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Power saving service team and development of Energy Service Company (ESCO)

Foreword

 ◆Actual demand

The trend of climate change has become more and more significant in recent years. The rising average temperature in summer has led to record breaking power peak load. The peak load in 2019 was 37,067MW, which was increased by 10MW as compared to 2018. The peak load was 35,248MW in July 2015, and 37,067MW in July 2019(as shown in the Figure 1).

Figure 1 Chart of variation of power peak load in Taiwan

 ◆The impact of economic development on the environment

Electric power is essential in modern society. Most production activities are driven by electric power, and the consumer activities also rely on electric power. However, the production and consumption of electricity will also bring environmental pollution and the increase of social external cost. Countries all over the world have put great emphasis on the problem of energy use based on the consideration of economic growth and people’s living environment.

 ◆Enhancement of energy efficiency and environmental protection

The enhancement of energy efficiency has been regarded by International Energy Agency (IEA) as an important energy saving measure. Countries all over the world have been dedicated to the formulation of policies for promoting the enhancement of energy efficiency, reduction of energy consumption, and reduction of greenhouse gas emission of residential, commercial, industrial, and transportation sectors. Taiwan cannot stay out of this effort due to its dependence on energy import and isolated grid, so it has formulated the energy policy based on “Sustainable Development” with “High Efficiency and Low Pollution”. With the enhancement of energy use efficiency and energy saving as the policy objectives with the top priority, we have been trying to establish the new concept of “Saving is more important than resources exploration” to reduce the environmental impact. And this has made the development of energy technology service industry more necessary.

Figure 2  Ratio of greenhouse gas emission by five major sectors

Power saving service team formed by TPC

 ◆Basis

TPC has implemented the energy saving carbon reduction policies according to laws and regulations, in which it is stipulated that electricity enterprises should formulate annual plans for encouraging and assisting users to carry out power saving. Meanwhile, TPC has set up “Power saving service team” in each branch office since December 2018 for the purpose of strengthening of power sales business and expansion of customer service strategy. And the power saving potentials of users of high voltage and above have been investigated by using smart meter data analysis and simple diagnosis questionnaire.

 ◆Targets of interview and setting of power saving KPI

The high voltage users with regular contract capacity of 300kW-800kW are the prioritized targets of interview, and the key performance indicator (KPI) has been set. A total of potential power saving of 86 million kWh and 5,000 households has been inventories (as shown in the Table 1).

Table 1. Number of power consuming households and sold kWh of high voltage users of 300kW-800kW in Taiwan

Table 1

 ◆Interview measure

The interview includes the provision of power consumption analysis, power consumption statistics, and optimization of power factor in order to understand user situation (such as user manufacturing process, and the operation situations of air conditioning and lighting equipment in the factory), provide suggested measures, and establish trust relationship with users to serve as the basis for subsequent development of energy saving diagnosis technology service.

The power saving service team has completed the interviews of a total of 6,294 customers with total power saving potential of 9,776(10,000 kWh) as shown in the Table 2.

Table 2

 ◆Organizational adjustment

In order to facilitate the execution of power saving plan, the organization has been adjusted such that the Class A branch offices (9 branch offices) under Energy Saving Section of Maintenance Group has been transferred to the Sales Group and renamed as Energy Saving Service Section on January 11, 2019. In addition, originally there were only power consumption technical service specialists in the Class B branch offices (8 branch offices), and in last year (2019) it has been to expanded to an Energy Saving Service Section to facilitate the promotion of energy saving work.

Development of TPC’s energy saving diagnosis technical service capability

 ◆Cultivation of energy saving diagnosis technical service personnel

To facilitate the participation by power saving service teams of all branch offices in the energy saving diagnosis technical services, there have already been 630 persons participated in the self-organized educational train until January, 2020. It expected that there will be a total of 626 persons participating in the education training this year. In the future it will continue to promote energy management and Certified Measurement & Verification Professional while establishing the energy saving license system.

 ◆Establishment of Taiwan Power Energy Diagnostic Centers in Northern, Central, and Southern Taiwan

The Taiwan Power Energy Diagnostic Centers has been to be established in July last year in Taipei West Branch, Taichung Branch, and Kaohsiung Branch. Users with contract capacity of 500kW-800kW in the representative industries (such as manufacturing industry, department store industry, and hotel service industry) will be selected for energy saving diagnosis conducted by professional teams. The energy consumption tests will be completed with respect to energy consumption equipment in the factory by using test tools and survey form in order to provide improvement suggestions and conduct effectiveness assessment. At least 20 cases of diagnosis service reports has been to completed by the end of 2019.

Future plan

 ◆Enhancement of technical capability

TPC will enhance the energy saving diagnosis technical capability by adding new technologies such as information and communication network, Big Data analysis, distributed power source, and energy management systems to expand the service scope. It will also combine the business models of demand response and measurement and verification (M&V) to create the industrial service value. Meanwhile, it will enhance the diversity and competitiveness of services via its strength in conventional power supply equipment or energy retail (coal) services to keep its customers. The business model will be focused on conventional buy-off or the performance guarantee model extended from construction project in order to reduce the financial pressure at the user end.

 ◆Active expansion and transformation

For servicing major domestic energy customers, the business scope can be expanded to include: conventional power supply equipment; energy retail; public facilities, manufacturing process, and monitoring; equipment sales; financing or other energy services. As for the business of “Public facilities, manufacturing process, and monitoring”, the Super ESCO business model will be adopted to include existing domestic ESCO companies as the partners of “Public facilities, manufacturing process, and monitoring” business. And it will continue working with the mother company of electricity enterprise to create the demand side resources and keeping the customers of mother company via primary businesses of “Conventional power supply equipment” and “Energy retail” in order to secure the business of mother company and at the customer side. It will also head towards the development of diversified energy services and enhancement of competitiveness via “Equipment sales” and “Financial or other energy services”.

Conclusions

(1) In order to ensure stable power supply while being in coordination with government’s policy of energy saving and carbon reduction, TPC started from the power demand management and promoted the deployment of smart meter to prompt users to actively participate in various measures. In terms of demand response, the AMI data has been used to select target users for promotion, and TPC has also been introducing new demand response measures every year. The directions of improvement in 2018 were about “Reduction of entry barrier” and “Strengthening of incentives for participation”.

(2) In terms of energy saving, in addition to dedication to various energy saving advocacy activities, TPC also keeps refining power saving incentive measures and tries to be creative with organization of energy saving lucky draw activity. It has utilized diversified promotional approaches such as media channel and online marketing to encourage the general public to respond to power saving and to establish the correct power consumption habits among all people.

(3) Even since December 3, 2018, “Power saving service team” has been formed in all branch offices for visiting 500 users of high voltage and above every month to examine power saving potentials and to promote demand response measures. It has also planned to invest in Energy Saving Company (ESCO), to establish three energy saving diagnosis demonstrative service centers in Northern, Central, and Southern Taiwan, and to compose standard operating manual in order to gradually enhance diagnosis service up to the adjustment and improvement of manufacturing process and strengthen the competitiveness of TPC.

(4) TPC will continue guiding users to use e-bill while strengthening the presentation via visualized graphic and power consumption statistical charts. With the high voltage user service portal and e-bill service system, TPC uses lively and easy to understand approach to allow users to understand the bill information and to have better control over their power consumption behaviors. Looking to the future and facing the severe challenge brought by climate change, TPC will adhere to its attitude of stable power supply and environmental protection and continue with its close cooperation with central and local governments. With the promotion of various demand management measures and creative marketing method for advocacy of power saving, TPC has been trying to enhance the awareness of energy saving carbon reduction among all people to be in line with our government’s policy of energy saving and carbon reduction.