Reducing distribution system capacity costs and CO2 emissions with cost-effective DSM programmes

Panel: Panel 1: Energy Efficiency policies, programmes and their links

Authors:
Stefan Thomas, Wuppertal Institute for Climate, Environment and Energy
Wolfgang Zander, Büro für Energiewirtschaft und Technische Planung GmbH, Aachen

Abstract

Results from a case study for a German municipal utility show how distribution system capacity costs and CO2 emissions can be reduced with cost-effective DSM.

For the first time in Germany, the possibilities of reducing costs for distribution system capacity enlargement with cost-effective DSM programmes were examined in a recent case study for Stadtwerke Heidelberg, a municipal utility serving around 100.000 customers.

A comprehensive portfolio of DSM programmes was designed and checked for technical and economic effectiveness by the Wuppertal Institute for Climate, Environment, Energy. Based on this, the capacity of the utilityÕs 20 and 110 kV distribution grid and the power supply from the 220 kV transportation grid have been analysed by BÊro fÊr Energiewirtschaft und Technische Planung for scenarios of future demand with and without DSM.

Until 2005, the DSM programmes can reduce future power demand by more than 10 MW, thereby stabilising future demand at current levels. Electricity consumption can also be reduced by almost 60 GWh per year, saving Stadtwerke HeidelbergÕs customers 44 million ECU over the next 15 years while reducing CO2 emissions considerably. Compared to the expected growth without DSM, this would avoid investments for capacity enlargement in the interior distribution grid and the connection with the 220kV network. A new backup connection will be required for reliability of supply anyway. With DSM, however, its size can be reduced considerably saving around 10 million ECU investment. This is nearly the cost of all proposed DSM programmes. Stadtwerke Heidelberg are now field-testing DSM in the industrial and public sectors in co-operation with the Wuppertal Institute with financial assistance from the EU SAVE programme.