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Module 14

Supply-side management

Advance copy

sustainable energy regulation and policymaking for africa

MODULE 14: SUPPLY-SIDE MANAGEMENT

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CONTENTS
1.

MODULE OBJECTIVES

14.1

1.1. Module overview

1.2. Module aims
1.3. Module learning outcomes

14.1
14.1
14.2

2.

INTRODUCTION
2.1 What is supply-side management?
2.2 Why pursue SSM?

14.3
14.3
14.3

3.

SSM OPTIONS AND OPPORTUNITIES

3.1. Introduction
3.2. Resources and resource preparation
3.3. Power generation and energy conversion
3.4. Transmission
3.5. Distribution
3.6. Transport of fossil fuels

14.5
14.5
14.7
14.14
14.30
14.35
14.39

4.

CONSTRAINTS AND CHALLENGES OF SSM

14.41

5.

CONCLUSIONS

14.45

LEARNING RESOURCES

14.47

Key points covered

Answers to review questions
Exercises
Presentation/suggested discussion topics
Relevant case studies

14.47
14.47
14.48
14.48
14.48

REFERENCES

14.49

INTERNET RESOURCES

14.50

GLOSSARY/DEFINITION OF KEY CONCEPTS

14.51

CASE STUDY 1.

EU-China partnership on climate change

clean coal technology

PowerPoint presentation: ENERGY EFFICIENCYModule 14:

Supply-side management

14.53

14.65

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1.

MODULE OBJECTIVES

1.1.

Module overview

Supply-side management (SSM) refers to actions taken to ensure the generation,

transmission and distribution of energy are conducted efficiently. The term is
used mainly with reference to electricity but it can also be applied to actions concerning the supply of other energy resources such as fossil fuels and renewables.
For the purpose of discussion in this module, the supply-side has been taken
to include the following activities:
 Supply and utilization of energy resourcesincluding clean coal technologies,
fuel substitution and renewable energy use.
 Power generation and energy conversionincluding operational improvements in existing plants, upgrading units and cogeneration.
 Transmission and distribution of electricityincluding lines, substations and
on-site generation.
 Transport of fuelsliquid, gaseous and solid fuels.
These topicsaddressed primarily to electricityare discussed in this module
and various means of improving energy efficiency are mentioned. As the module
is an introduction to the improvement of SSM, detailed technical topics have not
been included but a number of references are provided to allow the reader to
explore opportunities in greater depth.
As well as mentioning the benefits of SSM, a brief review is made of the
constraints and challenges to cost-effective implementation.

1.2. Module aims

The aims of this module are:
 To introduce the concept of supply-side management, especially as it applies
to electricity systems.
 To discuss options of supply-side management at each stage of the supply
chain, e.g. energy resources used, generating plants, transmission systems,
and distribution. This includes topics such as clean coal technologies, fuel
substitution, cogeneration and decentralized (local) generation.

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 To show how well known demand-side measures such as housekeeping and

preventative maintenance can also apply in various parts of the supply side
and how they have useful benefits in reducing energy waste.
 To give an overview of the constraints and the benefits of conducting supplyside management measures and programmes.

1.3.

Module learning outcomes

This module attempts to achieve the following learning outcomes:

 To be able to define supply-side management and appreciate why it should
be pursued.
 To understand the different types of supply-side management measures and
programmes.
 To appreciate the constraints, challenges and benefits of supply-side management.

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2.

INTRODUCTION

2.1. What is supply-side management?

Supply-side management (SSM) refers to actions taken to ensure the generation,
transmission and distribution of energy are conducted efficiently. This has
become especially important with the deregulation of the electricity industry in
many countries, where the efficient use of available energy sources becomes
essential to remain competitive.
SSM is used primarily with reference to electricity but it can also be applied to
actions concerning the supply of other energy resources such as fossil fuels and
renewables. Utility companies may look at means of modifying their load profile
to allow their least efficient generating equipment to be used as little as possible (compared with high efficiency equipment that should be used to the maximum). They may improve maintenance and control of existing equipment, or
upgrade equipment with state-of-the-art technologies.
Energy users will normally focus their efforts on demand-side management
methods (DSM) but some will consider the supply side too. For example, they
may look at on-site generation alternativesincluding cogenerationor consider
diversifying to alternative fuel sources (such as natural gas, solar, wind, biofuels).

2.2. Why pursue SSM?

For an electricity system, effective SSM will increase the efficiency with which the
end-users are supplied, allowing the utility company to defer major capital expenditure, which might otherwise be required for increasing their capacity in growing markets (see box 1 below). SSM makes installed generating capacity able to
provide electricity at lower cost (permitting lower prices to be offered to consumers) and reduces environmental emissions per unit of end-use electricity provided. SSM can also contribute to improving the reliability of a supply system.
With the current trend of deregulating the supply industry, it is becoming more
important to embark on supply-side management where the supplier, user and
the environment all win.
In the case of SSM applied to biomass, the advantage of higher efficiency in the
supply chain is the reduction in resources needed to meet a specific demand.
This helps reduce the risk of deforestation and thus avoids not only a loss of
energy supply but potential environmental damage.

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In brief, an electrical utility may embark on SSM to:

 Ensure reliable availability of energy at the minimum economic cost ultimately
increasing its profits;
 Provide maximum value to its customers by reducing energy prices;
 Meet increasing electricity demand without incurring in unnecessary major
capital investments in new generating capacity;
 Minimize environmental impact.
Suppliers of other types of energy will have corresponding motives.

Review question

Give at least three reasons why utilities undertake SSM programmes.

Box 1.

Electricity growth in the developing world

Electricity consumption is growing rapidly worldwide. The highest rates of growth

are in developing and transitional economies.
Examples of electricity consumption growth rates are as follows:
 Chile +53%
 China +19%
 India +20%
 Bangladesh +14%
 Senegal +8%
Source: World Commission on Dams, Project Output and Dissemination, Annex #3
Thematic Reviews (2001).

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3.

SSM OPTIONS AND OPPORTUNITIES

3.1. Introduction
As SSM is most often discussed in connection with electricity supplies, we will
focus in this module on measures applying mostly to electric utilities. Electricity
is of course a secondary source of energy and is derived from a wide range of
primary energy sources, such as:
 Coal
 Natural gas
 Petroleum-based fuels.
 Nuclear energy
 Hydropower
 Geothermal energy
 Renewable energy such as solar, wing, tidal, biomass
To put the remainder of the module in context, figure I shows the breakdown of
primary energy resources used worldwide for electricity generation.

Figure I.

Dominant electricity supply resources

All other 1%
Nuclear 17%

Hydro 20%

Thermal (coal, oil and gas) 62%

Source: World Commission on Dams, 2001.

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The contribution of renewables is small but growing. The bulk of the electricity
generated in Africa is produced from conventional thermal power plants, with
large coal plants in South Africa and oil-fired plants in Nigeria. In spite of very
large exploitable hydropower capacity in Africa, its contribution remains relatively
low at about 18 per cent, as shown in figure II below (see module 3 to know more
about energy resources in Africa).

Figure II.

Electricity production in Africa (2004)

Geothermal
0.80%
Hydro
17.80%

Nuclear
2.52%

Thermal
78.88%
Source: IEA, 2005.

For the rest of the discussion on SSMmost of which concerns electricitythe

overall supply chain for electricity will be viewed according to the simplified
structure shown in figure III.

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Figure III.

Simplified electricity supply chain

primary resources
Mining or collection

clean coal technologies,

fuel substitution, etc.

resource preparation

e.g. oil refining, coal washing,

supplies by pipeline, road, rail,
coal gasification.

conversion to
electricity

e.g. conventional steam plant,

gas turbine, hydro dam,
nuclear reactor, cogeneration.

transmission

e.g. overhead/underground lines,

data and controls, substations,
transformers.

primary distribution

e.g. on-site distribution lines,

power factor, on-site generation
(inc. mini hydro).

delivery to end-users

e.g. on-site generation and

cogeneration

dsm
activities

Outside the scope of SSM

The indicated topics are dealt with in the order given above.

3.2. Resources and resource preparation

In this section, the various aspects of resource utilization for the production of
electricity are addressed. The items presented all offer the potential for costeffective efficiency improvements in elements of the supply chain and thus are
classed as SSM options.

Clean coal technologies

Clean coal technologies (CCTs) are designed to improve the efficiency of the
extraction, preparation and use of coal. Some of the technologies are well established and proven, others are relatively new and less well established, at least

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in developing countries. New technologies offer huge potential for using discarded coal. Improved efficiency in extracting energy from the coal delivers the
same amount of electricity but with reduced gaseous emissions and solid waste.
The importance of CCTs in general is that they offer more environmentally friendly
means of exploiting a widely available and abundant resourcecoalthat has
traditionally been a difficult fuel to burn efficiently and is normally associated
with environmental degradation.
There are many ways of using coal efficiently and cleanly, depending on different coal types, different environmental issues and different levels of economic
development. Some CCTs require highly complex and expensive technology and
infrastructure and therefore may not be relevant to all developing countries.
CCTs can include a broad range of items (Upgrading Transmission Capacity for
Wholesale Electric Power Trade, John Makens) such as:
 Coal cleaningprocesses used to increase the heating value and the quality
of the coal, by lowering the level of sulphur and non-combustible mineral constituents. These simple methodsalmost always used in developed countries
are suitable for developing countries.
 Emission reduction technologiesbolt on or end of pipe technologies
including:
-

Activated carbon injection, to absorb pollutants.

Electrostatic precipitators, in which particulate/dust laden flue gases are

passed between collecting plates where an electrical field creates a
charge on the particles. The particles are attracted towards the collecting plates, where they accumulate and from which they are subsequently
removed.

Fabric filters, to collect particulates by passing flue gas through tightly

woven fabric.

Wet particle scrubbers, in which water is sprayed into the flue gas stream
as a fine mist of droplets. The fly ash particles impact with the droplets
forming a wet by-product, which is then removed for disposal.

Flue gas desulphurization (FGD), the process by which sulphur emissions

are removed post-combustion by wet scrubbers, by dry scrubbers, by sorbent injection processes, by regenerable processes, or combined SO2/NOx
removal processes.

Selective catalytic reduction (SCR) and selective non-catalytic reduction

(SNCR), in which steam is used as the reducing agent and is injected
into the flue gas stream (passing over a catalyst in the SCR process).

 Efficient power generation processes, such as reducing emissions and improving efficiencies by the integrated gasification combined cycle (IGCC) process

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in which the coal is gasified to produce a gaseous fuel for gas turbines to
generate power. Fluidized bed combustion is another examplesee the
section on power generation and energy conversion.
 Next generation technologies, such as underground coal gasification (UCG)
where coal is converted in-situ to combustible gas that can be used for power
generation thus eliminating a large portion of the supply chain normally associated with coal fired generation. The gasified coal can be treated to remove
sulphur derivatives and particulates to ensure combustion is clean.
Overall, CCTs improve the efficiency of coal-based electricity generation, with
benefits such as:
 Increased electrical power output per unit of coal fired;
 Reduced environmental impact per unit of coal fired, possibly in conjunction
with removal of CO2 and SOx emissions.

Fuel substitution
Fuel substitution (or fuel switching) is simply the process of substituting one fuel
for another. Examples would be expanding the use of natural gas for industry,
transport, domestic cooking and heating, and for electricity generation, rather
than using liquid petroleum based fuel. Although such actions refer to energy
supplies, most will in practice involve the energy user for implementation and
thus could also be considered demand-side management measures in many
cases.
As a general rule, the combustion of natural gas can be carried out much more
efficiently than oil or coal, on a heating value basis. In industrial equipment, control of gas-fired equipment is usually much more precise and maintenance easier to carry out (partly because there will normally be much lower levels of
corrosive components in the exhaust gases). A similar situation applies for commercial and domestic furnaces and boilers. The increased efficiencies that are
achievable will often result in useful cost reductions even where the new fuel
is somewhat more expensive than the old fuel. Thus fuel substitution can be
regarded as a cost effective SSM measure.
An example of fuel substitution in energy supply in the transport sector is in
Delhi, where 84,000 public vehicles converted from using gasoline and diesel as
the fuel source to compressed natural gas (CNG) in a period of one year. In other
sectors, the increased use of natural gas for electricity generation and public
investment to develop the natural gas infrastructure for long distance and local
distribution is also promoting fuel switching in Delhi. The share of gas in power
generating capacity has risen from 2 per cent to 8 per cent over the past 10 years

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and LPG has largely replaced coal and kerosene in urban households
(UNFCCC/SBI/2003/INF.14, 20 November 2003).

Renewable energy
Although the total contribution of renewable energy resources to energy demand
in Africa is still very modest, the number of projects being implemented is growing. In 2003 developing countries that have no greenhouse gas emission reduction obligations under the Kyoto Protocol reported 141 supply-side improvement
projects (UNFCCC/SBI/2003/INF.14, 20 November 2003). Of these, 82 projects
involve renewable energy development:
 31 with solar energy
 23 with hydropower
 14 with wind power
 14 with various other renewable energies.
Renewable energy (RE) as a means of energy supply is covered in detail in the
RE modules. However, due to its potential as part of supply-side management
and on-site generation, it is briefly covered in this module too. Applications of
on-site generation using RE are well suited for locations with no grid connection,
where RE can offer a cost effective alternative to capital intensive extension of
transmission and distribution lines and other highly priced fuels.
There are many examples of RE systems such as photovoltaic (PV) systems in
remote rural areas of Africa powering schools, clinics or homes. Solar water
heaters (SWH) are increasingly being recognized as a simple way to supply heat
to homes or provide hot water in the industrial sector.
Utilization of biomass may offer important opportunities for providing energy supplies at moderate cost. Organic matter may be converted into energy in various
ways. This organic matter is generally a renewable resource, which is either
grown to replenish stocks (such as agricultural crops, trees or grasses) or
collected as waste (e.g. animal or municipal waste).
The organic matter may be directly or indirectly:
 Used as a fuelsuch as burning wood for cooking or burning bagasse to
produce steam for electricity generation in a conventional steam turbine;
 Processed to liquid fuel (such as biodiesel from oil seed crops, or ethanol
by fermentation of other crops) or a gas (such as methane from anaerobic
digestion).

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Box 2.

On-site wind generation

Wind Direct was formed in early 2004 to offer a service to intensive energy users
by providing them with a cheap, direct energy supply from wind turbines. This
demand has evolved from the present and future rise in electricity prices that
industry has had to come to terms with. By utilizing on-site wind energy, the long
term prospects of cheaper electricity allows for a more optimistic outlook and
significant cost savings.

Source: www.wind-direct.co.uk

Sugar cane bagasse is an important example of biomass with significant potential for use as a fuel in the generation of electricity. Sugar cane has a high photosynthesis conversion efficiency, with yields of up to 130 tons per hectare.
Generally only the stalk is used for sugar production leaving the fibrous bagasse
consisting typically of around half fibre, half moisture and maybe around
2 per cent sugars. The bagasse can be burnt to produce steam and electricity
(although it can also be processed into paper if economic conditions are
favourable). Typically the full energy requirements of a sugar mill can be met by
burning bagasse in special boilers and may often produce surplus power, which
can be sold to the grid. The amount of electricity generated is around 55 to 85 kWh
per ton of sugar cane processed, depending on the specific design of the system.
Sugar is produced in a number of Eastern and Southern African countries. It is a
major agricultural export for Ethiopia, Madagascar, Malawi, Mozambique,
Swaziland, Zambia and Zimbabwe. The potential for electricity generation from

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bagasse is high, since cogeneration equipment is almost always an integral component of sugar factory design. However, despite this potential, at present only
Mauritius and Runion have succeeded in exploiting bagasse to a significant
degree (Kassiap Deepchand, 2004) (see the case study in module 3 for more on
the Mauritius experience).
Another application of fuel derived from biomass is methane produced by anaerobic digestion. Sewage, manure and organic waste can be used as the feedstock.
The information provided in box 3 illustrates the potential of methane generation
in Lusaka, Zambia, by anaerobic digestion of municipal sewage.

Box 3.

Methane generation in Lusaka

Background
Lusaka Water and Sewerage company (LWSC) is involved in waste treatment and
supply. It services Lusaka and surrounding areas. For pumping purposes LWSC has
a total of 172 AC induction motors with a total demand of 10.4 MW.
Project objective
Investigation of the possibility of introducing an alternative energy supply through
generation of electricity from methane from sewerage plant
Description
Conduct a feasibility study on the generation of electricity using methane derived
from sewerage ponds at Manchinchi Sewer.

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Electricity generation from methane

A detailed study was undertaken and, based on the results, it was foundand thus
recommendedthat electricity can be generated from waste material at Manchinchi
sewerage plant through combustion of methane in a gas engine with a capacity of
1 MW. This will contribute to reducing the current LWSC power requirement of
10.4 MW, and save the corresponding amount from the electricity bill. A closed
tank anaerobic digester is shown above.
Description of follow-up action
LWSC is in the process of sourcing funds for the methane production and combustion project through a CDM arrangement. Implementation of the project will result
in a saving of 26,000 tonnes of CO2 equivalent.

Finally, there are some locations where geothermal power could be exploited.
The energy within hot rocks deep in the earth is recovered by pumping water
into the rocks and collecting the resulting steam for the generation of electricity.
Until now its potentialmuch of it in the Eastern African Rift Valley regionhas
remained largely untapped.
At a conference in Nairobi in April 2003the Eastern African Geothermal Energy
Week (UNEP)a challenging yet achievable target for geothermal exploitation
was set by the attending government energy experts, scientists, engineers and
members of the private sector. This target was to develop 1,000 MW of geothermal energy recovery across Eastern Africa by 2020. This is equivalent to the electricity needs of several million people in the region. In total, Africa was said to
have a potential of up to 7,000 MW of untapped geothermal energy resources.
At the time, Kenya, which has pioneered geothermal energy in the region, generated 45 MW of electricity from hot rocks. The technology has proven very reliable, as Kenya has used geothermal energy for power generation for at least
22 years at greater than 97 per cent availability. Geothermal energy is clean
energy and, unlike hydro-electricity, is not vulnerable to droughts. It also is not
prone to unpredictable price fluctuations as can be the case with oil-fired power
generation (UNEP).
Although not necessarily associated with geothermal resources, ground source
heat pumps are another means of exploiting the heat that occurs naturally underground. Heat pumps can be used to convert the low temperature energy into

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high-grade heat, using electric or gas powered drivers. The higher temperature
energy is then suitable for heating (or cooling) buildings.

3.3. Power generation and energy conversion

Power generation and energy conversion is almost certainly the activity where
most energy losses occur and therefore where efforts to improve energy efficiency
are most likely to prove most beneficial. Several topics relating to improving
power plants are introduced and discussed below. Some apply mainly to existing facilities while others will represent opportunities for higher energy efficiency
to be achieved through replacing old technologies and equipment with new and
best modern practice designs.

Operation improvement in existing plants

The typical energy efficiency of a modern, well-maintained power plant is around
33 to 38 per cent (Frans van Aart, 2004). This is the amount of energy that is
used in the plant as fuel and is converted into electricity for sale to customers.
The main lossesthe 62 to 67 per cent of energy that is not usefully converted
are in the hot exhaust gases from the boiler stack and in warm cooling water
used in heat exchangers to condense low pressure exhaust steam. There are
some technological limitations, deriving mainly from the laws of thermodynamics, that make it impossible to eliminate some of the lost energy but there are
also many situations where equipment is not run at top efficiency and thus
improvements could be made.

Housekeeping
Measures to reduce energy consumption and improve energy efficiency in
enterprises and other organizations may be divided into three basic categories:
 No-cost and low-cost measures;
 Measures requiring moderate levels of investment;
 Measures requiring significant investment.
Each organization will have to make its own decision regarding what moderate
and significant mean, as this depends on many factors, such as the size of
facilities, levels and cost of energy consumption, and the financial situation of
the organization.

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The first categorythe no and low-cost measurescovers items usually known

as good housekeeping and these should be implemented by the organization
to tidy up its operations. This applies to all the organizations involved with supply side activities but particularly to power plants (which are quite similar to industrial plants in terms of energy efficiency improvement activities). Organizations
should always consider implementing housekeeping measures promptly because
they can reduce energy demand in the short-term, usually for very small capital
investments and low installation costs.
Some examples of good housekeeping are:
 Maintaining appropriate boiler and turbine control settingsoptimizing the
efficiency of the steam raising and electricity generating processes, thus
reducing internal energy requirements.
 Checking boiler feed-water quality regularly to ensure water treatment is working properly and the appropriate blowdown of water is being carried out at
all times.
 Repairing steam, water and compressed air leaksimproves system efficiency
and reduces the energy needed to generate the equivalent of the leaked
steam, to treat additional water to boiler feedwater purities, and to compress
additional air using electricity for compressors.
 Removing redundant lighting fixturesmany sites undergo modifications and
reorganization but lighting systems are often not correspondingly moved, with
the result that lights may become redundant.
 Removing redundant pipeworkoften steam and water piping (and sometimes
related equipment such as pumps) become redundant as a power plant is
developed or changed over time. Unless properly insulated or removed, the
redundant items may contribute to unnecessary heat losses and leaks of
steam or other process fluids.
 Operating cooling towers efficientlymaintaining design parameters for water
flows and temperatures in and out, and ensuring that scale is not allowed to
accumulate on heat exchange surfaces.

Maintenance
Good maintenance has an essential part to play in achieving good levels of energy
efficiency. For example, here are some typical deficiencies in industrial facilities
and power plants:
 Meters are uncalibrated or out of service;
 Steam traps are defectivenot working as traps, leaking etc;
 Valves are leaking at the spindle, losing steam, water, compressed air and
process fluids;

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 Insulation of steam distribution piping is inadequate.

Many power plants will be able to benefit from improved maintenance, increasing their energy efficiency performance and reducing emissions correspondingly.
All too often maintenance is only performed when a breakdown occurs, whereas
prevention of breakdowns can contribute greatly to long-term energy efficiency.
Preventive maintenance can take various forms, some examples of which are:
 Developing and applying routine lubrication schedules;
 Replacing critical items on a regular schedule (e.g. steam traps);
 Monitoring lubricant composition to determine when excessive wear of metal
parts is occurring (e.g. steam turbines, rotating generation equipment);
 Monitoring noise and vibration of bearings before failure actually occurs;
 Regular filter cleaning on air compressors, pumps, upstream of steam traps,
in ventilation ducts, etc.;
 Continuous scale removal from heat exchangers;
 Monitoring hot spots on boilers to check for refractory failure.
Introducing a preventive maintenance system should include keeping good
records of actual failure rates and an analysis of the reasons for breakdown of
different types of equipment. Preventive maintenance thus contributes to machines
running at optimum efficiency, as well as minimizing unscheduled downtime.

Data and performance monitoring

This section introduces the need for data to conduct regular performance monitoring of existing power plants, an essential management activity to keep
conversion efficiency at its highest. Unfortunately many plants do not carry out
rigorous analysis of performance on a regular basis. As this is an introduction,
much detail has been omitted and only the main ideas and concepts are
discussed here.
To ensure that existing plants and processes perform at their bestand this
includes both industrial plants and electricity generating facilitiesa routine
monitoring system should be set up with three main activities:
 Checking selected material balances, to verify the efficient use of materials
throughout the plant;
 Undertaking routine data analysis, to monitor energy performance and key
consumptions (e.g. electricity, fuels, water) and the corresponding costs;
 Inspecting the physical condition of the plant to observe the general
condition of process equipment and systems.

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These activities are complementary and give senior management a regular review
of energy (and other) performance. The well known phraseif you cannot measure it, you cannot manage itapplies to most aspects of enterprise activities
and therefore routine energy performance monitoring should be recognized as
an important management tool in any type of plant.
The types of data needed for routine monitoring may be divided into three main
categories:
 Consumption and production
 Cost
 Drivers
Consumption and production dataincluding fuels and materials consumed, and
production (e.g. electricity output)are the most basic data required for energy
performance management, and are essential for environmental management too.
The main data are meter readings although some items may be delivered in bulk
and not measured on site (e.g. coal). In these cases, an alternative form of measurement is needed such as the weight of trucks or rail wagons. Cost data is important for any organization running an energy management programme to put costs
into perspective and ensure savings are made. Cost also provides a common language across departments and disciplines. The principal sources of energy cost
data are the energy or fuel suppliers, either from tariffs or actual invoices. A driver
is any factor that influences energy consumption. For most industrial processes,
the main driver is the production. For a power plant, it is the electricity output.
There are many sources of data in a typical power plant. Some examples are:
 Production statistics, e.g. steam produced by boilers, electricity produced;
 Material consumption reports, e.g. purchased fuels and other consumables;
 Purchasing reports for miscellaneous items such as refractory lining and
chemicals;
 By-product and waste disposal reports, e.g. for wastes in liquid or solid form;
 Log sheets from individual departments and workshops, e.g. boiler operating
data. These can include data on water treatment and water quality, and combustion gas analyses (to check combustion efficiency).
While measurement of oil or gas burned in a boiler is made in most plants, the
measurement of coal burned in individual boilers is relatively rare. Again, plants
tend to allocate coal consumption simply for accounting purposes and the figures appearing in reports are not the real data. Coal consumption is difficult to
measure with any accuracy. Account should be taken of changes in inventory, for
example, and it is difficult to estimate how much coal there is in a large pile on

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the ground. Also, coal quality is notoriously variable from one shipment to
another, in terms of ash content and moisture for example. For proper energy
analysis, an effort should be made to adjust the reported raw coal tonnages by
the calorific value, deriving figures for the tons of standard coal consumed (usually defined as coal with a calorific value of 7000 kcal per kg). With coal quality
taken into account, the quantity of coal burned in any individual boiler can then
be compared to the steam production to give a figure that represents the combustion efficiency of that boiler.
Most industrial and electricity generating plants collect the main data on a
monthly basis so this is a suitable time period on which to base analyses. The
availability of reliable data varies from place to place but most power plants actually collect a great deal of information every month (although not all will analyse
the data properly or treat data as a valuable management tool). Seasonal effects
need to be checked and their impact removed from the consumption data: heating and cooling of buildings and offices should be analysed separately from the
main boiler data.
Above all, it is important that energy performance evaluations using monthly data
be carried out promptly and preferably close to the end of each month. A monthly
performance review should lead to a monthly report that is suitable for wide distribution within the power plant (both successes and failures can provide motivation for management and the workforce). If the analysis is left for later, it
becomes much more difficult to account for any discrepancies that are observed,
and of course it is always desirable that corrective measures be taken as soon
as possible.
Regular monitoring of energy data forms the basis for continuous performance
evaluation and control. The performance assessment will indicate if and where
deficiencies in performance have occurredsuch as a drop in boiler combustion
efficiencyand indicate the necessary remedial action. It will also provide quantified evidence of exactly how successful any energy efficiency improvement (or
supply-side management) measures have been.
The analysis of routine data is best presented graphically. A better appreciation
of variations is almost always obtained from a visual presentation rather than
from a table of numbers. For most power plants, a graph of energy (fuel) used
per month against monthly electricity production can reveal a great deal about
the energy efficiency of the process. Note that fuel use must be analyzed separately from internal electricity use (such as that used for auxiliary activities like
cooling water pumping). Separate graphs should always be drawn. The efficiency
improvement measures applicable to the different energy types are usually quite
different and the efficiency of use of each energy type will also be different, and
hence adding together the different energy forms using an assumed conversion

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factor to give a total energy consumption figure merely obscures what is actually
happening.
From the separate graphs, we can develop equations that express in numerical
terms, the fuel consumption-electricity production relationship (a proxy for
boiler efficiency). For most typical power plants, the energy consumption plotted
against electricity output, the energy-production graph will approach a straight
line. The slope of the line is representative of the efficiency of the operation.
We may also draw graphs against electricity production of compressed air
consumption and of cooling water use.

Box 4.

Graph of coal consumption versus steam production

for a boiler
boiler operationscoal vs. steam

700
600
coal used t/m

500
400
300

y = 0.1115x + 39.721
2
R = 0.9975

200
100
0

1000

2000

3000

4000

5000

6000

steam production t/m

The equation for the best-fit line indicates efficiency of the boiler:

Efficiency based on best-fit line

Equation from graph:
Steam
Tons

Coal (t) = 0.1115 Steam (t) + 39.7

OUT heat
Million KJ

IN fuel
Million KJ

Efficiency
%

95

1324

2673

49.5

1000

151

2648

4234

62.5

2000

263

5296

7356

72.0

500

Coal
Tons

3000

374

7944

10478

75.8

4000

486

10592

13600

77.9

5000

597

13240

16722

79.2

Based on 8 bar steam and coal calorific value of 28 MJ/kg

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We may draw some conclusions by looking at various aspects of the graphs. For
example, the degree of scatter of points in any graph is a general indication of
the standard of energy management in the plant. If no significant changes in fuel
type have occurred, widely scattered points usually mean that energy consumption is not properly controlled and operating practices are poorly defined and
inadequately monitored by supervisors and managers. Points that follow a
straight line quite closely suggest good process control.
Of course, it is quite common to find plants that falsify the steam-fuel data, or
perhaps use design factors that remain constant for many years. In many cases
therefore, the data points lie on a perfect straight line, a line that is too perfect
to be a realistic picture of the actual situation. As an example, figure IV below
shows data given by a large oil refinery in China: clearly the data are not real
figures because the fit is perfect (R2 = 0.999) and the line passes almost exactly
through the origin. This implies a boiler efficiency that is identical every month
and at every level of output, a situation that never occurs in the real world. Almost
certainly, the steam production figures are correct and the fuel figures are
calculated based on a fixed boiler efficiency of 90 per cent.

Figure IV.

Example of unrealistic fuel-steam output data

FUEL VERSUS STEAM OUTPUT

5000
4500

Total fuel toe/month

4000
3500
3000
2500
2000
y = 0.0719x - 40.95
R2 = 0.9992

1500
1000
500
0
0

10000

20000

30000

40000

50000

60000

70000

Steam tons/m onth

Combustion control
For practical purposes, combustion refers to the burning of a fuel in air to release
the energy in the fuel. In industrial plants, this energy might be used in many

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different ways. For example, to heat solids in a furnace (e.g. to heat steel ingots
prior to rolling into steel sheets), to heat process fluids for a chemical reaction,
ormost commonlyto heat water in a boiler in order to produce steam for
heating or mechanical use (e.g. to power turbines).
With respect to power plants, minimum operating costs are achieved by running
boilers at high thermal efficiency. Heat losses will include losses as hot flue gases
(typically 15-30 per cent of fuel input energy), losses through the wall or structure of the boiler (typically 2-6 per cent of fuel input), and losses in blowdown
(necessary to control boiler water quality, typically 2-5 per cent). In round figures, the losses thus add up typically to around 20 to 40 per cent of the fuel
energy input, equivalent to a boiler efficiency of (100-20) or 80 per cent at best
to (100-40) or 60 per cent at worst. It is possible to add various types of heat
recovery devices to a boiler to improve on these figures. The figures quoted are
of course only approximate, the actual figures for a boiler can vary greatly and
depend on a large number of factors, including the skills of the operators, the maintenance levels, and the basic design of equipment (all of which are site-specific).
Most fuels contain differing amounts of carbon and hydrogen, both of which can
be burned to release heat. The amount of oxygen needed to achieve complete
combustion can be calculated accurately if the exact composition of the fuel is
knownas it is in most cases. The amount of combustion air required can also
be calculated since the composition of air is well known. However, while a certain amount of oxygen is needed from the air, any excess oxygen above the theoretical needs (also known as the stoichiometric amount of oxygen) is not needed,
and all of the nitrogen introduced as part of the air is also unnecessary.
Unfortunately the air will have been introduced at ambient temperature, say
15-20 C, and will leave at the flue gas temperature, say 200-300 C or maybe
higher. Thus a lot of fuel will be used to heat up the unnecessary air, which
becomes significant heat loss when it is discharged.
The key to keeping boiler efficiency high is to introduce just the right amount of
air for combustion and as little as possible in excess of this amount. For this reason, the extra and unnecessary air is known as excess air and this should be
keptdepending on the fuel used and the burner designto say 5 to 10 per cent
of the stoichiometric amount. This small amount of extra air is needed to ensure
the combustion of the fuel is complete in the boiler. Too little air can lead to incomplete combustion and the formation of smoke in the stack (as well as significant
amounts of carbon monoxide that should have been burned to carbon dioxide).
To maintain excess air at the lowest level possible, it is necessary to check the
flue gas composition and keep the oxygen in flue gas to around 3-5 per cent in
most cases. It is not enough to add air to the boiler until there is no smoke visible and then add a little morethe practice of some boiler operators. Accurate

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analyses of flue gas are essential. Analytical instruments are readily available to
do this measurement, either as a fixed analyser mounted on the stack or as a
portable analyser used regularly by plant operators. The cost of instruments can
be quite modest: a simple hand held unit would cost say US$ 1,000 while more
comprehensive instruments will range up to perhaps US$ 10,000. The more
expensive instruments will include measurement of oxygen, carbon monoxide,
nitrogen oxides and temperature: many such instruments compute and display
excess air and combustion efficiency as percentages.
Where fixed gas analysers are installed, it is common to find that the instrument
is used to adjust the air rate automatically, in line with the oxygen level actually
found. Usually a signal is sent to an actuator that opens or closes a valve in the
air supply line. Boiler controls can therefore be useful to maintain combustion
efficiency at the highest level, even where loads fluctuate, fuel quality changes
and ambient air temperature varies.
The fuel saved by ensuring the excess air is correctly set will of course depend
on the situation at the boiler before corrective action is taken. Where no gas analysis has been done before, it is not uncommon to find excess air at 40-50 per cent
on oil and gas fired boilers, and perhaps 100 per cent or more on coal fired units.
Reducing these figures to levels around 5 to 10 per centcloser to the minimum
levels recommendedrepresents typically a saving in fuel costs of at least
5 per cent, or possibly 10 per cent in extreme cases. For a very modest investment
in a gas analyser, the savings are often substantial and paybacks of 1-2 weeks
are not unknown.

Fluid bed combustion

Fluidized beds are used to suspend solid fuels on upward-blowing jets of air
during combustion. The result is a turbulent mixing of fuel and combustion air,
like a bubbling fluid, and this ensures good contact between the fuel and the
oxygen in the air. Combustion is improved and heat transfer between the hot bed
and pipes within the bed is encouraged.
Fluidized bed combustion (FBC) evolved from efforts to develop a combustion
process able to control pollutant emissions without external devices such as
scrubbers. The technology burns fuels at temperatures of around 750 to 950 C,
well below the threshold at which nitrogen oxides form (typically about 1370 C).
The mixing action of the fluid bed also brings the flue gases into contact with a
sulphur-absorbing chemical that can be introduced into the bed. Examples are
limestone or dolomite particles. More than 95 per cent of sulphur pollutants in
coal fuels can be removed in this way.

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Pressurized fluid bed combustion (PFBC) was developed from the original FBC.
The first generation systems use a bubbling bed technology in which a relatively
stationary fluid bed is established in the boiler with low air velocities and a heat
exchanger immersed in the bed. Cyclone separators remove particulate matter
from the exhaust gases prior to their entry into a gas turbine, which operates
as part of a combined cycle (see Cogeneration below). Second generation
systems use a circulating fluid bed and other efficiency enhancement methods.
These include integrating a coal gasifier to produce a fuel gas for burning in
the PFBC.
Because of the vigorous mixing of fuel and air, FBC is suitable for many types of
fuel that might otherwise be difficult to burn completely, such as coal, wood
wastes, municipal solid waste, plastic and used tyres.

Upgrading generation units

Upgrading generating units can improve reliability, increase output and reduce
environmental impacts from electricity generation. Typical improvements are the
installation of new and improved burners, extra flue gas heat recovery, additional
heat recovery from hot blowdown water, as well as modernization of instruments
and combustion control systems. For very old power plants, it may be justified
to replace the old equipment completely with a new generation plant designed
and built to the best modern efficiency standards.
There are a large number of possible measures to adopt to raise the operating
efficiency of an existing power plant. Implementation depends on the type of
plant, the technology currently used, the level of maintenance, and many such
factors that are site-specific. It is therefore impossible to estimate the potential
improvements without a careful analysis of the actual plant and the costs
involved. However, it is possible to make very rough estimates of the typical range
of figures that might be encountered in practice.
In table 1, figures are quoted for the efficiency of various types of plant. They are
based on the net calorific value of the fuel and are very approximate (Frans van
Aart, 2004). Each plant is different and will achieve an efficiency dictated by sitespecific conditionsthe exact design adopted, the exact composition and quality of the fuel, the operating load, and maintenance. The figures suggest the
approximate gains in efficiency that can be obtained by changing the technology
used in a power plant. The economics of such a change are of course open to
question and need to be assessed on a case-by-case basis.

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Table 1.

Best possible efficiencies for different types of generating plant

Fuel

Technology

Existing plants
(percentage)

New plants (BAT)

(percentage)

Typically 30 to 40

43-47

30-40

>41

ELECTRICITY ONLY figures for net electrical efficiency

Bituminous
coal

Pulverized coal, with conventional

boiler and steam turbine
Fluid bed combustion

Lignite

Pulverized coal

30-40

39-45

Fluid bed combustion

30-40

>40

Biomass

Grate firing
Spreader stoker
Fluid bed combustion

Approx. 20
>23
28-30 or more

Peat

Fluid bed combustion

28-30 or more

Gas firing

Gas turbine to power the generator

25-40

36-40

Gas firing

Conventional boiler and steam turbine

35-40

40-42

Gas firing

Combined cycle, with or without

supplementary firing for electricity
generation only

40-54

54-58

75-80

75-80

COGENERATION fuel utilization

All fuels

Boiler plus steam turbine with various

configurations for heat production and
heat recovery

BAT = best available technology

Cogeneration
Cogeneration is the production of heat as well as electricity from a single fuel
source. This is also known as combined heat and power (CHP). Both power plants
and industrial plants may use cogeneration to meet their needs for electricity and
heat (in the form of steam or hot water, as required).
A typical large-scale cogeneration plant consists of a boiler to raise steam at high
pressure and a steam turbine to drive an electricity generator. The steam turbine
will often be a back pressure turbine in which the exhaust steam is discharged
at a moderate pressure and distributed to various users such as industrial
processes. Sometimes the steam is condensed at moderate pressure by heat
exchange against cooling water. In such cases, the temperature of the resulting
condensate is moderate to high, and can serve as a source of energy for space
heating. Such an arrangement results in an energy output that is a combination
of electricity and heat (hence cogeneration) and is often seen in a utility plant
that exports electricity and is connected also to a municipal heating system.
The cogeneration system is in contrast to a conventional electricity generating
plant in which the exhaust steam is discharged at the lowest possible pressure

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and condensed at low temperature by the cooling water. Such an arrangement

results in the maximum amount of electricity being generated and no heat being
produced for downstream energy users. We can compare typical systems as follows:
For cogeneration to be economically attractive to an industrial plant, the demands
for electricity and steam need to be relatively stable all year round. Where this
is so, the cogeneration option represents an important increase in energy efficiency compared with individual units to generate electricity and heat separately.
The benefits of cogeneration include (Cogeneration Technologies, 2006):
 Economicimproved operational efficiency to produce heat and electricity
reduces overall energy costs;
 Environmentalimproved efficiency reduces emissions per unit of output (heat
plus electricity);
 Enhanced reliability of electricity supplywhen industrial plants generate their
own power demand, they either reduce or eliminate their need for electricity
purchases from a utility company.
The choice to install a conventional power plant or to install a cogeneration plant
will depend on the demands for electricity and heat. For a public utility company,
the heat will probably be distributed as circulating hot water for space heating.
Local heat exchangers can be used to generate domestic hot water too. The problem is of course the ratio of energy produced as electricity to that produced as
heat. With a steam boiler/turbine arrangement, the ratio is not necessarily fixed
but the flexibility to change the ratio to meet customer demands all year round
may be limited.
There are basically two types of cogeneration system (Cogeneration Technologies,
2006), which differ depending on whether electricity or thermal energy is
produced first:
Topping cycles, where electricity is produced first and the low grade thermal
energy exhausted is captured for further use in a process. Supplementary fuel
may be required to meet all the process heat demand. Topping cycle cogeneration systems are widely used in food, pulp and paper, petroleum refining and
textile industries.
Bottoming cycles, where thermal energy is first used at high temperature in a
process and excess thermal energy is then used to produce power, typically
through a turbine driving a generator. Power is normally generated without the
need for further fuel, and the turbine exhaust can be further used to provide lower
grade heat to a process. Bottoming cycle cogeneration systems are used in
processes that have large waste heat streams at relatively high temperatures,
such as the steel industry, glass and chemical industries.

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Box 5.

Comparison of conventional and cogeneration systems

Assumptions
Heat demand = 100 thermal units
Electricity demand = 60 thermal units equivalent
Power only plant = 40 per cent efficiency
Heat only plant = 90 per cent efficiency
Cogen plant = 85 per cent efficiency

Without cogeneration

111 thermal units

Heat plant
eff. 90%

100 heat

150 thermal units

Power plant
eff. 40%

60 power

Total 261

Total fuel consumption

261 units
Total output
160 units
Overall efficiency
160/261 = 61 per cent

With cogeneration

165 units

Cogen plant
eff. 85%

100 heat
40 power

50 units

Power plant
eff. 40%

20 power

Total 215

Total fuel consumption

215 units
Total output
160 units
Overall efficiency
160/215 = 74 per cent
Thus the cogeneration scheme is much more efficient (provided of course the simultaneous demands for heat and power are present consistently throughout the year).

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Where a single cycleas described aboveprovides a high grade heat output,

this heat may be used in a waste heat boiler to generate more steam which in
turn is fed in total or in part to a steam turbine to generate additional electricity.
This system is known as a combined cycle. It is most often applied to a basic
gas turbine unit which produces a high grade heat output as an exhaust, which
can be used to generate high pressure steam for powering a steam turbine (to
make electricity) with the exhaust from that turbine still able to provide a site
with low pressure steam or hot water for process use. Combined cycle systems
such as this can achieve efficiencies approaching 60 per cent in converting the
original fuel energy into electricity andwith supplementary firing availablewill
typically provide the most flexible cogeneration system for industrial plant use.
Figure V shows the various possible cogeneration cycles.
There are many variations on the basic cogeneration system based on different
prime moversthe equipment that drives the electricity generator (Good
Practice Guide 43, 1994). Table 2 shows some typical examples.

Table 2.

Basic cogeneration systems base on prime movers

Type of
equipment

Typical
output

Typical
fuels

Typical heat to
electricity ratio

Grade of heat
output required

Gas turbine

1 MWe upwards

Natural gas;
gasoil; biogas;
methane

1.5:1 to 3:1
High
Up to 5:1 with
supplementary firing

Compression
engine (diesel)

Up to 15 MWe

Natural gas with

up to 5 per cent
gasoil; heavy
fuel oil

1:1 to 1.5:1
Up to 5:1 with
supplementary
firing

Low and high

Spark ignition
engine

Up to 2 MWe

Natural gas;
biogas; mine gas

1:1 to 2:1

Low and high

Steam turbine

0.5 MWe
upwards

Any, converted
to steam

3:1 to 10:1

Medium

Combined cycle

3.5 MWe upwards

Natural gas;
gasoil; biogas;
methane

Down to 1:1

Medium

It is important to note that different types of equipment permit the ratio of thermal to electrical energy to be designed into a system to match the anticipated
demands. With supplementary firing as an option for some types of plant, flexibility can be built into the cogeneration plant to allow for seasonal changes in
demands to be met. However, the flexibility may be limited and therefore it is
particularly important to assess the likely heat and electricity demands carefully
at the design stage, and to select the right type of system before the investment
is finalized.

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Figure V.

Cogeneration cycles
Steam turbine topping systems
Fuel

High pressure
steam

Back
pressure
turbine

Boiler

Low pressure
process steam

Water

Generator

Electricity

Steam turbine bottoming cycle

Process
Condensing
turbine
Waste heat
recovery
boiler

Generator

Electricity
HP stream

Waste
heat

Condensate

Combined cycle example

Gas turbine

Air and fuel

Generator

Electricity
Heat recovery
boiler

High temp
exhaust
Low temp
exhaust

Steam

Steam turbine
and
generator

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The fuel used for cogeneration can be conventional fossil fuels or waste materials, such as crop residues. Box 6 illustrates the use of bagasse from sugar mills.
Finally, we may note that the heat produced by a cogeneration system may be
utilized as heat for a process, and some may be used to power a refrigeration
cycle. In this way, a cogeneration system can be designed to produce electricity,
heat and colda trigeneration system. This type of configuration addresses the
supply side for several items but remains relatively uncommon, mainly because
of its complexity.

Box 6.

Benefits of bagasse cogeneration

Economic benefits
Benefits and advantages of bagasse cogeneration include:
 Increasing the viability of sugar mills;
 Near-zero fuel costs, paid in local currency and valuation of bagasse as a waste
product;
 Increasing diversity and security of electricity supply;
 Location at the point of energy demand, leading to minimal transmission and
distribution (T&D) losses and costs.
Social benefits
The social benefits of on-site bagasse-fired cogeneration are:
 Greater employment for local populations;
 More widespread availability of electricity;
 More secure and reliable supply of electricity for existing consumers.
Environmental benefits
As a biomass fuel, bagasse supplies a raw material for the production of natural,
clean and renewable energy, enabling its use to further government targets for
renewable energy use. In brief, the environmental advantages of bagasse cogeneration are:
 Low emission of particulates, SO2, NOx and CO2 compared to coal and other
fossil fuels;
 In GHG terms, bagasse combustion emits less than composting;
 Fuel efficiency.
Source: Bagasse Cogeneration Global Review and Potential, June 2004, Aurelie Morand,
Research Executive, World Alliance for Decentralised Energy:
http://www.localpower.org/documents_pub/report_bagasse_cogeneration.pdf#search=
%22cogeneration%20constraints%22
Accessed on 2 September 2006.

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Review question

What is the difference between bottoming cycles and topping cycles, and what
type of SSM do they fall under?

3.4. Transmission
One area of supply-side management concerns transmission and distribution of
electricity to customers. A reliable system depends on the reliability of the lines
taking power from the generator to the end-users, and this includes other parts
of the system such as transformers. Losses can occur throughout the system too,
and these should be kept to an economic minimum to ensure no undue waste of
primary resources to generate the electricity in the first place.

Transmission lines
Transmission lines carry electricity from one location to another, often over long
distances. They can carry alternate current (AC) or direct current (DC) current, and
may run over-ground or underground (U.S. Dept. of Energy, 2006). The majority
of transmission systems operate with AC and are built over-ground. The main difference from distribution lines is that most transmission lines operate at relatively high voltage (typically from about 110 to 765 kilovolts). Overhead lines with
polymer insulators are expected to last over 50 years.
Underground transmission lines are much less common than over-ground.
Although expected to have a safe life of say 25 to 35 years, some underground
lines may become unreliable after 15-20 years especially if water gets into the
ducting or there is movement of the ground around the lines. The cost of typical
underground lines is about 10 times more than overhead transmission lines.
Greater demands on most transmission systems require greater power transfer
capacities. Even with adequate electricity generation, bottlenecks in transmission
interfere with the reliable, efficient and affordable delivery of electric power. The
amount of power on a transmission line is the product of the current, the voltage and the power factor (see Glossary). There are three types of constraints
that limit the capability of a transmission line, cable or transformer to carry
powerthermal/current constraints, voltage constraints and system operating
constraints (John Makens, 2006).

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Thermal limitations are relatively common. The flow of electricity through a line
causes heat to be produced due to the resistance of the line. The actual temperatures occurring in the transmission system depend on any factors, such as the
current and on ambient conditions (e.g. temperature, wind speed, wind direction)
because the weather affects dissipation of heat to the air. Thermal ratings for
transmission lines are thus expressed in terms of current rather than temperature, for ease of measurement. Thermal limits are imposed because overheating
leads to two potential problems:
 The transmission line loses strength because of overheating which can reduce
the expected life of the line;
 The transmission line expands and sags in the centre of each span between
supporting towers. If the temperature is repeatedly too high, an overhead line
may stretch permanently and its clearance from the ground may become less
than required for safety reasons.
Because damage from overheating is a gradual process, higher current flows can
be allowed for limited time periods, and the normal thermal rating for a line is
the current flow it can support indefinitely. Underground lines and transformers
also have thermal constraints. Overheating in both cases causes shortened lives
primarily due to damage to insulation.
Voltage fluctuations can occur due to variations in electricity demand and to failures of transmission and distribution lines. Constraints on the maximum voltage
levels are set by the design of the transmission system. If the maximum is
exceeded, short circuits can occur and transformers and other equipment at substations and in customer facilities can be damaged or destroyed. Minimum voltages are also to be avoided as these cause improper operation of equipment at
the customer end and motors can be damaged.
System operating constraints result from considerations of safety and reliability.
For example, power flows in connected networks are affected by characteristics
of the lines in the different networks, and by interconnecting systems at more
than one point, electricity flows can become rather complex and limitations on
the power transmission capacity of each network can be affected. Power system
stability problems may also occur when networks are connected, causing
fluctuations in AC frequency and possibly voltage instability.
Various options are available for reducing limitations on power transfers due to
the thermal rating of overhead transmission lines (John Makens, 2006), although
measures for underground cables and for transformers are more limited:
 With modern methods of calculating ratings, it may be possible to define
higher ratings without any physical changes to the lines. For example, power

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flow limits based on reaching a maximum temperature can be calculated

instantly using data on actual weather conditions and on the actual power
flow. Some utilities measure the line temperatures with detectors in the lines.
This datacalculated or actualare transferred to the utility control centre for
appropriate action.
 Since the thermal limit of a transmission line is based on the component that
would be first to overheat, a substantial increase in overall rating can sometimes result from replacing an inexpensive element. For example, a switch or
circuit breaker is much less expensive to replace than to replace a line (or
indeed to build a new line).
 It may also be acceptable to increase allowable temperatures (and hence
achieve higher power loads) and plan for a decrease in the life of the lines.
However this approach can lead to sagging in the lines so that ground clearance is inadequate for safety reasons. In some cases, rebuilding selected towers can solve the problem.
 Finally, the most obvious (but most expensive) option is to replace lines with
larger ones by re-stringing existing lines or adding cables. This action may
require towers to be rebuilt in order to support the extra weight. Any such
measure must be examined to take account of other changes in the system
that might become necessary, such as upgrading substations for higher loads.
To address voltage constraints, various technical actions are possible. These
include increasing the voltage at the generator during periods of light load,
together with adjusting transformer settings (or replacing transformers) to
achieve the correct operating voltage. Coordination with any interconnected network is of course essential. For this reason, this option may be difficult to apply
in practice. Changing voltage levels permanently usually requires substantial
reconstruction of power lines and is thus not considered further here.

Data monitoring
To ensure that generation, transmission and electricity use are all properly balanced and operated at highest efficiency, it is necessary to have comprehensive
information on all elements of the system. There are many computerized systems
available to do this. These are collectively known as supervisory control and
data acquisition systems (SCADA). Such SCADA systems are able to switch
selected equipment on or off, based on the current situation of the utility company supply system. SCADA systems can also be used to monitor and control
buildings operations, operating heating, lights and cooling equipment as
required. SCADA systems also are used to switch large loads on or off to ensure
a customer does not exceed an agreed maximum demand and thus pay extra for
the electricity consumed.

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While this control of large loads normally remains with the owner and operator
of the equipment, it is possible to set up systems in which control of major loads
rests with the utility company, allowing it to delay loads from the highest peak
time to anothera more convenienttime. In many such cases, the reduction in
peak load represents a shift to more efficient generation by the utility, and is
thus a useful supply-side management measure.

Load aggregation
Electric load aggregation is the process by which individual energy users band
together in an alliance to secure more competitive prices that they might otherwise receive working independently (Pace Global Energy Services, 2006).
Aggregation can be accomplished through a simple pooling arrangement or
through individual contracts between suppliers and each member of an aggregate group. While natural gas purchasing alliances have been around for many
years, the aggregation of electricity loads across multiple facilities is less well
known.
Big industrial companies with large electricity loads have greater purchasing
power and more leverage in negotiations with suppliers than smaller companies.
For example, depending on the market conditions, a purchaser may be required
to buy a 20-25 megawatt block of power in order to approximate wholesale
pricing. Companies can look into forming purchasing alliances with other local
businesses to purchase larger blocks of power.
Load factor is the ratio of the average load for electricity consumption to peak
demand (expressed as a percentage) for each billing period. Energy suppliers
usually impose a demand charge on each customer to reflect the power generation capacity needed to meet the peak demand for that customer. This demand
charge is a fixed item that does not depend on the kilowatt hours consumed in
a billing period. If the load factor of a customer is high, meaning their load runs
consistently at or near the peak demand, the demand charge will represent a
smaller percentage of the overall cost of electricity.
Through load aggregation, companies can enhance their purchasing power by
taking advantage of load diversity among multiple facilities as a means of improving the overall load factor of the group. When the loads of several customers are
aggregated, non-coincidental peaks and valleys in the load profiles of individual
customers generally tend to offset each other. Of course, this needs careful data
collection and analysis to monitor the loads at any time. The desired effect will
result in a flatter overall load profile, a higher load factor, and ultimately, lower
per unit energy costs for all members of an aggregate group. The challenge for
consumers is to find suitable aggregation partners.

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A smoother load profile can also have a beneficial impact on the supplier who
can generate a certain load using the most efficient equipment and does not have
to change the load up and down too frequently.

Substation improvements
A substation is used to switch generators, equipment, circuits or lines in and out
of a system. It is also used to change AC voltages from one level to another, or
to change AC to DC current (or vice versa). Some substations are small with only
one transformer, others can be quite large with several transformers and
switchgear.
Transformers are electrical equipment designed to convert one AC voltage to
another. They are essential in electricity transmission and distribution systems
(John L. Fetters, 2002) and are widely used to raise voltages for long distance
transmission (say 4 to 35 kilovolts) and then reduce the voltage down to a level
suitable for plant equipment (say 120 to 480 volts).
Dry-type distribution transformers are usually found in large commercial and
industrial facilities. Liquid filled units are usually used in smaller facilities.
Distribution transformers are generally very efficient with losses of less than
0.25 per cent in the largest units. However, when the overall losses of many transformer steps in a distribution system are taken into account, the losses can add
up. In addition, the load on transformers decreases when facilities close for the
day or at the weekend: the no-load losses in lightly loaded units increase as a percentage. Transformer losses in power distribution networks can exceed 3 per cent
of the total electricity generated.
Reducing losses in transformers will increase their efficiency. There are two main
types of loss. The first is core loss (also called no-load loss), which is the result
of magnetizing and demagnetizing the core during normal operation. Core loss
occurs whenever the transformer is energized and does not vary with load.
Changing the material of construction of the core can reduce losses (e.g. amorphous iron instead of conventional carbon steel cores). The more efficient materials cost more than the standard core materials but losses could be reduced by
up to 30 per cent.
The second loss is coil or load loss, so termed because the efficiency losses occur
in the primary and secondary coils of the transformer. Coil loss is a function of
the resistance of the winding materials and varies with load. The choice of winding material affects the coil loss. Copper is a better electrical conductor than any
other material except silver. Electricity thus flows in copper more easily than in
aluminium or steel wires of the same diameter. Copper wires result in lower

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losses, which appear as unwanted heat. Another way to reduce losses is to use
larger diameter wires that allow current to flow more easily. Sizing distribution
transformers to meet their expected load also affects efficiency. Oversized transformers can contribute to inefficiency.
The cost of installing higher efficiency transformers needs to be evaluated against
the anticipated savings. Payback periods of two to five years are typical.
Other key equipment includes switchgear, alarms and controls. Old equipment
may become unreliable and require replacement on these grounds. For reliability
and safety, such equipment may need replacing, at which time best modern
practices should be adopted in specifying the new equipment.

3.5. Distribution
Distribution networks consist mainly of overhead lines, underground cables,
transformers, and switchgear. Most consumers are supplied at low voltage, defined
typically as less than 1 kV, with domestic customer supplies usually at 230 volts
or less. Some of the larger commercial and industrial consumers are typically supplied at high voltage, over 1 kV and some at extra high voltage (over 22 kV).
Electrical losses are an inevitable consequence of the transfer of energy across
electricity distribution networks. In the UK, the losses amounted to around
7 per cent in 2000/2001. The level of losses varies from year to year, influenced
by a number of factors, both technical and operational.
The International Energy Agency (IEA) publish figures regularly for losses in transmission and distribution. While the numbers vary from year to year, typical figures for 1998-2001 are around 7 to 8 per cent, with European Union figures
averaging about 7 to 7.5 per cent (although the range is from under 4 per cent
to over 10 per cent). According to various World Bank/ESMAP reports, some
countries report distribution losses as high as 30 per cent of the energy supply.
Much of these very high losses can often be attributed to theft with say half
coming from technical losses. There are likely to be important opportunities for
reducing losses by investigating the level of losses and where these occur in any
distribution system.

Upgrading distribution systems

While there are many similarities in distribution networks, there can be
important differences, such as:

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 Geographical size;
 Number of customers connected;
 Quantity of electricity distributed;
 Degree of dispersion of customers across the network;
 Proportion of different types of customers;
 Amount of underground versus overhead lines.
There may also be wide differences in design, operating and investment
principles, any of which can influence in detail the network configuration.
The level of losses in a network is driven by a number of factors. There are three
main categories of losses; variable losses, fixed losses and non-technical losses:
 Variable losses, often referred to as copper losses, occur mainly in lines and
cables, and also in the copper parts of transformers. They vary according to
the amount of electricity transmitted through the equipment and are proportional to the square of the current. Losses are also proportional to the length
of line, the resistivity of the material, and inversely proportional to crosssectional area of conductors. Typically variable losses are about two-thirds to
three-quarters of the total losses (UK Office of Gas and Electricity Markets, 2003);
 Fixed losses, or iron losses, occur mainly in transformer cores and do not vary
according to current. These are typically a quarter to a third of total losses;
 Non-technical losses, unlike the two items above, refer to electricity delivered
and consumed but not registered as sales. This includes theft as well as
simply errors in recording and billing (e.g. meter errors, lack of calibration,
no meters installed).
Measures to reduce variable losses include increasing the cross sectional area
of lines. There is thus a trade off between the value of lower losses and the cost
of replacing existing lines with larger ones. Use of higher voltage leads to lower
currents to transmit the same amount of electricity and this will lead to lower
losses. The configuration of a network will clearly affect the losses if distribution
distances can be reduced (again, this necessitates investment in new lines and
this may be expensive).
Demand management is another means of reducing variable losses because loads
transmitted at peak time result in greater increases in losses than the same
amount at off peak times. If distribution companies can encourage users to
smooth out their demand, losses can be reduced.
Finally, variable losses can be reduced by balancing three-phase loads throughout the network on a regular basis.

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Fixed losses do not vary according to current. They take the form of heat and
noise and occur so long as a transformer is energized. The level of fixed losses
can be reduced by upgrading the core material of transformers (e.g. special steels
and amorphous iron). They can also be reduced by eliminating transformer
levels (reducing the number of transformers involved), and by switching off
transformers in periods of low demand.
Low power factors will also contribute to losses. Raising power factors by
installing capacitors will lead to lower distribution losses, as can distributed
on-site generation.

On-site generation
Strictly speaking, some might not consider on-site generation to be a true supplyside management measure. On-site generation at an electricity user might be a
way of cutting the electricity supplied by the grid to zero of course, and this would
no doubt have an effect on the electricity supplier (but this would be specific to
the situation so general comments cannot be made).
However, we should consider on-site generation briefly in this module, as this
might be encouraged by a utility company that is nearing the maximum level of
demand that it can supply. The utilityin the absence of investment funds for
increasing generating capacitymight wish to reduce the electricity it supplies
to one customer to be able to supply others, provided the original customer is
able to self-generate all or part of its power needs.
The benefits of on-site generation can therefore be:
 On-site self-generation reduces demand on the grid and may allow deferment of investment in additional capacity;
 The principal electricity supply can be at the end-user itself, reducing transmission losses incurred in getting supply from a distant power source.
The generating equipment can use a variety of energy sourcesfrom conventional
fossil fuels to renewables such as solar, wind, bio-energy. Systems may adopt
conventional boiler-steam turbine technologies or can be installed as cogeneration plants (often worthwhile if an industrial plant has steady electricity and heat
loads year-round, or has a low-cost source of energy available, such as waste
heat from an industrial process). In some cases, the on-site generator can be
connected to the grid, to import electricity if on site electricity production is inadequate (stand-by electricity) or to export to the grid if excess electricity is available. The cost of standby power from the grid to satisfy imports, and the value
given to surplus electricity exported to the grid, are subjects of negotiation

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between the parties. Technical standards will also have to be met, such as voltage levels and AC frequency.

Power factor improvement

Power factor is the ratio between the useful load (in KW) and the apparent load
(in KVA) for a system (L M Photonics Ltd., 2002). It is a measure of how effectively the current is being converted into useful work output, and is an indicator
of the impact of the load on the efficiency of the supply system. A load with a
power factor of one results in the most efficient loading of the supply, while a
load with power factor say 0.5 will result in much higher losses.
Whenever loads are connected to an AC supply, there is a possibility that current
and voltage will be out of phase. Loads such as induction motors draw current
that lags the voltage, while capacitive loads (e.g. synchronous motors, battery
chargers) draw current that leads the voltage. Loads that are predominantly resistive such as heaters and cookers draw current in phase with voltage. The angle
between the current and voltage is known as the phase angle this can be
leading or lagging (or zero) depending on the load. The power factor is defined
as cosine and is always less than one. It represents the ratio of active power
(or useful power) to the total power supplied by the generating station.
Power factor correction is normally considered a key demand-side management
option because it is usually implemented by the electricity customer and leads
to a reduction in their electricity bills. However, it is a measure that reduces
the power supplied by the utility and therefore it may also be considered a
supply-side management option.
Indeed, utility companies often put in place incentives (or penalties) to encourage their customers to improve their power factor, in order to relieve load on
their generators. When power factor is less than unity, the amount of useful power
supplied by the generating plant at maximum output will be less than its full
capacity (in other words, not all the power supplied is turned into useful work).
This represents an inefficiency and therefore utility companies usually require
customers to achieve a power factor of at least 0.9 (sometimes 0.95). Those who
fail to meet the minimum will be charged a penalty on their bills to compensate
for the various losses incurred by the generator (e.g. losses in distribution cables
and transformers).
Operating at a high power factor allows energy to be used more efficiently (hence
the setting of a limit such as 0.9 or 0.95). Since most loads are in practice inductive, and a low power factor can be increased (corrected) by installing capacitors in the system. In most plants a practical solution is to install capacitor banks

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at the main point of power supply. Depending on the power factor, more or less
capacitance can be connected at any time. Slightly more efficient but costlier is
installing individual capacitors around a facility to correct the power factor in different parts of the network. In all cases, the utility company benefits because
less power needs to be generated to meet the end use needs of customers with
high power factors.

3.6. Transport of fossil fuels

Most of this module is concerned with the supply of electricity and supply-side
management measures that might improve the efficiency of electricity delivery to
a customer. There are also measures that can be taken to improve the supply of
fossil fuels to customers, and these can be deemed supply-side management
actions also. Since these actions are typically carried out by users of energy, we
usually consider these demand-side management, and therefore only a few
comments are added here.
With respect to pipelines for delivery of liquid and gas fuels, these will use pumps
or compressors to transfer the fuels. Energy efficiency factors applicable to these
types of equipment include:
 Oversized, inappropriate motors;
 Opportunity for using high efficiency motors;
 Excessive compressor or fan speed;
 Excessive system resistance (clogged filters, stuck dampers);
 Variable loads, and the inappropriate use of valves and dampers (inlet or outlet side) to control flow rates;
 Long periods of motor idling (running but not pumping or compressing fluids);
 Variable speed drivesenergy efficient if adopted in the correct location
although variable speed motors might be more cost effective sometimes;
 Leaks of process liquids and gases, including leaks from seals on equipment
shafts;
 Steam leaks from steam turbine drivers;
 Gearboxes running hot, noisy;
 Worn or slack belts around pulleys, belts missing, use of ribbed belts
 Pulleys and couplings misaligned;
 Worn motor bearings;
 Low power factor, opportunity for installing capacitors.

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With respect to road transport, a common means of supplying liquid fuels to

consumers, there are a number of measures that can improve efficiency:
 Performance analysed by driver if vehicles are pooled or shared;
 Tyre pressures checked regularly;
 Planning of routes and loads;
 Vehicles left with engines idling;
 Vehicle aerodynamics;
 Driver motivation and education;
 Improved lubricating oils;
 Thermostatically controlled fans and radiator shutters on vehicle engines;
 Regular maintenance.

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4.

CONSTRAINTS AND CHALLENGES

OF SSM

Supply-side management refers to actions taken to ensure the generation, transmission and distribution of energyprimarily but not exclusively electricityare
conducted efficiently.
Utility companies may change the load profile to allow their least efficient generating equipment to be used as little as possible. They may improve maintenance
and control of existing equipment, or upgrade equipment with new items utilizing
improved technologies. In brief, an electrical utility may embark on SSM to:
 Ensure reliable availability of energy at reduced generating cost;
 Reduce energy prices to some or all of their customers;
 Meet increasing electricity demand without necessarily incurring major
capital investments until later;
 Minimize environmental damage.
Suppliers of other types of energy will have corresponding motives.
Energy users will normally focus their efforts on demand-side management methods (DSM) but some will consider the supply side too. For example, they may
look at on-site generation alternativesincluding cogenerationor consider diversifying to alternative fuel sources (such as natural gas, solar, wind, biofuels).
One of the challenges in adopting SSM is the need for comprehensive information to be widely available to utility staffincluding operating, technical and commercial departmentsabout measures that could be appropriate to their specific
situation. In some cases (e.g. power factor correction) it will be the primary
responsibility of customers to take the relevant measures and make the necessary investments, so that the efficiency of overall supply can benefit. Balancing
the interests of the supplier and consumer may sometimes prove difficult, especially when capital investment gets involved. Investors will need incentives of
some sort to be persuaded to take action, and these incentives will normally be
in terms of improved profits and rarely in terms of environmental improvements.
Even where SSM can typically produce economic benefits to the utility or indeed the
customer, there will often remain a problem of convincing company management to
authorize expenditures. Sometimes a short-term approach is used and the evaluation of a project requiring a significant investment may fail to take into account longterm benefits and life cycle costing. All too often a first cost basis drives decisions:
this frequently results from a lack of capital funds (Cogeneration Technologies, 2006).

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With respect to clean coal technologies, many are well proven in developed countries but experience is lacking in developing nations. There will often be a lack
of technical skills to participate in equipment design and to operate complex
process plant, while management of such facilities may lack the necessary experience. Certainly a lack of management and technical training could prove difficult to overcome in the short term for organizations seeking to apply many of the
aspects of SSM.
Exploitation of renewable energies is not believed to pose such a problem
although large scale units may not have been proven in all countries in Africa.
However, it is believed that sharing experiences and knowledge will have a role
to play in helping those countries that might lack first-hand knowledge of the
latest technologies. Other barriers to developing bagasse as a fuel for electricity
generation exist, as described in box 9. These include the cost of power, problems with prompt payment to sugar mills for electricity sold, and sometimes the
poor level of efficiency of many sugar mills themselves.
With respect to the efficient operation of existing facilities, it is often the lack of
management that leads to poor energy performance, and not the lack of tried
and tested equipment and processes. Senior managers all too often fail to appreciate the benefits achievable using simple low cost measures, and focus on
expanding production rather than improving efficiency. Some will believe that no
progress can be made without massive investments in new technology, and that
since the company lacks fundsnothing can be done.
Energy efficiency is usually highly cost effective and, at least at the beginning,
is easy to apply with little or no funding needed. Better maintenance will almost
certainly pay dividends immediately. As results are achieved and savings are
made, most companies can accumulate funds to devote later to projects that need
funding. A serious challenge is thus to educate managers that small and simple
actions can make their contribution in the short term, and can pave the way for
larger and costlier actions later.
Part of this education is of course to make clear that reliable operating data are
important tools to raise plant and system efficiencies, and that collecting and
reporting data are not simply tedious chores that are imposed on the operators.
Indeed, good data and proper analysis contribute greatly to justifying new equipment in terms of economic benefit to the company. Good data can thus persuade
banks or other financing institutions that SSM measures are worthwhile and
deserving of loans at acceptablelow riskinterest rates.
Even where a plant has adequate funds for investment, managers should insist
on adequate evaluation of all potential projects, especially those requiring large
investments and those that have a long life expectancy. Here we may mention

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cogeneration plants. It is essential that reliable information is collected to define

the load curves for heat and electricity supplies, including seasonal variations, so
that the original design is correct and able to operate with the necessary flexibility. A large cogeneration plant might expect to operate for 30 to 40 years, or longer.
With respect to transmission and distribution of electricity, the challenge for many
utility companies will probably be the funding of large investments to replace old
equipment or to add significantly to capacity, as electricity demand grows quickly
in developing countries. Technical solutions to problems are generally well known
and expertise available from consulting engineers, if not from the utility companies themselves. Here again, good management of existing facilities has its role
to play.
Load aggregation is interesting because the problems of several customers can
often be solved at the same time. However, it is essential that comprehensive
historical data on load profiles are available, and such data are readily available
at any time in the future. Analysis of this data may have to be done by outside
specialists if the expertise is not available in-house. Reliable and timely data are
needed to ensure that the proper combined load profile is being maintained and
that all partiesincluding the utilityare benefiting.
Finally we may mention power factor improvement again and stress that both
partiesthe electricity consumer (who will probably have to invest in the
necessary equipment), and the supplier must see the benefits for themselves.

Box 7.

Barriers and constraints to development of bagasse cogeneration

India:
 State Electricity Boards are still reluctant to buy power from biomass projects,
despite the good example set by Maharashtra Electricity Regulatory Commission
with its regulatory process and the provision of the Electricity Act. Many States
and State Electricity Boards remain unaware of the opportunity for decentralized energy.
 In many States, there is neither the assurance that electricity can be sold to
the grid nor, in fact, any guarantee of timely payment for electricity generated
by non-utilities.
 Compensation for failure to supply or fluctuation in grid supply by State
Electricity Boards is, more often than not, unavailable. This provides little
incentive for forward planning of demand and production among non-utility
electricity generators.

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Eastern and Southern Africa:

 Bagasse cogeneration can be expensive compared to hydro electric power
schemes already in place (6USc/kWh compared to 3USc/kWh) and compared
to cheap electricity from the Southern African Power Pool. Therefore, electricity
boards may be unwilling to set feed-in tariffs to the higher level required by
sugar mills.
 Poor management of some sugar mills has caused the sugar industry to run
into difficulties; some sugar millsespecially in Kenya and the United Republic
of Tanzaniahave been closed down as a result of this, limiting the scope for
bagasse cogeneration in these countries.
 As in many other countries, sugar mills often require refurbishment and upgrading to ensure that they are energy efficient so that they can profit from electricity generation. Low sugar prices in world markets mean that sugar mills
often have little money to invest in such schemes.
Source: Bagasse Cogeneration Global Review and Potential, June 2004, Aurelie Morand,
Research Executive, World Alliance for Decentralised Energy:
http://www.localpower.org/documents_pub/report_bagasse_cogeneration.pdf#search=%
22cogeneration%20constraints%22
Accessed on 2 September 2006.

Discussion question

What types of SSM options do you think have the most environmental benefits
while still offering an affordable electricity supply to the consumers of your
country? Consider the current infrastructure and capability of the supply industry and the possible cost savings, or increases, due to the SSM programme.

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5.

CONCLUSIONS

With increasing demand for energy worldwide and the resources being limited or
becoming ever more expensive, it is important (and usually cost effective) to
improve the efficiency of energy supply. In turn, this usually means a benefit
to the energy consumer in terms of lower energy prices. Improved efficiency on
the supply side will also make a valuable contribution to reducing the impact
of energy use on the environment. While demand-side improvements are
certainly important, supply-side options also need to be identified, evaluated and
implemented where the economics justify.

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LEARNING RESOURCES
Key points covered
These are the key points covered in this module:
 What SSM is and why it should be pursued.
 A review of the main options and opportunities for SSM, including better
operation of existing power plants, transmission and distribution systems.
 Overview of the some constraints and challenges of implementing SSM
measures or programmes.

Answers to review questions

Question: Give four reasons why a utility would embark on an SSM
programme.
Answer:
An electrical utility may embark on SSM to:
 Ensure sustained availability of energy;
 Meet increasing electricity demand and expanding supply infrastructure due to
economic and population growth;
 Cover electrification programmes or industrial investment;
 And mitigate environmental the impact of energy use.

Question: What is the difference between bottoming cycles and topping

cycles, and what type of SSM do they fall under?
Answer:
A bottoming cycle uses the waste heat from a manufacturing process to produce
steam and drive a turbine to produce electricity.
A topping cycle produces electricity or mechanical energy by burning or processing a fuel and the waste heat is used to drive a secondary electrical turbine
(combine cycle) or provide process heat.
These are two main types of cogeneration technologies used by SSM programmes.

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Exercises

1.

Which type of SSM interventions could be implemented with the most

ease/most rapidly in your country? Which interventions would be the most
effective in your opinion and why?
Write a one page answer.

2. Your government is faced with rising demand and approaching the limit of
the reserve generating capacity. The cost of constructing new generating
capacity is proving to be too high for the short term. While plans are being
made for reducing the demand and raising funds for building additional
capacity you have been asked to implement some key supply-side management strategies to increase the output of the existing capacity. You, in your
country, have a few thermal generating stations with old transmission lines
as well as an active sugar industry and an iron smelting plant. Some funds
are available for SSM measures.
Write a 2-3 page essay discussing the possible SSM options.

Presentation/suggested discussion topics

Presentation:
ENERGY EFFICIENCY Module 14: Supply-side management
Suggested discussion topics:
1.

Do you think clean coal technologies are merely a gimmick to promote

coal use or do they offer sustainable solutions to energy supply? Discuss.

2. Renewables have an important role to play in future energy supply. Discuss.

3. Which type of SSM interventions could be implemented with the most
ease/most rapidly in your country? Which interventions would be the most
effective in your opinion and why?

Relevant case studies

1.

EU-China partnership on climate changeclean coal technology.

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REFERENCES
World Commission on Dams, Project Output and Dissemination, Annex #3Thematic
Reviews.
United Nations Framework Convention on Climate Change, An initial assessment of steps
taken by non-Annex I Parties to reduce emissions and enhance removals of greenhouse gases, UNFCCC/SBI/2003/INF.14, 20 November 2003
Upgrading Transmission Capacity for Wholesale Electric Power Trade, John Makens,
Energy Information Administration
www.eia.doe.gov/cneaf/pubs_html/feat_trans_capacity/ w_sale.html
Accessed on 13 July 2006.
World Coal Institute, Clean Coal Technologies,
www.worldcoal.org/pages/content/index.asp?PageID=19
Accessed on 30 August 2006.
Cogeneration Technologies, www.cogeneration.net/CogenerationExplained.htm
Accessed on 13 July 2006.
Sugar Cane Bagasse for Electricity Generation in Africa, Kassiap Deepchand, Technical
Manager, Mauritius Sugar Authority, published in ESI Africa, Issue 2, 2004.
UNIDO, Report on Capacity in Energy Efficiency and Renewable Energy Regulation and
Policy, YA/FRA/05/016, Case Studies on Energy Efficiency, Case Study 2: Investigation of operational, financial and environmental benefits emerging from use of an
automatic load control and alternative energy supply at Lusaka Water and Sewerage
Company, March 2006.
Use of Solar Water Heaters in Industrial Processes to Reduce Furnace Oil Consumption,
I.P. Da Silva, P. Mugisha, P. Onek, H. Molten, P. Simonis, Makerere University, Solar
Construct, MEMD/GTZ, Kampala, Uganda. Paper delivered at ICUE, Cape Town,
May 2004.
ESI Africa, Issue 1, 2001.
Cogeneration Technologies, www.cogeneration.net/Demand_Side_Management.htm
Accessed on 1 September 2006.
Load Aggregation of Multiple Facilities, Application Note #7, www.obvius.com/
Accessed on 13 July 2006.
UNIDO, Capacity Building in Energy Efficiency and Renewable Energy Regulation and
Policy-Making in Africa, GhanaEnergy Efficiency Country Profile, Alfred K. Ofosu
Ahenkorah, Accra, January 2006.
Benefits of Electrical Load Aggregation, PACE, Global Energy Services.
AFREPREN (2004), AFREPREN Occasional Paper 23: African Energy Data and Terminology
Handbook, Nairobi, AFREPREN.

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Geothermal power boost for Kenya and Eastern Africa, UN Environment Programme,
www.unep.org/Documents.multilingual/Default.asp?DocumentID=309&ArticleID=3963
Frans van Aart, Energy efficiency in IPPC installations, Vienna, 21 October 2004.
Good Practice Guide 43, Introduction to large scale heat and power, 1994, published by
ETSU Harwell, UK.
U.S. Department of Energy, Clean Gas and Natural Gas Power Systems, Overview of
Fluidized Bed Technology, updated October 6, 2006 and available at
www.fossil.energy.gov/programs/powersystems/combustion
John L. Fetters, Transformer Efficiency, 23 April 2002, see www.energyandpowermanagement.com
U.S. Dept. of Energy, The Electricity Delivery System, February 2006.
Benefits of electric load aggregation, Pace Global Energy Services, PMA Online Magazine,
2006.
L M Photonics Ltd., Power factor correction, 2002, www.lmphotonics.com
Electricity distribution losses a consultation document, January 2003, U.K. Office of Gas
and Electricity Markets.

INTERNET RESOURCES
IEA Clean Coal Centre: www.iea-coal.org.uk
World Coal Institute: www.worldcoal.org
U.K. Carbon Trust: www.carbontrust.co.uk/energy
Cogeneration Technologies: www.cogeneration.net
World Alliance for Decentralised Energy: www.localpower.org
U.S. Energy Information Agency, Dept. of Energy: www.eia.doe.gov

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GLOSSARY/DEFINITION OF KEY CONCEPTS

Bagasse

Generally in sugar production only the stalk is used and the

waste that is left is known as bagasse, which consists of
50 per cent fibre, 48 per cent moisture and 2 per cent sugars
and can be burnt to produce steam and electricity.

BAT

Best available technology, used to refer to technology normally adopted in modern, newly built facilities. Not necessarily the lowest energy consuming technology but representative
of proven commercial practice.

Boiler blowdown

Intermittent or continuous discharge of water from a boiler to

maintain dissolved solids content below a specified level. The
level is set by manufacturers to ensure boiler operation is efficient and there is minimum foaming and carry over of solids
into the stem.

Biomass

Can be an important renewable energy resource when managed in a sustainable way, for example, wood from sustainably grown forests.

Bottoming cycle

The waste heat from the manufacturing process is used to

produce steam and drive a turbine to produce electricity.

CCT

Clean coal technologies.

Conversion efficiency

As applied to a power plant, this is the ratio of electricity output to fuel (energy) input, calculated in consistent units and
expressed as a percentage.

Demand charge

Fee charged to a customer on the electricity bill, corresponding to the agreed maximum load (in kW) that may be drawn
in aspecified period of time.

Excess air

Refers to boiler and furnace operation. Amount of combustion

air above the theoretical amount needed for complete combustion, expressed as a percentage (see stoichiometric).

FBC

Fluidized bed combustion.

GTCC

Gas turbine combined cycle.

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IGCC

Integrated coal gasification combined cycle.

Net efficiency,
gross efficiency

Efficiency of a boiler or furnace, expressed as a percentage

and referred to the net calorific value of the fuel (or gross, as
relevant).

Power factor

The ratio of the real power (kilowatts) to apparent power

(kilovoltampere).

Preventive maintenance

Procedures to monitor equipment performance and carry out

maintenance on a regular basis and thus avoidas far as
possiblethe equipment breaking down.

SCADA

Supervisory control and data acquisition.

Stoichiometric

The theoretical amount of air needed to achieve complete

combustion in a boiler or furnace.

SWH

Solar water heater.

Topping cycle

Electricity or mechanical energy is produced by burning or processing a fuel and the waste heat is used to drive a secondary electrical turbine (combine cycle) or provide process heat.

UCG

Underground coal gasification.

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Case study 1.
EU-CHINA PARTNERSHIP ON
CLIMATE CHANGECLEAN
COAL TECHNOLOGY
CONTENTS
1.

Background

14.55

2.

Introduction

14.57

3.

Main description
3.1. Aims and objectives
3.2. Planning and strategy
3.3. Institutional issues

14.59
14.59
14.59
14.59

4.

Impact

14.61

5.

Key successes

14.61

6.

Lessons learned

14.61

7.

The way forward

14.62

8.

References

14.63

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1.

BACKGROUND

Coal is simultaneously the fossil fuel with the highest carbon content per unit of
energy and the fossil fuel with the most abundant resources in the world. Clean
or more efficient use of coal is the subject of numerous international collaborative studies aimed at reducing local emissions and/or global CO2 emissions from
its use.
On 5 September 2005, the eighth China-EU Summit was held in Beijing, China.
The Summit acknowledged 30 years of peaceful cooperation between the regions
and believed that strengthening this relationship would add value to the longterm interests of both China and the EU. Looking to the future, the leaders
proposed concrete actions in various strategic areas.
The Partnership on Climate Change (Partnership) was one of the major outcomes
of the Summit. The Partnership will strengthen cooperation and dialogue on
climate change and energy between the EU and China.
One major objective of this Partnership is the development and demonstration
of advanced near zero emissions coal technology based on carbon dioxide
capture and geological storage to address increasing greenhouse gas (GHG)
emissions from the use of coal in China.
The Partnership on Climate Change (Partnership) was one of the major outcomes
of the Summit. The Partnership will strengthen cooperation and dialogue on
climate change and energy between the EU and China. A Joint Declaration on
Climate change set out specific areas of cooperation including the following key
areas for technical cooperation:
 Energy efficiency, energy conservation, and new and renewable energy;
 Clean coal;
 Methane recovery and use;
 Carbon capture and storage;
 Hydrogen and fuel cells;
 Power generation and transmission.

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2.

INTRODUCTION

Chinas primary commercial energy consumption increased at 5.4 per cent per
annum from 1980 to 1996 to reach 1,388 million metric tons of coal equivalent
(tce). Coal as the dominant source of energy, accounted for 74.8 per cent of total
primary commercial energy production in 1996, followed by oil (17.1 per cent),
hydropower (6.2 per cent), natural gas (1.7 per cent) and nuclear (0.2 per cent).
The industrial sector is the largest energy consumer, accounting for 64 per cent
of final commercial energy consumption. Residential and commercial sectors have
a share of 21 per cent. Transport and agriculture account for 10 per cent and
5 per cent, respectively.
From 1990 to 1996, the average annual growth rate of real gross domestic
product (GDP) was 11.6 per cent, while primary energy consumption grew at
5.9 per cent. As a result, the overall energy intensity of the economy declined by
almost 30 per cent from 1990 to 1996. This decline reflects changes in economic
structure and sources of industrial value added (75-85 per cent), as well as energy
efficiency improvements (15-25 per cent). However, the energy intensity figure is
still high, more than double the average for industrialized countries.
China is the second largest electricity producer in the world. Between 1980 and
1997, both installed capacity and annual electricity generation grew at an average annual rate of about 8.9 per cent, reaching 250 GW and 1132 TWh. Every year
since 1988, 11 to 15 GW of generating capacity has been added.
As of the end of 1997, the total installed capacity was 250 GW from which 75.8 per
cent uses fossil fuels, 23.4 per cent hydropower and 0.8 per cent nuclear. Coalfired power plants provided 81.9 per cent of the total electricity generation of
1132 TWh in 1997.
The annual electricity consumption per capita in 1997 was 897 kilowatt hours
(kWh), placing China at the mid-level among the developing countries. Most of
the electricity has been consumed by industries. Heavy industry had a share of
58.2 per cent in 1997, followed by light industry (14.6 per cent), residential consumers (11.4 per cent), public and commercial consumers (7.7 per cent), agriculture (6.2 per cent), and transportation and telecommunications (1.9 per cent).
(World Bank, undated).

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3.

MAIN DESCRIPTION

3.1. Aims and objectives

One major objective of this Partnership is the development and demonstration
of advanced near zero emissions coal technology based on carbon dioxide capture and geological storage to address the challenge of tackling increasing greenhouse gas (GHG) emissions from the use of coal in China. This is in recognition
that carbon dioxide emissions from Chinas increasing coal use are set to double
to more than 5000 Mt CO2/year by 2030.
The Partnership contains two concrete co-operation goals, to be achieved by
2020. The first is to develop and demonstrate, in China and the EU, advanced
near zero-emissions coal technology. This technology will allow for the capture
of CO2 emissions from coal-fired power plants and its subsequent storage underground, for example in exploited oil or gas fields or in sealed geological strata,
thereby avoiding CO2 emissions into the atmosphere.
The second cooperation goal is to significantly reduce the cost of key energy
technologies and to promote their distribution and operation.

3.2. Planning and strategy

The first phase will be a three-year feasibility study, examining the viability of
different technology options for the capture of carbon dioxide emissions from
power generation and the potential for geological storage in China, and leading
towards a possible demonstration project starting up between 2010 and 2015.
The Partnership supports the EU and Chinese efforts to reduce the energy intensity of their economies. China has set the goal of halving the energy intensity of
its economy by 2020. In the recently adopted Green Paper on energy efficiency, the
Commission has proposed to reduce the EUs energy consumption by 20 per cent
over the same period by increasing energy efficiency.

3.3. Institutional issues

The Partnership will also reinforce EU-China cooperation on the Kyoto Protocols
Clean Development Mechanism (CDM). It foresees a dialogue on the further development of this mechanism post 2012 in combination with an exchange of

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information and experience on the use of market-based mechanisms such as the

EU emissions trading scheme. It furthermore foresees a number of joint research
activities on the impacts of climate change.
These efforts will be strengthened through the involvement of the private sector,
bilateral and multilateral financing instruments and export credit agencies, and
the promotion of joint ventures and public-private partnerships.

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4.

IMPACT

Most Chinese cities exceed national air quality standards. Air pollution levels in
many large cities are among the worst in the world. The central government has
set its sight on controlling the total emissions of major pollutants, including total
suspended particulates (TSP) and SO2. The current goal for SO2 emission control
is to cap total emissions in 2010 at 2000 level. Emission standards for coal-fired
plants to regulate particulates and SO2 were first introduced in 1991. They were
revised in December 1996 (World Bank, undated).
It is envisaged that carbon capture and storage offers the opportunity to reduce
CO2 emissions per unit of electricity by 85-90 per cent.

5.

KEY SUCCESSES

The EU-China Partnership complements the Dialogue on Climate Change, Clean

Energy and Sustainable Development, as well as other outcomes of the G8
Summit at Gleneagles in July 2005.
Although not directly linked to the EU-China Partnership, China has had an SO2
emissions fee system in place since 1992. Beginning January 1998, a
200 yuan/ton SO2 emission fee for all SO2 emitting sources has been in effect in
the designated acid rain-control and SO2 pollution-control regions (World Bank,
undated).

6. LESSONS LEARNED
While the EU-China Partnership has not been fully implemented and thus does
not realize lessons learnt from the process, the following lessons can be drawn
from successes and failures of various international collaborative efforts on clean
coal technology transfer in China:
 Technology transfer is about more than equipment transfer. The various
successes of bilateral efforts and the Global Environment Facility (GEF) to
bring clean technologies to China suggest that technology transfer is more

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widespread when manufacturing technology is also transferred to the host

country. Beyond the transfer of clean coal equipment, this implies transferring the technical ability to replicate and manufacture such equipment locally.
Enhancing the knowledge of and providing training to manufacturers and
users is also critical. More generally, it appears that technology transfer would
benefit from policy reform. With a few notable exceptions, transfer of clean
coal technology has been witnessed in the context of one-off demonstration projects with limited dissemination. Domestic policy that fosters technology diffusion is likely to be a key factor for successful technology transfer.
 Intellectual Property Rights (IPR) protection matters for transferers and transferees. The conventional understanding of the wisdom is that the weak IPR
protection in developing countries deters foreign companies from transferring
their technology as they see a risk that it may be stolen, once transferred.
While this is true, companies in countries that are willing to acquire the technology (via licences) may also be deterred by inadequate IPR protection: host
companies may be reluctant to acquire technology that competitors in their
own markets could copy while not having to pay. IPR protection addresses
both concerns.
An interesting, paradoxical finding from this case study is that strong growth in
power demand is not necessarily conducive to the introduction of advanced technologies. While economic growth provides opportunities to introduce new, more
efficient technologies, in the particular case of power generation in China, it
creates concerns about power shortages. Generators are therefore discouraged
from discarding outdated, inefficient and dirty infrastructure. This suggests that
technology transfer on the generation side may benefit from efforts to limit too
rapid a growth in electricity demand, and may be crucial for the success of an
international effort to encourage the transfer of clean coal technologies (Philibert
and Podkanski, 2004).
Although not part of the Partnership, joint studies carried out by the World Bank
and China in the late 1990s suggest that the total amount of SO2 reduction potential from non-power sector options is limited. Additional reduction would require
measures taken by the power sector. In most cases, coal cleaning and flue gas desulphurization (FGD) were deemed to be the most cost-effective options (World Bank).

7.

THE WAY FORWARD

In addition to electrostatic precipitators (ESP) upgrading, coal washing and FGD,

China has developed a strategy to acquire clean coal technologies including

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supercritical pulverized coal, circulating fluidized bed combustion (CBC), pressurized fluidized bed combustion (PFBC) and integrated gasification combined cycle
(IGCC) (World Bank, undated).
The Partnership provides for a robust follow-up process, which will include a
regular review of progress in the context of the annual EU-China Summits.

8. REFERENCES
World Bank. Clean Coal Technologies in ChinaA World Bank Project. www.worldbank.org/
html/fpd/em/ccts_for_china/ccts_for_china.htm. No date cited on the document.
Document accessed via the Internet 6 September 2006.
Cdric Philibert and Jacek Podkanski. International Energy Agency. In collaboration with
the OECD Environment Directorate. International Energy Technology Collaboration
and Climate Change Mitigation. Case Study 4: Clean Coal Technologies. COM/ENV/
EPOC/IEA/SLT(2005)4.2005, www.oecd.org/dataoecd/22/38/34878689.pdf
Document accessed via the internet 6 September 2006.
ec.europa.eu/comm/external_relations/china/summit_0905/index.htm
www.defra.gov.uk/environment/climatechange

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Energy Efficiency

Module 14:
SUPPLY-SIDE MANAGEMENT

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Module overview
What is Supply-Side Management (SSM)?
Why Pursue SSM?
SSM Options and Opportunities
SSM Constraints and Challenges
Conclusions

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Module aims
To introduce the concept of Supply-side management
To discuss options of supply-side management, especially
utility upgrades, load aggregation, clean coal
technologies, fuel substitution, cogeneration and on-site
generation
To give an overview of the constraints, and benefits of
conducting supply-side management measures and
programmes

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Module learning outcomes

To be able to define what supply-side management is and
why it should be pursued
To describe the different types of supply-side
management measures and programmes
To appreciate the constraints, challenges and benefits of
supply-side management

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Supply-Side Management
What is it?
Measures to:
Decrease supply costs
Increase supply capacity
Improve supply delivery

Why pursue it?

Ensure sustained availability of reliable energy
Meet increasing electricity demand
Mitigate environmental impact of energy production and supply
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

SSM Options and Opportunities

Resources and Resource Preparation
Power Generation and Energy Conversion
Transmission
Distribution
Transport of Fossil Fuels

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Resources and Resource Preparation

Clean Coal Technologies (CCTs)
Overall CCTs improve the efficiency of coal-based electricity
generation, with benefits such as:
Increased electrical power output per unit of coal fired;
Reduced environmental impact per unit of coal fired, possibly in
conjunction with partial or total removal of CO2 and SOx emissions.

Ex.
- Fluidised Bed Combustion
- Pressurised Pulverised Coal Combustion
- Next generation: underground coal gasification and carbon capture
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Resources and Resource Preparation (2)

Fuel Substitution
The process of substituting one fuel for another
The combustion of natural gas generally can be carried out much
more efficiently than oil or coal

Renewable Energy
Wind, solar, geothermal
Biomass might provide important energy supplies at competitive/
moderate cost ~ Case study Methane Generation in Lusaka

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Power Generation and Energy

Conversion
Operation Improvement in Existing Plants
Improvements possible where equipment and systems are not
run at top efficiency include:
Housekeeping
Maintenance
Data and performance monitoring
Combustion - Fluid bed combustion control
Upgrading Existing Power Supply

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Power Generation and Energy

Conversion (2)
Upgrading Generation Units
It can improve reliability, increase output and reduce
environmental impact through:
Installation of new and improved burners
Extra flue gas heat recovery
Additional heat recovery from hot blow-down water

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Power Generation and Energy

Conversion (3)
Cogeneration
Production of heat as well as electricity from a single fuel source
(combined heat and power - CHP)
Benefits:
Economic
Environmental
Enhanced reliability of electricity supply

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Transmission
Transmission Lines
They operate at high voltage.
Issues:
Thermal limitations
Voltage fluctuations
System operating constraints

Data monitoring
need for comprehensive information on all system elements:
Computerised systems available (SCADA)
Normally managed by system owner/operator
Could be shifted to utility company
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Transmission (2)
Load Aggregation
Energy users band together to secure better prices.
Desired effect is a flatter overall load profile, a higher load factor
and ultimately lower per unit energy costs for members of
aggregate group

Substation improvements
Higher efficiency equipment
Transformers - payback periods of 2 to 5 years are typical
Other key equipment: switchgear, alarms and controls.

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Distribution
Upgrading Distribution Systems
Issues: variable losses, fixed losses and non-technical losses
Solutions: increase the cross sectional area of lines / demand-side
management

On-Site Generation
Interesting when nearing maximum level of demand
Benefits:
On site self-generation reduces demand on the grid.
Reduces transmission losses from a distant power source.
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Distribution (2)
Power factor improvement
Power factor = the ratio between the useful load and the
apparent load for a system:
Incentives (or penalties) to encourage power factor improvement
Benefits:
Energy to be used more efficiently (at higher power factor)
Less power needs to be generated

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Transport of Fossil Fuels

Lots of energy efficiency improvements possible
Pipelines:
Oversized , inappropriate motors
Opportunity for using high efficiency motors

Road transport:
Tyre pressures checked regularly
Planning of routes and loads

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

SSM Constraints and Challenges

Availability of comprehensive information
First cost basis drives decisions
Experience in new technologies lacking in developing
countries
Case studies on bagasse for India and Eastern and
Southern Africa
When funds for investment available: evaluate all potential
projects, especially those requiring large investments and
those having a long life expectancy (cogeneration plants)
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

SSM Constraints and Challenges (2)

Transmission and distribution: challenge will be the
funding of large investments to replace old equipment or
to add significantly to capacity.
Power factor improvement might benefit all.

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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

CONCLUSIONS
Both improve the efficiency of current and future supply as the
use of renewable resources.
Supply options need to be identified, evaluated, optimally
selected and implemented to sustainably meet the demand
while achieving economic and environmental benefits
The most immediate options for SSM are:

Upgrading existing plants and networks

Load aggregation
Fuel switching
Cogeneration and on-site generation
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SUSTAINABLE ENERGY REGULATION AND POLICY-MAKING FOR AFRICA

Questions/Activities
Do you think clean coal technologies
are merely a gimmick to promote
coal use or do they offer sustainable
solutions to energy supply?
Discuss
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