Albrecht Kaupp

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Energy Efficiency Laws From formulation to
implementation, marketing and analyzing the Impact
On the occasion of the MED-ENEC National
Consultation Tel Aviv Israel November 13 2008

• Albrecht Kaupp
• Team Leader

The contents of this publication are the sole
responsibility of the author and can in no way
be taken to reflect the views of the European
Union.
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MESSAGE
Human Beings depending on the extent of physical
activities, have an overall efficiency between 8
and 16 in converting food energy into physical
work.
The most intelligent creature on earth has
managed to develop machines which are fare more
efficient than their own design.
Cogeneration plant 80 Combined
cycle 50 Coal fired power plant 40 Gasoline
Engine 16 Human being 12
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• Thirty five years of EE - History
• 1973- 1998 4000 DSM Programms of 2000! Power
  Utilities in the USA. All collapsed after
  deregulation of the market, except 40.
• 2003 India passed the most comprehensive,
  drastic and complex Energy Conservation Act
  taking note of the most relevant developments and
  experiences in Japan, Australia and the USA.
• 2006 Directive 2006/32/EC was the beginning of a
  serious attempt of the EU to prescribe energy
  efficiency to member states. It is an excellent
  one and very rich in NEEAPs

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Quality of Life versus Electricity Consumption
France Germany Israel Saudi Arabia
United States Kuwait
Turkey Lebanon Syria Jordan Tunisia Egypt Algeria
Palestinian Territories Morocco
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• Six years of EE History India
• 13,000 Energy Managers and Energy Auditors took
  the Exam. Only 30 passed and got certified.
• About 100 accredited Energy Auditor Firms do good
  business. No subsidies for energy audits
• Annual investments of 500 Million Euro in true EE
  measures at average payback of 1.1 years. (mostly
  industry, few buildings despite ECBC) The annual
  investment market is 5 times larger.
• NO investment subsidies, other fiscal incentives,
  or other market stimulation packages.

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Intervention Matrix
CrossSubsidy
Consumption
NecessaryGovernment Intervention
High Voltage Transmission System
Fossil or Renewable Energy Power Plant
Distribution System
Technical losses
100
15
70
23
Agriculture
Public lighting
100
2
Industry
0
25
Commerce
0
8
Household
20
17
Railway
0
3
Government
0
7
Consumes itself2 to 5 (Technical Losses)
Consumes itself 3 to 15 (Station Use)
100
Sum
Pilferage, or not paid for
100
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Yes
May be
No
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Where do we stand in Germany

• 100,000 buildings are under contract at total
  investment of 5 Billion by 480 ESCOs.
• Forecast for 2010 There will be 280,000 sites
  under contract
• About 120,000 sites have less than 9 saving
  potential.

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Actual energy saving potentials
World Structural differences in saving
potential 1. Power sector 14
savings from old to new
up to 2 savings by retrofitting 2. Industry
Annual reduction of specific energy consumption
by 1 to 2 over 10 15 years is manageable and
has been done. 3. Buildings Once a time
investment over 2 years could reduce electricity
and gas/oil consumption by 30 at one shot.
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German Public Building Sector

• Most public buildings in Germany have no budget
  to modernize and retrofit buildings to become
  more energy efficient.
• However they do have a secured budget to pay the
  annual energy bill as a collateral for banks and
  ESCOs

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A functioning Business Setup

• Energy Services
• Consulting
• ESC planning, financing, construction and
  operation of generation units

Foundation in 1992 as Public-Private Partnership

• Shareholders
• Vattenfall Europe
• GASAG
• Federal State of Berlin
• KfW Banking Group

• Generation Data
• 15 micro CHP-units
• at 30 sites in the region of Berlin
• installed capacity 780 kWel
• 26 MWth

Know how 35 staff
Annual Turn-Over about 5 million
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Major Contracting Issues
- Lack of transparency in contracting -
Ambiguities in contract formulation - Disputes
how to monitor cost savings.
www.clearcontract.net www.eurocontract.net
There is a need to bundle buildings and not go
for single project contracts.
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The final equation
1. Energy Modesty 2. Energy Conservation 3.
Renewable Energy The Solution
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Energy Modesty Is a glass of water half full or
half empty ?
Neither answer is true There is too much glass
for the job to be done!
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The Large Energy Performance Bandwidth
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How efficient are power plants?
It is better to ask how can we better establish
and verify the present performance at the present
configuration with the least effort.
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Which power generation efficiency do you fancy?
Example 1 Coal
Professionals use Net/GCV
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Electricity Tariffs and Feed-in-Tariffs
in EuroCents/kWh
MPCs
EU-27 Households
Solar PV Grid Feed
Solar PV Battery
1 7
7 (15.3) 26
17 26
26 40
40 60
4.4 (9) 14
Wi
Solar Thermal
EU-27 Industry
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The Building Sector has a high untapped economic
attractive potential for EE measures
30 Economic reduction of energy consumption in
buildings is always possible.
However a trilogy of measures such as building
retrofitting, energy efficient home and office
appliances as well as energy modesty is asked for
!
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• Observations-1
• Need to select designated consumers based on
  indicators such as energy intensity, fractional
  energy costs, and energy consumption as
  percentage of national energy consumption
• Tariff regulators not always helpful and
  sometimes a barrier to EE.
• Marketing of provision of an Act is more
  effective than enforcement !
• Increasing tariffs is not necessarily the
  solution to more energy efficiency

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Observation-2 Utility sponsored DSM requires
more intelligent designs to recognize and satisfy
the needs of a utility
Utility benefits
Economy benefits
All benefit
Consumer benefits
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Issue Do you know what color mix of electricity
comes out of your wall socket ?
FEED in laws for Renewable Energy are
camouflaging the real generation cost for the
consumer and should be linked and matched by
Energy Efficiency Directives.
Hydro
Biomass, Solar, Wind
Nuclear
Gas and Oil
Coal and Tar Sand
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We all have our personal doomsday scenarios with
respect to an extremely energy hungry world
Year 1900

• History repeats itself scenario

Year 1800
Year 2050
Year 2000CFL
Year 2020, LED
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How Can MED-EMIP Assist You ?

• albrecht.kaupp_at_gtz.de
• michael.broege_at_medemip.eu
• ammar.taher_at_medemip.eu
• P.Box 555
• Heliopolis 11757
• Cairo Egypt