Greenergy Concept

Greenergy is a package of lower cost energy efficiency resources and higher cost renewable energy resources delivered to the grid that can compete with traditional fossil-fuel power resource options. This approach to the generation of energy is not only harmless to the environment (i.e. reduction of GHG as well as pollutants generated by conventional power generation and the use of fossil fuels) but with the use of energy from different sources (off-grid, on-grid as well as hybrid sources), also reduces the stress to the physical environment in terms of physical dislocation compared to large and highly capitalized and equipment used by conventional energy sources.

OBJECTIVE: System Integration

• Supply Capacity Development Renewable/Sustainable Megawatts
• Operational Capacity Development Utility Intertie; Scheduling and Dispatch; Power Pooling; Regulation and Rules of Engagement
• Demand Side Capacity Development DSM; End-user energy management; ESCO development; Industrial/comm’l CHP
• Financial Integration: ‘wrap-around’ Debt/Equity for supply/utility; PRG for PPA’s, utility/ISO; DSM financial support

Concept’s Salient Features:

• Based on typical IPP concept – Develops renewable energy resources and energy efficiency rather than fossil fuels or nuclear
• Aggregate the resources – A Green IPP builds and operates a package of multiple renewable and energy efficiency resources as a single project
• The concept works – Grew out of experience with utilities bidding for renewables and energy efficiency in North America
• Private sector solutions – Allow the private sector to provide the least-cost solution to meet energy needs of developing countries

Approach to Project Development

IIEC will act as an “honest broker” to the various parties involved in promoting the concept - the private sector developers, the local electric utility, the agro-industrial interests, the agencies of government, the international and local financial institutions and funders, and the NGOs, among others. IIEC has the technical and management capability to ensure that these sometimes-competing interests are heard and, to the extent possible, served during this process.

IIEC will conduct technical and economic analysis integrating the above resource components into a single Green IPP project and packages the aggregated Green IPP project to leverage funding for an investment grade study. This package of multiple renewable energy and energy efficiency resources as a single project gains the benefits of having a system-wide integrated resource which would incorporate load shape flexibility not available to each resource segment alone. As the integration of the Green IPP resources into the electric transmission and distribution system requires technical advances in controls and telecommunications technology, IIEC will also investigate in detail the technical and economic aspects of the dispatch of resources (both renewable energy generation and demand-side). In addition, the Greenergy concept enables IIEC staff to influence policies to promote the transition toward distributed generation of energy.

IIEC Project Experience

IIEC conducted a study funded by the Rockefeller’s Brothers Foundation with goal of developing the technical and financial basis for private sector developers to sign contracts with Philippine electric utilities and cooperatives to provide energy efficiency and renewable energy generation, both separately, and as a combined, integrated packages. The medium-term goal of the proposed project is to evaluate alternative generation and efficiency options and to create an integrated resource plan for the province of Negros Occidental in the Philippines which avoids expensive imported coal energy and which supports local economic and energy development

IIEC Pre-Feasibility Study Biomass Cogen Plant Demonstrates:

Technical Feasibility

• The Central Azucarera de la Carlota sugar mill plant is an acceptable site for a 20MW biomass grid connected cogen plant

Financial Viability

• Can provide power resource at competitive rates
• A viable venture that will earn an acceptable rate of return on investment

Sensitivity Analysis

• Total project cost, tariff rate and bagasse price are critical cost elements that will significantly affect the financial viability of the project.

IIEC Energy Efficiency Study in Negros Occidental Shows:

• Replacing incandescent lamps with CFL’s will result to significant electricity and demand savings from residential sector
• A CFL Program will result to a negative impact to the revenue of the utility revenue requirement
• CFL Program to be undertaken will require close collaboration with the local utility and must be implemented within DSM Framework under the regulatory oversight of the Energy Regulatory Commission

Future Plans:

• Conduct full blown feasibility study for identified sites for solar photovoltaic systems, wind farm systems, micro hydro power systems and for the biomass cogeneration facility
• Implement pilot projects to demonstrate the feasibility of bidding, selling and dispatching renewable energy and energy efficiency resources to the grid
• Implement energy efficient lighting in collaboration with electric cooperatives

Recent IIEC Experience

• Energy Policy - a Favorite Discussion Topic in Thailand
• From Green IPP to GRIPA in the Philippines
• Renewable Energy Options on the Tsunami Affected Islands in Thailand
• IIEC to Revitalize Solar Thermal Applications in Thailand
• IIEC Founder Leads the Way in Renewables
• A Strategy for Developing an LPG and Solar Thermal Hybrid
• Solar Thermal for Sustainable Development in Thailand and India
• GEF/UNDP/DOE Philippine Green Energy Rating Program
• Scale-Up Strategies for Solar-Thermal Boiler Feed-Water Prehearing Systems
• Economic Modelling for the Renewable Energy Strategy Formulation in South Africa
• IIEC Catalyzes Solar Thermal Application for Industrial Boiler Feed Water Preheating
• Transitioning to Renewable Energy
• Examining the Conditions for the Successful Transition to a Renewable Energy Future