Demand side management (DSM) for efficient use of energy in the residential sector in Kuwait: analysis of options and priorities.
The State of Kuwait has one of the largest per capita consumption in the world, reaching 13061kWh in 2006 (Kuwait MEW, 2007). The power sector in Kuwait is not commercially viable, due to the current under-pricing policy and heavily subsidized tariff. Kuwait needs to take action to meet the increased energy demand. A particular challenge is peak summer demand when extreme heat increases air conditioning loads. Peak demand reached 8900 MW in 2006, with a growth fast at an average rate 5.6% during the last decade. The generated energy reached 47605 GWh in 2006 and is growing fast at an average rate of 6.5%. Electricity demand is characterized by high seasonal variations and low load factor. The main objective of this research is to assess and evaluate the most effective and robust Demand Side Management (DSM) measures that could achieve substantial reductions in peak demand and electricity consumption in the residential sector. The residential sector in Kuwait consumes about 65% of total electricity consumption, and is characterized with inefficient use of energy due to several factors, including very cheap energy price and lack of awareness. To achieve the research objective, an integrated approach was used, including the following steps: • Performing a demand forecast and a building stock forecast across 10 years period (2010 -2019) for the residential sector. The main types of dwellings in Kuwait (villas, apartments and traditional houses) were considered in the forecast. • Conducting detailed energy audits and measurements on selected typical models of residential dwellings. The aim of this process is to examine energy patterns and identify the potential energy efficiency DSM measures. • Performing a simulation process, to evaluate energy performance of the audited dwellings and to estimate the potential DSM savings. Two basic scenarios were considered in simulation, the first represents the base-case with actual existing condition and the second for different DSM options. • Analysis of identified technological DSM options (five) and recommended policy DSM options (two) and ranking them in priority order using the Analytic Hierarchy Process (AHP). • Estimate the potential energy savings and peak demand reductions by the implementation of identified DSM options. A building block approach is used to estimate the aggregate impacts of DSM options and its reflection on the country Load Duration Curve (LDC). The research showed that a DSM portfolio consisting of the seven identified measures, and through a dedicated programme, could have substantial reductions in energy consumption and peak demand. The research showed that the total accumulated energy savings across the forecast period was estimated at approximately 37229 GWh, and the total peak demand reductions during at the end of forecast (2019) reaches 1530 MW representing 8.9% Of the overall peak load. With respect to the type of dwelling, the research also indicated that the total net revenues for the utility were estimated at: $292 million for villas, $79 million for apartments and $47 million for traditional houses. One of the important indicators showed as a result of implementing the identified DSM measures is the positive environmental impact that could be achieved by reducing CO2 total emissions by approximately 26.8 million tonne, which could achieve an annual income of about $38.9 million. Integrated DSM policy recommendations were formulated, including gradual tariff adjustment, and more involvement by the utility, or government, in the creation of sustainable DSM programmes.
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