the bottom line distribution automation: an opportunity to

8
THE BOTTOM LINE The control systems of today’s smart power-distribution grids have evolved significantly. Such systems improve system reliability by reducing the frequency and duration of outages. They also optimize asset utilization and increase power quality. But the scale of automation and the ultimate configuration of the system need to be considered carefully with each client. The decision to proceed must be based on a sound economic evaluation; it cannot simply echo the mantra of automation. Samuel Oguah is an energy specialist with the World Bank’s Energy and Extractives Global Practice. Varun Nangia is a consultant in the same practice. Kwawu Gaba is a lead energy specialist with the Energy and Extractives Global Practice and also leads the World Bank’s Power Systems Global Solutions Group. Distribution Automation: An Opportunity to Improve Reliability and Quality Why is this issue important? Distribution automation saves utilities and their customers money by reducing outages and lowering capital and operating costs When components of power distribution networks fail, the failure must be cured quickly to avoid power cuts or loss of load. Such cuts and losses can cost even a small utility and its customers millions of dollars annually. Studies in Chile and Thailand have estimated the value of energy demand that goes unserved owing to outages at between $360/MWh and $1,500/MWh (Concept Economics 2008). Because outages are expensive, utilities focus on improving reliability. Automation is one of the best tools they can use. Tata Power Distribution Utility of India lowered its index of the average duration of system interruptions (known as SAIDI) from more than 2.3 hours to 46 minutes by investing in substation automation, supervisory control and data acquisition (SCADA) systems, and advanced distribution management. For some projects, the payback time for investments in automation can be as short as two years (Dondi, Peeters, and Singh, undated). In another example, the California Energy Commission (2009) estimated that a range of interventions, including distribution automation, yielded an annual benefit of as much as $600 million. Such savings are of course the result of the increased system reliability and improved efficiency that come with automation. But the benefits noted in the study also include the ability to increase the penetration of distributed energy resources—such as photovoltaic devices, demand response mechanisms, and combined heat and A KNOWLEDGE NOTE SERIES FOR THE ENERGY PRACTICE 2016/68 A KNOWLEDGE NOTE SERIES FOR THE ENERGY & EXTRACTIVES GLOBAL PRACTICE power—that could not be integrated into the power system without the flexibility offered by distribution automation. The study concluded that 50 percent of project benefits accrue to utilities, with the remainder split nearly equally between customers and society in general. Key advantages of distribution automation include: Outage prevention. Substation equipment (remote terminal units) can be used with power monitoring equipment to detect and correct power-related problems before they occur and before load must be shed, thus improving reliability and customer satisfaction (Csanyi 2015). Rapid restoration/self-healing grid. Automation systems can help with fast fault detection, location, and clearing, drastically reducing the duration of outages. Reduced maintenance costs. Preventive maintenance algorithms can be integrated into distribution automation systems to schedule maintenance and help deploy resources, thereby optimizing the use of resources, reducing labor costs, and extending equipment life. Improved system utilization. The vast amounts of data available through automated grids can help planners and operators to better understand system constraints (such as loading of lines and congestion points) so that systems can be operated at higher levels. Longer equipment lifespan. The traditional methods that utilities use to localize a fault on a feeder involve reclosing the faulty feeder many times, which strains electromechanical equipment and shortens its useful life. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized closure Authorized

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The boTTom line

The control systems of today’s smart power-distribution grids have evolved significantly. Such systems improve system reliability by reducing the frequency and duration of outages. They also optimize asset utilization and increase power quality. But the scale of automation and the ultimate configuration of the system need to be considered carefully with each client. The decision to proceed must be based on a sound economic evaluation; it cannot simply echo the mantra of automation.

Samuel Oguah is an energy specialist with the World Bank’s Energy and Extractives Global Practice.

Varun Nangia is a consultant in the same practice.

Kwawu Gaba is a lead energy specialist with the Energy and Extractives Global Practice and also

leads the World Bank’s Power Systems Global Solutions Group.

Distribution Automation: An opportunity to improve Reliability and Quality

Why is this issue important?

Distribution automation saves utilities and their customers money by reducing outages and lowering capital and operating costs

When components of power distribution networks fail, the failure

must be cured quickly to avoid power cuts or loss of load. Such cuts

and losses can cost even a small utility and its customers millions

of dollars annually. Studies in Chile and Thailand have estimated the

value of energy demand that goes unserved owing to outages at

between $360/MWh and $1,500/MWh (Concept Economics 2008).

Because outages are expensive, utilities focus on improving reliability.

Automation is one of the best tools they can use.

Tata Power Distribution Utility of India lowered its index of the

average duration of system interruptions (known as SAIDI) from more

than 2.3 hours to 46 minutes by investing in substation automation,

supervisory control and data acquisition (SCADA) systems, and

advanced distribution management. For some projects, the payback

time for investments in automation can be as short as two years

(Dondi, Peeters, and Singh, undated).

In another example, the California Energy Commission (2009)

estimated that a range of interventions, including distribution

automation, yielded an annual benefit of as much as $600 million.

Such savings are of course the result of the increased system

reliability and improved efficiency that come with automation. But

the benefits noted in the study also include the ability to increase the

penetration of distributed energy resources—such as photovoltaic

devices, demand response mechanisms, and combined heat and

A k n o w l e d g e n o t e s e r i e s f o r t h e e n e r g y p r A c t i c e

2016/68

A k n o w l e d g e n o t e s e r i e s f o r t h e e n e r g y & e x t r A c t i v e s g l o b A l p r A c t i c e

power—that could not be integrated into the power system without the flexibility offered by distribution automation. The study concluded that 50 percent of project benefits accrue to utilities, with the remainder split nearly equally between customers and society in general.

Key advantages of distribution automation include:

• Outageprevention.Substation equipment (remote terminal units) can be used with power monitoring equipment to detect and correct power-related problems before they occur and before load must be shed, thus improving reliability and customer satisfaction (Csanyi 2015).

• Rapidrestoration/self-healinggrid.Automation systems can help with fast fault detection, location, and clearing, drastically reducing the duration of outages.

• Reducedmaintenancecosts.Preventive maintenance algorithms can be integrated into distribution automation systems to schedule maintenance and help deploy resources, thereby optimizing the use of resources, reducing labor costs, and extending equipment life.

• Improvedsystemutilization.The vast amounts of data available through automated grids can help planners and operators to better understand system constraints (such as loading of lines and congestion points) so that systems can be operated at higher levels.

• Longerequipmentlifespan.The traditional methods that utilities use to localize a fault on a feeder involve reclosing the faulty feeder many times, which strains electromechanical equipment and shortens its useful life.

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2 D i S T r i B u T i o n A u T o m A T i o n : A n o p p o r T u n i T y T o i m p r o v e r e l i A B i l i T y A n D Q u A l i T y

“Distribution automation

is promising enough to

allow leapfrogging over

interim technologies and to

help restore some utilities

to viability. But we must

also keep in mind that the

power sector is capital

intensive. Most utility

assets have a long lifetime,

and replacement cannot

always be instantaneous.”

• Assetmonitoring.Automation allows constant monitoring of equipment. By analyzing data, preventive maintenance can be targeted on transformers that need it.

• Expandeduseofdecentralizedgeneration,renewableenergy,andenergystorage.

Because automation is a buzzword these days, care must be taken not to overstate the benefits of a given project during prepara-tion. Similarly, one should tout only those benefits that are truly likely to materialize. As with cellular development in Africa, distribution automation is promising enough to allow leapfrogging over interim technologies and to help restore some utilities to viability. But we must also keep in mind that the power sector is capital intensive. Most utility assets have a long lifetime, and replacement cannot always be instantaneous. The pace of modernization may therefore not be as rapid as seen in other sectors, and there will be a greater need to ensure that expansions do not lock utilities into particular products.

What is distribution automation?

modern automation systems combine and coordinate various components across the grid to improve reliability and performance

Power distribution systems have long included various types of auto-mation. Relays that triggered circuit breakers in response to faults were an early form of distribution automation, one that protected life and property. However, once the circuit was broken, the faulted line or equipment stayed out of service even if the source of the fault was no longer present. So-called auto-reclosing breakers solved this problem by clearing transient faults and restoring power.

Distribution automation systems comprise rugged hardware, cus-tomizable logic, and a variety of services. Together, they detect faults, isolate trouble spots, and optimize reconfiguration of the network. Typical systems include: distribution automation controllers (DACs), protective relays, reclosers, voltage regulator controls, tap-changing transformers, conservation voltage reduction, volt VAr optimization devices, faulted circuit indicators, emergency generators, up and down ramp generators, and wired and wireless communications.

DACs also collect large amounts of data about the grid, which is very important to operators and planners.

The architecture for distribution systems can vary. Primarily, there are two types of architecture: decentralized and centralized. In a decentralized control network, DACs are located at local substations (figure 1a), controlling equipment on a portion of the distribution network. Each DAC communicates with the DAC in an adjacent zone whenever reconfiguration affects that zone. Such decentralized systems are cost-effective, scalable, and highly reliable. A centralized architecture (figure 1b), which is usually appropriate for a complex network, uses a single DAC to protect, monitor, and control the entire distribution system. This architecture supports large numbers of end devices through the use of front-end processors that provide data communications services.

Centralized systems offer a full system view for purposes of restoration, but they have the slowest restoration times. They also

Figure 1. Architectures for distribution automation

a. Decentralized

Source: Schweitzer Engineering Laboratories.

SCADA = supervisory control and data acquisition

DMS = distribution management system

DAC = distribution automation controller

FEP = front-end processor

b. Centralized

DAC

FEP FEPFEP

SCADA/DMS

DAC DACDAC

SCADA/DMS

3 D i S T r i B u T i o n A u T o m A T i o n : A n o p p o r T u n i T y T o i m p r o v e r e l i A B i l i T y A n D Q u A l i T y

“Systems must have

the flexibility to change

topology (or configuration)

so as to reduce losses and

restore power as quickly as

possible.”

require the most bandwidth for operation and a full distribution management system.1 Decentralized systems, on the other hand, require lower bandwidth, are more scalable, and provide stability at a relatively lower cost (compared with centralized systems).

To be able to use any of these configurations, the underlying distribution network must be properly designed. The topology (or configuration) of the network determines which mode of operation can be supported. Radial circuits, for example, do not lend them-selves to significant automation because there are no alternate paths to supply power to healthy segments when there is a fault. An optimal distribution system ensures that operating conditions such as system voltages and line loading are fully satisfied and that the system is operated at the highest efficiency and with the lowest rate of system losses. Because numerous events can affect the operating conditions of distribution systems, systems must have the flexibility to change topology so as to reduce losses and restore power as quickly as possible.

Operating conditions also can change seasonally or in response to special events. Under these conditions, the network operating criteria, including recommended thresholds for voltages and line loading, may be breached, leading to higher losses and potential overloads. Even under such conditions, it is paramount to restore service to as many customers as possible after a fault occurs, at least to those located on healthy sections of the network.

The location of line breakers, or remotely controlled switches along the feeders, makes it possible to achieve both goals: main-taining acceptable operating conditions while also meeting demand to the extent possible by modifying the topology of the network, a process known as reconfiguration. Reconfiguration involves closing some switches and opening others so as to maintain optimal oper-ating conditions and avoid technical losses while transferring loads from the healthy portions of faulty feeders to neighboring feeders that are operating normally. In an ideal reconfiguration scenario, all loads are served; overcurrent protective devices are coordinated; lines, transformers, and other equipment are kept within current

1 According to the Electric Power Research Institute (EPRI), a DMS is a “decision support system that is intended to assist the distribution system operators, engineers, technicians, managers and other personnel in monitoring, controlling, and optimizing the performance of the electric distribution system without jeopardizing the safety of the field workforce and the general public, and without jeopardizing the protection of electric distribution assets.”

Box 1. network reconfiguration for service restoration

The figure below shows an example of a distribution system with three feeders in which switches have been located to increase flexibility in system operation. The five steps for reconfiguring the system after a fault are:

• The feeder relay clears (eliminates) the fault.• Switches 1 and 2 open to isolate the fault.• The feeder relay recloses to energize the feeder up to the location

of switch 1 (upstream restoration).• System reconfigures by choosing the best option from the

possibilities indicated in the table for fault 1 (downstream restoration).• The fault is repaired and the system is restored to normal.

The first four steps ideally should be completed within a minute. System reconfiguration changes topologies and line flows, and short circuit values also change. Therefore, equipment duties (or current ratings), voltage profiles, and equipment loading have to be checked. Most distribution automation systems also allow operators in the control room to simulate some of these sequences using real-time data without interrupting normal operations.

Reconfiguration options for the system

Three-feeder system illustrating switch locations for service restoration

Legend:

I, II, and III = distribution feeders F1, F2, F3 = faults

1, 2, 3, … 14 = switches s = load

T1, T2, T3 = tie (or interconnecting) switches

Fault open Close

F1 1 and 2 T1 or T3

F2 8 and 9 T1 or T2

F3 12 and 13 T2 or T3

4 D i S T r i B u T i o n A u T o m A T i o n : A n o p p o r T u n i T y T o i m p r o v e r e l i A B i l i T y A n D Q u A l i T y

capacity limits; and voltage drop is held within limits. Box 1 shows how distribution automation can be used for fault location (or detection), isolation, and service restoration.

how has the bank supported distribution automation projects?

The World bank is investing in distribution automation through four projects while widening the field for future advances elsewhere

From fiscal year 2010 to 2015 (FY 2010–15), the World Bank commit-ted $378 million to four projects that explicitly included distribution automation (table 1), the largest of which is the Eletrobas Distribution Rehabilitation project in Brazil. Through other projects, though, the groundwork for subsequent deployment of distribution automation is being laid. An example is a project to strengthen the grid by converting radial lines to looped configurations. While this cannot be categorically described as a distribution automation project, it is an important step toward a system that can make good use of distribu-tion automation.

The Eletrobas project sought to improve the finances of six distribution companies located in Brazil’s relatively poorer provinces, the only companies not privatized a generation ago. Shrinking federal subsidies, the high cost of servicing remote and unpopulated areas, and poor long-term planning provided the impetus for a comprehen-sive smart grid project designed to address revenue loss through advanced metering infrastructure and to improve reliability through distribution automation. Despite initial challenges with procurement, the project is on track.

In Vietnam, the Distribution Efficiency Project sought to improve the performance of Vietnam’s power corporations by providing reliable electricity services of high quality through: (i) introduction of SCADA systems; and (ii) introduction of automated metering infrastructure, a key feature of which is two-way communication between meter and utility.

The Kenya Electricity Modernization Project seeks to reduce the duration of system interruptions. The utility, Kenya Power and Lighting Company (KPLC), is implementing various projects to automate and enhance the operational flexibility of the distribution

network—particularly at the medium-voltage level. The project aims at achieving 90 percent automation of the networks in Nairobi by installing a thousand load break switches in the 11, 33, and 66 kV networks, with associated remote terminal units and communica-tions features enabling remote control and operations.

how relevant is distribution automation to the World bank’s clients with weaker power grids?

All grids can benefit from various levels of automation, but not all grids (even in advanced power systems) are ready for advanced automation

One could argue that for those parts of the grid that are hard to reach, maximum automation offers several of the benefits discussed previously. However, these benefits need to be balanced with the costs of distribution automation. Relatively large investments, especially in communication systems, are often required to take advantage of the benefits of advanced automation systems, whereas the load on such grids is typically small.

Operating a highly automated grid also calls for a different set of skills for system operators. Considerable training is usually necessary. But of greater importance in distribution automation projects is to assist clients to understand how much automation they really need. The scale of automation and the ultimate configuration of the system

Table 1. World Bank commitment to distribution automation projects, Fy2010 to Q3 Fy2016 (millions of u.S. dollars)

project iD

project name (country) Fy

Commitment to distribution automation

Total WB commitment

P114204 Eletrobras Distribution Rehabilitation (Brazil)

2010 293.90 495.00

P125565 Electricity Sector Support (Senegal)

2013 1.00 85.00

P125996 Distribution Efficiency (Vietnam)

2013 62.80 448.90

P120014 Electricity Modernization (Kenya)

2015 20.00 250.00

Total 377.70 1,278.90

mAke fuRTheR connecTions

live Wire 2014/1. “Transmitting renewable energy to the Grid,” by marcelino madrigal and rhonda lenai Jordan.

live Wire 2015/38. “integrating variable renewable energy into power System operations,” by Thomas nikolakakis and Debabrata Chattopadhyay.

live Wire 2015/44. “mapping Smart-Grid modernization in power Distribution Systems,” by Samuel oguah and Debabrata Chattopadhyay.

live Wire 2015/48. “Supporting Transmission and Distribution projects: World Bank investments since 2010,” by Samuel oguah, Debabrata Chattopadhyay, and morgan Bazilian.

live Wire 2016/65. “ improving Transmission planning: examples from Andhra pradesh and West Bengal,” by Kavita Saraswat and Amol Gupta.

(conTinueD)

5 D i S T r i B u T i o n A u T o m A T i o n : A n o p p o r T u n i T y T o i m p r o v e r e l i A B i l i T y A n D Q u A l i T y

need to be considered carefully with each client. The decision to proceed must be based on a sound economic evaluation; it cannot simply echo the mantra of automation. The required analysis should also include the costs and benefits of alternative communication technologies that can be used to achieve the desired objectives.

In some cases, proper consideration of a distribution automation project may also require changing the mindset of operators who are used to long-standing operational protocols. Capacity building therefore needs to go beyond conventional training. For example, extensive training in which operators can use simulators to become comfortable with the system could help open up their thinking. Finally, the communication needs of the grid also must be clearly outlined to ensure interoperability.

A further challenge to distribution automation is ensuring interoperability of components from various manufacturers. Quite often, distribution grids grow organically; in such cases integrating components can be challenging. To maximize interoperability, the Bank could assist clients with the formulation of smart grid roadmaps that identify the desired policy goal and chart a pathway to meeting objectives (see, for example, Madrigal and Uluski 2015). Such a roadmap can inform the construction and rehabilitation of transmission substations and lines while systematically factoring in communication needs to ensure that capacity and communication are improved together.

The development of proper technical specifications for distribu-tion automation projects is also critical. For example, as information technology improves and Internet speeds increase, it is often simply assumed that existing IT can be used across all power system applications. This is not a safe assumption. While it is generally acceptable to attempt multiple message deliveries in IT, message delivery in the operations technology (OT) context of a distribution automation project needs to be swift and 99.99% reliable. OT is

precise, fast-healing, secure, and characterized by low latency. OT protocols ensure interoperability and reduce investment costs. This is important because, as we deal with our clients, we need to ensure that projects do not tie them to specific vendors. With growing interconnectivity, cyber-security becomes an issue and needs to be dealt with in technical specifications.

ReferencesCalifornia Energy Commission. 2009. “The Value of Distribution

Automation.” Public Interest Energy Research Program, California Energy Commission, Sacramento, CA, USA.

Concept Economics. 2008. “Investigation of the Value of Unserved Energy.” Electricity Commission, Wellington, New Zealand.

Csanyi, E. 2015. “8 Major Advantages of Distribution Automation.” Retrieved in January from http://electrical-engineering-portal.com/8-major-advantages-of-distribution-automation

Dolezilek, D. 2016. “Using the Right Communication Systems in Smart Grids.” Presentation at workshop in Washington, DC.

Dondi, P., Y. Peeters, and N. Singh. No date. “Achieving Real Benefits by Distribution Automation Solutions.” ABB Power Automation Ltd., Switzerland.

Madrigal, M., and R. Uluski. 2015. PracticalGuidanceforDefiningaSmartGridModernizationStrategy:TheCaseofDistribution. Washington, DC: World Bank.

ThisnotedrawsfromoriginalworkbyJuanM.GersandHéctorEnriquePeñaonnetworkreconfigurationforimprovedreliabilityandpresentationsbyAmandeepKalraandDavidDolezilekofSchweitzerEngineeringLaboratories.ItwaspeerreviewedbyLeopoldSedogo.TheauthorswishtothankthereviewerandcontributingstaffofSEL,includingAndrèduPlessis,fortheirassistance.TheauthorsacknowledgesupportreceivedfromMorganBazilian.

mAke fuRTheR connecTions (conT’D)

live Wire 2016/66. “Can utilities realize the Benefits of Advanced metering infrastructure? lessons from the Bank portfolio,” by varun nangia, Samuel oguah, and Kwawu Gaba.

live Wire 2016/67. “managing the Grids of the Future in Developing Countries: recent World Bank Support for SCADA/emS and SCADA/DmS Systems,” by varun nangia, Samuel oguah, and Kwawu Gaba.

live Wire 2016/69. “Smartening the Grid in Developing Countries: emerging lessons from World Bank lending,” by varun nangia, Samuel oguah, and Kwawu Gaba.

6 D i S T r i B u T i o n A u T o m A T i o n : A n o p p o r T u n i T y T o i m p r o v e r e l i A B i l i T y A n D Q u A l i T y

The LiveWire series of online knowledge notes is an initiative of the World Bank Group’s Energy and Extractives Global Practice, reflecting the emphasis on knowledge management and solu-tions-oriented knowledge that is emerging from the ongoing change process within the Bank Group.

Each LiveWire delivers, in 3–6 attractive, highly readable pages, knowledge that is immediately relevant to front-line practitioners.

LiveWires take a variety of forms:• Topic briefs offer technical knowledge on key issues in energy and extractives

• Case studies highlight lessons from experiences in implementation

• Global trends provide analytical overviews of key energy and extractives data

• Bank views portray the Bank Group’s activities in the energy and extractives sectors

• Private eyes present a private sector perspective on topical issues in the field

Each LiveWire will be peer-reviewed by seasoned practitioners in the Bank. Once a year, the Energy and Extractives Global Practice takes stock of all notes that appeared, reviewing their quality and identifying priority areas to be covered in the following year’s pipeline.

Please visit our live Wire web page for updates: http://www.worldbank.org/energy/livewire

Live Wires are designed for easy reading on the screen and for downloading and self-printing in color or black and white.

For World Bank employees: professional printing can also be undertaken on a customized basis for specific events or occasions by contacting GSDpm Customer Service Center at (202) 458-7479, or sending a written request to [email protected].

Get connected to live Wire

1 T r a c k i n g P r o g r e s s T o w a r d P r o v i d i n g s u s T a i n a b l e e n e r g y f o r a l l i n e a s T a s i a a n d T h e Pa c i f i c

THE BOTTOM LINE

where does the region stand

on the quest for sustainable

energy for all? in 2010, eaP

had an electrification rate of

95 percent, and 52 percent

of the population had access

to nonsolid fuel for cooking.

consumption of renewable

energy decreased overall

between 1990 and 2010, though

modern forms grew rapidly.

energy intensity levels are high

but declining rapidly. overall

trends are positive, but bold

policy measures will be required

to sustain progress.

2014/28

Elisa Portale is an

energy economist in

the Energy Sector

Management Assistance

Program (ESMAP) of the

World Bank’s Energy and Extractives

Global Practice.

Joeri de Wit is an

energy economist in

the Bank’s Energy and

Extractives Global

Practice.

A K N O W L E D G E N O T E S E R I E S F O R T H E E N E R G Y & E X T R A C T I V E S G L O B A L P R A C T I C E

Tracking Progress Toward Providing Sustainable Energy

for All in East Asia and the Pacific

Why is this important?

Tracking regional trends is critical to monitoring

the progress of the Sustainable Energy for All

(SE4ALL) initiative

In declaring 2012 the “International Year of Sustainable Energy for

All,” the UN General Assembly established three objectives to be

accomplished by 2030: to ensure universal access to modern energy

services,1 to double the 2010 share of renewable energy in the global

energy mix, and to double the global rate of improvement in energy

efficiency relative to the period 1990–2010 (SE4ALL 2012).

The SE4ALL objectives are global, with individual countries setting

their own national targets in a way that is consistent with the overall

spirit of the initiative. Because countries differ greatly in their ability

to pursue the three objectives, some will make more rapid progress

in one area while others will excel elsewhere, depending on their

respective starting points and comparative advantages as well as on

the resources and support that they are able to marshal.

To sustain momentum for the achievement of the SE4ALL

objectives, a means of charting global progress to 2030 is needed.

The World Bank and the International Energy Agency led a consor-

tium of 15 international agencies to establish the SE4ALL Global

Tracking Framework (GTF), which provides a system for regular

global reporting, based on rigorous—yet practical, given available

1 The universal access goal will be achieved when every person on the planet has access

to modern energy services provided through electricity, clean cooking fuels, clean heating fuels,

and energy for productive use and community services. The term “modern cooking solutions”

refers to solutions that involve electricity or gaseous fuels (including liquefied petroleum gas),

or solid/liquid fuels paired with stoves exhibiting overall emissions rates at or near those of

liquefied petroleum gas (www.sustainableenergyforall.org).

databases—technical measures. This note is based on that frame-

work (World Bank 2014). SE4ALL will publish an updated version of

the GTF in 2015.

The primary indicators and data sources that the GTF uses to

track progress toward the three SE4ALL goals are summarized below.

• Energy access. Access to modern energy services is measured

by the percentage of the population with an electricity

connection and the percentage of the population with access

to nonsolid fuels.2 These data are collected using household

surveys and reported in the World Bank’s Global Electrification

Database and the World Health Organization’s Household Energy

Database.

• Renewable energy. The share of renewable energy in the

energy mix is measured by the percentage of total final energy

consumption that is derived from renewable energy resources.

Data used to calculate this indicator are obtained from energy

balances published by the International Energy Agency and the

United Nations.

• Energy efficiency. The rate of improvement of energy efficiency

is approximated by the compound annual growth rate (CAGR)

of energy intensity, where energy intensity is the ratio of total

primary energy consumption to gross domestic product (GDP)

measured in purchasing power parity (PPP) terms. Data used to

calculate energy intensity are obtained from energy balances

published by the International Energy Agency and the United

Nations.

2 Solid fuels are defined to include both traditional biomass (wood, charcoal, agricultural

and forest residues, dung, and so on), processed biomass (such as pellets and briquettes), and

other solid fuels (such as coal and lignite).

1 T r a c k i n g P r o g r e s s To wa r d P r o v i d i n g s u s Ta i n a b l e e n e r g y f o r a l l i n e a s T e r n e u r o P e a n d c e n T r a l a s i a

THE BOTTOM LINE

where does the region stand

on the quest for sustainable

energy for all? The region

has near-universal access to

electricity, and 93 percent of

the population has access

to nonsolid fuel for cooking.

despite relatively abundant

hydropower, the share

of renewables in energy

consumption has remained

relatively low. very high energy

intensity levels have come

down rapidly. The big questions

are how renewables will evolve

when energy demand picks up

again and whether recent rates

of decline in energy intensity

will continue.

2014/29

Elisa Portale is an

energy economist in

the Energy Sector

Management Assistance

Program (ESMAP) of the

World Bank’s Energy and Extractives

Global Practice.

Joeri de Wit is an

energy economist in

the Bank’s Energy and

Extractives Global

Practice.

A K N O W L E D G E N O T E S E R I E S F O R T H E E N E R G Y & E X T R A C T I V E S G L O B A L P R A C T I C E

Tracking Progress Toward Providing Sustainable Energy

for All in Eastern Europe and Central Asia

Why is this important?

Tracking regional trends is critical to monitoring

the progress of the Sustainable Energy for All

(SE4ALL) initiative

In declaring 2012 the “International Year of Sustainable Energy for

All,” the UN General Assembly established three global objectives

to be accomplished by 2030: to ensure universal access to modern

energy services,1 to double the 2010 share of renewable energy in

the global energy mix, and to double the global rate of improvement

in energy efficiency relative to the period 1990–2010 (SE4ALL 2012).

The SE4ALL objectives are global, with individual countries setting

their own national targets in a way that is consistent with the overall

spirit of the initiative. Because countries differ greatly in their ability

to pursue the three objectives, some will make more rapid progress

in one area while others will excel elsewhere, depending on their

respective starting points and comparative advantages as well as on

the resources and support that they are able to marshal.

To sustain momentum for the achievement of the SE4ALL

objectives, a means of charting global progress to 2030 is needed.

The World Bank and the International Energy Agency led a consor-

tium of 15 international agencies to establish the SE4ALL Global

Tracking Framework (GTF), which provides a system for regular

global reporting, based on rigorous—yet practical, given available

1 The universal access goal will be achieved when every person on the planet has access

to modern energy services provided through electricity, clean cooking fuels, clean heating fuels,

and energy for productive use and community services. The term “modern cooking solutions”

refers to solutions that involve electricity or gaseous fuels (including liquefied petroleum gas),

or solid/liquid fuels paired with stoves exhibiting overall emissions rates at or near those of

liquefied petroleum gas (www.sustainableenergyforall.org).

databases—technical measures. This note is based on that frame-

work (World Bank 2014). SE4ALL will publish an updated version of

the GTF in 2015.

The primary indicators and data sources that the GTF uses to

track progress toward the three SE4ALL goals are summarized below.

Energy access. Access to modern energy services is measured

by the percentage of the population with an electricity connection

and the percentage of the population with access to nonsolid fuels.2

These data are collected using household surveys and reported

in the World Bank’s Global Electrification Database and the World

Health Organization’s Household Energy Database.

Renewable energy. The share of renewable energy in the energy

mix is measured by the percentage of total final energy consumption

that is derived from renewable energy resources. Data used to

calculate this indicator are obtained from energy balances published

by the International Energy Agency and the United Nations.

Energy efficiency. The rate of improvement of energy efficiency is

approximated by the compound annual growth rate (CAGR) of energy

intensity, where energy intensity is the ratio of total primary energy

consumption to gross domestic product (GDP) measured in purchas-

ing power parity (PPP) terms. Data used to calculate energy intensity

are obtained from energy balances published by the International

Energy Agency and the United Nations.

This note uses data from the GTF to provide a regional and

country perspective on the three pillars of SE4ALL for Eastern

2 Solid fuels are defined to include both traditional biomass (wood, charcoal, agricultural

and forest residues, dung, and so on), processed biomass (such as pellets and briquettes), and

other solid fuels (such as coal and lignite).

“LiveWire is designed

for practitioners inside

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It is a resource to

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counterparts.”

7 D i S T r i B u T i o n A u T o m A T i o n : A n o p p o r T u n i T y T o i m p r o v e r e l i A B i l i T y A n D Q u A l i T y

1 U n d e r s t a n d i n g C O 2 e m i s s i O n s f r O m t h e g l O b a l e n e r g y s e C t O r

Understanding CO2 Emissions from the Global Energy Sector

Why is this issue important?

Mitigating climate change requires knowledge of the

sources of CO2 emissions

Identifying opportunities to cut emissions of greenhouse gases

requires a clear understanding of the main sources of those emis-

sions. Carbon dioxide (CO2) accounts for more than 80 percent of

total greenhouse gas emissions globally,1 primarily from the burning

of fossil fuels (IFCC 2007). The energy sector—defined to include

fuels consumed for electricity and heat generation—contributed 41

percent of global CO2 emissions in 2010 (figure 1). Energy-related

CO2 emissions at the point of combustion make up the bulk of such

emissions and are generated by the burning of fossil fuels, industrial

waste, and nonrenewable municipal waste to generate electricity

and heat. Black carbon and methane venting and leakage emissions

are not included in the analysis presented in this note.

Where do emissions come from?

Emissions are concentrated in a handful of countries

and come primarily from burning coal

The geographical pattern of energy-related CO2 emissions closely

mirrors the distribution of energy consumption (figure 2). In 2010,

almost half of all such emissions were associated with the two

largest global energy consumers, and more than three-quarters

were associated with the top six emitting countries. Of the remaining

energy-related CO2 emissions, about 8 percent were contributed

by other high-income countries, another 15 percent by other

1 United Nations Framework Convention on Climate Change, Greenhouse Gas Inventory

Data—Comparisons By Gas (database). http://unfccc.int/ghg_data/items/3800.php

middle-income countries, and only 0.5 percent by all low-income

countries put together.

Coal is, by far, the largest source of energy-related CO2 emissions

globally, accounting for more than 70 percent of the total (figure 3).

This reflects both the widespread use of coal to generate electrical

power, as well as the exceptionally high CO2 intensity of coal-fired

power (figure 4). Per unit of energy produced, coal emits significantly

more CO2 emissions than oil and more than twice as much as natural

gas.

2014/5

THE BOTTOM LINE

the energy sector contributes

about 40 percent of global

emissions of CO2. three-

quarters of those emissions

come from six major

economies. although coal-fired

plants account for just

40 percent of world energy

production, they were

responsible for more than

70 percent of energy-sector

emissions in 2010. despite

improvements in some

countries, the global CO2

emission factor for energy

generation has hardly changed

over the last 20 years.

Vivien Foster is sector

manager for the Sus-

tainable Energy Depart-

ment at the World Bank

([email protected]).

Daron Bedrosyan

works for London

Economics in Toronto.

Previously, he was an

energy analyst with the

World Bank’s Energy Practice.

A K N O W L E D G E N O T E S E R I E S F O R T H E E N E R G Y P R A C T I C E

Figure 1. CO2 emissions

by sector

Figure 2. energy-related CO2

emissions by country

Energy41%

Roadtransport

16%

Othertransport

6%

Industry20%

Residential6%

Othersectors

10%China30%

USA19%

EU11%

India7%

Russia7%

Japan 4%

Other HICs8%

Other MICs15%

LICs0.5%

Notes: Energy-related CO2 emissions are CO2 emissions from the energy sector at the point

of combustion. Other Transport includes international marine and aviation bunkers, domestic

aviation and navigation, rail and pipeline transport; Other Sectors include commercial/public

services, agriculture/forestry, fishing, energy industries other than electricity and heat genera-

tion, and other emissions not specified elsewhere; Energy = fuels consumed for electricity and

heat generation, as defined in the opening paragraph. HIC, MIC, and LIC refer to high-, middle-,

and low-income countries.

Source: IEA 2012a.

1 T r a c k i n g P r o g r e s s To wa r d P r o v i d i n g s u s Ta i n a b l e e n e r g y f o r a l l i n e a s T e r n e u r o P e a n d c e n T r a l a s i a

THE BOTTOM LINE

where does the region stand

on the quest for sustainable

energy for all? The region

has near-universal access to

electricity, and 93 percent of

the population has access

to nonsolid fuel for cooking.

despite relatively abundant

hydropower, the share

of renewables in energy

consumption has remained

relatively low. very high energy

intensity levels have come

down rapidly. The big questions

are how renewables will evolve

when energy demand picks up

again and whether recent rates

of decline in energy intensity

will continue.

2014/29

Elisa Portale is an

energy economist in

the Energy Sector

Management Assistance

Program (ESMAP) of the

World Bank’s Energy and Extractives

Global Practice.

Joeri de Wit is an

energy economist in

the Bank’s Energy and

Extractives Global

Practice.

A K N O W L E D G E N O T E S E R I E S F O R T H E E N E R G Y & E X T R A C T I V E S G L O B A L P R A C T I C E

Tracking Progress Toward Providing Sustainable Energy

for All in Eastern Europe and Central Asia

Why is this important?

Tracking regional trends is critical to monitoring

the progress of the Sustainable Energy for All

(SE4ALL) initiative

In declaring 2012 the “International Year of Sustainable Energy for

All,” the UN General Assembly established three global objectives

to be accomplished by 2030: to ensure universal access to modern

energy services,1 to double the 2010 share of renewable energy in

the global energy mix, and to double the global rate of improvement

in energy efficiency relative to the period 1990–2010 (SE4ALL 2012).

The SE4ALL objectives are global, with individual countries setting

their own national targets in a way that is consistent with the overall

spirit of the initiative. Because countries differ greatly in their ability

to pursue the three objectives, some will make more rapid progress

in one area while others will excel elsewhere, depending on their

respective starting points and comparative advantages as well as on

the resources and support that they are able to marshal.

To sustain momentum for the achievement of the SE4ALL

objectives, a means of charting global progress to 2030 is needed.

The World Bank and the International Energy Agency led a consor-

tium of 15 international agencies to establish the SE4ALL Global

Tracking Framework (GTF), which provides a system for regular

global reporting, based on rigorous—yet practical, given available

1 The universal access goal will be achieved when every person on the planet has access

to modern energy services provided through electricity, clean cooking fuels, clean heating fuels,

and energy for productive use and community services. The term “modern cooking solutions”

refers to solutions that involve electricity or gaseous fuels (including liquefied petroleum gas),

or solid/liquid fuels paired with stoves exhibiting overall emissions rates at or near those of

liquefied petroleum gas (www.sustainableenergyforall.org).

databases—technical measures. This note is based on that frame-

work (World Bank 2014). SE4ALL will publish an updated version of

the GTF in 2015.

The primary indicators and data sources that the GTF uses to

track progress toward the three SE4ALL goals are summarized below.

Energy access. Access to modern energy services is measured

by the percentage of the population with an electricity connection

and the percentage of the population with access to nonsolid fuels.2

These data are collected using household surveys and reported

in the World Bank’s Global Electrification Database and the World

Health Organization’s Household Energy Database.

Renewable energy. The share of renewable energy in the energy

mix is measured by the percentage of total final energy consumption

that is derived from renewable energy resources. Data used to

calculate this indicator are obtained from energy balances published

by the International Energy Agency and the United Nations.

Energy efficiency. The rate of improvement of energy efficiency is

approximated by the compound annual growth rate (CAGR) of energy

intensity, where energy intensity is the ratio of total primary energy

consumption to gross domestic product (GDP) measured in purchas-

ing power parity (PPP) terms. Data used to calculate energy intensity

are obtained from energy balances published by the International

Energy Agency and the United Nations.

This note uses data from the GTF to provide a regional and

country perspective on the three pillars of SE4ALL for Eastern

2 Solid fuels are defined to include both traditional biomass (wood, charcoal, agricultural

and forest residues, dung, and so on), processed biomass (such as pellets and briquettes), and

other solid fuels (such as coal and lignite).

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