This article has multiple issues. Please help improve it or discuss these issues on the talk page . (Learn how and when to remove these template messages)
|
Energy Reduction Assets (ERAs) are revenue streams that are created by tracking the unspent portion of traditional energy usage.[ clarification needed ]
The reduction of expected energy use is a potential revenue source that may be manipulated to improve business performance and reduce waste and environmental impacts. In 2011, the World Economic Forum reported that personal, digital data is a new asset class, generating a new wave of opportunity for economic and societal value creation. [1] Due to dramatic advances in web-based monitoring, real-time data analytics and utilities using peak pricing, energy reduction is now becoming a tangible asset that companies can measure, manage, procure and sell.
For energy reduction, capturing data is the means to tap into energy savings, which, over time, become an asset. In order to implement efficiency measures and generate revenue streams, it is important to determine areas of least efficiency. This will provide the platform for accurately focusing efforts to achieve the greatest returns on investment. [2]
There are two ways to generate an energy reduction asset: through an energy efficiency project or by participating in a demand response program. Energy efficiency results in long-term savings, while Demand Response programs produce immediate earnings/revenue streams.
Energy efficiency projects have proven to be valuable to organizations in cost savings, as well as in reducing the carbon footprint, conservation and other positive environmental impacts. Energy efficiency measures include building control upgrades, updating HVAC, lighting and mechanical systems that use less energy per unit of service they provide. Essentially, these measures aim to reduce the amount of energy needed to supply a particular service, which means less energy is used and less money is spent. Companies/consumers can use the money saved over time through energy efficiency, as assets to sell and invest in the market.
Demand Response programs are similar to energy efficiency projects; however, they result in immediate short-term energy reduction, along with immediate earnings from the energy saved. Demand Response is the process of curtailing an energy load (load shedding) during peak energy demand hours. Historically, Demand Response has played a vital role in emergency situations that create an imbalance on the energy grid, resulting in power outages and extreme costs. In recent years however, the market for Demand Response has been transforming into a demand management system whereby automated energy management systems (known as Automated Demand Response) and market developments make it possible for companies to earn money for modifying their electricity usage year-round. [3]
These “earnings” are the ERAs generated through reduced energy usage during peak demand hours. In essence, the market for demand response stems from the end users ability to “sell” the energy not used when they curtail usage—at the same prices as real megawatts of generated electricity. This process of selling a theoretical unit of power—the negawatt—that represents the amount of energy saved during a demand response program. When the electricity provider does not have to provide x amount of megawatts to their customer, then that customer essentially gets paid for that as if they sold it to someone else in the market. Thus, revenue streams are generated through this process of curtailing an energy load at peak demand hours.
Utilizing new technologies to gather data and implement energy efficiency measures is key to generating ERAs. The environmental and economic benefits of reducing energy usage are becoming increasingly apparent throughout the country. Energy Service Companies (ESCOs) have grown the market for energy efficiency from $500 million in 1990 to over $5 billion in 2011. According to the Lawrence Berkeley National Laboratory, revenues will continue to increase—doubling or even tripling to $15.3 billion by the end of the decade. [4] These growing revenues are a significant representation of the improving energy efficiency market. However, energy efficiency remains critically underutilized in the nation’s energy portfolio. It is time to take advantage of the data and programs available to capture the savings that energy efficiency offers. [5]
Energy conservation is the effort to reduce wasteful energy consumption by using fewer energy services. This can be done by using energy more effectively or changing one's behavior to use less service. Energy conservation can be achieved through efficient energy use, which has some advantages, including a reduction in greenhouse gas emissions and a smaller carbon footprint, as well as cost, water, and energy savings.
Energy demand management, also known as demand-side management (DSM) or demand-side response (DSR), is the modification of consumer demand for energy through various methods such as financial incentives and behavioral change through education.
Demand response is a change in the power consumption of an electric utility customer to better match the demand for power with the supply. Until the 21st century decrease in the cost of pumped storage and batteries electric energy could not be easily stored, so utilities have traditionally matched demand and supply by throttling the production rate of their power plants, taking generating units on or off line, or importing power from other utilities. There are limits to what can be achieved on the supply side, because some generating units can take a long time to come up to full power, some units may be very expensive to operate, and demand can at times be greater than the capacity of all the available power plants put together. Demand response, a type of energy demand management, seeks to adjust in real-time the demand for power instead of adjusting the supply.
Negawatt power is investment to reduce electricity consumption rather than investing to increase supply capacity. In this way investing in negawatts can be considered as an alternative to a new power station and the costs and environmental concerns can be compared.
An energy audit is an inspection survey and an analysis of energy flows for energy conservation in a building. It may include a process or system to reduce the amount of energy input into the system without negatively affecting the output. In commercial and industrial real estate, an energy audit is the first step in identifying opportunities to reduce energy expense and carbon footprint.
The electricity policy of Ontario refers to plans, legislation, incentives, guidelines, and policy processes put in place by the Government of the Province of Ontario, Canada, to address issues of electricity production, distribution, and consumption. Policymaking in the electricity sector involves economic, social, and environmental considerations. Ontario's electricity supply outlook is projected to deteriorate in the near future due to increasing demand, aging electricity supply infrastructure, and political commitments, particularly the phase-out of coal-fired generation. Policymakers are presented with a range of policy choices in addressing the situation, both in terms of overall system design and structure, and specific electricity generating technologies.
An energy service company (ESCO) is a company that provides a broad range of energy solutions including designs and implementation of energy savings projects, retrofitting, energy conservation, energy infrastructure outsourcing, power generation, energy supply, and risk management.
Peak demand on an electrical grid is simply the highest electrical power demand that has occurred over a specified time period. Peak demand is typically characterized as annual, daily or seasonal and has the unit of power. Peak demand, peak load or on-peak are terms used in energy demand management describing a period in which electrical power is expected to be provided for a sustained period at a significantly higher than average supply level. Peak demand fluctuations may occur on daily, monthly, seasonal and yearly cycles. For an electric utility company, the actual point of peak demand is a single half-hour or hourly period which represents the highest point of customer consumption of electricity. At this time there is a combination of office, domestic demand and at some times of the year, the fall of darkness.
Efficient energy use, sometimes simply called energy efficiency, is the process of reducing the amount of energy required to provide products and services. For example, insulating a building allows it to use less heating and cooling energy to achieve and maintain a thermal comfort. Installing light-emitting diode bulbs, fluorescent lighting, or natural skylight windows reduces the amount of energy required to attain the same level of illumination compared to using traditional incandescent light bulbs. Improvements in energy efficiency are generally achieved by adopting a more efficient technology or production process or by application of commonly accepted methods to reduce energy losses.
Load management, also known as demand-side management (DSM), is the process of balancing the supply of electricity on the network with the electrical load by adjusting or controlling the load rather than the power station output. This can be achieved by direct intervention of the utility in real time, by the use of frequency sensitive relays triggering the circuit breakers, by time clocks, or by using special tariffs to influence consumer behavior. Load management allows utilities to reduce demand for electricity during peak usage times, which can, in turn, reduce costs by eliminating the need for peaking power plants. In addition, some peaking power plants can take more than an hour to bring on-line which makes load management even more critical should a plant go off-line unexpectedly for example. Load management can also help reduce harmful emissions, since peaking plants or backup generators are often dirtier and less efficient than base load power plants. New load-management technologies are constantly under development — both by private industry and public entities.
A smart grid is an electrical grid which includes a variety of operation and energy measures including:
In computing, performance per watt is a measure of the energy efficiency of a particular computer architecture or computer hardware. Literally, it measures the rate of computation that can be delivered by a computer for every watt of power consumed. This rate is typically measured by performance on the LINPACK benchmark when trying to compare between computing systems: an example using this is the Green500 list of supercomputers. Performance per watt has been suggested to be a more sustainable measure of computing than Moore’s Law.
Andhra Pradesh Power Generation Corporation Limited is power generating organization in Andhra Pradesh. It undertakes operation and maintenance of the power plants and also setting up new power projects alongside upgrading the project's capacity. Under the recommendations of Hittenbhayya committee setup by TDP Govt..
Energy Savings Performance Contracts (ESPCs), also known as Energy Performance Contracts, are an alternative financing mechanism authorized by the United States Congress designed to accelerate investment in cost effective energy conservation measures in existing Federal buildings. ESPCs allow Federal agencies to accomplish energy savings projects without up-front capital costs and without special Congressional appropriations. The Energy Policy Act of 1992 authorized Federal agencies to use private sector financing to implement energy conservation methods and energy efficiency technologies.
An Energy Rebate Program, or Energy Credit Incentive Program, provides a cash rebate program for customers planning to install new, energy efficient information technology (IT) equipment or cooling systems. These programs push companies to construct more energy efficient data centers, or to consolidate compute, storage and networking resources via virtualization technologies.
Joule Assets is a provider of energy reduction market analysis, tools and financing. Joule Assets creates Energy Reduction Assets by accessing value from reduction measures such as demand response, energy efficiency, and energy storage.
Energy storage as a service (ESaaS) allows a facility to benefit from the advantages of an energy storage system by entering into a service agreement without purchasing the system. Energy storage systems provide a range of services to generate revenue, create savings, and improve electricity resiliency. The operation of the ESaaS system is a unique combination of an advanced battery storage system, an energy management system, and a service contract which can deliver value to a business by providing reliable power more economically.
Home energy storage devices store electricity locally, for later consumption. Electrochemical energy storage products, also known as "Battery Energy Storage System", at their heart are rechargeable batteries, typically based on lithium-ion or lead-acid controlled by computer with intelligent software to handle charging and discharging cycles. Companies are also developing smaller flow battery technology for home use. As a local energy storage technologies for home use, they are smaller relatives of battery-based grid energy storage and support the concept of distributed generation. When paired with on-site generation, they can virtually eliminate blackouts in an off-the-grid lifestyle.
Home energy upgrades from public utilities are added home energy efficiency and renewable energy features planned or installed by public utilities. Help from a public utility can make it easier for a homeowner to select, install or operate climate-friendly components. The utility might assist with coordinated use of utility-supplied energy, building features, financing, operating options and neighborhood supplied energy.
In electric grid power generators, curtailment is the deliberate reduction in output below what could have been produced in order to balance energy supply and demand or due to transmission constraints. The definition is not strict, and several types of curtailment exist. "Economic dispatch" is the most common.