US Department of Energy
US Department of Energy
Energy Webinar
2
Fundamentals
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 (𝑀𝑀𝑀𝑀𝑀)
Definition of load factor: 𝐿𝐿. 𝐹𝐹. (%) =
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑀𝑀𝑀𝑀 𝑥𝑥 8760 ℎ𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜
68.0%
66.0%
3
Macro Trends Affecting Load Factor
Traditional variables used to predict electricity consumption
- Gross domestic product
- Weather factors (heating degree days, cooling degree
days, seasonal differences)
- Tariffs, lagged
- Individual customer sector growth
- Population growth
- Employment or other labor statistic
- Household size
4
Macro Trends Affecting Load Factor
- Single, double, or triple shift Power System (G.V.Buddhika et al. De Silva and Lalith A.
Samaliarachchi)
work days
6
Measures to Influence Peak
California Modeled Load for Increased PV Penetration
- Industrial
demand
response
- Time Of Use
pricing
- Smart meters
- Energy
efficiency
- Electric vehicle
policy
Source: Denholm, P., Overgeneration from Solar Energy in California – A
Field Guide to the Duck Chart, https://www.nrel.gov/docs/fy16osti/65453.pdf 7
Future Trends
Electrification
• Transport sector, i.e., electric vehicles
• Hot water heaters (natural gas, electric, on-demand)
• Heating (natural gas furnace, electric baseboard heating,
directed space heating)
• Increased plug load, yet more efficient appliances
(e.g., computers, phones, electronic devices)
Other considerations
• Individual market players both generate and consume power (e.g., blockchain
technology)
• Storage technology use increases
• Players intentionally maximize the economics of doing so
• Net load daily and seasonal peak that the utility sees will change.
8
Unserved Energy Categories Not straightforward
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 (𝑀𝑀𝑀𝑀𝑀)
𝐿𝐿. 𝐹𝐹. (%) =
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑀𝑀𝑀𝑀 𝑥𝑥 8760 ℎ𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜
1. Not connected to grid
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 (𝑀𝑀𝑀𝑀𝑀)
𝐿𝐿. 𝐹𝐹. (%) =
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑀𝑀𝑀𝑀 𝑥𝑥 8760 ℎ𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜
1. Not connected to grid
2. Self-generation (captive demand)
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 (𝑀𝑀𝑀𝑀𝑀)
𝐿𝐿. 𝐹𝐹. (%) =
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑀𝑀𝑀𝑀 𝑥𝑥 8760 ℎ𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜
1. Not connected to grid
2. Self-generation (captive demand)
3. Load shed
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 (𝑀𝑀𝑀𝑀𝑀)
𝐿𝐿. 𝐹𝐹. (%) =
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑀𝑀𝑀𝑀 𝑥𝑥 8760 ℎ𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜
1. Not connected to grid
2. Self-generation (captive demand)
3. Load shed
4. Emergent demand:
increased demand due
to increased grid
reliability/availability
14
Example of Varying Energy Parameter
Puerto Rico Generation and Peak Load Load Factor
1
35000
0.9
30000
0.8
25000 0.7
0.6
20000
0.5
15000
0.4
10000 0.3
0.2
5000
0.1
0
2007 2009 2011 2013 2015 2017 0
2007 2009 2011 2013 2015 2017
Sales Gross Generation
Net Generation Peak demand for 8760 h Load Factor - Sales Load Factor - Gross Gen Load Factor - Net
15
Source data from Puerto Rico Integrated Resource Plan 2018-19 by Siemens PTI for Puerto Rico Electric Power Authority
Country Case Studies
Load is forecast using two different methods
I. Load factor as a result
A. Use regression (or other method) to forecast energy
B. Use regression (or other method) to forecast peak
C. Load factor time series is a calculated result
• However, in reality load factor usually changes over time depending on drivers
discussed previously e.g., air conditioning use, tariff structure, economic
development curve 16
Specific Country Examples
17
Case Study 1 of India
National Electricity Plan based on 2011, projected to 2037
• Used a Partial End Use Method (PEUM) for Energy & Demand
• “bottom-up” approach focusing on end uses
• Based on past demand + projected policies, development,
energy efficiency
• Done on a state-by-state basis
• Included stakeholders from across the power sector
• Considerations
• Category-wise energy and load, T&D losses, population, #
consumers, # irrigation pumps & capacity, electrification, railway
expansion,
• Policies – reduction of T&D losses, EE & DSM programs, Power
for All Initiative, Dedicated freight corridor, make in India
• Rooftop Solar Prog. – 100 GW solar by 2022, 40 GW rooftop
• EVs – 6 mill by 2020, charging schedule won’t increase demand
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Source: National Electricity Plan (Volume 1), Generation, Government of India Ministry of Power, Central Electricity Authority
Case Study 1 of India
3000000
Forecasted Energy Consumption and Peak 100%
Demand Consumption in India
90%
2500000
80%
70%
2000000
60%
GWH
1500000 50%
40%
1000000
30%
Peak Load for 8760 hours (GWh)
20%
500000 Energy use forecast (GWh)
Load factor (right axis) 10%
0 0%
2011 2013 2015 2017 2019 2021 2023 2025
19
Sources: India CEA National Electricity Plan, https://community.data.gov.in/gross-electricity-generation-in-india-from-2010-11-to-2016-17/
Case Study 2 of Afghanistan
Power Sector Master Plan, analysis period 2011-2032
• 3 consumer types – residential, commercial/industrial, public
sector
• 34 provinces each with a demand forecast (23 with no or low
elect.)
• Base, Low, and High forecasts
• Simplified econometric approach, based on estimates and
assessments from similar countries (economically) considers:
• Income development – available income (res), GDP (comm/ind & public)
• Electricity price development
Can combine these to calculate elasticity of electricity demand
• Other considerations: reductions in T&D losses, no DSM or EE
• Future development of load calculated from load factor
20
Source: Islamic Republic of Afghanistan: Power Sector Master Plan, https://www.adb.org/sites/default/files/project-document/76570/43497-012-afg-tacr.pdf
Case Study 2 of Afghanistan
21
Case Study 2 of Afghanistan
Load Factor
2012 2015 2020 2025 2030
55% 56% 58% 59% 60%
22
Source: Islamic Republic of Afghanistan: Power Sector Master Plan, https://www.adb.org/sites/default/files/project-document/76570/43497-012-afg-tacr.pdf
Case Study 3 of Sri Lanka
Load forecast considerations
• Historical energy and peak consumption growth rates
• Historical load factor
• Decreasing trend in losses
• Future impact of national energy policies
• Future developments in transport, urban growth, tourism, industry,
agriculture, manufacturing
• Excluded special days – holidays, etc.
Methodology
• Forecasted electricity consumption
• Forecasted load factor
• Calculated forecasted demand
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Source: Ceylon Electricity Board Long Term Generation Expansion Plan, 2018
Sri Lanka System Load Factor
24
Source: Ceylon Electricity Board Long Term Generation Expansion Plan, 2018
Sri Lanka Forecast Scenarios
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Source: Ceylon Electricity Board Long Term Generation Expansion Plan, 2018
Sri Lanka Forecast of Flattening Daily Curve
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Source: Ceylon Electricity Board Long Term Generation Expansion Plan, 2018
Case Study 4 of Bangladesh
- Peak demand forecast using
- GDP elasticity method
- Sectorial analysis method
- Consistency confirmed
- Integrated both projections to hybrid approach
- Included theoretical estimation of load curves considering
historic black-outs and energy not served
- Composite daily load curve estimated from summer and winter
actual values
- Exogenous forecast of peak demand reduction relative to GDP
- Daily load curve estimated using assumed load factor
Source: Power Sector Master Plan 2016, supported by Japan International Cooperation Agency and Tokyo Electric Power Company for Power
27
Division of Ministry of Power, Energy, and Natural Resources of the Government of the People’s Republic of Bangladesh
28
Case Study 6 of Nepal
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Case Study 6 of Nepal
Nepal Base Case and Optimistic Case Electricity Forecasts
70000 80%
60000 70%
60%
50000
50%
40000
40%
30000
30%
20000
20%
10000 10%
0 0%
2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033
Optimistic Case System Peak Load for 8760 h (GWh) Base Case System Peak Load for 8760 h (GWh)
Optimistic Case Total Energy Demand (GWh) Base Case Total Energy Demand (GWh)
Optimistic Case Load Factor (%) Base Case Load Factor
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Demand forecasting
• Biggest factor:
increase in data
center energy
consumption (65%
of demand increase,
16.7% of total
energy by 2030)
• EVs and heat pumps
are also significant
31
Source: Ostergaard, Andersen, and Kwon, “Energy Systems Scenario Modelling and Long Term Forecasting of
Hourly Electricity Demand”. International Journal of Sustainable Energy Planning and Management, Vol. 07 2015 99-116
Case Study 7 of Denmark
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Load Forecasting in Pakistan
36
NTDC 2014 Regression Study
• Assumed reduction in load factor from 69.1% to 68.1%
• PEPCO only
• Assumed reduction in T&D losses
• 265kV+: Decrease from 2.92% (2012) to 2.52% (2016 and beyond)
• 132 kV: Decrease from 2.10% (2012) to 2.06% (2016 and beyond)
• Distribution: Decrease from 14.52% (2012) to 10.0% (2021 and beyond)
• Considered 3 GDP growth scenarios
• Low: 3.56% (IMF value for 2012-13)
• Normal: 5% (based on last 30 years)
• High: 6.5% (goal)
• Results are presented for six subsets of country demand
1. Sectoral sales for PEPCO and KESC
2. Load forecast for PEPCO excluding export to KESC
3. Load forecast for KESC
4. Load forecast for PEPCO + KESC + Self-generation
5. Load forecast for PEPCO + KESC + Self-generation with Demand Side Management
37
“Electricity Demand Forecast Based on Multiple Regression Analysis: Period 2014 to 2037”, NTDC, March 2014.
NTDC 2014 Regression Results
PEPCO excluding exports to KESC – Normal Growth Projection
Base Year Energy Sale (GWh) Energy Generated (GWh) Load Factor (%) Peak Demand (MW)
2012-13 (Recorded) 70,508 90,893 82.8 12,527
2012-13 (Computed) 89,535 116,611 69.1 19,265
2013-14 94,222 120,469 68.1 20,195
2014-15 99,537 126,296 68.1 21,171
Recorded Demand represents the load that was actually served in the base year
Computed Demand represents the load that would have been served without load shedding
Auxiliary Consumption is electricity consumed by IPPs
• Electricity demand is projected to grow faster than GDP
• Increasing from 5% to 9% per year by 2036, vs. assumed constant 5% per year GDP growth
• Load factor projected to remain constant at 68.1%
• Projected load factor in KESC is greater (~80-90%) 38
• The peak generation shortfall (computed – recorded) in 2012-13 was roughly 6750 MW
Source: “Electricity Demand Forecast Based on Multiple Regression Analysis: Period 2014 to 2037”, NTDC, March 2014.
NTDC 2014 Regression Study
39
*PEPCO Only
NTDC 2019 Regression Results
Low Normal High
Fiscal Year Gen (GWh) Peak (MW) Gen (GWh) Peak (MW) Gen (GWh) Peak (MW) Load Factor
2017-18* 120,791 26,741 120,791 26,741 120,791 26,741 0.516
2018-19 144,665 27,072 145,674 27,261 147,188 27,545 0.610
2019-20 151,062 27,814 152,914 28,155 155,718 28,671 0.620
2020-21 158,842 28,782 161,841 29,325 166,429 30,157 0.630
2021-22 166,267 30,127 170,645 30,921 177,416 32,147 0.630
2022-23 173,178 30,889 179,142 31,953 188,476 33,618 0.640
2023-24 181,051 32,294 188,914 33,696 201,374 35,919 0.640
2024-25 188,749 33,640 198,744 35,422 214,788 38,281 0.641
2025-26 193,948 34,062 206,155 36,206 226,011 39,693 0.650
2026-27 202,763 35,610 217,664 38,227 242,228 42,541 0.650
2027-28 211,718 37,183 229,603 40,324 259,492 45,573 0.650
2028-29 220,940 38,802 242,104 42,519 277,960 48,816 0.650
2029-30 231,142 40,594 255,989 44,958 298,670 52,453 0.650
2030-31 241,889 42,481 270,792 47,557 321,130 56,398 0.650
2031-32 253,101 44,451 286,441 50,306 345,315 60,645 0.650
2032-33 265,289 46,591 303,554 53,311 372,070 65,344 0.650
2033-34 278,069 48,835 321,710 56,500 400,940 70,414 0.650
2034-35 291,403 51,177 340,888 59,868 431,973 75,865 0.650
2035-36 305,685 53,686 361,590 63,504 465,916 81,826 0.650
2036-37 320,652 56,314 383,529 67,357 502,479 88,247 0.650
2037-38 336,293 59,061 406,719 71,429 541,779 95,149 0.650
2038-39 352,917 61980 431,584 75,796 584,509 102,653 0.650
2039-40 370,348 65,042 457,939 80,425 630,529 110,736 0.650
• 2017-18 data are recorded, 2018-19 onward are computed
• Recorded load factor in 2017 was 51.6%
• Load factor projected to grow from 61% to 65% 40
• Data provided in the IGCEP Report Table 5-2
NTDC 2019 Regression Study
41
43
Source: http://pubdocs.worldbank.org/en/871161554646154248/pdf/VRE-Study-Stakeholder-Workshop-Tasks-1-2-Slides-04Apr2019.pdf
World Bank Findings and Recommendations
44
Source: http://pubdocs.worldbank.org/en/871161554646154248/pdf/VRE-Study-Stakeholder-Workshop-Tasks-1-2-Slides-04Apr2019.pdf
2014 vs 2019 Peak Demand Projections
• Projected demand growth declined between the 2014 and 2019 regression studies 45
• Lahmeyer revised the 2019 NTDC regression forecast moderately upwards
JICA: 2016 Least-cost Expansion Plan
47
Comparison of University Peak Projections
48
• Comparable to 2019 NTDC high projections
Comparison of University Energy Projections
49
• Comparable to 2019 NTDC high projections
Comparison of all Projections
50
Comparison of all Projections
51
Conclusions
• Most projections are for total demand, based on macro-economic indicators
• GDP growth
• Population growth
• Electricity tariffs
• Often converted to peak demand by applying a load factor
• Load factor is hard to predict with a top-down economic model
• Need to be careful with definitions when making comparisons
• Recorded demand vs. Computed Demand
• Sales vs. Generation (T&D losses)
• NTDC methodologies have been externally validated
• Demand projections are still always limited by macroeconomic projections
• No single demand projection is ever perfectly correct
• All projections are based on assumptions
• It is important to draw upon a number of studies
• Help to understand how different factors may influence future demand
52
Contact:
Questions?
[email protected]
[email protected]
[email protected]
[email protected]
53
Citations
“Electricity Demand Forecast Based on Multiple Regression Analysis: Period 2014 to 2037”, National Transmission and Despatch Company, 2014.
Gul, M., Qureshi, W.A., 2012. Modeling diversified electricity generation scenarios for Pakistan, in: 2012 IEEE Power and Energy Society General
Meeting. Presented at the 2012 IEEE Power and Energy Society General Meeting, pp. 1–7. https://doi.org/10.1109/PESGM.2012.6344821
“Indicative Generation Capacity Expansion Plan 2018-40, National Transmission and Dispatch Company (NTDC) 2019.
https://www.ntdc.com.pk/ntdc/public/uploads/downloads/NTDC.PSP.IGCEP.pdf
Ishaque, H., 2017. Is it wise to compromise renewable energy future for the sake of expediency? An analysis of Pakistan’s long-term electricity
generation pathways. Energy Strategy Reviews 17, 6–18. https://doi.org/10.1016/j.esr.2017.05.002
Peak Electricity Demand Prediction Model for Sri Lanka Power System (G.V.Buddhika De Silva and Lalith A. Samaliarachchi)
Perwez, U., Sohail, A., Hassan, S.F., Zia, U., 2015. The long-term forecast of Pakistan’s electricity supply and demand: An application of long range
energy alternatives planning. Energy 93, 2423–2435. https://doi.org/10.1016/j.energy.2015.10.103
“Project for Least Cost Power Generation and Transmission Expansion Plan”, Japan International Cooperation Agency (JICA) and International
Institute of Electric Power, Ltd. (IIEP), 2016.
Valasai, G.D., Mirjat, N.H., Uqaili, M.A., Memon, H.U.R., Samoo, S.R., Harijan, K., 2017. Decarbonization of Electricity Sector of Pakistan—An
Application of Times Energy Model. Journal of Clean Energy Technologies 5, 507–511. https://doi.org/10.18178/JOCET.2017.5.6.425
“Variable Renewable Energy Integration and Planning Task 2: Demand & Generation Forecast Analysis”, Lahmeyer International, Report Final
DRAFT, 2019.
NREL/PR-7A40-75311
This work was authored, in part, by the National Renewable Energy Laboratory (NREL), operated by Alliance for Sustainable Energy,
LLC, for the U.S. Department of Energy (DOE) under Contract No. DE-AC36-08GO28308. Funding provided by the United States Agency
for International Development (USAID) under Contract No. IAG-17-2050. The views expressed in this report do not necessarily represent
the views of the DOE or the U.S. Government, or any agency thereof, including USAID. The U.S. Government retains and the publisher,
by accepting the article for publication, acknowledges that the U.S. Government retains a nonexclusive, paid-up, irrevocable, worldwide 54
license to publish or reproduce the published form of this work, or allow others to do so, for U.S. Government purposes.