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An integrated approach necessary to improve energy efficiency

Panel: Panel 1. Policy, Programs and Program Evaluation

Authors:
Jan M. van den Berg, Sep, Holland
Max F.A. Welling, IJsselmij, Holland

Abstract

In the Netherlands there is a distinct separation between generation and distribution of electricity. Both producers and distributors have a limited understanding of the activities of the 'other parties'. The distributors have taken initiatives in CO2 reduction by introducing dispersed production, increased insulation and other demand-side activities. The producers have pursued emissions reduction through energy efficiency improvements in production, a world-wide afforestation programme and desulphurimtion programmes in Poland. The question that develops is whether this unbundling will lead to an optimal solution, concerning the environmental and energy efficiency challenges. Moreover will the introduction of increased competition in the utility industry enhance or detract from the attainment of the environmental targets?

To ascertain if a different way of planning is feasible and which conditions are of critical importance, IJsselmij (a distribution utility) and Sep (an association of producersj have launched a study of "Integrated Resource Planning". The targets of the study are to:

  • Develop a methodology and techniques for integrated resource plamring in the Netherlands, which will include demand, supply and dispersed production resources.

  • Consider the role of electricity, as a component of the entire energy sector, by analyzing the advantages of substituting electricity for other primary fuels, especially in relation to environmental goals (such as Ecowatt strategies), overall energy efficiency and resource costs. Preliminary results of the study indicate that considering supply and demand-side alternatives, as well as examining the entire energy situation is an appropriate resource planning strategy. Competition and separation of distribution and supply sectors without a mutual exchange of information ensures a less-than-optimal energy supply.

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