Sin ttulo de diapositiva

1

Distributed Energy resources and future
electricity networks
Application of the D20 EnirDGnet model
profitability evaluation of Combined Heat
Power Production to supply an hospital
Eros Tassi (CESI)
2
WP5 socio-economic research commercial
practices business terms

• program
• WP5 objectives and features
• the work done activities times, deliverables
  list collocation
• deliverables contents, description and uses
• conclusion
• Application of the D20 EnirDGnet model, coming
  from WP5
• profitability evaluation of CHP to supply an
  hospital

3
WP5 socio-economic research commercial
practices business terms

• Objectives
• To identify and clarify economic drivers and
  barriers of DG
• To develop on this basis appropriate business
  practices and models for DG
• To establish standard business terms (e.g. for
  interconnection agreements)
• Task Activities
• task 5.1 to identify, define and clarify
  economic drivers and barriers of DG
• country surveys on DG economically relevant
  background
• task 5.2 recommendations for business
  practices
• case studies on DG economic aspects
• analysis synthesis of collected data
• task 5.3 electricity cost model
• Deliverables
• D19 report
• D20 model (working on PC)
• Times efforts
• Duration 18 months (from dec2002 to may2004)
• Effort 27 man months, 29 partners

4
WP5 deliverables

• D19 (report, free download from www.dgnet.org)
• Business in Distributed Generation Economic
  Drivers and Barriers,
• Commercial practices and business terms
• D20 (model, example shown today)
• Tool for basic evaluation of business
  profitability
• in Distributed Generation

5
WP5 contents

6
country surveys list
the country surveys are available
on the Annex A
7
case studies

• 13 case studies concern DG installations
• different aspects impacting the economic
  performances are studied
• they present a large variety of conditions, as
• technology (PV, FC, gas turbine, microturbine,
  gas turbines, wind, hydro)
• size (up to some MW)
• sector application (residential, commercial,
  industrial, different types of demand)
• point of view (users, ESCOs, utilities)
• country framework as rules, tariffs, taxes,
  support measures

8
case studies list

the case studies are available on the Annex B
9
the model D20

• Tool for basic evaluation of business
  profitability in DG,
• (D20 model running on PC)
• from
• demand (electricity, heat/cold)
• zero and DG supply solutions
• simulation results (energetic balances on a
  reference period)
• the model allows to calculate the
  economic/financial behaviour
• of the DG choice, compared to the zero solution

10
structure of the model D20

• D20 allows to evaluate and take into account
• initial capital need evaluation of the investment
  for the DG choice
• hard costs (specific, general, interconnection
  equipment, control systems, works, buildings)
• soft costs (design, startup, insurances, fees,
  EIA, permits, administration, other)
• annual costs revenues comparison between the DG
  and the zero solution
• electricity heat balances, related bills and
  taxes
• OM, reliability, support measures
• cash flows and economic evaluation
• gross net year profits (interests,
  depreciation, taxes, amortment)
• business plan
• discounted cash flows ( by year and cumulative)
• economic indexes (NPV, IRR, PBP, PI)
• financing hypothesis
• The country surveys are an important source to
  find input data

11
an example of application of the model
D20 heat and power supply to a 1000 bed places
hospital in Central Italy study of a
cogenerative solution
12
Electricity, air conditioning excluded
13
Room heating and cooling
14
thermal loads
15
The CHP solution

• 2 gas engines (each rated1400kW) plus heat
  recovery
• steam water generator producing heat both from
  exhaust and
• cooling systems
• full load working, heat used for services
• no convenience in adopting absorption chillers,
• (the heat is used however, also in the summer)
• important amount of exceeding electricity
  feeding the grid
• small electricity integration from the grid
• heat integration by boilers(in winter)
• after the energy balances calculated by
  simulation...

16
Conclusion (1)

• Using the D19
• today and during the transition phase of the
  markets
• D19 outlines features and mechanisms in which DG
  business moves, considering
• market structures, tariff and taxes, rules,
  practices on interconnection, gas fuels,
• business practices, other DG values and
  generally all the aspects relevant to the
  economics.
• D19 can suggest values to use in D20
• Towards the unification of the markets
• D19 issues are previously exploitable for policy
  designers, as
• survey of mechanisms of already experienced
  economic driver and barriers
• description of current trends
• general schemes to perform a fair economic
  scenario for DG
• Using the D20
• D20 provides a tool for basic profitability
  calculations

17
Conclusion (2)

• after DGnet
• using the collection of the websites of the
  Authorities or other relevant bodies is possible
  to
• obtain updated references on the relevant frame
  for a given case, but ...
• it would be very useful to maintain
  systematically the data at their best
• upgrading the regulatory frameworks
• adding comments and opinions
• evolving the form
• adding countries
• this operation could have high efficiency (WP5
  already made the big effort)
• a thematic network reaches an important goal
  when the circulation of info and ideas
• started today continues after the project

18
Thank you