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Task XVIII - Demand Side Management and Climate Change

Synopsis

On a global basis, electricity production is estimated to contribute about 25% of the human-induced increase in greenhouse gas (GHG) emissions. Creating sustainable energy systems with minimum levels of GHG emissions requires the deployment of both renewable energy and other low emission technologies on the supply side and measures that increase energy efficiency on the demand side.

The fourth IPCC Working Group III Report "Mitigation of Climate Change" identified demand side management programs as a mechanism that may be effective in reducing emissions.

Task XVIII is investigating the potential contribution to mitigating GHG emissions that can be made by demand side management measures. Task XVIII is also examining the extent to which GHG emissions mitigation measures can provide benefits to electricity systems.

Introduction

Currently, DSM and GHG emission mitigation measures are implemented quite independently.

DSM measures are implemented primarily to assist and improve the operation of electricity systems. Any impacts (positive or negative) of DSM measures on climate change are only a minor consideration, if they are considered at all.

Efforts to mitigate GHG emissions from electricity production have focussed on improving the efficiency of both electricity generation and end-use. However, emission mitigation measures focussed on increasing end-use efficiency have usually not considered any benefits to the electricity system (eg peak load reduction) that might be gained through implementing the measures.

The overall aim of Task XVIII is to reconcile these two different approaches so as to identify circumstances in which DSM can contribute to mitigating GHG emissions and emission mitigation measures can achieve benefits for electricity systems.

Task XVIII will then determine what is required to maximise the emissions reductions and electricity system benefits from these two types of measures.

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Objectives

The objectives for Task XVIII are:

to identify circumstances in which DSM may mitigate GHG emissions and in which emissions mitigation programs may deliver benefits to the electricity system;
to identify the principles involved in methodologies for assessing the GHG emissions reductions available from specific DSM measures;
to identify ways in which DSM programs can be modified so they contribute to mitigating GHG emissions;
to identify ways in which GHG emissions mitigation programs can be modified so they deliver benefits to electricity systems;
to identify opportunities for funding DSM programs with revenue from trading GHG emission reductions;
to explore whether use time of use pricing can be used to achieve mitigation of GHG emissions;
to identify and engage stakeholders and communicate and disseminate information about DSM as a resource and as a mechanism for mitigating GHG emissions.

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Subtasks

The Work Plan for Task XVIII: DSM and Climate Change comprises six Subtasks:

Subtask 1: Interactions between DSM and Climate Change
Subtask 2: Principles for Assessing Emissions Reductions from DSM Measures
Subtask 3: Mitigating Emissions and Delivering Electricity System Benefits
Subtask 4: Fungibility of DSM and Emissions Trading
Subtask 5: TOU Pricing and Emissions Mitigation
Subtask 6: Communicating Information about DSM and Climate Change

Subtask 1: Interactions between DSM and Climate Change

The Experts will identify DSM projects in their countries in which DSM may have mitigated GHG emissions, and emissions mitigation projects which may have delivered benefits to the electricity system. The information collected about each project will include: details about: the objectives of the project; the DSM measures employed; the emissions mitigation measures employed; the market segments addressed; the regulatory regime under which the project was implemented, the cost of the project; and the impact of the project in terms of MW or MVA and GHG emissions reduced. As information about the projects is received, the Operating Agent will enter it into an on-line database.

Once all the information is collected, the Operating Agent will summarise the results and draw conclusions about the interactions between DSM and climate change.

Subtask 2: Principles for Assessing Emissions Reductions from DSM Measures

The Operating Agent will examine existing carbon accounting methodologies to identify methods which could be adapted to assess the GHG emissions reductions available from specific DSM measures. The Operating Agent will then develop a set of principles for methodologies to assess emission reductions from DSM measures. These principles will be tested by calculating emission reductions from a range of actual DSM projects.

Subtask 3: Mitigating Emissions and Delivering Electricity System Benefits

The Operating Agent will examine the information about DSM and GHG emission mitigation projects in the database and draw conclusions about how the projects could be modified to maximise GHG emission reductions and deliver benefits to the electricity system while still achieving the original project objectives.

Subtask 4: Fungibility of DSM and Emissions Trading

The term “fungibility” means interchangeability, particularly of one financial instrument with another based on identical terms. In this context, fungibility refers to the ability to trade any GHG emission reductions that are achieved through DSM programs. Such trading could occur through national and regional emissions trading schemes and possibly also through the two project‑based mechanisms under the Kyoto Protocol, the Clean Development Mechanism and Joint Implementation.

Subtask 5: TOU Pricing and Emissions Mitigation

The Operating Agent, assisted by input from Experts will examine the benefits and impacts of time of use pricing on greenhouse gas emissions and emissions abatement. The work will focus on sectors potentially affected by time-of-use pricing, and in particular the domestic sector and its challenges of peak electricity demand.

Subtask 6: Communicating Information about DSM and Climate Change

The Operating Agent will provide information about the progress of the DSM and Climate Change Task to the Experts through a regular newsletter.

The Operating Agent will establish and update an on-line database containing information about DSM and GHG emission mitigation projects. Twelve months after the conclusion of the project, public access will be provided to this database.

During the Task, four regional workshops about DSM and climate change will be held; where possible these will be held in conjunction with Experts meetings.

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Contacts

Dr. David Crossley [AUS]

Operating Agent [ crossley@efa.com.au ]

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Participation

	Task XVIII
Australia
France
India
Spain

Operating Agent
Participating Country

Task XVIII is currently open for participation. Participating in Task XVIII enables countries and organisations to:

understand the interactions between DSM and climate change
develop methodologies for assessing the GHG emissions reductions available from specific DSM measures
gain information about using DSM programs to mitigate GHG emissions, and about using GHG emission mitigation programs to deliver benefits to electricity systems
identify opportunities for funding DSM programs with revenue from GHG emissions trading schemes
explore whether use time of use pricing can be used to achieve mitigation of GHG emissions
gather the information necessary to launch and participate in deployment programmes for demand-side technologies.

Countries and organisations interested in participating in Task XVIII may register this interest by contacting the Operating Agent:

Dr David Crossley
Managing Director
Energy Futures Australia Pty Ltd
11 Binya Close
Hornsby Heights NSW 2077
Australia
Tel: 02 9477 7885
Fax: 02 9477 7503
Mobile: 0411 467 982
Email: crossley@efa.com.au

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Publications

	Prospectus_Task XVIII - DSM and Climate Change [132 kb]
	This Prospectus outlines a new multi-national research project being undertaken under the auspices of the International Energy Agency Demand Side Management Programme....
	Task XVIII Flyer [199 kb]
	Outlines Task XVIII research on demand side management (DSM) and climate change....

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