draft of energy conservation law of mongolia and study of the electricity and heat (designated)...

DRAFT OF ENERGY CONSERVATION LAW OF MONGOLIA AND STUDY OF THE ELECTRICITY AND

HEAT (DESIGNATED) CONSUMERS

S. TSETSGEE Member of Working group in Energy Authority

Ulaanbaatar

2012.05.16

Relevance energy efficiency and energy conservation:

Increasingly important topic from a social, economical and environmental perspective.

The working group in the Energy Authority drafted the Energy conservation Law for Mongolia with support from GIZ. The draft of Law was presented to the Ministry of Mineral Resources and Energy in 2011.

Economical justifications for an energy conservation law:

Support a sustainable economic development,

Promote energy efficiency and energy conservation,

Save money for consumers of energy,

By adopting the concept “Saved energy is a source of

energy”, new business opportunities in the energy sector will

be created

Develop an energy services market

3

Environmental justifications for an energy conservation law:

- Climate change,

- Emission reduction - СО2

- Increase renewable energy penetration in energy system

of Mongolia

- Clean Development Management (CDM)

- Bilateral Offset Credit Mechanism (BOCM)

4

Public and social justifications for an energy conservation law:

Integrated state policy on energy conservation,

Innovation to promote a know- how based economy,

Increase the number of employment opportunities,

Capacity building - arrange and organize training of personnel

and specialists in the techniques for efficient use of energy and

its conservation;

5

Specific characteristics of the energy conservation:

Consumer’s willingness and economical criteria are key

factors for energy efficient investments

Various supportive policies and regulations including tax and

rebate preferences

New business opportunities for experienced organizations and

specialists

6

Opportunities to conserve energy

The energy conservation is not aiming at limiting the consumption. Energy conservation means providing it

efficiently.

Concept for the activities of all level of the institutional organizations and consumers the related with energy conservation

Using high technology and modern equipments to promote research and development in the field of energy conservation;

7

Implementation of the Energy Conservation Law

Advice of energy auditing,

Introduction of energy managers,

Energy conservation building codes;

To create integrated database for the annual report,

information and promotion of the energy usage and its

conservation.

8

Draft of Energy Conservation Act:

Focusing on consumer innovation and voluntary work, and necessary power of State to enforce efficient use of energy and its conservation, the working team has considered principal elements in the draft of the Energy Conservation Law

One of this expression is:

'‘Determine and designate the consumers with high energy consumption and intensity''

Determination of the Designated Consumers:

10

Mongolian Integrated Power System :

- Central Energy System, (793,4 МВт)

- Eastern Energy System, (36 МВт)

- Western Energy System, (12МВт)

- Altai-Uliastai Energy System(11 МВт)

Designated consumers include:

- Companies that generate, transmit and distribute energy with a special license

- End users of heat and electricity

Graphic of daily peak load in Central Energy System

11

Mongolian Integrated Power System :

- Central Energy System, (793,4 МВт)

- Eastern Energy System, (36 МВт)

- Western Energy System, (12МВт)

- Altai-Uliastai Energy System(11 МВт)

Designated consumers include:

- Companies that generate, transmit and distribute energy with a special license

- End users of heat and electricity

808 MBт

-150

0

150

300

450

600

750

900

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

2012.01.31

imp/exp ДЦС 4 ЭДЦС ДДЦС ДДЦС 3 ДЦС 2

The power plants in CES are using 15.14% (653.2 mil.KWh) of total generated electricity for their internal consumption. This value means that the plants are using 49,5 gm lignite coal for 1 kWh electricity generation, in other words they burnt 66406.5 t actual coal a year.

If we are reducing internal consumption of Thermal Power Plant by only one unit (down to 14.14% or 43.19 mil.KWh), then we are saving 5114.5 t actual coal a year.

Energy balance of the TPP in the CES in 2011:

Parameter

mil.KWh 125 833,8 685 644,7 3 101 543,1 266 194,1 134 594,0 4 313 809,6

value mil.KWh 19 268,6 144 859,0 410 778,2 49 672,5 28 586,4 653 164,7

percent % 15,31% 21,13% 13,24% 18,66% 21,24% 15,14%

mil.KWh 106 565,2 540 785,7 2 690 764,9 216 521,5 106 007,6 3 660 644,9

GCal 164 102,0 1 847 839,0 3 128 831,0 453 630,0 521 674,0 6 116 076,0

electricity gr/kWh 591,30 363,65 305,05 438,80 315,59 329,84

heat kg/GCal 192,60 179,68 174,40 196,60 184,79 179,02

electricity t 63 014,8 196 659,1 820 817,8 93 489,0 33 454,6 1 207 435,4

heat t 31 607,7 332 014,1 545 653,0 89 205,0 96 398,1 1 094 877,9

electricity t

heat t

kCal/kg 3 454,0 3 479,0 3 295,4 3 645,0 4 085,4 3 406,3

t 105,3 921,7 1 096,0 84,6 43,2 2 250,8

Plant efficiency % 21,20% 37,80% 40,34% 28,00% 40,48% 37,91%

Rate of the installed capacity % 71,90% 57,60% 65,57% 63,30% 58,30% 62,0%

Fossil fuel calorific value

Heat distribution

Electricity distribution

Energy sale

own consumption

Fossil fuel consumption

Coal consumption

191 492,0 1 067 594,7

Source: Energy Regulatory Authority

Erdenet TotalUnit

TPP-2 TPP-3 TPP-4 Darkhan

heavy oil consumption

4 733 040,1

Coal calorific value/ avarage

2 899 685,0 351 877,8 222 390,6

Transmission and distribution loss of CETCO in 2011 :

• Loss of transmission and distribution in the CETCO is 17.12% or 658.1 mil.KWh amount of electricity. If we are reducing loss of transmission and distribution in the CETCO by only one unit (down to 16.12% or 38.3 mil.KWh), then we are saving 25980.5 ton actual coal a year on the Thermal Power Plants.

Bought energy 1000kWh 3 844 447,0 3 604 289,1 3 844 447,0

1000kWh 117 930,3 504 757,8 658 053,7 % 3,07% 14,00% 17,12%

Sold energy 1000kWh 3 726 516,7 3 099 531,3 3 186 393,3

Distribution loss


Parameter Unit

"CETCO" 6 distribution companies of CETCO

Transmission Distribution companies

of CETCO

Bought energy 1000kWh 1 849 488,9 945 317,3 466 409,8 286 108,6 31 432,8 25 531,7 3 604 289,1

1000kWh 378 137,4 36 459,6 51 834,6 27 051,7 6 804,0 4 470,5 504 757,8

% 20,45% 3,86% 11,11% 9,46% 21,65% 17,51% 14,00%

Sold energy 1000kWh 1 471 351,5 908 857,7 414 575,2 259 056,9 24 628,8 21 061,2 3 099 531,3 Source: Energy Regulatory Authority

HuvsgulErchim huch

Bayanhongor Erchim huch

6 distribution companies

of CETCO

Distribution loss

Parameters Unit UB EB DS BN

The electricity worth 205.3 thousand kWh will be economized in case these consumers’ consumption is economized by 15%.

Electricity consumers of the Central Energy System :

Company ConsumerEnergy consumption thousand kWh

1 UB EDN 15 160 975,0 19 72 669,0 102 153 664,4 180 115 849,0 11836 471 727,2 12152 974 884,7

2 EB EDN 3 774 102,8 1 4 454,7 4 6 506,6 11 6 805,9 4429 52 622,5 4448 844 492,5

3 BN EDN 6 151 541,8 1 3 321,3 7 15 215,4 11 7 949,3 2526 35 286,3 2551 213 314,0 4 DS EDN 9 242 738,8 3 11 454,8 16 29 566,5 14 9 979,0 2613 57 929,6 2655 351 668,7

5 Khuvsgul erchim suljee 0 - 0 - 0 - 3 2 302,1 1327 7 289,1 1330 9 591,2

6 Bayankhongor erchim suljee 0 - 0 - 0 - 1 663,9 692 5 869,4 693 6 533,3

7 Nolgo 0 - 0 - 0 - 3 2 302,1 9 7 289,1 12 9 591,2 8 Erchim tugeekh suljee 1 6 553,0 3 10 833,3 3 5 217,5 0 - 57 715,6 64 23 319,4

9 Erdenet amidral 0 - 0 - 0 - 1 599,5 435 5 119,5 436 5 719,0

10 UBTZ 1 5 019,6 1 3 788,0 7 10 713,0 17 11 698,9 1626 21 001,4 1652 52 220,8

Total 35 1 340 931,0 28 106 521,1 139 220 883,4 241 158 149,8 25550 664 849,6 25993 2 491 334,9

5000,0 thousand kWh and above

3000.0-5000.0 thousand kWh



500.0 ???.???? thousand kWh


Thermal energy consumers of the Central Heating System in UB:

Paying for dwelling-space 3 830 1 202 22 5 054Paying with measurement system 724 2 842 8 3 574

1,1 Paying for dwelling-space 132 449 7 5881,2 Paying with measurement system 5 925 3 9331,3 Paying for dwelling-space 62 85 1 1481,4 Paying with measurement system 167 336 1 5041,5 Paying for dwelling-space 3 636 668 14 4 3181,6 Paying with measurement system 552 1 581 4 2 1372 1 96 0 97

Paying per person 101 223 1 325Paying per ton 1 016 0 0 1 016

Paying with measurement system 1 772 48 1 1 8214 1 387 1 448 0 2 8355 0 0 0 06 48 0 0 48

heating season 0 0not heating season 0 0

8 879 5 859 312 15 050

8 116 545 21 698 84 138 327

heating season /per person/ 154 012 11 789 526 166 327Not heating season /per person 154 012 11 789 526 166 327

Households’ number 85 902 3 931 84 89 91730 643 17 767 0 48 410


140

UB Heating

Network

TPPs TotalEnterprises№ Consumer category

Condensate

Consumer study of the industrial companies and enterprises

1Heating for industrial companies and enterprises

Industrial companies

State organizations

Others

Air-condition

3 Heating energy for enterprises hot water

Technology hot water

Water loss of the network

7 Technology steam

Total enterprisesStudy of end user consumers

140

9Heating energy for

households’ hot

water

Paying per

person

Households, who is paying with measurement system

Total number of heat consumption paying household

It is difficult to measure consumers’ actual consumption due to the insufficient measurement of consumption of thermal energy. Therefore we consider that first of all the consumers that have thermal energy consumption above 1500GCal and project load above 2.0 Cal/h annually, should be selected as the “designated consumer”.

Classification of organizations that use centralized thermal energy in Ulaanbaatar city :

Heating Hot water Air condition Total

License holder, 10 GCal/h and above 21 2 035 379,37 452,74 69,60 0,35 522,69

10 GCal/h and above 4 44 512,17 14,35-0,92 4,08-1,17 0-8,93 8,45-18,43 527,4-33,8

5.0-10.0 GCal/h 22 150 129,88 7,03-2,69 3,22-0,32 5,46-1,05 5,15-9,83 258,3-98,8

2.0-5.0 GCal/h 66 206 651,84 3,37-4,76 0,6-1,5 0,02-2,97 2,08-4,76 76,5-174,9

2.0-1.0 GCal/h 138 181 931,70 4,76-0,55 1,5-0,57 2,91-0,1 1,01-1,94 37,1-71,3

1.0-0.001 GCal/h 2239 1 084 666,28

Source: UBEDN

Consumer load Num-ber

Consumption 1000 GCal

Rated load (GCal/h)dwelling-space 1000 m3

17

Summarizing the results of energy conservation:

Designated consumers Energy usageDecrease of

Energy usage

Unit of

conservation

Conserved electricity

Conserved coal

Own consumption of TPPs 15,14% 14,14% 1 unit 43,19 mill.kWh 25 980,5 t

Transmission and distribution loss 17,12% 16,12% 1 unit 38,33 mill.kWh 23 561,7 t

Consumer with 1 mill.kWh and above 1668,3 mill.kWh 1418,0 mill.kWh 15% 250,3 mill.kWh 169 627,4 t

Consumer with 1 Gcal/h and above 583,2 mill.kWh 495,4 mill.kWh 15% 102,1 mill.kWh 32 183,7 t

87,8 ???.????433,9 mill.kWh 251353,3 t

3099,5 mill.kWh

13,99%

THANK YOU FOR THE ATTENTION

draft of energy conservation law of mongolia and study of the electricity and heat (designated)...

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