Solmes Energy Efficiency

Real Time Energy Infrastructure Investment and Risk Management
1. Auflage 2009
ISBN: 978-90-481-3321-5
Verlag: Springer Netherlands
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 212 Seiten

ENERGY EFFICIENCY uses an applied scientific methodology and case studies to demonstrate and support: The need for the U.S. and the world to commit to energy and resource efficiency as the central goal in investing in electric, heat, and cooling infrastructure, the huge economic opportunity for using the inefficiency built into 20th century energy supply systems, especially, electric, to pay for the upgrades, replacements, and new production and distribution systems of the 21st century, the importance of adopting a standard, web-based energy infrastructure investment decision-making and risk management tool that will serve as a communication medium for all stakeholders to evaluate and compare energy infrastructure investment options and manage investment risks, expansions of the U.S. 'smart' grid investment to include evaluation and risk management of energy systems infrastructure investments not just electricity operations, the need to adopt a 'framework' for utilities, energy service companies, and customers to work together to close business deals, communicate and manage risks, and realize profits.

Autoren/Hrsg.

Solmes, Leslie A.

Inhaltsverzeichnis

1;Contents;6
2;About the Author;12
3;Acknowledgments;13
4;Introduction;14
4.1;1 Mystery;14
4.2;2 Intent;14
4.3;3 Book Structure;16
5;Part I: Setting the Stage;18
5.1;1 The Most Reliable Energy at the Lowest Unit Cost;19
5.1.1;1.1 A Beginning – 1978;19
5.1.2;1.2 Energy Principles;20
5.1.2.1;1.2.1 The Second Law of Thermodynamics;20
5.1.2.2;1.2.2 Resource Scarcity;21
5.1.2.3;1.2.3 Integrated Energy Supply Systems;22
5.1.3;1.3 The 1978 National Energy Policy;23
5.1.4;1.4 Our Goal Is…;23
5.2;2 The Opportunity;25
5.2.1;2.1 Aged Infrastructure;25
5.2.2;2.2 Information Technology;27
5.2.3;2.3 Opposing Business Goals;28
5.2.4;2.4 Uncertainty;28
5.2.5;2.5 The Age Advantage;29
5.3;3 Energy Supply Systems;30
5.3.1;3.1 Components of Traditional Energy Supply Systems;30
5.3.2;3.2 Definition of Energy Supply Systems and Ownership;32
5.3.2.1;3.2.1 Electricity System;32
5.3.2.2;3.2.2 Customer Systems;34
5.3.3;3.3 Decentralization;36
5.3.4;3.4 Efficient Electrical Infrastructure Development;36
5.3.5;3.5 Discouraging Supply-Side Efficiency;37
5.3.6;3.6 The High Costs of Peak Demand;38
5.3.7;3.7 Back to the Future;40
5.4;4 Funding Problems;41
5.4.1;4.1 Piecemeal Approach;41
5.4.2;4.2 No Money!;42
5.4.3;4.3 Financial Burden or Investment Opportunity;43
5.4.4;4.4 Summary;44
6;Part II: A Different Way of Doing Business;45
6.1;5 Energy Supply Investment Planning Methodology;46
6.1.1;5.1 Trust and Collaboration;46
6.1.2;5.2 Basic Business Planning;48
6.1.3;5.3 Where to Start the Planning Process;49
6.1.4;5.4 Building Blocks;49
6.1.5;5.5 OA Methodology;50
6.1.6;5.6 The Baseline – Steps 1 and 2;51
6.1.6.1;5.6.1 General Facility Description;51
6.1.6.2;5.6.2 Business Goals;52
6.1.6.3;5.6.3 Facility Budget;53
6.1.6.4;5.6.4 Growth and Escalation Rates;54
6.1.6.5;5.6.5 Tax Information;55
6.1.7;5.7 Step 2 – Baseline Energy Use, Costs, and Equipment;56
6.1.7.1;5.7.1 Baseline Energy Usage, Demand, and Costs;57
6.1.7.2;5.7.2 Equipment Specifications and O&M Costs;60
6.1.8;5.8 The Baseline Results;64
6.1.8.1;5.8.1 What Will Happen If No Investments Are Made in the Facility?;65
6.2;6 The Real Investment Opportunity;67
6.2.1;6.1 Case Studies;67
6.2.1.1;6.1.1 Navy Utilities Privatization;67
6.2.1.2;6.1.2 The University of Maryland, College Park Funding Goal;69
6.2.2;6.2 Step 3 – Energy Supply System Technical Proposal;71
6.2.2.1;6.2.1 Demand-Side Energy Efficiency Measures and Adjusted Baseline;71
6.2.2.2;6.2.2 Production and Distribution System Solutions;73
6.2.2.3;6.2.3 Illinois State University Investment Scope;74
6.2.3;6.3 Step 4 – Project Financing, Ownership and Implementation Options;74
6.2.3.1;6.3.1 Construction Information;75
6.2.3.2;6.3.2 Long Term Debt;75
6.2.3.3;6.3.3 Long Term Debt Payment;76
6.2.3.4;6.3.4 Depreciation;77
6.2.4;6.4 Step 5 – The Energy Infrastructure System Investment Plan Reports;77
6.2.4.1;6.4.1 Executive Summary;77
6.2.4.2;6.4.2 Proforma and Operational Calculations (Solmes 2008);80
6.2.5;6.5 Energy Supplier Opportunity – The University of Iowa;81
6.2.5.1;6.5.1 Customer and Energy Supplier Benefits;88
6.3;7 A “Living” Business Plan;89
6.3.1;7.1 Information and Communication;89
6.3.2;7.2 Web-Based Financial Modeling Software;91
6.3.3;7.3 Energy Information and Management System Business and Functional Goals;92
6.3.4;7.4 Information Cost Control;95
6.3.5;7.5 The Bigger Picture;97
6.3.6;7.6 Integration with the Local Utility;97
6.3.7;7.7 Summary;98
6.4;8 Profits from Value-Added;100
6.4.1;8.1 Change;100
6.4.2;8.2 The University of Southern California;101
6.4.2.1;8.2.1 The Energy Investor’s Proposal;101
6.4.2.2;8.2.2 Lowest Cost Investment Strategy;101
6.4.2.3;8.2.3 Lower Implementation and Capital Costs;104
6.4.2.4;8.2.4 Reduced Business Risk;105
6.4.2.5;8.2.5 Improved Financial Control and Reporting;105
6.4.2.6;8.2.6 Financing Strategy;106
6.4.2.7;8.2.7 Supplier Profits;107
6.4.2.8;8.2.8 What Happened at USC;107
6.4.3;8.3 The University of New Mexico;107
6.4.3.1;8.3.1 The Problems;107
6.4.3.2;8.3.2 Manifestations of UNM’s Problems;108
6.4.3.3;8.3.3 A Gold Mine of Opportunity;109
6.4.3.4;8.3.4 Addendum – Public Service of New Mexico (PNM);109
6.4.4;8.4 Utility Investment Incentives;110
6.4.4.1;8.4.1 Calpine – Opportunity Missed?;110
6.4.4.2;8.4.2 The First Rule of Financing;110
6.4.4.3;8.4.3 A Cascade of Load Reduction and Elimination of Spikes;111
6.4.4.4;8.4.4 Maximizing Supplier and Customer Energy Supply Systems;111
6.4.5;8.5 Information Technology – Again!;112
6.4.6;8.6 How Do Electricity Suppliers Make Money?;112
6.4.7;8.7 Summary;113
7;Part III: Fear of the Unknown;114
7.1;9 Risk Assessment;115
7.1.1;9.1 Investment Plan Assumptions;115
7.1.2;9.2 Areas of Risk;116
7.1.3;9.3 Risk Mitigation;116
7.1.3.1;9.3.1 Project Revenues;117
7.1.3.2;9.3.2 EPC Contracts;117
7.1.3.3;9.3.3 Operations and Maintenance Contracts;118
7.1.3.4;9.3.4 Primary Fuel Costs;119
7.1.3.5;9.3.5 Supplemental, Maintenance, and Standby Power;119
7.1.3.6;9.3.6 Financing Costs and Off-Balance Sheet;119
7.1.3.7;9.3.7 Environmental Permitting;120
7.1.3.8;9.3.8 The Uncertainty of Policies and Regulations;120
7.1.4;9.4 Sensitivity Analysis;121
7.1.5;9.5 The Importance of Timely Information and Communication;122
7.1.6;9.6 Request for Proposal;124
7.2;10 Energy Service Companies;126
7.2.1;10.1 Demand-Side;127
7.2.2;10.2 Supply-Side;128
7.2.3;10.3 Barriers to Implementation;128
7.2.3.1;10.3.1 Market Inertia;128
7.2.3.2;10.3.2 Transaction Complexity;129
7.2.3.3;10.3.3 Changing Horses Mid-Stream;129
7.2.3.4;10.3.4 Communication of Financial Parameters;129
7.2.3.5;10.3.5 Limited Staffing and Technology;130
7.2.3.6;10.3.6 The Importance of Applied Training;130
7.2.4;10.4 Data Collection – A Policy Priority;131
7.2.5;10.5 Progress;132
7.2.5.1;10.5.1 CHP – EPA Partnership;132
7.2.5.2;10.5.2 International District Energy Association;132
7.2.6;10.6 Implementation;133
7.2.6.1;10.6.1 One Step at a Time;133
7.2.6.2;10.6.2 Levels of Granularity;134
7.2.6.3;10.6.3 Comparing Investment Options;135
7.3;11 Performance-Based Investment Financing;137
7.3.1;11.1 Rebuild America;137
7.3.2;11.2 Energy Performance Metrics;138
7.3.3;11.3 Project Financing;140
7.3.4;11.4 University of California, Santa Barbara (UCSB);141
7.3.5;11.5 The Serious Cost of Unreliable Infrastructure;142
7.3.6;11.6 The Maryland Economic Development Corporation;142
7.3.7;11.7 The World Bank;143
7.3.8;11.8 Guidebooks;144
7.3.9;11.9 Better Than the Stock Market;145
7.3.9.1;11.9.1 National Rural Utilities Cooperative Finance Corporation;146
7.3.9.2;11.9.2 FARECal;146
7.4;12 The Advancement of Energy Efficiency;148
7.4.1;12.1 Status of Electricity Supply Systems;149
7.4.1.1;12.1.1 The Electric Power Research Institute;149
7.4.1.2;12.1.2 Other Points of View;150
7.4.2;12.2 Barriers and Incentives;151
7.4.2.1;12.2.1 Implementation of Public Utilities Regulatory Policy Act (PURPA);151
7.4.2.2;12.2.2 EPA CHP Partnership;153
7.4.2.3;12.2.3 2005 Energy Policy Act;153
7.4.2.4;12.2.4 Standard Interconnection Agreements and Procedures for Small Generators;154
7.4.2.5;12.2.5 The Energy Independence and Security Act of 2007;154
7.4.3;12.3 What Will Be the Cost of Electricity?;155
7.4.3.1;12.3.1 National Energy Policy Initiative Expert Group Report;156
7.4.3.2;12.3.2 The Potential Benefits of Distributed Generation (DG) and Rate-Related Issues That May Impede Its Expansion;159
7.4.3.3;12.3.3 US Clean Heat and Energy Association (USCHPA);160
7.4.4;12.4 The Electric Utilities;160
7.4.5;12.5 Answer – Opportunity Assessment and Opassess;162
7.4.6;12.6 The Value of Emissions Reductions, Waste Disposal, and Subsidies;164
7.5;13 Leadership;166
7.5.1;13.1 Combining Casten and Friedman;166
7.5.2;13.2 Work Flow Software and Internet Application;167
7.5.3;13.3 Fundamental Currency of Capital Markets;169
7.6;14 Commitment to Resource Efficiency;172
7.6.1;14.1 Energy Efficiency;173
7.6.2;14.2 Energy Infrastructure;174
7.6.3;14.3 Investment;174
7.6.3.1;14.3.1 Comparing Options;174
7.6.3.2;14.3.2 Who Pays?;175
7.6.4;14.4 Real Time;175
7.6.5;14.5 Risk Management;176
7.6.5.1;14.5.1 The ‘Smart’ Grid;176
7.6.5.2;14.5.2 Alternative Energy Investments;177
7.6.6;14.6 Recommendations for a New Energy Information Age;178
7.6.6.1;14.6.1 Adopt a Standard Tool;178
7.6.6.2;14.6.2 Focus on the Full Business Solution;179
7.6.6.3;14.6.3 Support Stakeholder Communication;179
7.6.6.4;14.6.4 Reinforce Adoption;181
7.6.6.5;14.6.5 Automate Consumer Data and Translation;181
7.6.6.6;14.6.6 Promote Inter-Operable Energy Software Tools;182
7.6.6.7;14.6.7 Institute Energy Unit Costs Reports;183
7.6.7;14.7 A Student Energy Core;184
7.6.8;14.8 The Larger Energy System;185
7.6.9;14.9 Summary;186
7.7;15 A Framework for Working Together;188
7.7.1;15.1 Utility Incentives;189
7.7.2;15.2 A Framework;190
8;Part IV: Addendum;193
8.1;16 Plan of Work: The American Recovery and Reinvestment Act of 2009;194
8.1.1;Households ($9.85 billion);195
8.1.2;Government Facilities ($26.5 billion);195
8.1.3;Electricity Generation from Renewable Energy ($13.4 billion);195
8.1.4;Electric Grid ($21.825 billion);195
8.1.5;Research, Training, and Administrative ($5 billion);196
8.1.6;Clean-up ($9.4 billion);196
8.1.7;16.1 Interpretation of Goals;196
8.1.8;16.2 Some Ground Rules;196
8.1.9;16.3 The Plan of Work;197
8.1.9.1;One–six months;197
8.1.9.2;Seventh month;198
8.1.9.3;Seventh – Twelfth month;199
9;References;200
10;List of Abbreviations;202
11;Index;205