Lures

1
Lures Limits of Leapfrogging the Grid

• What Are the Lures for Expanded Energy Services?
• What are the Limits

2
Speakers

• Maurice Gunderson, Nth Power Managing Director
• Rajendra Shende, UN, Energy and OzonAction
• Alan Laird, Scottish Power, Dir Technology and
  Engineering

3
Background Comparing DG CG

• Capital Costs
• Power Costs
• Carbon dioxide emissions
• Barriers

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5
Average 2000 Retail Price- 6.9 cents / KWh
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7
Why Dont Markets Move to Optimal Solutions?

• Power is not a free market
• Heat optimization requires on-site generation to
  utilize waste heat
• 90 year old laws and regulations are barriers to
  efficiency

8
Key Barriers to Efficiency

• Ban on private wires
• Utility efficiency not rewarded
• Many governments ban third party sales of power
• Backup charges are often predatory
• Government policies ignore TD costs

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Conclusions

• Results unambiguously favor DG
• Either model is flawed, or current reliance on CG
  is not optimal