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energy efficiency issues paper

  1. 99 Posts.
    26 May 2010


    ENERGY ASSOCIATIONS SAY DISTRIBUTED GENERATION OF ELECTRICITY A "GREAT
    OPPORTUNITY" FOR IMPROVED ENERGY DELIVERY


    Ceramic Fuel Cells Limited (AIM/ASX: CFU) - a leading developer of high
    efficiency and low emission electricity generation units for homes and other
    buildings - today announced that several responses to Prime Minister's Task
    Group's Energy Efficiency Issues Paper have highlighted the benefits of
    distributed generation of electricity using fuel cells.

    Distributed electricity generation is the production of electricity at the point
    of use. Currently, only about 25% of electricity produced at centralised
    coal-fired power stations ends up being used. The balance - 75% - is lost as
    heat at the plant or in transmission and distribution.

    In its response to the Energy Efficiency Issues Paper, The Energy Networks
    Association (ENA) - the peak national body for Australia's gas and electricity
    network providers - says:

    "Australia's energy use is growing, and total demand for energy is projected to
    continue to increase with growth in Australia's economy and population, growing
    by more than 25 per cent over the next decade. This growth will require
    substantial investment to maintain and update Australia's electricity
    infrastructure. This investment is already having an impact on electricity
    prices and will continue to do so.

    "ENA recognises the scale and impact of line losses as electricity is
    transported by way of existing transmission and distribution networks, and the
    benefits which can be delivered over the long term by a move to more
    distributed, local generation.

    "In the future, a typical active customer could potentially transform their
    energy profile by purchasing a 3kW combined heat and power (CHP) fuel cell, a
    1.5kW solar PV system, a 5 kWh battery and a Home Area Network (HAN). They could
    reduce their reliance on the grid - which features 90% coal-fired generation,
    60% combustion and line losses and around 10% renewable generation - and move
    towards a more environmentally sustainable profile based on natural gas-fired
    generation, 15% energy conversion losses and 30% renewable generation.

    "Active customers are also likely to be net exporters of electricity. This
    example highlights the fact that greater deployment of distributed generation
    has the potential to significantly improve the energy efficiency of individual
    businesses and households, which may have consequences for energy prices and the
    overall efficiency of the total energy delivery chain."

    Similarly, the Gas Industry Alliance (GIA) states in its submission:

    "The GIA has identified two key areas of great opportunity to drive a stepwise
    change in energy delivery and use throughout Australia. Firstly small to medium
    sized distributed generation including co/tri-generation and fuel cell
    technologies have the potential to deliver significant low cost emission
    intensity reductions in the stationary energy use sector. The second key
    opportunity is the increased use of gaseous fuels (LPG, CNG and LNG) in the
    transport sector."

    Jemena, a large gas and electricity distribution business, says in its
    submission:

    "Jemena considers stimulating small to medium-scale cogeneration fuel cell units
    in the residential sector as key low hanging fruit for delivering a national
    energy efficiency 'step change' outcome, given the low [greenhouse gas]
    emissions intensity and cost effectiveness of these systems."

    The City of Sydney says in its submission:

    "Removing the regulatory barriers to decentralised energy (cogeneration,
    trigeneration, fuel cells and renewable energy) will stimulate the decentralised
    energy market and make a significant contribution to energy production
    efficiency and reductions in CO2 emissions."

    Origin Energy states its submission:

    "Small scale co-generation, or Combined Heat & Power (CHP), can deliver
    significant energy efficiency gains, and represents an opportunity that has
    slipped through the gaps of existing government policy. Origin recommends that
    CHP can impact both energy and peak demand with high levels of both fuel &
    carbon efficiency."

    Origin Energy states that key opportunities for Australia to drive a step change
    improvement in energy production efficiency and derive greater energy from its
    existing stock of natural resources include: fuel switching; distributed
    generation; and co-benefit utilisation (ie the use of heat in combined heat and
    power (CHP) units enables a production efficiency of up to 80%).

    The Task Group's Issues Paper itself says:

    "Energy efficiency measures and cost-effective distributed generation (such as
    solar roof panels, wind turbines, co-generation and tri-generation) can help
    delay the need for new electricity infrastructure investment.

    "Energy efficiency and distributed generation may play a role in increasing the
    security, stability and cost-effectiveness of energy markets. Distributed or
    embedded generation can result in lower transmission line losses because the
    generator is located close to the load. Distributed generators are also capable
    of higher overall energy efficiency if using co-generation or tri-generation,
    because waste heat can be used for heating and cooling. Distributed generation
    can help delay the need for new electricity infrastructure investment."

    The Task Group will make its final recommendations to the Minister for Climate
    Change, Water and Energy Efficiency and the Minister for Resources and Energy by
    the middle of this year.

    Submissions are available at:
    http://www.climatechange.gov.au/government/submissions/pm-task-group/paper.aspx

 
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