Performance benchmarking and incentive regulation – considerations of directing signals for electricity distribution companies

After the restructuring process of the power supply industry, which for instance in Finland took place in the mid-1990s, free competition was introduced for the production and sale of electricity. Nevertheless, natural monopolies are found to be the most efficient form of production in the transmission and distribution of electricity, and therefore such companies remained franchised monopolies. To prevent the misuse of the monopoly position and to guarantee the rights of the customers, regulation of these monopoly companies is required. One of the main objectives of the restructuring process has been to increase the cost efficiency of the industry. Simultaneously, demands for the service quality are increasing. Therefore, many regulatory frameworks are being, or have been, reshaped so that companies are provided with stronger incentives for efficiency and quality improvements. Performance benchmarking has in many cases a central role in the practical implementation of such incentive schemes. Economic regulation with performance benchmarking attached to it provides companies with directing signals that tend to affect their investment and maintenance strategies. Since the asset lifetimes in the electricity distribution are typically many decades, investment decisions have far-reaching technical and economic effects. This doctoral thesis addresses the directing signals of incentive regulation and performance benchmarking in the field of electricity distribution. The theory of efficiency measurement and the most common regulation models are presented. The chief contributions of this work are (1) a new kind of analysis of the regulatory framework, so that the actual directing signals of the regulation and benchmarking for the electricity distribution companies are evaluated, (2) developing the methodology and a software tool for analysing the directing signals of the regulation and benchmarking in the electricity distribution sector, and (3) analysing the real-life regulatory frameworks by the developed methodology and further develop regulation model from the viewpoint of the directing signals. The results of this study have played a key role in the development of the Finnish regulatory model.

Supplier Energy Audits in Thermal Power Plants

This master’s thesis handles an operating model for an electric equipment supplier conducted sale oriented energy audit for pumping, fan and other motor applications at power plants. The study goes through the largest factors affecting internal electricity use at a power plant, finds an energy audit –like approach for the basis of information gathering and presents the information needed for conducting the analysis. The model is tested in practice at a kraft recovery boiler of a chemical pulping mill. Targets chosen represent some of the largest electric motor applications in the boiler itself and in its fuel handling. The energy saving potential of the chosen targets is calculated by simulating the energy consumption of the alternatives for controlling the targets, and thereafter combining the information with the volume flow duration curve. Results of the research are somewhat divaricated, as all the information needed is not available in the automation system. Some of the targets could be simulated and their energy saving potential calculated quite easily. At some of the targets chosen the monitoring was not sufficient enough for this and additional measurements would have been needed to base the calculations on. In traditional energy audits, energy efficiency of pump and fan applications is not necessarily examined. This means that there are good possibilities for developing the now presented targeted energy audit procedure basis further.

Adaptive optimization schemes for mobile VoIP applications Battery life and call quality aspects

In this thesis programmatic, application-layer means for better energy-efficiency in the VoIP application domain are studied. The work presented concentrates on optimizations which are suitable for VoIP-implementations utilizing SIP and IEEE 802.11 technologies. Energy-saving optimizations can have an impact on perceived call quality, and thus energy-saving means are studied together with those factors affecting perceived call quality. In this thesis a general view on a topic is given. Based on theory, adaptive optimization schemes for dynamic controlling of application's operation are proposed. A runtime quality model, capable of being integrated into optimization schemes, is developed for VoIP call quality estimation. Based on proposed optimization schemes, some power consumption measurements are done to find out achievable advantages. Measurement results show that a reduction in power consumption is possible to achieve with the help of adaptive optimization schemes.

An energy efficient vertical handover decision algorithm

As wireless communications evolve towards heterogeneousnetworks, mobile terminals have been enabled tohandover seamlessly from one network to another. At the sametime, the continuous increase in the terminal power consumptionhas resulted in an ever-decreasing battery lifetime. To that end,the network selection is expected to play a key role on howto minimize the energy consumption, and thus to extend theterminal lifetime. Hitherto, terminals select the network thatprovides the highest received power. However, it has been provedthat this solution does not provide the highest energy efficiency.Thus, this paper proposes an energy efficient vertical handoveralgorithm that selects the most energy efficient network thatminimizes the uplink power consumption. The performance of theproposed algorithm is evaluated through extensive simulationsand it is shown to achieve high energy efficiency gains comparedto the conventional approach.

Interaktiivisen asiakasrajapinnan mahdollistamat energiatehokkuutta tukevat toiminnot ja niiden kannattavuus

Automaattisen mittarinluvun yleistyminen ja asiakkaan verkkoliitynnässä käytettävän tekniikan kehittyminen luovat pohjan uudentyyppisen interaktiivisen asiakasrajanpinnan synnylle. Se voi osaltaan mahdollistaa asiakkaan entistä joustavamman sähköverkkoon liitynnän sekä nykyistä reaaliaikaisemmat ja tarkemmat mittaukset. Näiden pohjalle on mahdollista kehittää erilaisia energiatehokkuutta tukevia toimintoja ja niihin perustuvia palveluita. Tämän työn tarkoituksena on tutkia interaktiivisen asiakasrajapinnan mahdollistamia energiatehokkuutta tukevia toimintoja. Lupaavimpia toimintoja, niiden kannattavuutta ja potentiaalia energiatehokkuuden parantamisessa analysoidaan tarkemmin. Lisäksi tarkastellaan niihin tarvittavaa tekniikkaa, mittaustietoja ja tiedonsiirtoa. Nykyinen tekniikka mahdollistaa useiden erilaisten energiatehokkuutta tukevien toimintojen toteuttamisen. Tässä työssä käsiteltiin tarkemmin energiayhtiön AMR-pohjaista tasehallintaa ja sähkön pienkuluttajien hintaohjausta. AMR-pohjaisen tasehallinnan havaittiin olevan oikein kohdennettuna kannattavaa. Sähkön hintaohjaus voi laajassa mittakaavassa toteutettuna olla kannattavaa, mutta yksittäiskohteissa sen toteutuksen kustannukset ovat liian suuret. Suurimpia ongelmia energiatehokkuutta tukevien toimintojen toteutuksen kannalta muodostavat usein kiinteät kustannukset sekä yleisten rajapin-tavaatimusten ja toimintamallien puute. Tuotteiden standardointi, sarjatuotanto sekä tekniikan kehittyminen voivat mahdollistaa kiinteiden kustannusten huomattavan pienenemisen ja tätä kautta toimintojen kustannustehokkuuden paranemisen. Kehittämällä uusia yhteisiä toimintamalleja ja tuotteita voidaan käytettävissä olevaa tekniikkaa hyödyntää tehokkaammin. Myös uudet näköpiirissä olevat nopeammat ja luotettavammat tiedonsiirtotekniikat voivat mahdollistaa reaaliaikaisemmat mittaustietojen ja signaalien välitykset, mikä usein parantaa toimintojen tehokkuutta ja kannattavuutta.

The International Distribution of Energy Intensities: some synthetic results

The paper examines the international distribution of energy intensities as a conventional proxy indicator of energy efficiency and sustainability in the consumption of resources, by employing some descriptive tools from the analysis of inequality and polarization. The analysis specifically focuses on the following points: firstly, inequalities are evaluated synthetically based on diverse summary measures and Lorenz curves; secondly, different factorial decompositions are undertaken that assist in investigating some explanatory factors (weighting factors, multiplicative factors and decomposition by groups); and thirdly, an analysis is made of the polarization of intensities when groups of countries are defined endogenously and exogenously. The results obtained have significant implications from both academic and political perspectives.

Marketing of Lappeenranta University of Technology energy auditing services

The objective of this study was to find out how LUT Energy should start marketing its energy audit services, what would be the optimal pricing policy for its services and how LUT Energy could manage customer expectations towards quality of its auditing services. In order to answer these questions, a quantitative survey questionnaire was sent by e-mail to 56 companies from the regions of South Karelia and Kymenlaakso. The empirical data of the study was the answers and opinions of the companies, previous researches about energy efficiency and articles and presentations about the current situation in the energy efficiency market. The results of the study were that there is a great potential for energy audit services and also the legislation requires companies to improve their energy efficiency. To start marketing its services, LUT Energy should first clarify its service concept and divide its service offering into two offers. It should also clarify the marketing message it wants to send its customers and then do the marketing with the help of three-way-model. The best pricing policy for the service would be that the price is proportioned to the future savings. In order to ensure the quality of its services, LUT Energy has to make sure that both dimensions of the quality are managed properly and to fade out customer expectations towards the quality the auditing work has to be monitored.

Energy intensity in road freight transport of heavy goods vehicles in Spain

This paper examines the factors that have influenced the energy intensity of the Spanish road freight transport of heavy goods vehicles over the period 1996–2012. This article aims to contribute to a better understanding of the factors behind the energy intensity change of road freight and also to inform the design of measures to improve energy efficiency in road freight transport. The paper uses both annual single-period and chained multi-period multiplicative LMDI-II decomposition analysis. The results suggest that the decrease in the energy intensity of Spanish road freight in the period is explained by the change in the real energy intensity index (lower energy consumption per tonne-kilometre transported), which is partially offset by the behaviour of the structural index (greater share in freight transport of those commodities the transportation of which is more energy intensive). The change in energy intensity is analysed in more depth by quantifying the contribution of each commodity through the attribution of changes in Divisia indices.

Consumer valuation of energy-saving features of residential air conditioners with hedonic and choice models

The promotion of energy-efficient appliances is necessary to reduce the energetic and environmental burden of the household sector. However, many studies have reported that a typical consumer underestimates the benefits of energy-saving investment on the purchase of household electric appliances. To analyze this energy-efficiency gap problem, many scholars have estimated implicit discount rates that consumers use for energy-consuming durables. Although both hedonic and choice models have been used in previous studies, a comparison between two models has not yet been done. This study uses point of sale data about Japanese residential air conditioners and estimates implicit discounts rates with both hedonic and choice models. Both models demonstrate that a typical consumer underinvests in energy efficiency. Although choice models estimate a lower implicit discount rate than hedonic models, the latter models estimate the values of other product characteristics more consistently than choice models.

Mobile system for pump working point estimation

In the current economy situation companies try to reduce their expenses. One of the solutions is to improve the energy efficiency of the processes. It is known that the energy consumption of pumping applications range from 20 up to 50% of the energy usage in the certain industrial plants operations. Some studies have shown that 30% to 50% of energy consumed by pump systems could be saved by changing the pump or the flow control method. The aim of this thesis is to create a mobile measurement system that can calculate a working point position of a pump drive. This information can be used to determine the efficiency of the pump drive operation and to develop a solution to bring pump’s efficiency to a maximum possible value. This can allow a great reduction in the pump drive’s life cycle cost. In the first part of the thesis, a brief introduction in the details of pump drive operation is given. Methods that can be used in the project are presented. Later, the review of available platforms for the project implementation is given. In the second part of the thesis, components of the project are presented. Detailed description for each created component is given. Finally, results of laboratory tests are presented. Acquired results are compared and analyzed. In addition, the operation of created system is analyzed and suggestions for the future development are given.

Kylmätilojen kuljetinkäyttöjen energiatehokkuus

We study how conveyor drives in refrigerating rooms affect total energy costs. Studied conveyor drives are different types of gear motor drives. Energy efficiencies of the conveyor drives are determined by using direct torque measurement and energy costs of the conveyor drives are approximated from these results. From the measurement results and the approximated total costs it can be seen how the energy efficiency of a conveyor drive has a considerable influence on the total costs, especially, with large operating hours. An energy efficient conveyor drive can minimize the total energy costs by reducing the energy consumption of the conveyor motor while cooling costs in refrigerated rooms are also reduced.

Phase voltage control and filtering in a converter-fed single-phase customer-end system of the LVDC distribution network

In recent years, the network vulnerability to natural hazards has been noticed. Moreover, operating on the limits of the network transmission capabilities have resulted in major outages during the past decade. One of the reasons for operating on these limits is that the network has become outdated. Therefore, new technical solutions are studied that could provide more reliable and more energy efficient power distributionand also a better profitability for the network owner. It is the development and price of power electronics that have made the DC distribution an attractive alternative again. In this doctoral thesis, one type of a low-voltage DC distribution system is investigated. Morespecifically, it is studied which current technological solutions, used at the customer-end, could provide better power quality for the customer when compared with the current system. To study the effect of a DC network on the customer-end power quality, a bipolar DC network model is derived. The model can also be used to identify the supply parameters when the V/kW ratio is approximately known. Although the model provides knowledge of the average behavior, it is shown that the instantaneous DC voltage ripple should be limited. The guidelines to choose an appropriate capacitance value for the capacitor located at the input DC terminals of the customer-end are given. Also the structure of the customer-end is considered. A comparison between the most common solutions is made based on their cost, energy efficiency, and reliability. In the comparison, special attention is paid to the passive filtering solutions since the filter is considered a crucial element when the lifetime expenses are determined. It is found out that the filter topology most commonly used today, namely the LC filter, does not provide economical advantage over the hybrid filter structure. Finally, some of the typical control system solutions are introduced and their shortcomings are presented. As a solution to the customer-end voltage regulation problem, an observer-based control scheme is proposed. It is shown how different control system structures affect the performance. The performance meeting the requirements is achieved by using only one output measurement, when operating in a rigid network. Similar performance can be achieved in a weak grid by DC voltage measurement. An additional improvement can be achieved when an adaptive gain scheduling-based control is introduced. As a conclusion, the final power quality is determined by a sum of various factors, and the thesis provides the guidelines for designing the system that improves the power quality experienced by the customer.

Aurinkopaneeleihin liitettävien vaihtosuuntaajien testaussuunnitelman laadinta ja toteutus

Aurinkoenergia on yksi monista uusiutuvan energian muodoista, joiden suosio on viimeisten vuosien aikana kasvanut fossiilisten polttoaineiden kallistumisen sekä ilmaston lämpenemisen vuoksi. Auringon säteilyn energiaa voidaan muuttaa sähköenergiaksi mm. aurinkopaneeleiden avulla. Aurinkopaneeleihin liitetään usein vaihtosuuntaaja, jolla tuotettu teho voidaan muokata sähköverkkoon tai kotitalouden sähköjärjestelmään sopivaksi. Tässä työssä on esitelty aurinkopaneelilla tuotettavan sähköenergian perusperiaatteet sekä tehoa tuottavan järjestelmän reunaehdot. Tutkimuksessa on perehdytty keskeisiin, aurinkopaneeleihin liitettäville vaihtosuuntaajille laadittuihin standardeihin, hyötysuhteen mittaamisen sekä sähkön laadun näkökulmista. Selvityksen avulla järjestelmän hyötysuhteen sekä lähtötehon laadun määrittämiseksi voidaan laatia standardien mukainen mittaussuunnitelma vaihtosuuntaajan nimellistehosta riippumatta. Standardien avulla on laadittu mittaussuunnitelma Global Inversonne, 100 kW - verkkovaihtosuuntaajayksikölle. Suunnitelman mukaisissa mittauksissa on tutkittu yksikön muunnoshyötysuhdetta sekä lähtöjännitteen- ja virran laatua. Lisäksi työssä on analysoitu mittaustulosten mittausepävarmuuksia ja niitä aiheuttavia tekijöitä.

Monitoring of centrifugal pump operation by a frequency converter

Centrifugal pumps are widely used in industrial and municipal applications, and they are an important end-use application of electric energy. However, in many cases centrifugal pumps operate with a significantly lower energy efficiency than they actually could, which typically has an increasing effect on the pump energy consumption and the resulting energy costs. Typical reasons for this are the incorrect dimensioning of the pumping system components and inefficiency of the applied pump control method. Besides the increase in energy costs, an inefficient operation may increase the risk of a pump failure and thereby the maintenance costs. In the worst case, a pump failure may lead to a process shutdown accruing additional costs. Nowadays, centrifugal pumps are often controlled by adjusting their rotational speed, which affects the resulting flow rate and output pressure of the pumped fluid. Typically, the speed control is realised with a frequency converter that allows the control of the rotational speed of an induction motor. Since a frequency converter can estimate the motor rotational speed and shaft torque without external measurement sensors on the motor shaft, it also allows the development and use of sensorless methods for the estimation of the pump operation. Still today, the monitoring of pump operation is based on additional measurements and visual check-ups, which may not be applicable to determine the energy efficiency of the pump operation. This doctoral thesis concentrates on the methods that allow the use of a frequency converter as a monitoring and analysis device for a centrifugal pump. Firstly, the determination of energy-efficiency- and reliability-based limits for the recommendable operating region of a variable-speed-driven centrifugal pump is discussed with a case study for the laboratory pumping system. Then, three model-based estimation methods for the pump operating location are studied, and their accuracy is determined by laboratory tests. In addition, a novel method to detect the occurrence of cavitation or flow recirculation in a centrifugal pump by a frequency converter is introduced. Its sensitivity compared with known cavitation detection methods is evaluated, and its applicability is verified by laboratory measurements for three different pumps and by using two different frequency converters. The main focus of this thesis is on the radial flow end-suction centrifugal pumps, but the studied methods can also be feasible with mixed and axial flow centrifugal pumps, if allowed by their characteristics.

Electric-drive-based control and electric energy regeneration in a hydraulic system

Over the recent years, development in mobile working machines has concentrated on reducing emissions owing to the tightening rules and needs to improve energy utilization and reduce power losses. This study focuses on energy utilization and regeneration in an electro-hydraulic forklift, which is a lifting equipment application. The study starts from the modelling and simulation of a hydraulic forklift. The energy regeneration from the potential energy of the load was studied. Also a flow-based electric motor speed control was suggested in this thesis instead of the throttle control method or the variable displacement pump control. Topics related to further development in the future are discussed. Finally, a summary and conclusions are presented.