Environmental effects of energy crop cultivation in Sweden—II: Economic valuation

In this paper, environmental benefits of the cultivation of perennial energy crops in Sweden, which have been identified and quantified in an earlier paper, are evaluated economically. Several different benefits, ranging from global to site-specific, could be achieved by replacing annual food crops with perennial energy crops. The economic value of these environmental benefits, including reductions in costs to farmers (direct costs) and to society as a whole (external costs), has been estimated to be from US$ 0.1 up to US$ 5/GJ biomass. For comparison, the production costs (excluding transport) of Salix and reed canary grass are about 4.4 and US$ 5.0/GJ, respectively. Purification of waste water in energy crop cultivation has the highest economic value, followed by reduced nutrient leaching through riparian buffer strips, recirculation of sewage sludge, and reduced wind erosion through shelter belts consisting of Salix. The value of other environmental benefits is estimated to be less than US$ 0.7/GJ. If 200,000 ha of Sweden’s totally available arable land of 2.8 Mha were available for energy crop cultivation, around 45 PJ biomass could theoretically be produced per year, at an average cost of about US$ 0.7/GJ, including the value of environmental benefits. It is assumed that priority is given to cultivations with the highest total value, as several different environmental effects could be achieved on the same cultivation site. If 800,000 ha were to be available, the corresponding cost of some 150 GJ biomass per year would be around US$ 2.8/GJ.     

The savings of energy saving: interactions between energy supply and demand-side options—quantification for Portugal

Reducing demand by increasing end-use energy efficiency on the demand side of energy systems may also have advantages in reducing fossil dependency and greenhouse gas (GHG) emissions on the supply side. This paper addresses interactions between energy supply- and demand-side policies, by estimating the impact of measures addressing end-use energy efficiency and small-scale renewables uses in terms of (1) avoided large-scale electricity generation capacity, (2) final energy consumption, (3) share of renewables in final energy and (4) reduction of GHG emissions. The Portuguese energy system is used as a case study. The TIMES_PT bottom-up model was used to generate four scenarios covering the period up to 2020, corresponding to different levels of efficiency of equipment in buildings, transport and industry. In the current policy scenario, the deployment of end-use equipment follows the 2000–2005 trends and the National Energy Efficiency Action Plan targets. In the efficient scenarios, all types of equipment can be replaced by more efficient ones. Results show that aggressive demand-side options for the industry and buildings sector and the small-scale use of renewables can remove the need for the increase in large-scale renewable electricity capacity by 4.7 GW currently discussed by policy makers. Although these measures reduce total final energy by only 0–2 %, this represents reductions of 11–14 % in the commercial sector, with savings in total energy system costs of approximately 3,000 million euros₂₀₀₀—roughly equivalent to 2 % of the 2010 Portuguese GDP. The cost-effectiveness of policy measures should guide choices between supply shifts and demand reduction. Such balanced policy development can lead to substantial cost reductions in climate and energy policy.     

Driving forces for and barriers to providing energy services—a study of local and regional energy companies in Sweden

Improving energy efficiency is a cornerstone in climate change mitigation, and energy services are portrayed as a promising market-based approach to achieve this. This paper examines the barriers to, and driving forces needed for, the implementation of energy services from the perspective of Swedish local and regional energy companies. This includes an analysis of the resources needed in three phases of energy service implementation, i.e., development, sales, and deployment. The results indicate a supply-side interest in providing energy services, with the major challenges being related to (a) intra-organizational issues such as a lack of strategic direction and intent and (b) a perceived lack of knowledge, interest, and trust on the part of potential energy service customers. The paper concludes with managerial and policy implications on how an increased focus and impact of energy service can be achieved among local and regional companies.     

Modelling of hybrid energy system—Part I: Problem formulation and model development

A well designed hybrid energy system can be cost effective, has a high reliability and can improve the quality of life in remote rural areas. The economic constraints can be met, if these systems are fundamentally well designed, use appropriate technology and make use effective dispatch control techniques. The first paper of this tri-series paper, presents the analysis and design of a mixed integer linear mathematical programming model (time series) to determine the optimal operation and cost optimization for a hybrid energy generation system consisting of a photovoltaic array, biomass (fuelwood), biogas, small/micro-hydro, a battery bank and a fossil fuel generator. The optimization is aimed at minimizing the cost function based on demand and potential constraints. Further, mathematical models of all other components of hybrid energy system are also developed. This is the generation mix of the remote rural of India; it may be applied to other rural areas also.     

Cooperation for climate-friendly developments—an analysis of the relationship between the energy and buildings sectors in Sweden

Buildings account for more than 40 % of the total energy demand in the European Union (EU). The energy sector is responsible for 80 % of the total greenhouse gas emissions in the EU, of which more than a third are emitted as a result of energy use in buildings. Given these numbers and the large potential for energy savings in buildings, the energy and buildings sectors emerged as key contributors to fulfilling the European climate targets. Effective cooperation between these two key sectors can contribute significantly to the efficacy of the European climate strategy. However, there may be factors that negatively impact the relationship between the energy and buildings sectors and put cooperation in climate-friendly developments at risk. Based on 23 semi-structured interviews and a web survey answered by key stakeholders, this paper provides a snapshot of the current level of cooperation between the energy and buildings sectors in Sweden and identifies factors that impact the interdependencies between the two sectors. The findings show that the current business models in energy supply and the regulations in place limit the development of mutually beneficial cases between the energy and buildings sectors. This paper contributes to improved knowledge for policymaking that affects both sectors and highlights issues for further study.     

Merit-order effects of renewable energy and price divergence in California’s day-ahead and real-time electricity markets

We answer two policy questions: (1) what are the estimated merit-order effects of renewable energy in the California Independent System Operator’s (CAISO’s) day-ahead market (DAM) and real-time market (RTM)? and (2) what causes the hourly DAM and RTM prices to systematically diverge? The first question is timely and relevant because if the merit-order effect estimates are small, California’s renewable energy development is of limited help in cutting electricity consumers’ bills but also has a lesser adverse impact on the state’s investment incentive for natural-gas-fired generation. The second question is related to the efficient market hypothesis under which the hourly RTM and DAM prices tend to converge. Using a sample of about 21,000 hourly observations of CAISO market prices and their fundamental drivers during 12/12/2012–04/30/2015, we document statistically significant estimates (p-value≤0.01) for the DAM and RTM merit-order effects. This finding lends support to California’s adopted procurement process to provide sufficient investment incentives for natural-gas-fired generation. We document that the RTM-DAM price divergence partly depends on the CASIO’s day-ahead forecast errors for system loads and renewable energy. This finding suggests that improving the performance of the CAISO’s day-ahead forecasts can enhance trading efficiency in California’s DAM and RTM electricity markets.     

Seasonal relationship of peak demand and energy impacts of energy efficiency measures—a review of evidence in the electric energy efficiency programmes

While energy efficiency programmes traditionally focus on energy savings, there is also a policy interest in their impact on system peak demand. Examples include demand-side management, integrated resource planning and recent developments to integrate energy efficiency into forward capacity markets. However, there is only limited research on the relationship between peak demand impacts and overall energy savings from efficiency measures, although this relationship can have important bearings on efficiency programmes. This paper reviews utility efficiency programmes in nine jurisdictions in North America and analyses how the seasonal peak-energy relationship differs between commercial and industrial (C&I) and residential sectors, among efficiency measures. In terms of the seasonal difference in peak demand impacts, these programmes show that residential lighting and residential water heating can deliver greater peak savings in weekday early evening winter peak periods. By contrast, C&I lighting and residential appliances make higher peak savings in weekday afternoon summer peak periods. A seasonal difference is more significant in lighting, especially residential lighting, than other measures. The evidence from North America also suggests that space cooling in both sectors and C&I lighting may well make greater peak savings relative to non-peak impacts than other measures during summer peak periods, while in winter peak periods, residential lighting can achieve greater peak savings relative to non-peak impacts. This review highlights the significance of regional electricity use patterns along with climatic and regulatory conditions and indicates how further research may contribute to appropriate electricity demand reduction programme design and monitoring regimes in particular regions.     

The quantification of the embodied impacts of construction projects on energy,environment, and society based on I–O LCA

With rapid social development and large-scale construction of infrastructure in China, construction projects have become one of the driving forces for the national economy, whose energy consumption, environmental emissions, and social impacts are significant. To completely understand the role of construction projects in Chinese society, this study developed input–output life-cycle assessment models based on 2002, 2005, and 2007 economic benchmarks. Inventory indicators included 10 types of energy, 7 kinds of environmental emissions, and 7 kinds of social impacts. Results show that embodied energy of construction projects in China accounts for 25–30% of total energy consumption; embodied SO₂ emissions are being controlled, and the intensities of embodied NO_x and CO₂ have been reduced. However, given that the construction sector related employment is 17% of the total employment in China, the accidents and fatalities related to the construction sector are significant and represent approximately 50% of the national total. The embodied human and capital investments in science and technology (ST) increased from 2002 to 2007. The embodied full time equivalent (FTE) of each ST person also increased while the personal ST funding and intramural expenditures decreased. This might result from the time lag between RD activities and large-scale implementation.     

Wind energy in Brazil—present and future

In Brazil, the power generation is predominantly hydroelectric, corresponding approximately to 91.4% of the installed capacity. The energy crisis in the Brazilian electric sector meant the end of the centralized generation and the launching of a decentralized generation approach aiming to add to the existing plants through small- and medium power capacity. Such a condition matches the wind energy characteristic profile. In northeastern Brazil is one of the most promising areas for wind exploitation, where the largest wind speed occurs exactly when the rate of flow in Sao Francisco river, which accounts for all the power energy supply of the northeast region, is low. Thus, during this critical period, the wind farms can produce electrical energy, saving the Sao Francisco waters and on top of that with no environmental risk, thus contributing to the overall reduction of CO₂ emission in the atmosphere. Because of those factors, the National Electrical Energy Agency (ANEEL), the Brazilian regulatory authority, has approved 77 projects for construction of wind farms, attracting foreign investment, besides the installation of wind turbine industries. The increasing use of the wind energy is prevailing over the absence of a specific legislation for the sector, but the National Congress has already taken some measures such as the act bill no. 2905/2000 and the temporary measure no. 14/2001.     

On the physics of power,energy and economics of renewable electric energy sources – Part I

Environmental concerns have increasingly led to the installation of Renewable Energy Technologies (RETs) despite the fact that they are recognized as expensive. Innovative efforts within the area are beset with difficulties [1], and they are at risk of producing misdirected or insignificant improvements in terms of the cost effectiveness of total energy conversion systems. This paper investigates how RETs can be evaluated, in terms of economy and engineering solutions, by studying the fundamental physics of renewable energy sources and how it matches with the RETs. This match is described by the “Degree of Utilization”. The findings indicate that new innovations should focus on the possible number of full loading hours. RETs that are correctly matched to their energy source generate a higher amount of electric energy and have a higher potential of becoming more competitive. In cases where this aspect has been ignored, leading to relatively small degrees of utilization, it can be understood as an engineering mismatch between installed power, converted energy, and the fundamental physics of the renewable energy sources. Since there is a strong and possibly biased support for so-called mature RETs and already existing solutions, a clarification of how fundamental physical laws affect the cost of investments and payback of investments is needed. The present paper is part I out of II and it focuses on the difference between power and energy and the physics of different energy sources and their utilization.     

Conditions of energy efficient behaviour��a comparative study between Sweden and the UK

The main aim of this study is to compare how specific conditions in certain countries (in this case, the UK and Sweden) can stimulate or oblige householders to be more energy efficient, or can obstruct this. European goals for energy and emission reductions now constitute the main frame for long-term energy policy changes, but national governments develop and implement policy in contrasting ways and in different contexts. Important aspects are: geographical context, degree of liberalisation of electricity and gas industry, structure and composition of energy systems, metering and billing infrastructure, and the nature of electrical load problems. The following conditions are described and compared in this paper: (1) regulation to control residential consumption and emissions; (2) energy systems; (3) electricity pricing; (4) the role of utilities and other agents in residential demand reduction; (5) quality of feedback on energy use to the householder; and (6) customer behaviour and perceptions of energy use. The analysis is carried out with a view to ecological, economic and social aspects of energy systems. The comparison shows the significance of factors that are sometimes overlooked when considering the potential for demand reduction and load management, and produces some lessons and questions that are widely applicable.     

Building energy index and end-use energy analysis in large-scale hospitals—case study in Malaysia

Hospital energy consumption is relatively high, while saving energy and reducing cost comprise one of the most important challenges considered by the majority of building designers, engineers, and decision makers. An end-use energy analysis was conducted in a large-scale hospital in Malaysia to identify energy apportioning and energy end use in the areas of air conditioning, lifts, lighting, equipment, and others. The analysis was carried out by assessing the collected desktop and field data as well as some calculations. The Building Energy Index (BEI) was calculated to compare the consumption levels in the selected hospital, which is a typical hospital building, with other hospitals in Malaysia as well as low energy buildings and Malaysian standards. The main energy source in this case study was electricity with a supply of around 75 % of total energy consumption. The current average annual electricity consumed by this hospital was 44,637,966 kWh, out of which 63 % was used by air conditioning systems and 17 % by lighting. The BEI comparison revealed that the calculated BEI of 384 kWh/m²/year is significantly higher than Malaysian rating systems and standards which recommend 200 kWh/m²/year for hospitals, 135 kWh/m²/year for commercial sectors, and is higher than previously observed hospitals with a BEI of less than 300 kWh/m²/year.     

Greener energy: Issues and challenges for Pakistan—Solar energy prospective

Energy plays a pivotal role in socio-economic development by raising standard of living. It is becoming gradually accepted that current energy systems, networks encompassing every thing from primary energy sources to final energy services, are becoming unsustainable. Development of conventional forms of energy for meeting the growing energy needs of society at a reasonable cost is the responsibility of the Governments. In recent years, public and political sensitivities to environmental issues and energy security have led to the promotion of renewable energy resources. Diversification of fuel sources is imperative to address these issues; and limited fossil resources and environmental problems associated with them have emphasized the need for new sustainable energy supply options that use renewable energies. Development and promotion of new non-conventional, alternate and renewable sources of energy such as solar, wind and bio-energy, etc. are now getting sustained attention. Solar power is one of the hottest areas in energy investment right now, but there is much debate about the future of solar technology and solar energy markets. This investigates the progress and challenges for solar power in Pakistan according to the overall concept of sustainable development, and identifies the region wise potential of solar power in Pakistan and its current status. Barriers are examined over the whole solar energy spectrum and policy issues and institutional roles and responsibilities are discussed.     

Complementarity and substitution of renewable energy in target year energy supply-mix plannin–in the case of Taiwan

Renewable energies are eco-friendly and sustainable. However, their development faces two critical issues: the uncontrollable generation variability, and the high levelized cost. These two issues impede the development of renewables substitution for a government from lacking of clearly argument of how to promote renewables substitution, and what is the role of traditional generation resources should play to back up the renewable energies in a target year. This study aims to depict the possibility of the concerned topic from the aspects of economy, security, and environment, taking a top–down viewpoint of policy-making to address an energy supply problem, and proposes an Energy Supply-Mix Model by considering the complimentary and substitution possibilities between renewable and non-renewable energies, and also among the renewable energies. The solution provides an overall assessment of three aspects under the conditions of supply and demand balance, desired generation percentage of renewable energies, and also ensure no shortage in peak-hour demand. Parametric analysis on the carbon tax is particularly conducted for policy making reference.This study takes Taiwan as a case and performs the scenario analysis according to the recent energy policies. The results have shown that the proposed model can effectively support a decision body for policy formulation.     

Hydrogen energy research and development in India—an overview

India is trying hard to improve the standard of living of its peoples, and therefore increase the energy consumption. Amongst the many options. India is also researching the various aspects of the hydrogen energy system. This paper presents an overview of hydrogen energy research and development work in India, starting with a summary of the energy situation in the country.     

Enabling and hindering factors of diffusion of energy service companies in Finland—results of a Delphi study

Energy service companies (ESCOs) are often seen as a focal mechanism to improve energy efficiency. However, ESCOs have not met all the expectations which have been loaded on them and their diffusion has been slower than expected. This paper focuses on analysing the development of the ESCO sector in Finland and identifying the key factors—both drivers and barriers—that are influencing the diffusion of Finnish ESCO market. We will do this with the help of a qualitative Delphi study. The results indicate that ESCOs are still understood and known rather poorly among potential customers. Also, the current financial situation and high transaction costs in comparison to potential savings were seen as challenges among the panellists whereas active information sharing was seen as a factor that would foster the ESCO business. However, from the point of view of reaching the energy efficiency targets, the panellists did not emphasize the role of ESCOs over several other energy service providers.     

The energy sector in Eritrea—institutional and policy options for improving rural energy services

The energy consumption patterns and in particular, those of the rural household and small and medium enterprises (SMEs) in Eritrea are assessed. Eritrea's total final energy consumption in 1998 was estimated to be around 619,580 toe, of which 68% was consumed by the household sector, 16% by the commercial/public sector, 13% by transport and 3% by industry. The sources of energy were 66.3% biomass based (fuelwood, dung, charcoal, agri-residue), 31% oil products and 2% electricity. It is also noted that 98% of the rural population and 20% of the urban residents do not have access to electricity. Over 80% of the energy needs of rural enterprises is met by biomass or animate/human labour. To analyse the root problems hindering the wider dissemination of modern energy services to rural areas, two key hypotheses related to policy and institutional framework were selected and tested. The findings indicate that Eritrea has general energy policies pertaining to the development of electricity, oil and renewable energy sub-sectors for the benefit of the public and the economy. The absence of sharply focussed, pro-rural energy policy and/or their policy instruments has been observed. The key problem is, however, the weakness in implementation of rural energy projects and programmes. This is mainly due to inappropriate institutional structure and/or gaps in the structure, in addition to lack of corporate culture; poor incentives for workers; and, poor linkages among the various stakeholders concerned in energy for rural development.     

Capturing energy efficiency in European iron and steel production—comparing specific energy consumption and Malmquist productivity index

European iron and steel producers are working towards increased energy efficiency to meet requirements set by European policies such as the Energy Efficiency Directive. In this study, we show that the specific energy consumption (SEC), representing the iron and steel sector in the Odyssee energy efficiency index (ODEX)—the tool for policy evaluation recommended by the European Commission—is insufficient for capturing energy efficiency trends of European iron and steel production. European producers focus on niche markets, diversifying and specialising their set of products well beyond crude steel, which is the benchmark product for deriving the SEC. We compare the SEC with the more comprehensive Malmquist productivity index (MPI) methodology, which is calculated using data envelopment analysis (DEA) techniques. An evaluation of energy efficiency trends during 2000–2010 showed that the SEC overestimated energy efficiency improvements for European steel industries, while underestimating the improvements achieved by Swedish steel industries. A comparison between the SEC, the MPI/DEA approach, and energy intensity based on value added in the Swedish case provides further insight to the methodological differences between the approaches. We conclude that the approaches highlight different aspects of energy efficiency analyses and that the SEC is not sufficient for capturing the energy efficiency of steel industries.