Renewable Energy Sources and Rational Use of Energy

1. Renewable Energy Sources and Rational Use of Energy

2. Motivation on energyeffciency • The question is no more for the future but for the present: what if “developing” countries get to occidental standards of consumption? • Among the basic commodities--grain and meat in the food sector, oil and coal in the energy sector, and steel in the industrial sector--China now consumes more than the United States of each of these except for oil. It consumes about twice as much meat and twice as much steel • If China's economy continues to expand at 8 percent a year, its income per person will reach the current U.S. level in 2031. • "If at that point China's per capita resource consumption were the same as in theUnited States today, then its projected 1.45 billion people would consume the equivalent of two thirds of the current world grain harvest. China's paper consumption would be double the world's current production. There go the world's forests.“ • If China one day has three cars for every four people, U.S. style, it will have 1.1 billion cars. The whole world today has 800 million cars. To provide the roads, highways, and parking lots to accommodate such a vast fleet, China would have to pave an area equal to the land it now plants in rice. It would need 99 million barrels of oil a day. Yet the world currently produces 84 million barrels per day and may never produce much more. • India by 2031 is projected to have a population even larger than China's. and 3 billion other people in developing countries who are also dreaming the "American dream.“

3. Definingefficiency • Energy efficiency (first law) for conversion devices (from primaryenergytocarriers) • Energy efficiency (first law) for end-use devices (from carrierstousefulenergy) • Energy efficiency for end-use services (from carriers to services) seeSwisher • Energy intensity (energy per GDP or per capita) • Specific energy consumption (kWh/ton of steel) • Second law energy efficiency or exergy efficiency • Embedded energy or grey energy (Energy analysis,Bousted-Hangcock, Life cycleanalysis)

4. Energy efficiency (first law) for conversion devices (fromprimary energy to carriers) and for end-use devices (fromcarrierstoenergyservices) • It is a number between 0 and 1, or between 0 and 100%. • The key word in the definition is useful (energy output). Were it not there, the efficiency of any device would be 100%, because of the law of conservationofenergy. • The purpose of a device determines its usefulenergy output. For example, we want light from a lamp, but we get mostly heat; only 5% of the energy input (electricity) is converted into light, so the efficiency of a conventional incandescent light bulb is 5%. Output Input Energy conversiondevice

5. Renewableenergytechnologiesperspectives: total primaryenergy supply-2004

6. Renewableenergytechnologiesperspectives: electricity production- 2004

7. Are RET competitive?

8. IdentifiedBarriers • There is not a level playing field for renewable energy technologies • Subsidiesforconventionaltechnologies = 6:1 • Externalities are not internalised in energy/fuel prices • The incentives for governments and private companies to support renewable energy development are insufficient or notcontinuous • Financing is unreasonably costly for renewable energy technologies • Technology standards are lacking for renewable energy technologies and fuels • Import tariffs and technical barriers impede the trade with renewableenergytechnologies

9. IdentifiedBarriers • Planning & Permitting for new RE plants are difficult to obtain • Approval procedures are lengthy and troublesome • Lack of spatial planning for renewable energy. • Energy markets are not prepared for renewable energy • Integration of intermittent energy sources • Grid connection and access is not fairly provided • Other markets imperfections in energy markets • Renewable energy skills and awareness is insufficient • Lack of knowledge, awareness and acceptance • Lack of training and education

10. Renewableenergy can addnewvalueto the energy mix by … enhancing security of supply - both for geopoliticalconcentratedin few countries in critical regions- and infrastructure-power plants, pipeline, seastraits… …allowing energy sources diversification & reducing imports for consumers/ deferring production for exporters …mitigating risks in current energy portfolio and trends, due to volatility and instability of fossil prices;

11. Renewableenergy can addnewvalueto the energy mix by … …creating framework for investment enhancing industrial competitiveness – and opportunities for export …creating new jobs, favouring economic development …advancingenvironmentaltargets; …providing unique access to energy services; …increasing public participation in energy decision-making

12. Barriers to the adoption of efficiencymeasures Efficiency is often a minor factor in decisions to buy appliance Missing or partial information on energy performance on end use equipment or energy using systems Lack of awareness regarding the potential for cost effective energysaving Decision makers for energy-efficient investments are not always the final users who have to pay the final bill. Thus the overall cost of energy services is not revealed by the market Financial constraints on individual consumer far more severe than those implied by social discount rates or long term interest rate

13. Solutionstoward more energyefficiency Most effective way of encouraging investments in efficiency improvements is a well designed and well enforced regulations on efficiency standards, coupled with appropriate energy-pricing policies • Energy labelling of energy-using equipments • Energy efficiency performance requirements for new equipments and building codes • Building energy performance certification • Utility energy efficiency schemes • Fiscal and financial incentives

14. How likely that these new scenarioswillhappen? It will require considerable political will to overcome the formidable hurdles in the implementation of policies and measures implied by “beyond alternative” scenarios: • policy inertia, • opposition and lobbying by some stakeholders, • lack of understanding about the effectiveness of the opportunities which are open. • investments by corporations are mainly made on the short term added value of the stock shares. Politicians and policy makers need: • to spell out clearly the benefits for the economy and the society as a whole; • have in mind longer time frame than next election, and incorporate the principle of generational responsibility and liability. • do expanded effort in communicating clearly to the general public the benefits of the change to the economy and the society as a whole.

15. And nowenergyefficiency in practice…. Stakeholderinterestedtoexploreenergyefficiencyopportunities Promote ESCO’s energyaudit in the facilities Promote agreement with ESCO’s toboostassociatedenterprises in energyefficiency Energy refurbishment finance under specificconditionsof: Paybacktime Technology Financial conditions In Agreement withChamberofcommercedevelopguaranteesavingenergycontractingafterfacilitiy’s energyaudit

16. Phase 1 Object: Identify the most 'suitable steps for a rational use of energy, and whose savings has immediate economic impact on budgets, through a process of energy audit and technical and then economic considerations then able to direct the efforts and investments OBJECTIVEConsider the possibility of energy savings through sending by the client of a series of predefined information, without inspections. RESULTa concise and easy to read report containing some essential information: percentage energy savings indicative investment amount payback time of the investment

17. Phasetwo OBJECTIVE • In-depth analysis of needs and systems of energy production. • Choice of technologies and preliminary sizing of the system. This activity involves one or more visits to the company and the presentation of our study. RESULTS: The energy audit Allows a detailed view of the proposed solutions for improving energy efficiency. This document contains: • analysis of existing energy systems • new energy efficient concept definition • maximum size of the system • development of a plant layout • preparation of a bill of quantities summary • technical and economic evaluation of the project

18. Phasethree OBJECTIVEDetail design, analysis of financing options, implementation work RESULTE.S.CO.’s activities may relate only on Executive design, allowing the customer to decide later whether to fulfill the work or of carrying a package of interventions with the mode of "third-party financing" including financing, final design and construction work. .

19. Summaryof the flow chart ofanenergyefficiencyactivity

20. An exampleofanintegratedactivityforenergysaving 50 % energysaving

21. Example… A pasta factoryhas the followingenergyconsumption (extractedfromenergybills) Electricity: 5600 MWh Thermal: 8500 MWh Buthow are theycomposed? Whichtechnology are used in the production chain? ElectricMotors (pumps, kneadingmachines …) 20 motorsof 30 kW rated output (used in 3000 hours/year) = 1800 MWh 15 motorsof 55 kW rated output (used in 2800 hours/years) = 2310 MWh Total: 4120 MWh Compressed air (a pipeline usedforall the uses) Total: 1200 MWh (rememberthat at least 80% of the electricityemployed in compressed air production iswasted in heat)

22. Thermalenergyuse Hot water production fordough (40 °C): 2000 MWh Superheated water fordrying (120 °C): 5000 MWh Other: 1000 MWh

23. Approachto the solution … first First solution: Applicationof a cogenerationplantforelectricityand heat production. 1.151.192 € VS 664.200 € Payback: lessthantwoyears

24. Are wesurethatthisis the best way? • Efficiencyimprovementof the energyfinaluses…. • Smart energysupplying Thisis the Best way!!!

25. Calculate the annual cost savings if these leaks were eliminated. Assume 7000 annual operating hours, an aggregate electric rate of € 0.1/kWh, and compressed air generation requirement of approximately 18 kilowatts (kW)/2832 l/min. Cost savings = n° of leaks x leakage rate (l/min) x kW/(l/min) x n° of hours x €/kWh Using values of the leakage rates from the above table and assuming sharp-edged orifices: Cost savings from 0,8 mm leaks = 100 x 41 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 18.238 Cost savings from 1,6 mm leaks = 50 x 162 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 36.033 Cost savings from 6,4 mm leaks = 10 x 2857 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 126.693 Total cost savings from eliminating these leaks = € 180.694 Calculate the annual cost savings if these leaks were eliminated. Assume 7000 annual operating hours, an aggregate electric rate of € 0.1/kWh, and compressed air generation requirement of approximately 18 kilowatts (kW)/2832 l/min. Cost savings = n° of leaks x leakage rate (l/min) x kW/(l/min) x n° of hours x €/kWh Using values of the leakage rates from the above table and assuming sharp-edged orifices: Cost savings from 0,8 mm leaks = 100 x 41 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 18.238 Cost savings from 1,6 mm leaks = 50 x 162 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 36.033 Cost savings from 6,4 mm leaks = 10 x 2857 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 126.693 Total cost savings from eliminating these leaks = € 180.694 Calculate the annual cost savings if these leaks were eliminated. Assume 7000 annual operating hours, an aggregate electric rate of € 0.1/kWh, and compressed air generation requirement of approximately 18 kilowatts (kW)/2832 l/min. Cost savings = n° of leaks x leakage rate (l/min) x kW/(l/min) x n° of hours x €/kWh Using values of the leakage rates from the above table and assuming sharp-edged orifices: Cost savings from 0,8 mm leaks = 100 x 41 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 18.238 Cost savings from 1,6 mm leaks = 50 x 162 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 36.033 Cost savings from 6,4 mm leaks = 10 x 2857 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 126.693 Total cost savings from eliminating these leaks = € 180.694 Calculate the annual cost savings if these leaks were eliminated. Assume 7000 annual operating hours, an aggregate electric rate of € 0.1/kWh, and compressed air generation requirement of approximately 18 kilowatts (kW)/2832 l/min. Cost savings = n° of leaks x leakage rate (l/min) x kW/(l/min) x n° of hours x €/kWh Using values of the leakage rates from the above table and assuming sharp-edged orifices: Cost savings from 0,8 mm leaks = 100 x 41 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 18.238 Cost savings from 1,6 mm leaks = 50 x 162 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 36.033 Cost savings from 6,4 mm leaks = 10 x 2857 x 6,355*10-3 kW/(l/min) x 7000 x 0,1 = € 126.693 Total cost savings from eliminating these leaks = € 180.694 How…

26. Onlyforcompressed air … • Calculate the annual cost savings if these leaks were eliminated. Assume 2000 annual operating hours, an aggregate electric rate of € 0.15/kWh, and compressed air generation requirement of approximately 18 kilowatts (kW)/2832 l/min. • Cost savings = n° of leaks x leakage rate (l/min) x kW/(l/min) x n° of hours x €/kWh Using values of the leakage rates from the above table and assuming sharp-edged orifices: • Cost savings from 0,8 mm leaks = 20 x 41 x 6,355*10-3 kW/(l/min) x 2000 x 0,15 = € 1.563 • Cost savings from 1,6 mm leaks = 15 x 162 x 6,355*10-3 kW/(l/min) x 2000 x 0,15 = € 4.632 • Cost savings from 6,4 mm leaks = 10 x 2857 x 6,355*10-3 kW/(l/min) x 2000 x 0,15 = € 54.468 • Total cost savings from eliminating these leaks = € 60.663 • Energy saving: 404 MWh

27. Electricmotors

28. Howtocalculateenergysaving Saving = P * load * hours * (1/ηold - 1/ηnew) Example= 20 (n°motors)* 30 kW * 3000 h (1/0.915 - 1/0.941) = 54,3 MWh = 8145 € Investment: 25.000 € Payback: 3 years

29. Conclusion Are wesurethat the cogenerationfacilitysize, afterthisefficiencyimprovement, hold steady??? And there are a lotofotheractions….

30. Thankyou!! Romano Selva Sogescasrl www.sogesca.it