Integrated Resource Strategic Planning and Power Demand-Side Management

592 Pages·2013·7.156 MB·English

by  Zhaoguang Hu, Xinyang Han, Quan Wen (auth.)

Power Systems
Zhaoguang Hu
Xinyang Han
Quan Wen et al.
Integrated Resource
Strategic Planning
and Power
Demand-Side
Management
Power Systems
For furthervolumes:
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Zhaoguang Hu Xinyang Han
•
Quan Wen et al.
Integrated Resource
Strategic Planning and
Power Demand-Side
Management
123
Zhaoguang Hu QuanWen
State GridEnergy Research Institute State GridEnergy Research Institute
Beijing Beijing
People’s Republic ofChina People’s Republic ofChina
e-mail: [email protected] e-mail: [email protected]
Xinyang Han
State GridEnergy Research Institute
Beijing
People’s Republic ofChina
e-mail: [email protected]
ISSN 1612-1287 ISSN 1860-4676 (electronic)
ISBN 978-3-642-37083-0 ISBN 978-3-642-37084-7 (eBook)
DOI 10.1007/978-3-642-37084-7
SpringerHeidelbergNewYorkDordrechtLondon
JointlypublishedwithChinaElectricPowerPress
ISBN:978-7-5123-4061-9ChinaElectricPowerPress
LibraryofCongressControlNumber:2013933577
(cid:2)ChinaElectricPowerPressandSpringer-VerlagBerlinHeidelberg2013
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Preface
In the 1970s, the Middle East oil crisis, rising land costs, and increasing envi-
ronmental pressure drove power utilities within the US monopoly system to
consider how to ensure low cost power supply, how to coordinate electricity
supply and expand economic production to minimize corporate inputs and maxi-
mizeprofits,andwhethertoexpandinstalledcapacityorpostponenewgeneration
constructionandsatisfyclient’sloaddemand throughelectricityconservationand
change of power consumption modes by users. These questions involved inte-
grated planning of power utilities.
Integrated Resource Planning (IRP), and Demand-Side Management (DSM),
emergedtohelpanswertheabovequestions.IRP/DSMfundamentallychangedthe
traditionalthinkingofsimplyrelyingongrowthinenergysupplytoaccommodate
demand growth, and incorporated demand-side conservable energy into planning
to enable unified optimization of supply-side energy to minimize power utility
inputs and maximize their profits. IRP and DSM are mutually complementary,
withIRPbeingthetheoreticalfoundationofDSMandDSMbeingthepracticeof
IRP.
IRP/DSM aims to achieve the macroscopic effect of reducing demand for
primary energy and alleviating the pressure society places on the environment
throughmicroscopiccorporatebehavior.Therefore,IRP/DSMhasattractedstrong
support from many governments. More than three decades of exploration and
practicehaveseentheaccumulationofrichexperience.Remarkableeconomicand
social benefits have been achieved in such areas as conserving energy resources,
improving ecological environment, increasing electric power resource competi-
tiveness, and minimizing cost of energy services. Numerous countries emphasize
energy conservation. Such countries devise regulations, standards and policies on
energyconservation,encouragerelatedtechnicalresearchandthedevelopmentof
high-efficiency and energy-conserving products, raise public awareness of energy
conservation, vigorously encourage energy conservation, and study methods and
management modes for resource allocation optimization that better match the
needs ofmodern social development.These measuresensure energymanagement
meets the requirements of the market economy system.
As the problem of global climate change intensifies and voices advocating
environmental protection grow louder, governments of all countries have realized
v
vi Preface
the importance of DSM, and have been vigorously supporting and promoting the
implementation of DSM projects. However, with constant power system reform,
breaking of monopolies, introduction of competition, separation of power gener-
ation from power grid and competitive bidding for generation-side grid connec-
tion, power generation enterprises and power grid enterprises have lost the
functionsofunifiedplanningandtheoperationsofpowergeneration,transmission,
distribution, and consumption. Enterprises have been unable to perform IRP,
forcing a separation of IRP and DSM, and causing DSM to lose its theoretical
foundations. These issues have created challenges for IRP/DSM implementation.
Power market reform has been constant during the twenty-first century. China
has clearly separated its power generation from its power grid. Competition has
been introduced to the generation side, while the distribution side remains a state
supervisednaturalmonopoly.WiththerapiddevelopmentoftheChineseeconomy
and the constant improvement in living standards, the proportion of electricity
consumption to terminal energy consumption has been increasing owing to the
positive characteristics of the former in terms of high efficiency, convenience,
cleanness, and security. Electricity has become indispensable to daily life and a
basic requirement for economic production. Electrification has almost become a
byword for modernization, and electric power has become increasingly important
intheenergysector.Inthelongrun,economicandsocialdevelopmentwillboost
powerdemand.TomaintainChina’ssustainableeconomicdevelopmentandbuild
an energy-conserving and environmentally-friendly society, the government has
prioritized energy conservation. DSM is an effective tool for energy conservation
and emission reduction. The new energy conservation law expressly requires the
state to support and promote DSM with preferential tax and price policies.
Despite separation of power generation from the power grid, and the fact that
IRP/DSM cannot be used by power utilities to generate, transmit, distribute, and
use power, the government remains capable of promoting DSM at the national
level, and can extend the concept of IRP to macroscopic strategic planning.
China is not only a ‘‘large developing country’’ but also a ‘‘small country in
terms of per capita resources’’ and a ‘‘low-efficiency country in resource utiliza-
tion’’.Problemssuchasashortageofenergyresourcesandenvironmentalpollution
severely challenge China’s sustainable economic development. The question of
howtoexpandIRPinregardtotheseproblemsthusarises.Whenitcomestoplan
formulation, government differs from enterprises in that it formulates strategic
plans while the latter formulate production and business development plans. The
government’sstrategicplanforthepowerindustryisamacroscopicstrategicplan
focused on overall scale of generating units (coal power, gas power, hydropower,
nuclearpower,windpower,etc.),energydemandandsocialenvironmentalimpact
in different periods. This national strategic plan is formulated in accordance with
national conditions for economic development, regional development, energy
supplysecurity,andenvironmentalprotection.Meanwhile,theplansofindividual
powerutilitiesfocusoncorporateproductionandbusinessdevelopmentplansfocus
on installation progress and production simulation specific to the construction,
commissioning,operation,andoverhaulofindividualunitsbasedonforecastload
Preface vii
demand, thusmaximizingcorporateprofits.IftheconceptofIRPisextendedtoa
method of national strategic planning (Integrated Resource Strategic Planning,
IRSP)tomakeitapplicabletonationalstrategicplanningwhenIRPcannotbecome
animplementationtoolforpowerutilities,IRSPwillofferaneffective solutionto
challenges encountered by China in its development, and will provide theoretical
support for measures such as DSM, energy conservation and emission reduction,
coping with global climate change. China’s socialist market economy gives the
Chinesegovernmentexcellent capabilitytoformulateandimplementIRSP/DSM.
ThepotentialofenergysavingandmitigatingemissionbyIRSM/DSMwillbegreat
in China, and also in other country in the world. This is the main propose of the
book.
This book discusses the theories, methods, and models of IRSP/DSM formu-
lation at the national level, and establishes the relationship between IRSP and
DSM,wherebyIRSPisthetheoreticalfoundationofDSMandDSMisthepractice
ofIRSP.Also,thebookexploreshowtoseparateDSMintodifferentcomponents,
including the government, power distribution enterprises, Energy Service Com-
panies (ESCOs) and power users, and how to promote participation of all com-
ponents in DSM projects.
The book conducts theoretical exploration based on years of research on DSM
in the State Grid Energy Research Institute (SGERI, formerly the State Power
Economic Research Institute-SPERI) and Electric Power Research Institute of
China(ChinaEPRI),referencesextensivedomesticandforeigndata,anddescribes
different participants in DSM in a targeted manner. The book includes eight
chapters, including Chap. 1, ‘‘Basic Theory of Integrated Resource Strategic
Planning (IRSP)’’; Chap. 2, ‘‘Basic Theory of Demand-Side Management
(DSM)’’; Chap. 3, ‘‘The Promoter of DSM—Government’’; Chap. 4, ‘‘The
Implementers of DSM—Power Grid Enterprises’’; Chap. 5, ‘‘The Backbone of
DSM Implementation—Energy Service Companies (ESCOs)’’; Chap. 6, ‘‘The
Important Participants in DSM—Power Consumers’’; Chap. 7, ‘‘The Prospects of
DSM’’ and Chap. 8, ‘‘Introduction to a DSM Laboratory’’.
Chapter1exploreshowtoimplementIRSPatthenationallevel,whileChap.2
covers theoretical methods of implementing DSM. Both chapters present the
theoretical foundations of IRSP/DSM in a manner suitable for all readers.
Chapters 3–6 successively elaborate the promoter of DSM (government), the
subjects that help implement DSM (power grid enterprises), the nucleus of DSM
implementation(ESCOs),andtheimportantparticipantsinDSM(powerusers),so
that various readers can read according to their respective roles to learn how to
quickly participate in and conduct DSM. Chapter 7 examines the prospects of
DSM and explores future development focuses and readers could gain a deeper
understanding by taking China’s actual situation into account. Finally, Chap. 8
introduces the framework prototype and functions of the DSM laboratory to be
constructed by SGERI.
Readers can read the book guided by the following block diagram. Hopefully,
readers can get detailed data from the chapters of interest to them, to further
understand the essence, development history and outlook of IRSP and DSM, and
viii Preface
to learn about China’s potential for energy and power conservation and DSM
implementation.ThroughlearninghowtoparticipateinandconductDSM,readers
can better contribute to China’s DSM work and the creation of an energy-con-
serving and environmentally-friendly society.
bD Chapter1
eneiffe Basic Theory of IRSP
fit fromrent re
the boaders c Basic TChheaoprtyer o2f DSM
okan
Various Chapter4 Chapter5
readers may Chapter3 Chapter6
The Implementers The Backbone of
read chapters The Promoter The Important
of DSM DSM Implementation
according to of DSM Participants in DSM
respective --Government --Power Grid --Energy Service --Power Consumers
roles Enterprises Companies(ESCOs)
bD
enefit fromifferent re The PrCoshpaepcttesr o7f DSM
the bookaders can IntroductionC toh aap DteSrM8 Laboratory
The authors of all the chapters are listed as follows: Chap. 1 was authored by
Zhaoguang Hu, Xinyang Han, and Quan Wen; Chap. 2 by Yuhui Zhou, Xinyang
Han, and Zhaoguang Hu; Chap. 3 by Zhaoguang Hu, Xinyang Han, Yugui Gu,
Litong Dong, Jing Zhao, Peng Wu, and Lijie Guo; Chap. 4 by Jing Zhao, Litong
Dong, Peng Wu, Wei Chen, and Zhaoguang Hu; Chap. 5 by Wei Sun and Lei
Chen;Chap.6byXinyangHan,LitongDong,HongcaiDai,andPengWu;Chap.7
by Baoguo Shan, Quan Wen, Hongcai Dai, Lei Chen, and Zhaoguang Hu; and
Chap. 8 by Zhaoguang Hu and Xiandong Tan.
Many experts have provided comments and help during the compiling of this
book. The following experts provided numerous constructive opinions and sug-
gestions: Yunzhou Zhang, Xuehao Yu, Zhongbao Niu, Liping Jiang, Ying Li,
Xubo Ge, Ying Ran, Xinmao Wang, Yunliang Ye, Zhengxiang Ge, Feng Han,
Tijun Lei, Yaohua Wang, Deshun Liu, Jiangyi Hu, Ayuan Xu, Xinghua Zhang,
Hong Ji, Xiaoping Sheng, Junling Lu, Xin Xia, Qiong Liu, Wenlong Jin, Feng
Zhou, Qionghui Li,Qiong Li, Jingru Li, Haiyang Zhou,Meng Li, Hongsheng Hi,
LiZhou,RongCao,JianZhang,LiMaandXiaogangShen.Regardingtheconcept
of IRSP, we exchanged ideas with Hans Nilsson, the IEA DSM-Programme;
HameedNezhad,theinternationalseniorexpertthatfirstintroducedtheconceptof
DSM to China; David Moskovitz and Barbara Finamore, international senior
experts who have long promoted China’s DSM work; as well as domestic senior
Preface ix
expertsincludingHuijiongWang,ZhirongYang,RongsiYe,WanxingWang,and
Qingyi Wang, who offered strong support and valuable opinions. During the
proofing of the book, enthusiastic assistance was provided by Fagen Zhu, Qing
Huang, Yiqun Ma, Lu Xing, Zheng Si, Molin Huo, Chenglong Zhang, Chengjie
Wang, Zhi Luo, Yanan Zheng, Yongpei Wang, Shanshan Wu, Dexiang Jia,
Jinghong Zhou, Xiao Xiao, Wei Duan, Mingtao Yao, Jian Zhang and Lu Yang.
Thechallengingtaskofwritingandeditingthisbookwasmadepossiblebythe
excellentco-operationoftheteamofauthorstogetherwithanumberofcolleagues
andfriends.Oursincerethankstoallcontributors,proofreaders,thepublisher,and
our families for making this book project happen.
Errors and deficiencies are unavoidable owing to our limited knowledge, but
readercommentsareappreciated.Westronglybelievethatcriticismleadstotruth
while praise will bring fallacy.
Beijing, People’s Republic of China, April 2013 Authors
Contents
1 Basic Theory of Integrated Resource Strategic Planning . . . . . . . . 1
1.1 Basic Concept of Integrated Resource Planning. . . . . . . . . . . . 1
1.1.1 Concept of Integrated Resource Planning . . . . . . . . . . 1
1.1.2 The Features and Advantages of IRP . . . . . . . . . . . . . 13
1.2 The Application of Integrated Resource Planning
and Demand-Side Management in the World . . . . . . . . . . . . . 15
1.2.1 The United States. . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.2.2 The Member Countries of International
Energy Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.3 Basic Concept of Integrated Resource Strategic Planning . . . . . 23
1.3.1 Concept of Integrated Resource Strategic Planning . . . 24
1.3.2 Features and Advantages of Integrated Resource
Strategic Planning . . . . . . . . . . . . . . . . . . . . . . . . . . 34
1.3.3 The Construction of Integrated Resource Strategic
Planning Model. . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
1.4 IRSP for Chinese Economic Development . . . . . . . . . . . . . . . 41
1.4.1 Present Situation of Economic Development. . . . . . . . 41
1.4.2 The Current Situation in Electric Power
Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
1.4.3 The Situation of Energy Resources . . . . . . . . . . . . . . 45
1.4.4 Situation of Energy Consumption Index . . . . . . . . . . . 47
1.4.5 Status of Greenhouse Gas Emissions . . . . . . . . . . . . . 53
1.4.6 Response to the Challenges in Economic
Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
1.5 Application of IRSP Model. . . . . . . . . . . . . . . . . . . . . . . . . . 55
1.5.1 Traditional Resource Strategic Planning . . . . . . . . . . . 56
1.5.2 Integrated Resource Strategic Planning. . . . . . . . . . . . 57
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
2 Basic Theory of Demand-Side Management . . . . . . . . . . . . . . . . . 63
2.1 Theoretical Frame of DSM. . . . . . . . . . . . . . . . . . . . . . . . . . 63
2.1.1 Core Concept Group of DSM . . . . . . . . . . . . . . . . . . 63
2.1.2 Correlation Between DSM Concept and Method . . . . . 67
xi