“Business Kazakhstan” edition No.8 (255) of March 3, 2011 № 8 (255)
Energy Conservation
POLICY PRIORITY
If we enjoy blessings of civilization, energy conservation should become an integral part of our everyday life. Cost of energy resources gives a perceptible cause for this.
Igor Tatarov - chairman of the Board of Directors of "SEVKAZENERGO" JSC, believes that development and implementation of new energy conservation technologies, equipment and materials and fulfillment of undertaken commitments to branch ministry shall be the basic method of energy efficiency for industry.
In 2010, “SEVKAZENERGO” JSC spent approximately 5 billion tenge on capitalization and repair of power complex, which was 21% more comparing to the similar costs of year 2009. And only in the past year “SEVKAZENERGO” JSC paid 1.452 billion tenge to national budget.
- There are several ways of power consumption level reduction, namely: elimination of events of irrational utilization of energy and losses, increase of energy efficiency, said Igor Vitaliyevitch. - It is worthy to mention that we in that field we began with ourselves and succeeded.
Sophisticated cycle of production of the product that we all need that much, namely - electrical and thermal energy, is, at first sight, connected with unavoidable losses that occur throughout the cycle from fuel delivery to the electric power plant and to socket in the wall in an apartment or a switch in an industrial enterprise. Yet, power specialists learnt to cope with some of such power losses.
Energy conservation policy conducted by the energy complex is governed by the provisions of investment programs developed by the company. Reported activity results are indicative of the system work.
In 2010, based on the Natural Monopolies Regulatory Agency’s Department (NMRAD) order for North Kazakhstan area, new investment program of “SEVKAZENERGO” JSC with investment amount of 450 million tenge, which is 23% comparing to that of year 2009, was approved by the Ministry of Industrialization and New Technologies of the Republic of Kazakhstan. At that, implementation of measures included in the given investment program did not have effect on the current power production rates. Within the framework of the long-term program of reconstruction and modernization of the heat power plant No.2 belonging to the "SEVKAZENERGO" JSC, which is to be completed by year 2015, and the objective of which is to increase available and installed power capacity, the company developed the agreement for investment commitments of "SEVKAZENERGO" JSC for the current year and concluded it with the branch ministry. This investment commitment agreement provides for the total amount of investments of 3,550.461 million tenge, which is 43% more than that of year 2010. Also, “Reconstruction, Modernization and Technical Upgrade of “SEVKAZENERGO” JSC Energy Generating Complex” investment program was approved by Natural Monopolies Regulatory Agency’s Department for the purpose of uninterrupted and reliable heat supply of North Kazakhstan area with amount of investments exceeding 550.259 million tenge. Investment program implementation is possible thanks to the Decree issued by the Government of the Republic of Kazakhstan in respect of maximum electrical power rates set and fixed in 2009 for the following six years. So, we can say that suggested method that can be described as “tariff in return for investments” is now in action.
Petropavlovsk combined heat and power plant No.2 is the power generating core of power generating complex companies. In the process of electric and heat power production priority is given to energy conservation within the framework of different programs including the whole set of actions aimed at reduction of the rate of fuel, electric power, water and steam etc. consumption by heat and power plant. Repair and restoration work, retooling and modernization operations are of permanent nature. Such operations are aimed at improvement of technical condition of equipment at the power plant with semicentennial operation history.
Energy sector saved over 5,000 tons of fuel equivalent over the past year. Heat-and-power plant electric power consumption rated was reduced more than by 15%. Work on installation of second generation titanium emulsifiers with flue gas purification coefficient of 99.5% is currently underway. Large-scale modernization of heat-and-power plant equipment within the framework of modernization program to be implemented by 2015 will allow for reduction of fuel consumption per a unit of production, energy consumption per mechanisms drives engaged in power production and noticeably reduce emission of harmful substances into atmosphere. It is planned to perform modernization of up to 50% of combined electric power-and-heat generating plant by the end of the above specified period.
For electric power transmission companies, such as "North Kazakhstan Regional Energy Company" JSC, reduction of actual electric power losses is the top priority in energy conservation policy. Over the period of 2000-2009, heat-and-power plant consumption and power transmission losses were decreased from 28.24% in 2000 to 13.90% in 2009 thanks to implementation of a set of measures. Such measures included serious efforts aimed at reduction of kilowatt-hours of commercial losses in power transmitting networks. As the result, such commercial losses were reduced by 1,031 thousand kW/h.
Absence of above-standard losses in 2010 is representative of success of above specified measures and efficiency of such activities. Actual level of normative technical losses of electric power was equal to 155.9 million kW/h or 13.56%, while level of losses approved by Natural Monopolies Regulatory Agency’s Department (NMRAD) for North Kazakhstan area is 13.7% of the total amount of electric power generated and supplied to power distribution grid.
Normative technical losses in power distribution grid for this year was set at the level of 13.6% of the total amount of generated power at the input of distribution grid. Therefore, the company shall ensure rate of reduction of normative technical losses of power upon transmission in power distribution grid of 0.1% per annum and, along with that, avoid above-standard losses. Program of investment in reconstruction and retooling and modernization of key assets for year 2011 provides for investments to the amount of 688.5 million tenge including 655.5 million tenge aimed at losses reduction.
Over the last three years, “Petropavlovsk Heat Supply Network” LLP invested 403.5 million tenge in reconstruction, modernization and retooling and modernization within the framework of investment programs. It is necessary to mention here that the tendency is for reduction of losses upon heat transmission over heat supply network. Thus, in 2008 heat losses made up 33.5% of the total amount of heat produced, while in 2010 it was 30.7%. Total losses of heat power were also reduced by 2.8%.
Stake was also placed on energy conservation technologies with due account for extensive wear and tear of heat supply network. This problem can really be solved only by means of replacement of worn-out structures with the state-of-the-art equipment and pipelines pre-insulated with urethane foam insulation. Over the two-year period, the above specified measures resulted in saving of 1,543 gigacalories.
Employment of new urethane foam insulation technology (shells) resulted in overall reduction of thermal power loss by 2,768 gigacalories. Differential characteristics of the given insulation material is the stability of its thermal insulation properties over the whole period of its utilization i.e. 25 to 30 years.
Operation of updated thermal equipment results not only in reduction of thermal loss but also in reduction in power consumption by heat-and-power plant for the needs of heat supply network despite an annual capacity gain by 2,925 gigacalories for 2 years.
Energy industry calls its customers for energy conservation, which shall imply mutually beneficial cooperation. It was not that easy though to practically implement governmental policy in the field of energy conservation. The problem of accounting and saving of resources in housing and utilities infrastructure is not new at all same as the technical solutions to this problem.
On the initiative of the Natural Monopolies Regulating Agency of the Republic of Kazakhstan, differential tariffs by time of day and consumption rates were implemented in North Kazakhstan area, among other administrative areas, as part of energy conservation measures that proved to be effective.
- only measures of system nature can get the process of power conservation problem solution moving. Power management is among such measures. Power management represents operating system of power consumption management, which is aimed at reduction of power consumption rate, - said I.V. Tatarov – if energy intensity of production process is not progressively reduced, a company will become a “hostage” of its own interests. Nevertheless, it is necessary to remember that energy conservation should be the joint effort both of power suppliers and consumers and the latter shall not just keep out of the problem and criticize monopolies for another tariffs escalation.
There is idea that tariffs escalation may result in power saving by population. Unfortunately, as experience shows, such measures do not result in power saving by population that will resume excessive spending of electric power in a month or two after tariffs escalation. Apartment owner does not own just his or her apartment but a certain part of common apartment building property. And if such apartment owner thinks that he or she should save energy only in his/her apartment he/she is wrong. So, how can one save energy in an apartment building? The answer is that energy saving can be ensured by the use of energy-saving bulbs and automatic control systems. So, one should not wait until new buildings are built equipped with all energy saving devices and systems including movement sensors regulating lighting in riser blocks of apartments. There are some options that are more simple, namely: one can put light on upon entering into apartment building and switch light on or off moving along stairway. And what is going on in reality?
Low tariffs does not allow for the use of all capabilities of record keeping system to the fullest possible extent. This statement is supported by the implementation of the program of power consumers equipping with metering equipment. Energy accounting and energy conservation are slightly different things by its meaning. And it is possible to achieve targeted level power conservation only after assessment of true meaning of consumed resources.
By the way, North Kazakhstan are is located in so to say “power paradise” since there is its own power source – heat and power plant No.2, which satisfies the needs of consumers in the region and beyond it and rates set for consumers of electric and thermal power supplied by “SEVKAZENERGO” JSC are below the average level in the Republic of Kazakhstan.
Written by Alesya KAZANOVSKAYA