Power Utility’s Demand Side Management Programme

: EGAT’s Experiences and Lessons Learned Seminar on Energy Efficiency Resource Standards (EERS) Thursday 27th March 2014

Mr. Pitarn Chaichinda Director, Demand- Side Management & Planning Division Electricity Generating Authority of Thailand

Key Words

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2

Outline 3

1. Background 2. EGAT’s Demand Side Management Programs:      



Labeling Program Lighting Program Demand Response Strategic Load Growth Thermal Energy Storage Attitude Creation Program A/C Cleaning Program

3. Measurement, Verification and Evaluation 4. Key Lessons Learned

Background (1) Daily load curves on daily max. demand: 2011 - 2013 4 MW

MW

VS

TIME

Background (2) Reasons for EGAT to undertake DSM Programs 5

DSM = the implementation of programs or measures designed to encourage electricity consumers to modify their patterns of electricity usage, including timing and quantity of electricity demand.

• As load management activity

Utility Load Shape Objectives

Background (3) Reasons for EGAT to undertake DSM Programs 6

• • •

As measures to cope with rapidly growing demand during 1990’s. Assigned by cabinet resolution since 1991. As one solution to mitigate environmental problems. The GHG emission to be avoided if DSM is adopted instead of a generation resource.

•

As cost - effective alternatives compared to supply - side’s options. EGAT’s avoided costs > DSM program costs

•

To enhance public image of EGAT.

Background (4) Structure of Energy Efficiency Implementation in Thailand 7

Background (5) Thailand 20-Year Energy Efficiency Development Plan (2011 - 2030) 8

lites.asia Sharing Standards and Experiences – Jakarta, 24 April 2013

Funding of Energy Efficiency Activities 9

Soft loan program

Co-investment program Established in 1992 under Energy Conservation Act Collecting a small levy (~1 US cent/litre) from the sell of gasoline, diesel, fuel oil and kerosene Supporting EE/RE promotion activities Demand Side Management programs in residential, commercial and industrial sector Focusing Standard & Labeling for electrical equipments

Increasing activities in energy efficiency

Sources of fund to support EGAT’s DSM Programs 10

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

A grant of US $ 15.5 million from GEF

A concessional loan of US $ 25 million from JEBIC

reimbursed from the Ft under approval of DSM Subcommittee EGAT’s budget (based tariff) around 10 Mil US$ annually Financial support from Energy Conservation Fund in some programs

DSM Strategies implemented by EGAT 11

Market Transformation - Thin Tube Program, - Appliance Efficiency Labeling Program Customer-Oriented Program Design - Flexibility to Accommodate Customer Needs - The Green Building Program Public-Private Sector Partnership - Energy Services Company (Pilot ESCO) Attitude Creation - Green Learning Rooms & PR Campaign

Labeling Program 12

Activities

Procedure

Impact

Labeling

- Performance 2,617 MW testing 14 appliances with 15,696 GWh - Labeling “Label NO. 5” 160 million labels - Compliance Testing

Constraint

Lesson Learned

Trend

Product cost difference

Fluctuation Impact depends on market condition

Saving growth rate lower than the past (Saturated Potential)

Rating Scale 1= low, 2=fair, 3=medium, 4=good, 5=very good

Efficiency level of this appliance Appliance type

Electricity cost Efficiency Appliance details

Electricity use per year

Logo of EGAT and Ministry of Energy

Energy Labeling by EGAT 13

1. Refrigerator (1994) 2. Air conditioner (1995) 3. Compact Fluorescent Lamp (1996) 4. Electromagnetic Ballast (1998) 5. Electric Fan (2001) 6. Automatic Rice Cooker (2003) 7. Lighting Luminare (2003) 8. T5 (2009) 9. Electronic Ballast (2009) 10. Double-oscillating Fan (2009) 11.-12. Standby 1 Watt- TV & Monitor (2010) 13. T5 Luminare (2010) 14. Electric Thermal Pot (2011) 15. Ventilation Fan (2012) 16. Water Heater (2012) 17. Electric Iron (2012) 18. Washing Machine (2012) 19. T5 Retrofit Set (2013) 20. LED – MR 16 (2013)

Lighting Program 14

Activities

Procedure

Impact

Constraint

Lesson Learned

Trend Depend on price & quality trend of LED

CFL

- Phase out Incandescent - Low Cost CFL EGAT Package

Retrofit in most of long application area

- Price, Quality LED technology

- Technology change - Long period test

T5

Pilot demonstration program – government buildings

2 years payback, 4.5 million sets installed

- Retrofit Installation Procedure

Take time to Retrofit, not convenient for continuous working area

LED

Demonstration for road lighting in EGAT’s dams

- Standard - Parts quality - High investment

Life span of most products lower than declared value

Demand Response 15

Activities

Procedure

Results

Constraint

- On-site study the potential  Analyze DR -Support tariff Demand Potential in of applying DR in (Residential response commercial sector has Potential Study 60 sites of business and industrial buildings 60 sites of industrial factories 10 sites for demonstration

(1) Set a pilot project that Pilot projects use one of standby and demonstration generators in EGAT main

office to be synchronized to the main grid and controlled via internet. (2) Study the impacts of DR measures; i.e. increase A/C temperature, lighting control in buildings (April 2013 , 2014 demonstration)

sectors

low priority)

 Design the appropriate incentives and communicatio n & control system

 Information for further planning

Lesson Learned -Standby generator should be synchronized - Able to generate only 30% of capacity

Trend Should be incorporated with smart grid plan

Waste Water Treatment System of EGAT

- Cooperation among related parties - Necessary critical peak pricing and/or incentive structure required

Strategic Load Growth 16

Activities

Procedure

- Electric - Potential Study & Vehicle (EV) Pilot program Labeling

- Cooking Appliances

- Labeling

- Heat pump - Potential Study & water heater Pilot program Labeling - DEDE Incentives

Impact

Constraint

- Information EV have limited for further potential depends planning on charging station that connected to smart grid Downtown gas pipeline installation Downtown gas pipeline installation

Thermal Energy Storage 17

Activities Thermal Energy Storage

Procedure Pilot demonstration at EGAT Head Quarter - Chilled Water Storage - ICE Storage - Slurry Storage

Impact Constraint N/A

EGAT’s Health Care Center Ice Storage

Lesson Learned

- High - Low amount investment of cost saving - No supporting - Consume tariff more energy - Lack of operator awareness

Trend Waiting for technology trend and supporting tariff

Underground Chilled Water Storage

Thermal Storage System at EGAT Head Offlce (T102) (Clathrate Hydrate Slurry : CHS)

18

19

Activities Green Learning Room

Procedure

Impact

Set up EE learning room and campaign program

Energy knowledge & awareness

74 sites in 3 years (20102012)

Green School Energy & Environment Contest

Constraint

Lesson Learned

Trend

Budget & maintenance team

Nonsustainable program without curriculum

Strategic review

Many items & Procedure to certify

Not sustain without curriculum

A/C Cleaning Program 20

Activities - A/C cleaning in summer for government buildings and residential

Procedure

Impact

Campaign, - Psychological rebate and free stimulation services -Energy saving approximately Alliance: = 1 kWh/set/day - Green Shop - Vocational school

Constraint Customer focus on holiday action

Lesson Learned

Trend

Difficult to evaluate the reliable impact

Every year in summer

Other related programs by government agencies: Programs of Department of Alternative Energy Development and Efficiency (DEDE) 21

Activities

Procedure

- HEPs & MEPs - Non electric appliances labeling

Variation of campaign mode

- Energy management system

Impact

Constraint

Lesson Learned

Energy saved according to DEDE reports

- Long Payback - Low Priority Investment for Energy Eff.

SME focus on short term Benefit more than LCA

- Rebate

Trend Continuous Implement in 20-Year Master plan

- Tax incentives - ESCO - Building code - LED

Ministry of Industry - TISI Program Activities ISO 50001

Procedure Set up the system for certification

Impact -

Constraint High Expenses for certification and maintenance

Lesson Learned Confuse with DEDE Energy Management System

Trend MOI Policy

Measurement, Verification and Evaluation (1) Verification Process: Randomly Spot checking 22



Randomly spot-purchase the NO.5 appliances at the electric appliances shop and department stores countrywide



Send those models to test for standard compliance at the accredited laboratory (Electrical and Electronics Institute: EEI)



Control measures: call back all distributed labels of the unqualified models and forbid those models to participation in Label NO.5 program for at least 1 year Random testing of electrical appliances Result by year

no. of models 180 160 140

Failed models

Passed models

120

100 80

60 40

20 0

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Averagely, around 81% of all the random purchase models has passed criteria testing

Measurement, Verification and Evaluation (2) Program’s Impact Evaluation Methods 23

Energy Savings per Year

Program Data

Data & Information from • • • •

Manufacturers Surveys End-use metering Study Customer Surveys System Planning

No. of Units attributable to DSM Program

Wattage Reduction

Annual Hours of Use

Adjustment Factors • • • • • • •

Coincidence Peak Factor Transmission & Distribution Loss Hours of Use Spot Wattage Persistence Rate Snapback/Takeback Rate Free Rider & Free Driver Rates

Analytical Step

Evaluated Energy Savings © All rights reserved EGAT.2013

Measurement, Verification and Evaluation (3) Planning & Evaluation Surveys and Research 24 

Planning : Load research, Feasibility study, Energy saving potential estimation of DSM measures, including detailed strategies and implementation plan

Data for Load Research



Data for Feasibility Study





 

Data for Saving Estimation

  

End – use Metering Interviews and questionnaire



Evaluation : Process, Impact and Market Effects Evaluation

Process – Evaluation

Market Survey Impact – Evaluation Customer Survey Manufacturer interviews Market Survey Customer Survey Documentation reviews

Market Effects – Evaluation

 Discussions

&

Interviews  Inspections &Site Visits  Document Review  End

– use Metering  Engineering Calculation Calibrated Engineering Estimates  Interviews  Surveys

 Inspections

Results of Program Implementation Achieved to date (as of Feb 2014) Program MW GWh CO2 (Ton) Lighting 1,082.0 - Fluorescent Tube (T8) 401.5 - Fluorescent T5 Program 173.3 - FTL (T5) 127.8 - ElecTronic Ballast T5 45.4 - CFL(before labeling) 10.0 - CFL(labeling 2008) 479.0 - Low-Loss Ballast 18.2 - HPSV Street Light - LED Street lighting (EGAT) Refrigerator 675.1 - 1 door 434.2 - 2 doors 240.9 Air Conditioner 1,362.1 Fan 64.6 Double oscillating fan 4.5 Rice cooker 23.5 Motor Comercial

0.2 2.6

6,015.6 1,957.5 786.3 579.8 206.5 57.2 3,105.1 91.3 17.2 1.1 4,083.2 2,891.5 1,191.7 8,734.4 561.6 10.3 31.3

3,592,954 1,446,682 422,096 310,986 111,110 42,295 1,608,385 60,230 12,723 543 2,623,844 2,010,950 612,894 4,988,838 285,952 5,427 16,001

1.2 10.3

909 7,583

Standby - TV 1.0 3.3 1,764 - Computer screen 2.3 1,241 Eleltric kettle 12.9 20.5 10,490 Water heater 45.7 61.2 31,266 25 Total 3,274.1 19,535.1 11,566,269

Peak Demand Reduction by Program Electric Fan 2%

Rice Cooker 0.8%

Commercial Buildings and Others

0.2%

Lighting 33%

Air Conditioner

43%

Refrigerator

21%

Cost effectiveness of DSM program (as of Feb 2014) - Estimated total DSM expenditures to date 4,694.7 Million Baht - Cost of peak demand saving 1,433.9 Baht/kW - Cost of energy saving 0.24 Baht/kWh

Key Lessons Learned (1) 26

1. Funding Mechanism:  Financial resources and mechanism are critical to the scale of energy efficiency program delivery and its sustainability.  Policies and regulations to encourage utility to promote energy efficiency programs could be developed such as mechanism with comparable level of earnings for energy efficiency investments as well as earnings from energy sales.  In addition, performance - based regulations, the “Return on Invested Capital (ROIC)” is strict for electric utilities at around 5 8%. This does not encourage utilities to seek lower - cost resources. Instead, they would prefer investing to sell more power.

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Key Lessons Learned (2) 27

2. Generation vs. Distribution Utility DSM: In case of Thailand, EGAT

as a government owned generation utility and a pioneer in implementing EE programs has gained public trusts. However, considering customer information and relation, distribution utility may be more appropriate for EE program implementers.

3. Voluntary Program vs. Mandatory Approach: Voluntary labeling on electricity efficiency of appliances is the first step to educate consumers and raise energy saving awareness. Long term sustainability needs compulsory mechanism such as laws and regulations.

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Key Lessons Learned (3) 28

4. Program Monitoring and & Evaluation:

Intensive focusing on program monitoring and evaluation in Thailand are necessary. Standard practices, model approaches, or evaluation guidelines for various type of EE programs should be developed and endorsed by responsible authority. These practices or guidelines will assist concerning agencies in documenting, comparing, continuing and expansion of EE programs.

5. Government or policy bodies as demonstrators: Demonstration the

use of high efficiency products should be widely implemented by government agencies, in order to show the best practices or can be used as models for customers to adopt.

6. Check & Balance function: The role separation of policy bodies, regulate bodies and implementation agencies is necessary for check-and-balance.

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“Save Your Money Save Our Energy Save The Environment”

Demand Side Management and Planning Division Demand Side Management Implementation Division

Electricity Generating Authority of Thailand

© All rights reserved EGAT.2013

Website: www.dsm.egat.co.th http://labelno5.egat.co.th/ Tel. +66 2436 8100, 200 Fax.+66 2433 3329