IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v39y2011i12p8125-8136.html
   My bibliography  Save this article

Promotion of energy conservation in developing countries through the combination of ESCO and CDM: A case study of introducing distributed energy resources into Chinese urban areas

Author

Listed:
  • Ren, Hongbo
  • Zhou, Weisheng
  • Gao, Weijun
  • Wu, Qiong

Abstract

The implementation of an energy service company (ESCO) project in developing countries may result not only in reduced energy cost but also in considerable environmental benefits, including the reduction of CO2 emissions, which can be assessed in an economic manner under the Clean Development Mechanism (CDM) scheme. In this way, the economic and environmental benefits of energy conservation activities can be enjoyed by both the investor and the end-user, which can reduce the investment risk and realize a rational profit allocation. This study presents a numerical analysis of the introduction of distributed energy resources (DER) into a Chinese urban area. An optimization model is developed to determine the energy system combination under the constraints on the electrical and thermal balances and equipment availability. According to the simulation results, the introduction of DER systems possesses considerable potential to reduce CO2 emissions, especially when considering that the economic profit of the CO2 credit will increase the incentive to adopt DER systems to an even greater extent. Furthermore, by sharing the energy cost savings with the investors under an ESCO framework, the investment risk can be further reduced, and the conditions required for the project to qualify for CDM can be relaxed.

Suggested Citation

  • Ren, Hongbo & Zhou, Weisheng & Gao, Weijun & Wu, Qiong, 2011. "Promotion of energy conservation in developing countries through the combination of ESCO and CDM: A case study of introducing distributed energy resources into Chinese urban areas," Energy Policy, Elsevier, vol. 39(12), pages 8125-8136.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:12:p:8125-8136
    DOI: 10.1016/j.enpol.2011.10.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511007919
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2011.10.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Qiang & Chen, Yong, 2010. "Barriers and opportunities of using the clean development mechanism to advance renewable energy development in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 1989-1998, September.
    2. Zhao, Xingshu & Michaelowa, Axel, 2006. "CDM potential for rural transition in China case study: Options in Yinzhou district, Zhejiang province," Energy Policy, Elsevier, vol. 34(14), pages 1867-1882, September.
    3. Ruan, Yingjun & Liu, Qingrong & Zhou, Weiguo & Firestone, Ryan & Gao, Weijun & Watanabe, Toshiyuki, 2009. "Optimal option of distributed generation technologies for various commercial buildings," Applied Energy, Elsevier, vol. 86(9), pages 1641-1653, September.
    4. Gilau, Asmerom M. & Van Buskirk, Robert & Small, Mitchell J., 2007. "Enabling optimal energy options under the Clean Development Mechanism," Energy Policy, Elsevier, vol. 35(11), pages 5526-5534, November.
    5. Ren, Hongbo & Zhou, Weisheng & Nakagami, Ken'ichi & Gao, Weijun, 2010. "Integrated design and evaluation of biomass energy system taking into consideration demand side characteristics," Energy, Elsevier, vol. 35(5), pages 2210-2222.
    6. Reddy, B. Sudhakara & Balachandra, P., 2006. "Dynamics of technology shifts in the household sector--implications for clean development mechanism," Energy Policy, Elsevier, vol. 34(16), pages 2586-2599, November.
    7. Ren, Hongbo & Gao, Weijun, 2010. "A MILP model for integrated plan and evaluation of distributed energy systems," Applied Energy, Elsevier, vol. 87(3), pages 1001-1014, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Akman, Ugur & Okay, Esin & Okay, Nesrin, 2013. "Current snapshot of the Turkish ESCO market," Energy Policy, Elsevier, vol. 60(C), pages 106-115.
    2. Wenjie Zhang & Hongping Yuan, 2019. "Promoting Energy Performance Contracting for Achieving Urban Sustainability: What is the Research Trend?," Energies, MDPI, vol. 12(8), pages 1-18, April.
    3. Pantaleo, Antonio & Candelise, Chiara & Bauen, Ausilio & Shah, Nilay, 2014. "ESCO business models for biomass heating and CHP: Profitability of ESCO operations in Italy and key factors assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 237-253.
    4. Han, Jie & Ouyang, Leixin & Xu, Yuzhen & Zeng, Rong & Kang, Shushuo & Zhang, Guoqiang, 2016. "Current status of distributed energy system in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 288-297.
    5. Hyein Yi & Sanghyo Lee & Jaejun Kim, 2017. "An ESCO Business Model Using CER for Buildings’ Energy Retrofit," Sustainability, MDPI, vol. 9(4), pages 1-21, April.
    6. Wenjie Zhang & Hongping Yuan, 2019. "A Bibliometric Analysis of Energy Performance Contracting Research from 2008 to 2018," Sustainability, MDPI, vol. 11(13), pages 1-23, June.
    7. Wang, Linyuan & Zhao, Lin & Mao, Guozhu & Zuo, Jian & Du, Huibin, 2017. "Way to accomplish low carbon development transformation: A bibliometric analysis during 1995–2014," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 57-69.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Yizhong & He, Li & Li, Jing, 2017. "Stochastic dominant-subordinate-interactive scheduling optimization for interconnected microgrids with considering wind-photovoltaic-based distributed generations under uncertainty," Energy, Elsevier, vol. 130(C), pages 581-598.
    2. Wang, Linyuan & Zhao, Lin & Mao, Guozhu & Zuo, Jian & Du, Huibin, 2017. "Way to accomplish low carbon development transformation: A bibliometric analysis during 1995–2014," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 57-69.
    3. Naraharisetti, Pavan Kumar & Karimi, I.A. & Anand, Abhay & Lee, Dong-Yup, 2011. "A linear diversity constraint – Application to scheduling in microgrids," Energy, Elsevier, vol. 36(7), pages 4235-4243.
    4. Han, Jie & Ouyang, Leixin & Xu, Yuzhen & Zeng, Rong & Kang, Shushuo & Zhang, Guoqiang, 2016. "Current status of distributed energy system in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 288-297.
    5. Omu, Akomeno & Choudhary, Ruchi & Boies, Adam, 2013. "Distributed energy resource system optimisation using mixed integer linear programming," Energy Policy, Elsevier, vol. 61(C), pages 249-266.
    6. Iturriaga, E. & Aldasoro, U. & Campos-Celador, A. & Sala, J.M., 2017. "A general model for the optimization of energy supply systems of buildings," Energy, Elsevier, vol. 138(C), pages 954-966.
    7. Zhou, Y. & Li, Y.P. & Huang, G.H., 2015. "Planning sustainable electric-power system with carbon emission abatement through CDM under uncertainty," Applied Energy, Elsevier, vol. 140(C), pages 350-364.
    8. Li, Longxi & Mu, Hailin & Gao, Weijun & Li, Miao, 2014. "Optimization and analysis of CCHP system based on energy loads coupling of residential and office buildings," Applied Energy, Elsevier, vol. 136(C), pages 206-216.
    9. Niknam, Taher, 2011. "A new HBMO algorithm for multiobjective daily Volt/Var control in distribution systems considering Distributed Generators," Applied Energy, Elsevier, vol. 88(3), pages 778-788, March.
    10. Di Somma, M. & Yan, B. & Bianco, N. & Graditi, G. & Luh, P.B. & Mongibello, L. & Naso, V., 2017. "Multi-objective design optimization of distributed energy systems through cost and exergy assessments," Applied Energy, Elsevier, vol. 204(C), pages 1299-1316.
    11. Keirstead, James & Jennings, Mark & Sivakumar, Aruna, 2012. "A review of urban energy system models: Approaches, challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3847-3866.
    12. Li, Miao & Mu, Hailin & Li, Nan & Ma, Baoyu, 2016. "Optimal design and operation strategy for integrated evaluation of CCHP (combined cooling heating and power) system," Energy, Elsevier, vol. 99(C), pages 202-220.
    13. Ren, Hongbo & Zhou, Weisheng & Gao, Weijun, 2012. "Optimal option of distributed energy systems for building complexes in different climate zones in China," Applied Energy, Elsevier, vol. 91(1), pages 156-165.
    14. Ren, Hongbo & Zhou, Weisheng & Nakagami, Ken'ichi & Gao, Weijun & Wu, Qiong, 2010. "Multi-objective optimization for the operation of distributed energy systems considering economic and environmental aspects," Applied Energy, Elsevier, vol. 87(12), pages 3642-3651, December.
    15. Stua, Michele, 2013. "Evidence of the clean development mechanism impact on the Chinese electric power system's low-carbon transition," Energy Policy, Elsevier, vol. 62(C), pages 1309-1319.
    16. Xinxin Liu & Nan Li & Feng Liu & Hailin Mu & Longxi Li & Xiaoyu Liu, 2021. "Optimal Design on Fossil-to-Renewable Energy Transition of Regional Integrated Energy Systems under CO 2 Emission Abatement Control: A Case Study in Dalian, China," Energies, MDPI, vol. 14(10), pages 1-25, May.
    17. Yanfeng Liu & Yaxing Wang & Xi Luo, 2020. "Design and Operation Optimization of Distributed Solar Energy System Based on Dynamic Operation Strategy," Energies, MDPI, vol. 14(1), pages 1-26, December.
    18. Zeng, Ming & Li, Chen & Zhou, Lisha, 2013. "Progress and prospective on the police system of renewable energy in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 36-44.
    19. B. Sudhakara Reddy & Gaudenz B. Assenza, 2008. "The Great climate debate : A Developing country perspective," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-008, Indira Gandhi Institute of Development Research, Mumbai, India.
    20. Wang, Xuan & Shu, Gequn & Tian, Hua & Wang, Rui & Cai, Jinwen, 2020. "Operation performance comparison of CCHP systems with cascade waste heat recovery systems by simulation and operation optimisation," Energy, Elsevier, vol. 206(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:12:p:8125-8136. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.