from a base loaded CHP system using screening parameters and system component efficiencies. On the basis of the location of the system and the facility power to heat ratio, the power that must be supplied by a base loaded CHP system in order to potentially achieve cost, emissions, or primary energy savings can be estimated. A base loaded CHP system is analyzed in nine US cities in different climate zones, which differ in both the local electricity generation fuel mix and local electricity prices. Its potential to produce economic, emissions, and energy savings is quantified on the basis of the minimum fraction of the useful heat to the heat recovered by the CHP system (φ_min). The values for φ_min are determined for each location in terms of cost, emissions, and energy. Results indicate that in terms of cost, four of the nine evaluated cities (Houston, San Francisco, Boulder, and Duluth) do not need to use any of the heat recovered by the CHP system to potentially generate cost savings. On the other hand, in cities such as Seattle, around 86% of the recovered heat needs to be used to potentially provide cost savings. In terms of emissions, only Chicago, Boulder, and Duluth are able to reduce emissions without using any of the recovered heat. In terms of primary energy consumption, only Chicago and Duluth do not require the use of any of the recovered heat to yield primary energy savings. For the rest of the evaluated cities, some of the recovered heat must be used in order to reduce the primary energy consumption with respect to the reference case. In addition, the effect of the efficiency of the power generation unit and the facility power to heat ratio on the potential of the CHP system to reduce cost, emissions, and primary energy is investigated, and a graphical method is presented for examining the trade‐offs between power to heat ratio, base loading fraction, percentage of recovered heat used, and minimum ratios for cost, emissions, and primary energy. Copyright © 2014 John Wiley & Sons, Ltd.     

Three‐dimensional modelling of catalyst layers in PEM fuel cells: Effects of non‐uniform catalyst loading

Improving the performance of polymer‐electrolyte membrane (PEM) fuel cells depends on the optimization of catalyst layer composition and structure for large active surfaces. Modelling studies provide a valuable tool for investigating the effects of catalyst layer composition and structure on the electrochemical and physical phenomena occurring in PEM fuel cells. Previous modelling studies have shown that the distribution of electrochemical reactions in catalyst layers is highly dependent on the complex interaction of activation and ohmic effects as well as contributions from transport limitations and variations in local and overall current densities. In this paper, three‐dimensional, multicomponent and multiphase transport computations are performed using a computational fluid dynamics (CFD) code (FLUENT^TM) with a new PEM fuel cell module, which has been further improved by taking into account the detailed composition and structure of the catalyst layers using the multiple thin‐film agglomerate model. The detailed modelling of reactions in the catalyst layers is used to determine methods of improving the effectiveness of catalyst layers for a given platinum loading. First, available data on catalyst layer composition and structure are used in CFD computations to predict reaction rate distributions. Based on these results, spatial variations in catalyst loading are then implemented in CFD computations for the same overall catalyst loading to investigate possible performance gains. It is found that grading catalyst loading towards the membrane in the anode and the gas channel inlet in the cathode provides the most beneficial effects on the fuel cell performance. Thus the results suggest that significant savings in cost can be attained by reducing the platinum loading in underutilized regions of the catalyst layers, while at the same time improving the performance. Copyright © 2009 John Wiley & Sons, Ltd.     

Economic analysis of upgrading aging residential buildings in China based on dynamic energy consumption and energy price in a market economy

This article employed a standard LCC to conduct economic analysis of upgrading the aging residential buildings in China. According to the current situation, an interest rate of 6%, an inflation rate of 3%, an increase rate of annual energy savings of 2% and an increase rate of electricity price of 2% were assumed in the method. The results indicated that only relying on gradually increasing electricity price and governments' subsidies was not enough. After detailed analysis of the energy saving measures and the distribution of all benefits from building energy retrofit, it was found that actually only 1/3 of original cost was spent only for energy savings, the second 1/3 for both energy savings and good façade appearance and occupants should share the last 1/3 because even if without energy retrofit, they would have to pay the part too. The corresponding results proved that the first 1/3 of investment cost could be drawn back within the residue life cycle, and so the investment could be accepted in a sheer market economy. In the end, a model about distribution of investment cost of and benefits was proposed to adapt the market economy to overcome the financial problems in China.