Ton van der DOES PRESIDENT OF COGEN EUROPE With local energy, the function of the grid is different. The grid can facilitate balancing of on-site surpluses and shortages of electricity. This involves different flows of electricity, not only top-down. Further, back up can be provided by the grid. This involves a different philosophy concerning the grid. it would also change the configuration, with many low voltage networks, connected with each other by low or medium voltage lines. The balance should be achieved at the lowest end of the infrastructure, at low voltage. The focus of the electricity sector is with the trade of electricity. But the infrastructure is the most valuable asset. Roughly, half the price of electricity occurs from infrastructure. This indicates the importance of the grid. Moreover, the infrastructure implies a natural monopoly. The government should ensure a free and non-discriminating access for each company. The balance between demand and supply will also be obtained differently. Through a variety of contracts the customer decides about reliability and quality of electricity. This is demand side controlled and not a general facility anymore. Technological 7 developments Demand for electricity is mainly DC. in the old days, DC involved many problems but these are solved by technological improvements. Not only at the end users premises but also in transport. So, the historical choice for AC is no longer a condition but should be reconsidered. it is possible to ereate independent regions with DC connections to neighbouring regions. These smaller grids need less short circuit capacities, which is further reduced by the independence of neighbouring grids with regard to short circuit. This results in a different grid structure with lower costs. There are many developments concerning gas turbines and fuel cells. Capacities are decreasing and mass production can be expected. Both are DC applications. Hydrogen technology is a bit further into the future, but related developments like fuel cells, photo voltaic applications and the conversion of coal in the pit are rushing forward. The aim is a sustainable energy supply. But to achieve that, a step by step approach is requested. One of the first steps is to establish a clean local supply. This local supply takes away potential barriers for sustainable technology, because the two technologies have common characteristics. ünce sustainable technology is really available, it can substitute gas driven technology. ( Turn around� A change is difficult to achieve. So far, the liberalisation has been a relatively smooth process. in a liberalised market, decisions are economically driven. in the regulated market, a new power plant resulted in higher prices, because all costs were transferred to the customer. But a new power plant causes an increase in generation, with more electricity available. Economical rules suggest a decrease in prices. The government must translate environmental issues into economy, to assure the position of the environment in the decision making process and to create a driver towards sustainability. The government is not able to achieve this on its own. Assistance is needed from the energy sector. But this sector has lost its way in the liberalisation process and companies are struggling to maintain their positions. They are not assisting the government, even worse, they oppose the government in its energy and environmental policies. in their defense, it is not easy to turn around a company 180 degrees in a short period of time. But they have no choice, the market demands it. in this new market, new technology will have a chance. But like the environment, there is little attention for it, so far. Consequences for energy policy t he energy policy of the government is stili valid. But the government should reconsider the way to carry out its policy. The government cannot expect from the energy companies that they will play the same important role, as they did so far. The energy policy should not stress the market. Actually, it should use the market principles. The grid acts as natural monopoly and the government should ensure that the grid is not abused to preserve or create a monopoly. lmportant is the transparency. The government should set up a system in which each way of energy conversion is qualified, like in the United Kingdom. Sustainable conversion should have the highest qualification, the less efficient and most polluting methods should have the lowest qualification. in the qualification process, the government can add the requirements they want to, based on sustainability, efficiency, pollution, scale, sector, ete. lf a tax regime is based on the quality of conversion, there is the incentive to move towards sustainable energy. Such a system would only work if all items or technologies are covered, including nuclear energy. A last issue is the principle of the polluter pays. The costs should be put where they are caused. This means that local electricity should not be levied with transportation costs. But it also means that different ways of electricity generation should be levied differently with environmental taxes, according to their conversion quality. COGENERATION WORLD & Renewable Energy [Jl
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