50 Users of CHP meantime, demand and supply increase and the network bottleneck 727 and DE will be gets ever more congested. among the few that can function amid the Users of CHP and DE will be among the few that can general function efficiently amid disruption to energy supplies ■ Aaia Pııcific Nonh Americıı ■ Africıı S. ond Cıınrol Americıı ■ Europe end Eurosia Ad i ts trhuep tei opni . centre o o f this new age f M i dt edrlreo rEiasstth. e ■ MiddleEett Some countries S Fi o gure 6. Proved natural gas reserves at end of 2003. urce: Annual Statistical Review of Energy, 2004, BP in that region are highly exposed to disruption brought on by terror attacks or war. Yet, critically, as Figures 5 and 6 show, it is this region that dominates the oil supply market - and will do so increasingly in the future - and, with Russia, the gas market. At best, supply will continue from this region, untroubled - butthe costs of protecting and securing this supply will be high, and consumers will pay. At worst, as happens weeklytoday in lraq, pipelines will be attacked, stressing an already tight market for oil and gas. A one-way bet. cl imate change Ever since scientists started looking at the issue, their confidence in the existence of human-induced climate change has hardened year by year. Combine this with the accelerating indications and consequences of climate change, and we have a challenge that has to be effectively addressed in the short-term. in simple terms, there is only one practical way to deal with the risk - use less tossil fuel. This means using more non-tossil sources of energy where possible - though most of these are currently expensive -and using tossil fuels much more efficiently. in many countries, CHP provides the most cost-effective means of achieving substantial reductions in the emissions of carbon dioxide - indeed the economic savings from CHP can be enjoyed by both suppliers and consumers. it is by no means the only aonnstwhoesre, but it is a very good one. This reality is already dawning countries that wish to address the challenge of climate change. For those countries that do not yet do so, it has to be only a matter of time. Maybe 1 O years, maybe 20 - one day. Energy efficiency will be increasingly seen as the best path out of the ever hotter woods. A one-way bet. network reliabi l ity Blackouts were big news in 2003 and may also turn out to be a feature of 2004. CHP and DE are essential tools in the armoury of those responsible for minimizing future disruption, but there is, as yet, little sign that the necessary incentives will be introduced in the short-term that can deliver an effective response. in the The peak demand days and hours are the headache tor system managers; it's the same with many network-provided services, inc tripluodritnogmroaakdesi.tTaht eanaontshweer rtimfoer .roltad users is to not make the 's the same tor the electricity system: reduce consumption or switch on at another time. For both, however, there are no price incentives to make that switch. Vernon Smith, the Nobel economist, advocates the implementation of a retail demand response and allowing new market entrants ccess to the network to provide dynamic demand response services. With these innovations, consumers will have the option to cut consumption when supply cost is at its highest - relieving network asphyxiation ali the way back up the line. The nice thing about this idea, fairly obvious it you think about it, is that such a response will, in the words of Vernon Smith, 'provide a wide range of benefits including lower capital and energy costs, fewer critical power spikes, consumer control over electricity prices and the environmental benefits gained by empowering consumers to use electricity more wisely.' lnevitably, CHP and DE will be a part of such dynamic demand response and the more efficient use of energy will be a natura! consequence. in the meantime, the policymakers and network owners trudge on, believing the way we have done things tor decades is the way we need to carry on doing things. And, as sure as night tollows day, network reliability will continue to be lower than it need to. lt's a one-way bet. stating the obvious The greater application of energy efficiency is an inevitability and s a o therefore is CHP and DE. WADE was established in 2002 to ccelerate the wider global use of these efficient systems. lts Chairman, Tom Casten, has long been a highly effective advocate of the economic logic of efficiency. Our national organizations around the world have become dynamic forces and have succeeded in placing CHP firmly on policy agendas. lnternationally, WADE continues to develop work programmes that aim to bring policymakers and regulators to face the obvious need tor efficiency through CHP and DE. WraApidDlyE,eitmsemrgeimngbetorsr and its international network represent a ce tor positive change at the global level. it is a sizeable challenge that will certainly be achieved as energy efficiency comes torward as a pivotal solution to many of the core economic and environmental challenges that we now face. You can bet on it I ENERJi & KOJENERASYON DÜNYASI ♦ "Kojenerasyon: Yüksek Verim, Temiz Çevre, Enerjide Yeniden Yapılanma"
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