Energy Efficiency - Real Time Energy Infrastructure Investment and Risk Management

von: Leslie A. Solmes

Springer-Verlag, 2009

ISBN: 9789048133215 , 212 Seiten

Format: PDF

Kopierschutz: Wasserzeichen

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Preis: 149,79 EUR

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Mehr zum Inhalt

Energy Efficiency - Real Time Energy Infrastructure Investment and Risk Management


 

Contents

6

About the Author

12

Acknowledgments

13

Introduction

14

1 Mystery

14

2 Intent

14

3 Book Structure

16

Part I: Setting the Stage

18

1 The Most Reliable Energy at the Lowest Unit Cost

19

1.1 A Beginning – 1978

19

1.2 Energy Principles

20

1.2.1 The Second Law of Thermodynamics

20

1.2.2 Resource Scarcity

21

1.2.3 Integrated Energy Supply Systems

22

1.3 The 1978 National Energy Policy

23

1.4 Our Goal Is…

23

2 The Opportunity

25

2.1 Aged Infrastructure

25

2.2 Information Technology

27

2.3 Opposing Business Goals

28

2.4 Uncertainty

28

2.5 The Age Advantage

29

3 Energy Supply Systems

30

3.1 Components of Traditional Energy Supply Systems

30

3.2 Definition of Energy Supply Systems and Ownership

32

3.2.1 Electricity System

32

3.2.2 Customer Systems

34

3.3 Decentralization

36

3.4 Efficient Electrical Infrastructure Development

36

3.5 Discouraging Supply-Side Efficiency

37

3.6 The High Costs of Peak Demand

38

3.7 Back to the Future

40

4 Funding Problems

41

4.1 Piecemeal Approach

41

4.2 No Money!

42

4.3 Financial Burden or Investment Opportunity

43

4.4 Summary

44

Part II: A Different Way of Doing Business

45

5 Energy Supply Investment Planning Methodology

46

5.1 Trust and Collaboration

46

5.2 Basic Business Planning

48

5.3 Where to Start the Planning Process

49

5.4 Building Blocks

49

5.5 OA Methodology

50

5.6 The Baseline – Steps 1 and 2

51

5.6.1 General Facility Description

51

5.6.2 Business Goals

52

5.6.3 Facility Budget

53

5.6.4 Growth and Escalation Rates

54

5.6.5 Tax Information

55

5.7 Step 2 – Baseline Energy Use, Costs, and Equipment

56

5.7.1 Baseline Energy Usage, Demand, and Costs

57

5.7.2 Equipment Specifications and O&M Costs

60

5.8 The Baseline Results

64

5.8.1 What Will Happen If No Investments Are Made in the Facility?

65

6 The Real Investment Opportunity

67

6.1 Case Studies

67

6.1.1 Navy Utilities Privatization

67

6.1.2 The University of Maryland, College Park Funding Goal

69

6.2 Step 3 – Energy Supply System Technical Proposal

71

6.2.1 Demand-Side Energy Efficiency Measures and Adjusted Baseline

71

6.2.2 Production and Distribution System Solutions

73

6.2.3 Illinois State University Investment Scope

74

6.3 Step 4 – Project Financing, Ownership and Implementation Options

74

6.3.1 Construction Information

75

6.3.2 Long Term Debt

75

6.3.3 Long Term Debt Payment

76

6.3.4 Depreciation

77

6.4 Step 5 – The Energy Infrastructure System Investment Plan Reports

77

6.4.1 Executive Summary

77

6.4.2 Proforma and Operational Calculations (Solmes 2008)

80

6.5 Energy Supplier Opportunity – The University of Iowa

81

6.5.1 Customer and Energy Supplier Benefits

88

7 A “Living” Business Plan

89

7.1 Information and Communication

89

7.2 Web-Based Financial Modeling Software

91

7.3 Energy Information and Management System Business and Functional Goals

92

7.4 Information Cost Control

95

7.5 The Bigger Picture

97

7.6 Integration with the Local Utility

97

7.7 Summary

98

8 Profits from Value-Added

100

8.1 Change

100

8.2 The University of Southern California

101

8.2.1 The Energy Investor’s Proposal

101

8.2.2 Lowest Cost Investment Strategy

101

8.2.3 Lower Implementation and Capital Costs

104

8.2.4 Reduced Business Risk

105

8.2.5 Improved Financial Control and Reporting

105

8.2.6 Financing Strategy

106

8.2.7 Supplier Profits

107

8.2.8 What Happened at USC

107

8.3 The University of New Mexico

107

8.3.1 The Problems

107

8.3.2 Manifestations of UNM’s Problems

108

8.3.3 A Gold Mine of Opportunity

109

8.3.4 Addendum – Public Service of New Mexico (PNM)

109

8.4 Utility Investment Incentives

110

8.4.1 Calpine – Opportunity Missed?

110

8.4.2 The First Rule of Financing

110

8.4.3 A Cascade of Load Reduction and Elimination of Spikes

111

8.4.4 Maximizing Supplier and Customer Energy Supply Systems

111

8.5 Information Technology – Again!

112

8.6 How Do Electricity Suppliers Make Money?

112

8.7 Summary

113

Part III: Fear of the Unknown

114

9 Risk Assessment

115

9.1 Investment Plan Assumptions

115

9.2 Areas of Risk

116

9.3 Risk Mitigation

116

9.3.1 Project Revenues

117

9.3.2 EPC Contracts

117

9.3.3 Operations and Maintenance Contracts

118

9.3.4 Primary Fuel Costs

119

9.3.5 Supplemental, Maintenance, and Standby Power

119

9.3.6 Financing Costs and Off-Balance Sheet

119

9.3.7 Environmental Permitting

120

9.3.8 The Uncertainty of Policies and Regulations

120

9.4 Sensitivity Analysis

121

9.5 The Importance of Timely Information and Communication

122

9.6 Request for Proposal

124

10 Energy Service Companies

126

10.1 Demand-Side

127

10.2 Supply-Side

128

10.3 Barriers to Implementation

128

10.3.1 Market Inertia

128

10.3.2 Transaction Complexity

129

10.3.3 Changing Horses Mid-Stream

129

10.3.4 Communication of Financial Parameters

129

10.3.5 Limited Staffing and Technology

130

10.3.6 The Importance of Applied Training

130

10.4 Data Collection – A Policy Priority

131

10.5 Progress

132

10.5.1 CHP – EPA Partnership

132

10.5.2 International District Energy Association

132

10.6 Implementation

133

10.6.1 One Step at a Time

133

10.6.2 Levels of Granularity

134

10.6.3 Comparing Investment Options

135

11 Performance-Based Investment Financing

137

11.1 Rebuild America

137

11.2 Energy Performance Metrics

138

11.3 Project Financing

140

11.4 University of California, Santa Barbara (UCSB)

141

11.5 The Serious Cost of Unreliable Infrastructure

142

11.6 The Maryland Economic Development Corporation

142

11.7 The World Bank

143

11.8 Guidebooks

144

11.9 Better Than the Stock Market

145

11.9.1 National Rural Utilities Cooperative Finance Corporation

146

11.9.2 FARECal

146

12 The Advancement of Energy Efficiency

148

12.1 Status of Electricity Supply Systems

149

12.1.1 The Electric Power Research Institute

149

12.1.2 Other Points of View

150

12.2 Barriers and Incentives

151

12.2.1 Implementation of Public Utilities Regulatory Policy Act (PURPA)

151

12.2.2 EPA CHP Partnership

153

12.2.3 2005 Energy Policy Act

153

12.2.4 Standard Interconnection Agreements and Procedures for Small Generators

154

12.2.5 The Energy Independence and Security Act of 2007

154

12.3 What Will Be the Cost of Electricity?

155

12.3.1 National Energy Policy Initiative Expert Group Report

156

12.3.2 The Potential Benefits of Distributed Generation (DG) and Rate-Related Issues That May Impede Its Expansion

159

12.3.3 US Clean Heat and Energy Association (USCHPA)

160

12.4 The Electric Utilities

160

12.5 Answer – Opportunity Assessment and Opassess

162

12.6 The Value of Emissions Reductions, Waste Disposal, and Subsidies

164

13 Leadership

166

13.1 Combining Casten and Friedman

166

13.2 Work Flow Software and Internet Application

167

13.3 Fundamental Currency of Capital Markets

169

14 Commitment to Resource Efficiency

172

14.1 Energy Efficiency

173

14.2 Energy Infrastructure

174

14.3 Investment

174

14.3.1 Comparing Options

174

14.3.2 Who Pays?

175

14.4 Real Time

175

14.5 Risk Management

176

14.5.1 The ‘Smart’ Grid

176

14.5.2 Alternative Energy Investments

177

14.6 Recommendations for a New Energy Information Age

178

14.6.1 Adopt a Standard Tool

178

14.6.2 Focus on the Full Business Solution

179

14.6.3 Support Stakeholder Communication

179

14.6.4 Reinforce Adoption

181

14.6.5 Automate Consumer Data and Translation

181

14.6.6 Promote Inter-Operable Energy Software Tools

182

14.6.7 Institute Energy Unit Costs Reports

183

14.7 A Student Energy Core

184

14.8 The Larger Energy System

185

14.9 Summary

186

15 A Framework for Working Together

188

15.1 Utility Incentives

189

15.2 A Framework

190

Part IV: Addendum

193

16 Plan of Work: The American Recovery and Reinvestment Act of 2009

194

Households ($9.85 billion)

195

Government Facilities ($26.5 billion)

195

Electricity Generation from Renewable Energy ($13.4 billion)

195

Electric Grid ($21.825 billion)

195

Research, Training, and Administrative ($5 billion)

196

Clean-up ($9.4 billion)

196

16.1 Interpretation of Goals

196

16.2 Some Ground Rules

196

16.3 The Plan of Work

197

One–six months

197

Seventh month

198

Seventh – Twelfth month

199

References

200

List of Abbreviations

202

Index

205