7/31/2019 Global Trends in Power Sector

1/3

7/31/2019 Global Trends in Power Sector

2/3

through a market mechanism. In effect, the buyer is paying a charge for polluting, while the

seller is being rewarded for having reduced emissions.

The European Union Emission Trading System: An established process. In order to fulfil its

commitment to the Kyoto protocol; the European Union launched the Emission Trading System

(EU ETS) in 2005. It

is the largest multi-national emissions trading scheme in the world, covering over 11,500 energy-

intensive installations across the EU, which represent close to half of Europes emissions of CO2

.

SMART GRIDS

Smart grid implies adding monitoring, analysis, control, and communication capabilities to the

national electrical delivery system, in order to optimize usage of the system while reducing

energy consumption. The basic objective is to allow Utilities and customers to manage electricity

in every element of the T&D

system and in households, as efficiently and economically as possible, by providing choice and

flexibility. Smart grid builds on existing infrastructure, adding communication and control

capabilities to optimize the operation of the entire electrical grid. Key benefits of smart grid as

compared to traditional grid are:

Sophisticated grid monitors and controls anticipate and instantly respond to system problems

in order to mitigate outages or power quality problems.

Use of technology is expected to facilitate identification and response to man-man or naturaldisruptions

Standardized power and communication interfaces allow customers to interconnect fuel cells,renewable generation and other distributed generation on a simple plug and play basis.

Enhancement of customers control on the appliances and equipments in their homes andbusinesses: Interconnection with energy management systems in smart buildings enables

customers to manage their energy use thereby reducing energy costs.

7/31/2019 Global Trends in Power Sector

3/3

DEMAND SIDE MANAGEMENT

Demand side management refers to reducing the power needs at consumer side by using more

efficient devices. Moving to CFL lamps from tungsten lamps is perceived to be a significant

move in demand side management. The government of Ecuador has decided to provide CFLs to

1.5 million households and the savings created were traded as Carbon certificates.