The importance of effective demand side energy management
The need for energy management
originates from the axiom of economics i.e. managing limited resources in the face
of unlimited wants. The world as we know it has limited resources of producing
energy where as the demand / usage of energy is always soaring. The increase in
demand for energy usage is directly proportional to the growth in economic
activity and population in the world. The global primary energy supply in 2008
was 143,851 TWh and the end use of energy in the same year was 98,022 TWh. The
difference, 32% accounts for energy losses which aggravate the situation even
further. The primary source of energy has been fossil fuel as indicated in the global
energy mix consisting of: oil (36%), natural gas (24%), coal (28%), nuclear (6%),
hydro (6%) and renewable energy such as wind and solar (about 1%). This doesn’t
auger well for our environment as the world is beginning to realize the impacts
it has on global sustenance. Furthermore, global energy demand is expected to
be about 30% higher in 2040 compared to 2010 at a time when the global
population would have surged to 9 billion coupled with more than double
economic activity. (Exxon Mobil)
All this will translate into
increased investment in energy-supply infrastructure worldwide which according
to IEA is expected to reach an amount of $16 trillion, during the period
2001-2030 (or $550 billion a year). Out of this, a predominant share (60%) of
investment activity goes into the electricity sector as the need for energy to
make electricity will remain the single biggest driver of demand. By 2040,
electricity generation will account for more than 40% of global energy
consumption. (Exxon Mobil)
Therefore, while efficiencies in
power generation and prevention of losses in transmission and distribution pose
a huge challenge in this situation the world needs more aggressive approach
towards taming our electricity demand.
The scenario above accentuates
the importance of effective demand side energy management practices that may
involve both financial incentives and education & awareness programs. The
underlying principle for energy management is to encourage the consumers to modify
their usage patterns to become sustainable for the world while they see more
benefits in achieving this goal.
Demand side energy management is
not altogether a new phenomenon; it was first coined and used during the time
of energy crises in the years 1973 and 1979. Energy management impacts directly
on the cost of enhancing and improving capacities in facilities.
Traditionally, energy management
had been thought of in the realm of energy efficiency and conservation programs
while leaving out considerations regarding electricity price variations as a tool
to shape demand patterns. Such programs couldn’t therefore realize the fruits
of true energy management thus hampering the eventual success of all such
efforts. Price responsiveness programs have come forward as the most potent
tools to change consumer demand patterns for electricity consumption and have thus
resulted in important breakthrough in successful energy management
implementations. Thereby, consumers are seen to react differently with
variations in the electricity tariffs for usage at different times of a day,
month or season.
This has prodded many
developments in the area of metering technology to make available real time or
near real time data based on which the consumers can perform energy management
effectively. The underlying principle is to inform the users with as much data
as possible at smaller intervals of time so that they can monitor how their
usage varies at a time of day, and sees how it impacts their cost of electricity
usage. As a result the goals of energy management are achieved with higher
levels of success.
This can’t have been possible through
the old school method of measuring energy usage and cost once a week or a month
by reading data manually. The modern approach to energy data collection is thus
to fit smart metering systems that automatically record usage at short, regular
intervals and communicate it back to the consumer through different means. Through
comprehensive energy consumption data availability in real time one can see
patterns of energy waste that could be avoided which wasn’t possible to do
before.
Energy management solutions from MicroTech Industries
MicroTech Industries is a leading
technology manufacturer in energy management systems and smart metering
solutions with a major share in electricity meter market in Pakistan - 6th
highest ranked population country with an increasingly high energy demand. It
has a wide variety of product portfolio in energy management solutions
including sophisticated energy management software, smart meters ranging from
polyphase to single phase meters, with whole current, CT & PT type,
prepayment and postpayment smart meters. MTI’s smart meter products meet IEC
standards and have won three prestigious smart metering certifications such as
DLMS / COSEM which is the most popular certification in smart meter
communication standards. MTI makes use of the latest manufacturing equipment
including SMT technology and has met stringent IEC and ISO standards.
MTI is 100% equity company which
has been strong and stably since its inception 1992. It is open to various
partnership opportunities that may include OEM, contract manufacturing,
reseller partnerships, or direct investment in the sector of smart metering.
You may reach the following contact for more information.
For more information please visit: www.mtilimited.com
