ESF EXAM RELEVANT VOCAB FROM LIST Flashcards
1
Q
Decoupling (6)
A
Refers to the decoupling of economic growth from energy demand
2
Q
Peak shaving (6)
A
Reducing peak energy requirements through the shifting of small load
energy application
(FROM LECTURE)
3
Q
Interruptible tariff (6)
A
Lower tariff paid by certain electricity consumers as they can be called upon to reduce load during peak periods
4
Q
Economic demand response (6)
A
Demand response programs that pay customers to reduce load when usage is high (NOT FROM CHAPTER)
5
Q
Direct load control (6)
A
Type of demand response, whereby the utility has direct control over demand/devices of a customer to regulate load and compensates the customer for it, mostly used in the residential sector (FROM LECTURE)
6
Q
Response time (6)
A
How quickly the device can accept or deliver electricity
7
Q
Ancillary services (6)
A
Energy of capacity services necessary to support electricity transmission and ensure reliability of energy supply
Examples: >Frequency regulation >Voltage control >Spinning reserves >Operating reserves >Failure protection - incl blackstart capability
8
Q
Merchant power (6)
A
Power generated and sold into the wholesale market
9
Q
Jevons paradox or rebound effect (6)
A
Paradox that as technology progresses and efficiency in the use of a resource increases, the rate of consumption of that resource will increase as well
10
Q
Energy service companies (ESCOs) (6)
A
Companies offering a varietyy of energy solutions, which may include:
>provision of devices/equipment,
>identification and assessment of energy use patterns,
>access to financing
>project execution
>ongoing monitoring and operation
11
Q
Premium efficiency investments (6)
A
Efficiency investment cost portion of total device costs needed to achieve energy efficiency improvements (would be more accurate way of constructing total investment numbers)
12
Q
Demand response (6)
A
When customers act upon energy opportunities or incentives (e.g. investments, behavioural change, response to price incentives), which yield high expected returns
13
Q
Warranties (5)
A
Tool to mitigate operation risk provided by the component supplier
Assures the good condition of the product/service supplied and states that the supplier is responsible for repairing or replacing a product during a certain period of time after the purchase (NOT FROM BOOK)
14
Q
Power purchase agreement (PPA) (4)
A
Agreement delineating the payment terms for services provided
15
Q
Weighted average cost of capital (WACC) (4)
A
Weighted average cost of debt and equity that an asset owner uses to fund investments, which tends to be stable across fungible projects
Approximates the overall risk that the market perceives in the investment itself, but may ignore risks that do not directly bare on the project/can be shifted to counter parties
16
Q
Internal rate of return (IRR) (5)
A
Method for evaluating projects based on expected inflows and outflows of a project, which is compared to the internal hurdle rate to determine whether a project will create value
17
Q
Sponsor (5)
A
Organisation that holds the equity in a project under project financing and often puts up a substantial portion of equity in the form of upfront risk and “sweat equity”
Can be the organisation putting up the initial risk capital, the developer of the asset, the vendor of the equipment of other stakeholders who control the completion of the project
18
Q
Project finance or off-balance-sheet finance (5)
A
Flexible financial structure, allowing the asset to be carved out into a separate entity and financed on its own merits
19
Q
Fukushima risk (4)
A
Low-probability, high-impact risk that must be considered in the deployment of any risky technology
20
Q
Merit order (4)
A
Prioritisation of lowest cost electricity
21
Q
Market clearing price (4)
A
Price at which all profit and benefit opportunities are realised and supply equals demand
22
Q
Marginal cost (4)
A
Cost to produce one more or one less unit of something
23
Q
Levelized cost of electricity (LCOE) (4)
A
sum of all cost elements involved in the creation, operation, and fueling of an assets (using a consistent basis) divided evenly over output of the asset
Components:
- Overnight cost
- Fixed O&M
- Variable O&M
- Fuel cost
24
Q
Discount rate (4)
A
Rate applied to enable the comparison of cash flows occurring in different periods
(ANYONE FIND A BETTER DEFINITION - BOOK DOESN’T REALLY DEFINE IT)
25
Capacity markets (4)
Markets where forward capacity 3+ years out can be bought and owners of generators can get contracts to sell capacity at a future date
26
Capacity factor (4)
utilisation rate
OR
Percentage of time the asset is operating at maximum capacity/rate
27
Heat rate (4)
Rate at which energy in fuel is converted into kWh or in other words how much of energy put in (in the form of fuel) comes out
28
Variable O&M (4)
Operating and maintenance costs associated with maintaining the plant
29
Fixed O&M (4)
Operations and maintenance costs required to keep the asset at full operating capacity, before it is used to produce the first unit of output
Includes: site maintenance, staffing, operating repairs, cleaning, and maintenance expenses
30
Overnight cost (4)
Cost of completing the generation asset and putting it into service as if it were to happen instantaneously
OR
Cost incurred up until the moment the builder transfers ownership of a newly constructed generator to the operator
31
Stranded Costs
Cost for stranded assets, i.e., assets, that suddenly became uneconomic or are no longer needed. Often difficult to recover.
32
Busbar costs (4)
Cost of electricity from generation up until it reaches busbar to enter the grid
33
Busbar (4)
Substation connection device where electricity is available for transmission and enters the grid (made of out conductive material e.g. copper)
34
Wholesale market (4)
Organized electricity market where grid operators or large industrial clients can procure electricity from generators (usually in large quantities)
35
Supply stack (4)
Aggregation of all bids not the wholesale market ordered from lowest marginal cost to highest marginal cost (same as bid stack, but can be border and expand beyond the electricity market)
36
Organised (wholesale) market (4)
market structure that is characterized by being "bid-based, security-constrained, economic dispatch with nodal prices"
37
Bid stack (4)
All generation capacity bid into the wholesale market ordered from lowest to highest marginal cost (merit order) in the electricity market.
38
Load duration curve (4)
Illustrate the relationship between generating capacity requirements (y-axis) and capacity utilization (x-axis - e.g. in % of hrs per year) and shows the needed capacity utilization for each load level
Load is ordered from highest to lowest starting from the left.
Height of each "slice" represents capacity
Width of each "slice" represents capacity factor
(NOT FROM CHAPTER)
39
Credit rating (4)
Assessment of the credit worthiness of a borrower in general or in respect to a particular debt/financial obligation (NOT FROM CHAPTER)
40
Fungibility (4)
```
Property of being mutually substitutable, which is characterized by 4 factors:
>What
>When
>Where
>How certain
```
41
Rate case (4)
Formal process conducted by utility regulators to determine if the base rates charged by a utility are just an reasonable
42
Prime mover (4)
Machines that are used to transfer primary kinetic and potential energy sources into directed and concentrated forms to produce mechanical work (Ch. 1)
OR
a machine, as a water wheel or steam engine, that receives and modifies energy as supplied by some natural source.
(NOT FROM CHAPTER)
43
Induced Seismicity (4)
Earth quake activity resulting form human activity that causes a rate of energy release (seismicity) which would be expected beyond the normal level of historical seismic activity - in the context of energy may be caused e.g. by fracking, geothermal, etc.
44
Emissions (4)
Production or discharge of something - usually gas (NOT FROM CHAPTER)
45
Run-of-river (4)
Hydropower plant without/with limited storage, making subject to fluctuations in river flows (e.g. seasonal) and thus intermittent
46
Combined heat & power (CHP) or cogeneration (4)
Generation of both electrical power and useful thermal energy, through the recovery of otherwise-wasted thermal energy to produce useful thermal energy or electricity (NOT FROM CHAPTER)
47
Reprocessing (4)
in the context of nuclear energy:
Refers to the processes necessary to separate spent nuclear reactor fuel into material that may be recycled for use in new fuel and material that would be discarded as waste (from NRC)
48
LCOE unsubsidized (4)
LCOE only considering the 4 cost components, excluding any subsidies (e.g. FIT, carbon pricing, etc.)
49
LCOE subsidized (4)
LCOE taking into account subsidies e.g. carbon price
50
Flood control (4)
Methods of reducing or preventing negative impacts of flooding - in the context of energy refers to e.g. the ability of hydropower to act as flood control through the creation of a dam
51
Project finance waterfall (5)
Represents the order in which obligations are met when revenues are received. Project revenues go from
1) revenue acct to
2) construction and operating acct (to pay construciton & operating expenses)
3) debt payment acct (to pay fees, interest, schedules principle)
4) debt service reserve acct (to maintain required debt service reserve level)
5) major maintenance reserve acct (to maintain required major maintenance reserve level)
6) subordinated debt acct (to pay subordinated debt)
7) distribution acct (to be distributed to equity holders)
52
Accelerated depreciation (5)
Several methods used to depreciate fixed assets at a higher rate during earlier years of the asset's life. (NOT FROM CHAPTER)
53
Investment tax credit (ITC)
The Investment Tax Credit (ITC) reduces federal income taxes for qualified tax-paying owners based on capital investment in renewable energy projects (measured in dollars).
54
Production tax credit (PTC)
The Production Tax Credit (PTC) is a federal incentive that provides financial support for the development of renewable energy facilities.
55
Nominal interest rate
Interest rate before taking inflation into account
56
Real interest rate
Interest rate adjusted for inflation
57
Off-taker
Customer
58
Risk-adjusted costs
Cost of electricity taking into account potential market risks (e.g. fossil fuel price volatility, capital risk (through discount rate), fluctuating O&M costs,etc.)
59
Debt service coverage ratio (5)
Tool to evaluate likelihood of repayment
Determines how many periodic debt repayments to lenders the company can cover with cash
60
Fixed charge coverage ratio (5)
Tool to evaluate likelihood of repayment
Determines how much cash flow is available relative t the fixed charges (i.e. tax payments and other mandatory payments)
61
Construction finance (5)
Financing covering the cost of land development and construction usually released a) as needed, b) as each stage is completed, c) accd to pre-arranged schedule, d) when conditions are met
(NOT FROM CHAPTER)
62
Equity (5)
Amount of fund on balance sheet contributed by owners OR one of the principal asset classes for investment (stocks)
(NOT FROM CHAPTER)
63
Debt (5)
Money owed to a third party e.g. bonds, loans, commercial papers
64
Engineering, procurement, and construction agreement (EPC) (5)
Agreement containing warranties, schedules, performance guarantees etc to reduce the related construction risk for project finance lenders if the project is not yet fully constructed
65
Energy efficiency (6)
Energy efficiency = energy in/energy out
| doing more with less
66
Frequency regulation (6)
Regulation and maintenance of grid specific frequency (usually 50 or 60 Hz)
67
Voltage control (6)
Regulation and control of voltage (has to be maintained with a very tight range)
68
Spinning reserve (6)
Generation reserves required to be available and able to provide rapid replacement in case of unexpected loss of generation capacity
69
Operating reserves (6)
Reserves required to ensure that sufficient assets are in place to meet the needs of customers
70
Failure protection (6)
Plans to respond to potential system failures to minimise cascading effects, incl. requirement for a portion of assets to have blackstart capability (=allows assets to start running without external power supply, which can then be used to restart other assets)
71
Load leveling
Buying of cheaper power in off-peak times to reduce variance in the load curve
Energy application
72
Load shifting
Use of storage to shift the load to off-peak times (charging storage in off-peak und distributing energy at peak times)
73
Energy (1)
Energy is the element that we are examining and have defined as the ability to do work. Whether kinetic or potential, there is an amount of energy available in the system that can perform the work when properly directed. This is the same energy that is neither created nor destroyed once it is in the system. It is a total volume (or stock) of energy available to do work.
74
Energy Services (1)
Energy Services are supplied through devices that use energy that are necessary to sustain our well-being and our way of life.
75
System (1)
An interconnected set of elements that is coherently organized in a way that achieves something (From Thinking in Systems)
76
Systems Thinking (1)
Systems Thinking is a way of thinking about, and a language for describing and understanding, the forces and interrelationships that shape the behavior of systems. This discipline helps us to see how to change systems more effectively, and to act more in tune with the natural processes of the natural and economic world. Marginal Analysis is the opposite, which holds all but one variable constant.
77
Root Cause (1)
Looking at system dynamics allow us to go deeper into the relationships of a given system and identify the root cause of why something is happening.
78
Leverage Points (1)
because systems are interconnected, any point can be affected by many others. Not all of these will have an equal effect as the strength of the transformations may vary, particularly across a number of relationships or structural elements. Identifying where small efforts in one part of the system can create major change in other parts of the system allows for the observation of leverage points.
79
Constraint (1)
A Constraint is a limiting factor or scarcity in a system that forces people to make allocation decisions with their limited resources. Whether using a cost-benefit relationship, a return on investment, or a net benefit (benefits minus cost), people are going to try to produce the most benefit for each unit of the scarce resources they have to work with. Types of Constraints: Scarcity, Supply, Capital, and Demand.
80
Sustainability (1)
This is our ability to sustain our way of life on Earth without destroying the natural environment and making it inhabitable for generations yet to come. There is a strong correlation between economic growth and the degradation of the environment. Stakeholders in the sustainability debate: Environment, Social, Economic.
81
Innovation (1)
Innovation is the ability to create and invent new technologies and opportunities at all levels of constraint in the energy system.
82
Depletion (1)
The investments that we make in infrastructure to transform energy through the system begins to deteriorate as soon as it is installed. Depletion is a very normal economic behavior whereby we minimize costs first, but that uses up a scarce opportunity that may not necessarily be replaced or renewed. There is a fundamental tension between innovation and depletion in the Energy System.
83
Power (1)
Power is the rate at which energy is physically transformed. The specific dimensions of transformation will be discussed below, but understanding power as a rate of change distinct from the energy that is being transformed will substantially clarify understanding of what is occurring across the energy supply chain. Power is a rate of flow in the system, corresponding to a rate of change of energy. Power is denominated as an instantaneous rate of transformation of energy.
Mathematically, Energy=Power*Time.
Energy is a stock (kWh) measured in Volume while Power is a flow (kW) measured in Rate.
84
First law of thermodynamics (1)
The First Law of Thermodynamics suggests that all of the energy that enters a closed system must remain in that system as energy, heat, or work produced. Thinking about a single step in the system, the energy input must create either the desired work (useful energy) or be wasted, and they must sum to the total energy input.
85
Auctions (1)
Auctions are the rules by which trade or exchange happens within a market. Every process that involves multiple buyers or sellers must have some set of auction rules to conduct the process, but there are a few dimensions across which auction mechanisms can be divided to explain their mechanisms.
86
Clearing price (1)
In an English Auction, bidders continue to bid until they are no longer willing to go any higher. The winning bid becomes the Clearing Price.
87
Cost and Value (1)
Costs are all the expenses that a producer has to pay to deliver their good or service end of market; In terms of supply chain dynamic, raw materials incur costs throughout the transformation and processes that they undertake through the supply chain. These costs accrued are delivered to the customer during final consumption. Value is determined by the consumer, it is the amount of benefit the consumer receives form the purchase or use of the good or service; consumers are always trying to maximize their bang for their buck.
88
Energy transformations (1)
Energy transformations make up a huge part of the energy supply chain at seven distinct stages.
1) Exploration for and discovery of the primary source – Making energy accessible to the supply chain
2) Production or harvesting the energy – Bringing it into the supply chain
3) Preparation, transport, or storage – Gathering and concentrating the energy for efficient use
4) Further processing, purification, and conversion – changing the nature of the energy to be useful in creating specific work outputs with specific devices
5) Distribution – transporting the energy to its eventual point of use
6) Utilization – using the energy to do work
7) Recovery, destruction or decontamination, or storage of by-products and waste – dealing with any undesirable effects of the energy transformations.
89
Final energy service (1)
The final energy service is what the energy produced and transformed multiple times is finally used for such as a light or toaster or computer, etc… As much as 90% of energy is lost when energy finally reaches the intended consumer.
90
Intellectual capital (1)
More esoteric but no less vital, the ability to deploy capital requires a certain amount of knowledge and technology, or intellectual capital, to make it effective. Owners of intellectual capital, whether through acquired knowledge and experience such as trade skills or intellectual property (IP) protection for devices and chemistries, expect to receive a fair return on their contributions to enabling the transformations of energy.
91
Physical capital (1)
This is the type of capital that most people first imagine when discussing capital for transforming energy. It includes all of the infrastructure items above and any other hard assets that are necessary for the procurement, transformation, or disposition of energy as it moves through the supply chain. Whether concrete pilings or computer banks, these assets are physical capital.
92
Human Capital (1)
Even when all of the hard and soft assets are ready, the transformations require the input of people to complete them. This human capital must be encouraged to participate in the process through adequate wages and working conditions versus the other options people may have to put their talents to work. If not, the transformations will be harder or impossible.
93
Natural Capital (1)
In addition to the energy sources that are brought into the energy supply chain, there are many other endowments of natural capital that are necessary for the complete functioning of the energy system. These include water availability, raw materials like metals and elements, land for growing crops, etc. As long as these are available, transformations can continue. However, constraints on cost or availability of this natural capital can have spillover effects on energy availability. Conversely, tapping into vast new sources of natural capital has the potential to create profound economic and welfare opportunities.
94
Political capital (1)
Being able to transform energy is not the same as being allowed to transform energy. In modern societies, government structures have emerged to allocate scarce resources and regulate behaviors of those engaged in vital industrial activity. Having rules in place to permit or encourage certain transformations, as well as the ability to protect those authorities from interference by others, is a type of political capital.
95
Transformations (1)
There are 4 dimensions of transformation:
1. What - changing what form the energy is in
2. Where - moving energy from where it is to where people may find it more useful
3. When - providing energy when needed and storing it when not
4. How Certain - how sure an energy source will be available when desired
96
Second law of thermodynamics (1)
The Second Law of Thermodynamics expands on this understanding of energy in a closed system by suggesting that in most of the transformations of one type of energy to another, the heat byproduct is lost, or rendered useless. Through a process of constant diffusion from hotter to colder areas, also known as entropy, this heat becomes more diffuse, disorganized, and difficult to recapture and harness into productive work. The drive toward concentration and efficiency of energy conversion is perpetually fighting against this force of entropy. When scaled up to the system level, these two Laws suggest that the entire energy system is bounded by the amount of energy that enters it, with that primary energy staying in the system as either useful energy (“work”) or energy loss.
97
Price (1)
Price-- Value - Surplus = Price = Costs + Profits
98
Fungible Good (1)
Fungible Good-- to be fungible, two things must share identical characteristics of what they are, where they are available, when they are available, and the certainty of each of those other characteristics.
99
Lifecycle analysis (LCA) (1)
Total costs for a power plant or generator including resource extraction, fuel processing, manufacturing, construction, operations, maintenance, waste management, and decommissioning.
100
Batteries (7)
All of the different ways that potential energy can be stored in various types of chemical bonds, formed into electro-chemical control devices.
101
Primary battery (7)
Primary batteries are constructed of anodes, cathodes and electrolytes in a way to allow them to emit a charge. They cannot be recharched.
102
Secondary battery (7)
Allows for chemical reaction in the battery to be reserved by the application of current back in the battery, which recharges the chemistry and therefore electrical energy available from it (also: researchable battery).
103
Grid storage (7)
Storage devices that are installed for the primary purpose of supporting the function of the electric grid.
104
Pumped hydro (7)
Type of mechanical storage. Either fresh or salt-water can be pumped (using electricity) to a higher elevation, and stored in some reservoir for later use. When energy is required, the water can be run through a turbine to generate electricity.
105
Stationary vs portable storage (7)
Stationary storage refers to a fixed location; portable refers to movability.
106
Fuel Cell (7)
A device that converts the chemical energy from a fuel into electricity through a chemical reaction with oxygen or another oxidizing agent. (not from class material)
107
Energy Density (7)
Ability to store energy per-unit (the general definition in the book refers to -> Volume Energy Density, i.e. per unit of volume)
A type of energy content measurement
108
Weight Energy Density (7)
Ability to store energy per-unit of weight (not explicitly mentioned in course materials)
109
Volume Energy Density (7)
Ability to store energy per-unit of volume (also: volumetric energy density)
110
Specific energy (7)
The amount of energy that can be stored in the device or system per unit of mass (also gravimetric energy density).
A type of energy content measurement.
111
Power Density (7)
Ability to store power per-unit of volume.
112
Response Time (7)
How quickly storage can be called on to either accept or deliver electricity.
113
Lifetime (7)
Duration how long an asset/device lasts; often measured as cycle life – the total number of cycles that can be expected before the device degraded beyond an acceptable level of performance.
114
Hazmat Issues (7)
Hazardous substances or materials; most chemical substances that may pose a health risk to life when exposed are deemed hazardous substances. (not from course materials)
115
Cycle (7)
Cycles of charge and discharge count how many times each process occurred for a storage device.
116
LCOS (7)
Levelized Costs of Storage; As LCOE, but specificities: capital costs: useful time defined as cycle life and usage patterns (i.e. kwh stored and released per cycle); O&M: only fixed O&M matters, while variable is subsumed into cycle costs; Fuel cost: amount of energy needed might change by location and time of the day; roundtrip efficiency measures losses between charging and available output.
117
Time Shifting (7)
Moving chunks of energy from the time in which they were generated to another time when they are more valuable. (energy concept)
118
Peak Shaving (7)
Shifting energy to the most constrained times of the day to reduce peak energy requirements of the grid as part of demand response targets (capacity-concept)
119
Firming (7)
Overcoming the constraint of intermittent energy options of not being perfectly predictable and storing energy for being dispatchable.
120
Experience Curve (8)
Concept that describes the ratio (progress ratio or learning rate) by how prices for a technology decline depending on its cumulative production or sales.
121
Learning (8)
Occurs as 1) scale increases, 2) technology improves, and 3) input prices change
122
Learning Investments (8)
Additional costs which will bring a technology to the break-even point (the costs the market currently considers cost efficient).
123
Cumulative production (8)
Total production of a specific technology produced worldwide until year t.
124
Parity (8)
Point at which PV is competitive with conventional grid-supplied electricty
125
Market Shakeout (8)
End of a price umbrella, when prices fall faster than costs to adjust high prices to actually lower cost levels.
126
Price Umbrella (8)
When the producer of a new product uses market power to hold the price at a higher level than necessary (and above the higher cost producers)
127
Distributed Generation (8)
Producing energy at or very near to the customer.
128
Insolation (8)
Amount of sun available for capture at any point on the surface of the planet.
129
Soft Costs (8)
Costs for customer acquisition, design and approvals, financing, monitoring and billing (of PV).
130
Bankability (8)
The attribute of a PV project having sufficient collateral, future cashflow, and high probability of success, to be acceptable to institutional lenders for financing. (not from course materials)
131
MACRS (8)
Modified Accelerated Cost Recovery System is a depreciation method that is used only for income tax purposes. (not from class materials)
132
Leveraged Partnership Flip (8)
A project arrangement that includes debt financing. A tax-based investor contributes equity and receives a proportional allocation of both cash and tax benefits. The developer receives the remaining economic benefits of the project. (not from course materials)
133
Pecuniary Costs and Benefits (8)
Costs and benefits that operate through prices rather than through real resource effects. (not from course materials)
134
Value of Solar Tariff (8)
An alternative to net metering. The basic concept behind value of solar is that utilities should pay a transparent and market-based price for solar energy. (not from class material)
135
Greenhouse Gases (14)
Greenhouse gas in the context of the Kyoto Protocol include CO2, CH4 (methane), N20 (nitrous oxide), HFC/PFC (hydrofluoro-carbons), SF6 (sulfur hexafluoride)
136
Climate Change (14)
A change in the statistical distribution of weather patterns when that change lasts for an extended period of time (i.e., decades to millions of years). (not from course materials)
137
Carbon Capture & Sequestration (14)
Technologies for capturing and storing GHGs, mostly underground.
138
Fugitive Emissions (14)
Emissions of gases or vapors from pressurized equipment due to leaks and other unintended or irregular releases of gases, mostly from industrial activities. (not from course material)
139
Carbon Tax (14)
A tax levied on the carbon content of fuels. (not from course material)
140
Cap and trade (14)
A market-based approach to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants; "cap" meaning a legal limit on the quantity of a certain type of chemical an economy can emit each year (not from course material)
141
Kyoto Protocol (14)
– Includes last binding targets within the UNFCCC framework; allocation based on historic emissions; excluded US; excluded developing countries (incl. China) from binding targets.
142
Emission Trading Scheme (ETS) (14)
Cap and trade system of the European Union.
143
Clean Development Mechanism (14)
Mechanism in the framework of the Kyoto Protocol that gives emitters of signatory states the option of investing in projects in developing countries under specific conditions and receiving CO2 certificates for this.
144
RGGI (14)
Regional Greenhouse Gas Initiative is a regional initiative by states and provinces in the Northeastern United States and Eastern Canada regions to reduce greenhouse gas emissions. The RGGI is designing a cap and trade program for greenhouse gas emissions from power plants. (not from course materials)
145
Social Cost of Carbon (14)
An estimate of the economic damages associated with a small increase in carbon dioxide (CO2) emissions, conventionally one metric ton, in a given year. This dollar figure also represents the value of damages avoided for a small emission. (not from course materials)
146
Abatement Cost (14)
Additional costs (or net benefit) of replacing a technology in the reference/business as usual development by a low carbon alternative. Measured as Euro per tCO2e abated emissions. Included annualized CapEx repayments and Opex.
147
Abatement Curve (14)
Visual compilation of abatement potentials and costs sorted by increasing abatement costs.
148
Parasitic Energy Requirements (14)
Requirements for power consumed even when the devices are shut off, that is standby power. (not from course material)
149
Resource (9)
Petroleum resource base or "total petroleum initially in place" encompasses. all estimates of potential quantities of petroleum and the quantity already produced. In addition to "unrecoverable" resources there are 4 other types of resources according to the Resource classification system: Production, Reserves, Contingent petroleum resources, and Prospective resources.
150
Reserves (9)
A "proved reserve" is one in which the following conditions are met: 1. discovered through one or more exploratory wells from an 2. untapped in-ground site, 3. recoverable using existing technology, and 4. commercial viable
151
Production (9)
The volume of crude oil produced from oil reservoirs during given periods of time. The amount of such production for a given period is measured as volumes delivered from lease storage tanks (i.e., the point of custody transfer) to pipelines, trucks, or other media for transport to refineries or terminals with adjustments for (1) net differences between opening and closing lease inventories, and (2) basic sediment and water (BS&W). DEFINITION FROM EIA
152
Depletion (9)
Depletion rate: how rapidly the remaining resources in a field or region can be
produced. AS OPPOSED TO "decline rates" which is: how rapidly the production from different categories of field is
declining and how this may be expected to change in the future. DEFINITIONS from the UK Energy Research Centre
153
Peak Oil (9)
OPTIONS:
1. Potential result of economies maturing and deploying more energy-efficient and diverse fuel technologies, meaning that year-on-year growth in world oil demand may level off.
2. The maximum possible annual rate of extraction of conventional crude oil, due either to physical resource constraints or above-ground political, economic or logistical factors.
3. Since the definition of what constitutes conventional oil is constantly changing, total producible liquid fuels is what should be looked at. DEFINITION: IEA
154
Regulated market/power (4)
Capacity is established and procured by grid operator, and resulting investment costs are added to end-users rate base
155
Unconventional Oil (9)
Consists of a wider variety of liquid sources including oil sands, extra heavy oil, gas to liquids and other liquids. In general conventional oil is easier and cheaper to produce than unconventional oil. However, the categories “conventional” and “unconventional” do not remain fixed, and over time, as economic and technological conditions evolve, resources hitherto considered unconventional can migrate into the conventional category. DEFINITION EIA
156
Unconventional Oil (9)
Consists of a wider variety of liquid sources including oil sands, extra heavy oil, gas to liquids and other liquids. In general conventional oil is easier and cheaper to produce than unconventional oil. However, the categories “conventional” and “unconventional” do not remain fixed, and over time, as economic and technological conditions evolve, resources hitherto considered unconventional can migrate into the conventional category. DEFINITION EIA
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Shale Oil (9)
Shale oil is a subset of tight oil. Tight oil is produced from petroleum-bearing formations with low permeability such as the Eagle Ford, the Bakken, and other formations that must be hydraulically fractured to produce oil at commercial rates. DEFINITION FROM EIA
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Passenger-Kilometer (9)
A passenger-kilometre, abbreviated as pkm, is the unit of measurement representing the transport of one passenger by a defined mode of transport (road, rail, air, sea, inland waterways etc.) over one kilometre. DEFINITION EUROSTAT
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Tonne-Kilometer (9)
A tonne-kilometer, abbreviated as tkm, is a unit of measure of freight transport which represents the transport of one tonne of goods (including packaging and tare weights of intermodal transport units) by a given transport mode (road, rail, air, sea, inland waterways, pipeline etc.) over a distance of one kilometer. DEFINITION EUROSTAT
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CAFE Standards (9)
Corporate Average Fuel Economy (CAFE) aims to reduce energy consumption by increasing the fuel economy of cars and light trucks. In 2010, the US government raised the average fuel economy of new passenger vehicles to 34.1 miles per gallon (mpg) for model year 2016, a nearly 15 percent increase from 2011. In 2012 it raised the average fuel economy to up to 54.5 mpg for model year 2025.
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Fleet Efficiency (or Economics in Chapter) (9)
Using fleet owners as the testing grounds for new innovative vehicle technologies as they can amortize the costs (i.e. of new fueling infrastructure or substantial fuel use) over many vehicles - fleets of trucks, planes, LDVs return to same depot/hanger and share fueling infrastructure
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Ethanol (10)
Ethanol (ethyl alcohol) is an alternative fuel fermented from corn, grains, wheat, barley, and potatoes, and sugar crops such as sugar cane and sweet sorghum. It is used primarily as a supplement to gasoline. Pure ethanol is not sold as a stand-alone fuel and is commonly mixed with gasoline in varying percentages creating a transitional fuel that will pave the way for pure alcohol vehicles. For example, E85 is a common mixture: 85 percent ethanol, 15 percent gasoline.
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Biodiesel (10)
A fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100. It is made through a chemical process called transesterification whereby the glycerin is separated from the fat or vegetable oil. The process leaves behind two products -- methyl esters (the chemical name for biodiesel) and glycerin (a valuable co-product usually sold to be used in soaps and other products). DEFINITION BIODIESEL.ORG
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Cellulosic Biofuels (10)
Dereived from a wide variety of sources of cellulose (cell wall) plant fiber. These range from stalks and grain straw to switchgrass and quick-growing trees (poplar and willow)—and even municipal waste.
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Algae-Based Fuels (10)
Constitute third generation biofuels. They are designed to substitute oil and produce good co-products. Production occurs through either closed photo-bio reactors or through bond schemes. However, to produce algae productively the process requires CO2 injection. Better method would be to use "ambient" carbon.
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Drop-In-Fuels (10)
Renewable fuels which can be blended with petroleum products, such as gasoline, and utilized in the current infrastructure of pumps, pipelines and other existing equipment. Under such a definition, a biofuel would require some percentage of gasoline blender, derived from unique gasoline stocks
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Feedstock (10)
A feedstock is defined as any renewable, biological material that can be used directly as a fuel, or converted to another form of fuel or energy product. Biomass feedstocks are the plant and algal materials used to derive fuels like ethanol, butanol, biodiesel, and other hydrocarbon fuels. DEFINITION ENERGY.GOV
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Rapeseed (10)
Rapeseed also known as Rape, Oilseed Rape, etc. (one particular variety) Canola, is a bright yellow flowering member of tmustard or cabbage family. It's cultivated for the production of animal feed, vegetable oil for human consumption, and biodiesel; leading producers include the European Union, Canada, the United States, Australia, China and India.
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Jatropha (10)
Biofuel feedstock which comes from a tropical plant whose seeds contain a type of oil that can be converted into a substitute for refined petroleum products
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Energy Content (10)
The energy content (also referred to as heating value) of diesel fuel is its heat of combustion; the heat released when a known quantity of fuel is burned under specific conditions. DEFINITION BIODIESEL.ORG
Exam Revision 2: Energy contained in a fuel can be based on various units (e.g. volume, bushels, mass, etc.)
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GHG Balance (10)
The ratio of net GHG production, expressed as CO2 equivalents, emitted when producing biofuel to the amount of CO2 equivalents emitted when producing and burning an amount of fossil fuel representing the same end-use energy. A value below one denotes a net reduction in GHG emissions.
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RFS and RFS 2 - Renewable Fuel Standard (10)
Establishes min volumes of renewable fuels that must be included in US transportation fuels. These volumes must grow each year through 2022 . RFS1, set annual renewable-fuel-blending requirements for 2006 through 2012, starting at 4bil gallons and rising to 7.5bil gallons. While RFS2, requires 36 billion gallons of renewable fuel annually by 2022, while setting an annual cap of 15 billion gallons of corn ethanol starting in 2015. The remaining 21 billion gallons will come from advanced and cellulosic biofuels.
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RIN (10)
A Renewable Identification Number (or RIN) is a serial number assigned to a batch of biofuel for the purpose of tracking its production, use, and trading as required by the United States Environmental Protection Agency's Renewable Fuel Standard (RFS) implemented according to the Energy Policy Act of 2005.
Under RFS2, each batch-RIN generated will continue to uniquely identify not only a specific batch of renewable fuel, but also every gallon-RIN assigned to that batch. Thus the RIN will continue to be defined as follows:
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Blend Wall (10)
A limit to blending (biofuels into conventional, oil-based refined products) due to logistical and infrastructural short-comings or a lack of financial incentive. DEFINITION IEA
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Food vs. Fuel (10)
A debate centered upon the premise that global food security (i.e. land for agricultural development) is in competition with land for biofuel feedstocks.
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Co-Product (10)
While ethanol production consumes the grain's starch, the protein, minerals, fat and fiber are concentrated during the production process to produce a highly valued and nutritious livestock feed. - NOT SURE IF ITS ONLY RELEVANT FOR BIOFUELS......??
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Conventional Gas (12)
Typically “free gas” trapped in multiple, relatively small, porous zones in various naturally occurring rock formations such as carbonates, sandstones, and siltstones.
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Associated Gas (12)
Natural gas which is found in association with crude oil either dissolved in the oil or as a cap of free gas above the oil.
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Tight Gas (12)
Natural gas found in low-permeability sandstones and carbonate reservoirs. The rock layers that hold the gas are very dense, preventing easy flow.
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Wet Gas (12)
Natural gas that contains less methane (typically less than 85% methane) and more ethane and other more complex hydrocarbons.
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Fracking (12)
A technique to stimulate production of oil and gas after a well has been drilled. Consists of injecting a mixture of water, sand, and chemical additives into an oil- or gas-bearing rock formation under high but controlled pressure to create small cracks within (and thus fracture) the formation and propagate those fractures to a desired distance from the well bore by controlling the rate, pressure, and timing of fluid injection.
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Shale gas (12)
Shale gas is defined as natural gas from shale formations. The shale acts as both the source and the reservoir for the natural gas. Older shale gas wells were vertical while more recent wells are primarily horizontal and need artificial stimulation, like hydraulic fracturing, to produce.
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Stranded Gas (12)
Gas that is not considered economically exploitable. Thus, it is usually ‘flared’, i.e., burned, at the well site, although a small amout of it is used one way or the other at or near the well site.
However, new abilities to convert stranded gas into LNG and diesel type fuels is rapidly beginning to make this resource economically viable to exploit.
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Compressed Natural Gas (12)
Natural gas compressed to a pressure at or above 200-248 bar (i.e., 2900-3600 pounds per square inch) and stored in high-pressure containers. It is used as a fuel for natural gas-powered vehicles.
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Liquified Natural Gas (12)
Natural gas (primarily methane) that has been liquefied by reducing its temperature to -260 degrees Fahrenheit at atmospheric pressure.
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Coal to Gas Switching (12)
Switching coal powered plants to natural gas enables instantaneous adjustments in the merit order due to the cheaper variable production costs of gas than coal. This “short‐run” switching can occur either within days or over periods of many months, and is of interest in terms of the resilience of the electricity systems. In the long run, the power plant fleet itself can change due to additions of capacity, retirements, fuel conversions and retrofits.
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Indexing (12)
In North America, gas is a traded commodity whose price is usually linked to benchmarks set at the Henry Hub, (pipelines hub in Louisiana). In the rest of the world, gas prices are often indexed to oil products that gas might replace. This leads to various regional price disparities However, increasingly spot prices are being used in lieu of indexing as growing competition and sources of gas emerge.
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Rig Count (12)
Rig count is a tally or count of rigs. This census is utilized by petroleum service companies and state and U.S. legislators. The count of active drilling rigs sheds light on the consumption of products and services produced by the oil service industry.
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Rig Productivity (12)
Number of wells drilled per active rig. DOES SOMEONE HAVE A DIFFERENT DEFINTION? THIS COMES FROM EIA
RBN ENERGY: The rig productivity measure starts with an estimate of crude and natural gas output from new wells in a region during their first month in production. Rig productivity (calculated separately for oil and for gas) is that new well output divided by the number of drilling rigs in the region. (also EIA numbers seem to reflect the same thing).
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Break-Even Price (12)
The amount of money for which a product or service (i.e. a barrel of oil) must be sold to cover the costs of manufacturing or providing it.
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Market Failure (2)
Situation in which a market fails to meet the characteristics of a perfect market
Market failure occurs if a market fails to meet any of the characteristics of a perfect market. In this case, markets fail to accurately represent aggregate preferences and agents cannot rely any more on the information embedded in prices. Perfect markets exhibit the following characteristics: - full information - no market power (no one can influence market outcomes) - no artificial price/volume constraints - Everyone is free to contract and all inputs are equally available - all participants are rational agents (profit/utility maximizing) - no externalities, i.e. all cost and benefits are internalized in the transaction and the price These characteristics can be summarized in three behavioral observations: - all agents are price takers - product homogeneity - free entry and exit Market failure can fall into the following categories: - market structure problems (free entry/exit or price taking problems) - market scope problems (externalities occur) - information problems (costly/unavailable information or agency problems) - market design problems (government intervention/ policies create barriers/distortions)
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Natural Monopoly (2)
Industry or service for which it is only economically efficient to have a single provider.
In these industries, a single provider continues to achieve cost improvements through scale, which results in a falling average cost. Adding a second provider would only raise the average cost for everybody and reduce overall system efficiency. This is particularly the case in industries that have high fixed costs and/or are subject to network economics.
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Unintended Consequences (2)
Outcome of government policy/regulation that was not intended with the specific policy/regulation
Government policy and regulation, though well intentioned, can cause both intended and unintended consequences on market functions. Laws and regulations are nearly always accompanied by unintended consequences, or unexpected effects on market behavior. These are often deleterious, and if they are severe enough may give rise to the need for counterbalancing legislation to correct for these policy distortions.
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Market Intervention (2)
Any action by a private firm in a market
Market interventions comprise any action by a firm in the market. However, the term in its more narrow sense also describes actions by private firms to correct market failure like incomplete information, costly transactions, excessive risk. Market interventions include direct investment (to build capacity), codes and standards (e.g. quality standards for monitoring purposes), information sharing and education, lobbying, or establishing associations.
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Externalities (positive and negative) (2)
Costs and benefits that are not internalized in the transaction and price. Thus, they accrue to other people than those involved in the transaction.
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Market Distortion (2)
Market distortions describe market outcomes that would not arise in perfect markets
Source: Externalities can create potential market distortions by allowing producers to escape the full costs (or preventing them from recovering the full benefits) of their actions
Correction: Many policy proposals are made to correct for the distortions introduced into the market by previous laws or regulations.
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Administrative Burden (2)
Better Definition: costs imposed on businesses, when complying with information obligations stemming from Government regulation. In order to safeguard public interests, Governments require businesses and private individuals to carry out or avoid certain actions or conduct (conduct obligations).
The part of the resources applied to advance an initiative (in government or the nonprofit sector) that is being used to administer the initiative.
It is opposed to the part of the resources that goes to meet the intended goal of the policy.
Minimizing administrative burden is a reasonable goal, but may be in conflict with impact or urgency if rapid deployment is deemed necessary.
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Uncertainty (2)
Outcomes are not sure
Uncertainty is one of the factors that can cause humans to behave in ways that do not easily conform to the standard economic model. Governments can affect uncertainty, which feeds back in the cost of capital and expectations, and it is often done in the positive direction (i.e. reducing uncertainty) by the provision of insurance, guarantees, or fixed payment obligations by the government to some stakeholders are market participants.
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Expectations (2)
A strong belief that something will happen or be the case in the future (Wikipedia)
Government signaling priorities, social objectives, and future pathways can change people’s expectations of the future. Even small shifts in priorities of administrations can cause a meaningful migration of resources, efforts, and risk perception on the part of market participants.
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Public Good (2)
Good that is both non-excludable and non-rivalrous (Wikipedia)
Public Goods are items that can be produced relatively cheaply, or already exist, but are very difficult to prevent users from enjoying or participating in, technically referred to in economics as the inability to exclude. Furthermore, often non-rivalry in consumption exists. Competitive markets can fail due to the existence of public goods.
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Myopia (2)
A form of nearsightedness
Typically, individuals place far too much importance on things that are happening in the present or in the near future, as compared to those that are in the distant future. This is known as temporal myopia (or just “myopia” in this context), a form of nearsightedness where things that are up close are much more clear than things that are far away.
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Cartel (2)
Form of intentional anticompetitive collusion
Cartels often intentionally restrict output based on some allocation mechanism across the cartel members with the hopes of increasing prices and profits. When the cartel represents a meaningful amount of an otherwise inelastic global supply, this can be effective method of profit maximization at the expense of customers, as long as it can avoid cheating (supplying amounts above their quota restriction) by cartel members. Example: OPEC
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Social Cost of Carbon (2)
Negative externalities from carbon
The term social cost of carbon describes the negative externalities from carbon emissions, i.e., those cost that are not part of the transaction of market participants. These include the cost of climate change or the loss of air quality.
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Primary Energy (2)
Types of energy available in nature
Primary energy cannot be produced, and must exist within or be constantly delivered to the energy system from outside. Available primary energy sources include: Biomass, fossil fuels, nuclear, hydropower, tidal, wind, geothermal, solar, animal. Sources can be further subdivided into renewable and non-renewable sources.
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Meme (2)
Rule of thumb
Conceptual framings or heuristics that are conceptualised and captured in phrases, visualisations, or metaphors and get passed around and used due to a combination of availability heuristics and the belief that others also follow similar devices
Can persist over large populations and through time, even though is is usually based on limited visibility over the entire system.
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System (2)
Energy System: An open supply chain from primary energy supply to final consumption, situated within the broader economic and environmental systems
The energy system simultaneous includes four aspects of energy that are indivisible from each other, but arise out of different functional disciplines:
- physical aspects of energy
- economic aspects of energy
- market aspects of energy (what is transacted etc.)
- social aspects of energy
Energy is best understood as a set of interconnected systems, which are collectively referred to as the Energy System. Collectively, the object of analysis becomes these system elements and within them are many parts, sub-systems, and interactions. Such Systems Thinking is a distinct from the traditional marginal analysis that populates much of economics and social sciences.
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Primary Energy Production
Energy that cannot be produced and thus must exist within or be constantly delivered to the energy system from outside
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Secondary Energy Carriers (2)
Another term for secondary energy, i.e. energy that is used but not available in a primary form in the environment
For instance: electricity, refined fuels, hydrogen, and other synthetic fuels. These secondary energies are also sometimes referred to as (secondary) energy carriers.
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Total Final Consumption (2)
Aggregate amount of energy that reaches the customer through the supply chain and is consumed
More than 70% of the energy content in the primary energy supply is lost by the time it reaches the final customer. Thus, Total Final Consumption is only a small fraction of the primary energy supply, but it has been transformed, purified, moved, directed, and distributed to exactly where the customer may find it desirable.
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Total Final Consumption (2)
Aggregate amount of energy that reaches the customer through the supply chain and is consumed.
More than 70% of the energy content in the primary energy supply is lost by the time it reaches the final customer. Thus, Total Final Consumption is only a small fraction of the primary energy supply, but it has been transformed, purified, moved, directed, and distributed to exactly where the customer may find it desirable.
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Stock (2)
The amount of energy available in the system that can perform work when properly directed is called "stock" of energy. This is the same energy that is neither created nor destroyed once it is in the system.
Units of measure for this volume/stock are, e.g., Joules - J, Watt-hours - Wh, t.o.e., Btu, or calories - cal.
(Amount - Energy - Stock - kWh)
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Stock
The amount of energy available in the system that can perform work when properly directed is called "stock" of energy. This is the same energy that is neither created nor destroyed once it is in the system.
Units of measure for this volume/stock are, e.g., Joules - J, Watt-hours - Wh, t.o.e., Btu, or calories - cal.
(Amount - Energy - Stock - kWh)
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Flow (2)
Rate at which e.g., energy is transformed
Power is the rate at which energy is physically transformed. Thus, power refers to a flow and more specifically is a rate of flow in the system, corresponding to a rate of change of energy.
Rate - Power - Flow - kW
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Stabilizing vs. Reinforcing Feedback Loops (2)
Feedback: the communication mechanism between stocks and flows, taking in data about the state of the system and communicating those to other elements of the system, causing them to react by either maintaining or adjusting their behavior.
Feedback loops: describe a complete cycle of these feedbacks, stocks, and flows that continually update each other. There are two main types of feedback loops observed in systems:
1.) Sustaining or Goal-seeking Loop: exhibits properties of stability or equilibrium.
Example: Thermostat
2.) Runaway or Reinforcing Loops: cause a system that is out of balance to go further in that direction.
Example: Avalanche
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System Purpose (2)
System outcome
Intentions of individuals/organizations have to be separated from the system purpose. The reason is that systems, follow a set of rules that supersede the motivations of any one of the actors in the system. In aggregate, a system has an outcome, also thought of as the system purpose.
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Scenario (2)
A scenario is different from a forecast. Essentially, it is the same kind of modeling exercise but it simply establishes a relationship suggesting if the input variables are true, then the output parameters should be what the model suggests.
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Reference Scenario (2)
Baseline scenario
Often a modeling exercise will present multiple scenarios using the same model but different input assumptions. The reference scenario is the baseline scenario. The results of all other scenarios will be compared to the results of the reference scenario.
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Peak Load (3)
Load that occurs when the system is operating near its maximum. It is not simply the peak of a given day, but it is a load that is requiring the delivery electricity near maximum amount for any time during the year.
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Intermediate Load (3)
The portion of the load that predictably rises from the low point (middle of the night in these locations and seasons) to the high point on a daily basis.
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Intermediate Load (3)
The portion of the load that predictably rises from the low point (middle of the night in these locations and seasons) to the high point on a daily basis.
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Coal-by-Wire (3)
Coal By Wire (generation at mine mouth) avoids coal shipment costs. (EIA)
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Engine (3)
Device transforming some form of power (not electricity) into movement
The early piston-driven steam engines in comparison to turbines, had limited scalability and performance and thus was less efficient. Thus, turbines have cost and performance benefits beside operational advantages, like reduced vibration, lower maintenance, and lighter weight.
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Engine (3)
Device transforming some form of energy (not electricity) into movement energy
The early piston-driven steam engines in comparison to turbines, had limited scalability and performance and thus was less efficient. Thus, turbines have cost and performance benefits beside operational advantages, like reduced vibration, lower maintenance, and lighter weight.
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Motor (3)
Converts electricity into other forms of power.
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Generation (3)
Process of generating electric power from other sources of primary energy (Wikipedia)
Electricity generation, especially centralized generation, together with transmission and conversion, enabled the widespread use of energy and helped overcome the problem to pump fuels. However, it incurs losses, too, as any supply chain transformation.
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Transmission (3)
Bulk transfer of electrical energy, from generating power plants to electrical substations located near demand centers (Wikipedia)
Electricity transmission by wire, together with generation and conversion, enabled the widespread use of energy and helped overcome the problem to pump fuels. However, it incurs losses, too. To lower losses, electricity is transmitted using high voltage lines (hundreds of kiloVolts). In addition to the voltage, the frequency of transmission is important, and is typically 50 Hz (Europe) or 60Hz (USA) - though Japan has both.
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Distribution (3)
Final stage in the delivery of electric power; carries electricity from the transmission system to individual consumers
In order to lower electricity losses from transmission, transmission lines usually operate using high voltage lines (hundreds of kiloVolts). As only some industrial customers are willing to take electricity at these high voltages, electricity has to be transformed into lower voltages (tens of kiloVolts) in order to enter the distribution grid. Then, power can be delivered to medium-‐size customers, or stepped down further in order to go into commercial or residential facilities. At the household level, the US has standardized at 120V output, while Europe has 230V, the range elsewhere is between 110V and 250V.
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PUHCA (3)
Public Utility Holding Company Act (1934) - Act that forced utilities to be closely governed, after market distortions were experienced from large electricity holding companies acting as monopolies (e.g., JP Morgan).
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PURPA (3)
Public Utility Regulatory Policies Act of 1978 - first attempt to introduce competition in the electricity sector. Main feature: required utilities to buy electricity from providers, (IPPs - independent power producers) who met the test of being a qualified facility (QF).
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Deregulation (3)
The process to change the structures of regulated utilities
The term Deregulation is intended to signify a move away from the regulated utility model, and to allow for the market- setting of some components of rates in electricity bills, rather than through a regulatory process. Theoretically, this also creates incentives for operational efficiency, including better utilization of generation assets and the resulting cost savings. - Original idea to separate Distribution Utilities (and Transmission) from Generation – “unbundling” (Started in 80s, and slowed in late 90s).
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Stranded Costs (3)
Cost for stranded assets, i.e., assets, that suddenly became uneconomic or are no longer needed. Often difficult to recover.
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Control Area (3)
The whole country is split into control areas. These are operated by Independent System Operators, or ISO.
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IOU (3)
Investor-Owned Utilities - also called private utilities
These entities can be standalone operating entities or a collection of them under a holding company structure which is owned by shareholders. These utilities tend to be large with less than 300 of them making up 60% of all electricity sales and 65% of all customers nationwide.
IOU are managed as private enterprise rather than a function of government or a utility cooperative.
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RTOs (3)
Regional Transmission Organizations - organizations to administer the transmission grid on a regional basis throughout North America (including Canada) - created by FERC (Federal Energy Regulatory Commission).
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Scheduling (3)
Term from electricity procurement: Describes intermediate step between operation/capacity planning (6 months to 10 years ahead) and system balancing (<15min). Thus, scheduling ranges from day ahead scheduling to dispatching (15min to 2hrs before power delivery).
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Reliability (3)
Likelihood that the asset will be in service when needed
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Intermittency (3)
Energy supply risk - input constraint: a particular type of resource availability risk relating to kinetic energies such as those from wind, sun, and wave sources.
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Dispatchability (3)
The utility’s ability to dispatch the generator as needed.
Refers to sources of electricity that can be dispatched at the request of power grid operators; that is, generating plants that can be turned on or off, or can adjust their power output on demand
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Smart Grid (3)
Class of technology people are using to bring utility electricity delivery systems into the 21st century, using computer-based remote control and automation.
It means “computerizing” the electric utility grid and includes adding two-way digital communication technology to gather and act on information, such as behaviors of supplier and consumers to improve reliability, efficiency, or economics of the grid (Wikipedia)
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NERC (3)
NERC (North American Electric Reliability Corporation): - non-profit sanctioned by FERC to ensure Bulk Power System (BPS) reliability, which includes all of the generators and delivery systems of wholesale electric power.
It establishes guidelines and it enforces the standards prescribed by law on all utility operators. Overseeing and managing system reliability across all of North America
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FERC (3)
FERC (Federal Energy Regulatory Commission):
- main US main regulatory authority for energy matters, including the interstate transmission of electricity.
- independent agency of the federal government.
- began as an independent agency in 1935 as the Federal Power Commission (FPC), and has been the primary tool for ensuring cost-effective electricity provision since then.
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Hardening (3)
Storm or weather hardening: The need to protect the grid from weather-related outages
Increasingly urgent due to concerns over climate change. Some strategies for dealing with this risk include appropriate vulnerability assessment, physical hardening of key components (including burying of key infrastructure), and enhancing system flexibility and control.
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ISO (3)
Independent system operator
Organization formed at the direction or recommendation of the FERC and a way to establish open competitive wholesale electricity markets., as they operate the network and provide non discriminatory access to transmission.
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Operating Reserves (3)
Additional assets in place (regarding energy generation), which are available within short amount of time to meet the needs of customers at any time
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POU (3)
Publicly-owned utilities
Utilities owned by state or municipal government agencies. They tend to be less heavily regulated than investor-‐owned utilities due to the presumption that they work in the public interest, but their behavior is still subject to some oversight and regulation. As many of these are smaller Municipal Utilities, the average size of POU’s is very small, each serving an average of less than 20,000 customers.
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Reserve margin (3)
Adequate Reserve Margins
Having sufficient amount of spare capacity in generation or transmission to make up for some of the unexpected losses that occur, but also includes the risk of having to high an reserve margin which burdens the system with unnecessary costs.
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Spinning reserves (3)
Spinning reserves our generation assets that are required to be not only available, but operating in synchronization so that they can provide very rapid replacement of any unexpectedly lost generation. Failure to maintain adequate spinning reserves subjects a utility operator to the risk of unexpected generator shutdowns or loss of transmission capacity.
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Vertically integrated (3)
Traditional regulated utilities are typically vertically-integrated, meaning they own the generation of electricity as well as the transmission and distribution systems to deliver it.
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Rural electrification (13)
Providing electricity to people living in rural areas in developing countries
Rural electrification as complement to urban electrification. In urban areas, the share of people with grid connection and thus reliable electricity is much higher than in rural areas. Furthermore, rural populations are often poorer and cannot afford other sources of electricity, e.g. diesel generators due to lack of capital, O&M cost, and fuel price volatility. Properly financed, cheaper options than diesel exist. Rural electrification can be extended by expanding the grid or off-grid solutions, like solar home systems (SHS).
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Urbanization (13)
Moving from rural areas to urban areas
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Energy budget-share (13)
Share of household budget used for energy consumption
Energy is as large a budget item in the developing world as in industrialized world – even more when time collecting fuel is valued, too.
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Diesel Genset (13)
Diesel generators mainly used in rural areas to provide electricity.
Difficult to rely on diesel gen-sets for economic activity or livelihood, due to: • Initial capital requirements • Volatile fuel prices • Repair and maintenance Today’s fuel prices create electricity up to $1/ kWh, but properly financed cheaper options exist.
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Micro-grid (13)
Small grid connecting few households or a village, sometimes extended to connect a slightly larger area, but not connected to national grid. Thus, operated independently, often in combination with renewable energy sources like solar or hydro.
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Leapfrogging (13)
Leaving out stages of economic development
Later stage economic development may require less energy, and thus, for developing countries, it may make sense to leave out some stages of development, directly leapfrogging to later ones. This may especially be the case, as current industrial technologies are not well suited to economic demands of lower-energy users. Hence, leapfrogging may be the best solution to avoid capital requirements of industrialization
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Bio-char (13)
Name for charcoal when used as soil amendment.
It uses a variety of organic feedstocks to get energy, sequestered carbon, and fertilizer value streams. Improves soil functions and reduces emissions from biomass that would otherwise naturally degrade to greenhouse gases.
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Microfinance (13)
Source of financial services for entrepreneurs and small businesses lacking access to banking and related services. If combined with a deep understanding of the energy needs of the poor, it can be a powerful tool to target energy poverty.
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Smart grid (3)
Electric grid using sensing, embedded processing and digital communication to make the grid: >observable (enable measuring & visualization) >controllable (enable manipulation and optimization >automated (enable adaptation and self-healing) >fully integrated (NOT FROM CHAPTER BUT ADDITIONAL READING FOR WEEK 6)
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Energy intensity (13)
A measure of the energy efficiency of a nation's economy. It is calculated as units of energy per unit of GDP.
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Small geothermal (13)
Possible source of energy in developing countries. Geothermal can be cost effective at 1 MW scale or less.
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Stove efficiency (13)
Measure of efficiency for cookstoves in developing countries.
Biomass is the most easily accessed form of fuel for cookstoves and also the cheapest to convert into energy services. However, it still suffers from lack of finance and user myopia, eve though it can increase stove efficiency.
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Electric Vehicle (EV) (11)
An electric vehicle run entirely off of electricity from the grid.
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Plug-in Hybrid Vehicle (PHEV) (11)
A plug in hybrid vehicle has both an internal combustion engine (ICE) and an electric motor.
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Range-Assisted Vehicles (11)
These are similar to PHEVs, which have both electric motors and ICE so that in the event the battery dies, the ICE system will kick in and run the vehicle until its next charge. Example: Chevrolet Volt.
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Range Anxiety (11)
This is the idea of running out of electricity when going for a drive, which is a big issue for many potential customers. According to Ernst and Young survey, driving range is one of the main factors that have prevented EVs and PHEVs from gaining more market traction. However, according to US Bureau of Transportation, 78% of commuters travel less than 40 miles each day, the expected battery-only range of PHEVs.
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Regenerative Braking (11)
This refers to using an electric motor as an electric generator and storing the energy from braking back in the battery of the vehicle or on a rotating flywheel. EVs can recover around 25% of braking energy, while Hydraulic Hybrids (HHVs) can recover close to 80% using pressurized fluid.
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Level 2 Charger (11)
These are chargers with 240V as opposed to the common 120V system in the US. Level 2 chargers allow for faster charging and these can be installed at homes, businesses, or even public places.
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Battery Electric Vehicle (BEV) (11)
BEVs are a type of EV that are all-electric and have no ICE.
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Cycle Cost (11)
Cycle cost is cost of a battery cycle for an EV. EV vehicles are typically 4 times as cheap as ICE vehicles, but less so when you factor in cycle costs of charging the battery every time on the grid. Cycle costs change with electricity prices and costs of batteries. Batteries are expected to decrease in cost and increase in efficiency, but electricity prices are expected to increase depending on location.
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Excess Demand Hypothesis (11)
Hypothesis that current demand is higher than what would actually
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Substitutability (11)
This refers to the auto industry’s ability to substitute EVs and PHEVs instead of ICE vehicles which have been the norm since Ford’s Model T. Biofuels could also be a potential substitute since they use the same supply chains as oil, but feedstocks are a limiting factor.
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Behavioral Issues (11)
Irrational concerns about EVs and PHEVs not being able to meet needs of consumers are a major factor in breaking into mass market. Part of this is Range Anxiety, being able to drive anywhere for extended periods of time, although most people do not go more than 40 miles in a given day.
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Value added (1)
net profit generated from the production of energy related activities through the supply chain
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Value at risk
(1)
amount of income and asset value exposed to changes in energy prices in a firm or economy
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Dependence (1)
percentage of national energy balance that comes from or is sold outside the energy orders
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Energy Productivity (1)
The inverse of Energy Intensity so GDP/E and is often used to compare countries productivity levels but can be misleading due to differences in weather, local resources, and types of industries.
