Glossary of Energy Terms

Know Your Power

2012
Towards a Participatory Approach for Sustainable Power Development in the Mekong Region

List of terms
Terms
Avoided cost Base load Biomass Gasifiers Consumption Decentralized energy Demand-side Management (DSM) Dispatch EAC EdL

Page
10 12 13 7 9 11 5 3 3 3 11 11 10 7 8 3 9 3 6

Terms
Installed capacity IPP

Page
4 3

Intermediate Load Least cost analysis

12 10 10 2 13 3 3 9 12 3 3 5 13 13 5 9 3

Marginal cost, long run marginal cost Mekong Countries Micro/ Pico Hydro MOU MRC PDP

EGAT

Electrification rate Energy efficiency Energy Security EVN

Off-grid Peak Load PPA

Population Reserve capacity

Externality or External Cost Generation (power) Generation Mix GMS Grid

Single Buyer Model Solar Photovoltaic Stand-alone Transmission

Welcome to

Know Your Power

The power sector is one of the most important issues underpinning the intense economic and social development taking place in the Mekong region. However, the sector is highly complex and involves many actors, issues and regional differences. This Glossary of Energy Terms will help you to start increasing your knowledge on power sector issues, especially in the Mekong region. Some of the terms and information are taken from www.meenet.org. The terms listed here are not arranged in alphabetical order. Please refer to the List of Terms on the previous page of this booklet.

Sustainable Power Development

Power produced and used in ways that support human development over the long term, in all its social, economic, and environmental dimensions*

* World Energy Assessment initiated by the United Nations Development Programme (UNDP), United Nations Department of Economic and Social Affairs (UNDESA), and the World Energy Council (WEC) (2000)

Mekong countries

located in the Mekong River Basin. The countries in the region are linked together by the Mekong River, which starts from the Tibetan Plateau. The river runs through Chinas Yunnan province, Myanmar, Lao PDR, Thailand, Cambodia and down into the South China Sea at the Mekong Delta in Vietnam.

The Population1

in each country is shown in the figure below. The number of people who live along the river basin itself is roughly 75 million. These people typically live in rural areas, as the only major population centre in the entire basin is Phnom Penh, Cambodia. Please note that the population of Yunnan province in China where the Mekong runs through is approximately 46 million.2
1, 2

Wikipedia

Abbreviations
The following abbreviations are frequently used when referring to the power sector: IPP MOU PDP PPA = = = = Independent Power Producer Memorandum of Understanding Power Development Plan Power Purchase Agreements

Abbreviations of key stakeholders MRC = GMS = EdL = EVN = EGAT = EAC = Mekong River Commission Greater Mekong Subregion Electricit du Laos Electricity of Vietnam Electricity Generating Authority of Thailand Electricity Authority of Cambodia

Capacity
The installed capacity3 of each country is the maximum amount of electricity a country can produce in a year. The installed capacity of a vast country like china is very high 797,000 MW, while Thailand and Vietnam account for most of the installed capacity in the lower Mekong region. Myanmars energy capacity has increased dramatically since 2010, because many Mega dam projects have been constructed.

Mekong Installed Capacity 2010

The Mekong

Country Install Capacity in MW

2010

Thailand

Myanmar

Lao PDR

Cambodia

Vietnam

China

Sources of information: EGAT, EDL, Ministry of Industry, Mines and Energy, Electricit du Cambodge, US Commercial Service, Department of Commerce.

Reserve capacity: Central power systems designed to meet demand plus a reserve capacity, over and above the expected peak load obligation of the power plant (15 to 45%). Transmission: Process of transferring electric energy from one point to another in an electric power system. Dispatch: 4 Energy dispatch controls how much energy travels through specific transmission stations to end-use service areas. This requires a human operator to schedule, monitor and control distribution of energy. Dispatch also denotes the process of coordinating the distribution of energy on a moment-to-moment basis to meet changing load requirements.
4

Online Energy Dictionary at www.energyvortex.com/energydictionary

The electrification rate or percentage of households in each country with access to electricity varies in each country. In Vietnam and Thailand, for example, almost all areas are electrified, while some countries still have very low rates. The electrification rates are shown in the map below.5

99%
23%

69%

99%
26%

Mekong at Night

95%

Source of information: Alliance for Rural Electrification, World Bank 2010, US Commercial Service, Department of Commerce

Generation VS Consumption
Electricity Consumption is measured in kilowatt-hours (kWh) or Gigawatt-hours (GWh) Example

1 kilowatt hour (kWh) = if a light bulb is 1000 Watts and is used for one hour During a twenty-four hour period, a 1MW power station will generate (assuming a 100% capacity) 1 MW x 24 hours = 24,000 kWh /day

During one year, the station will generate 1 MW x 24 hours x 365 days = 8,760,000 kWh/year

Tip! Electricity utility companies charge you for electricity

consumption at a certain amount per kilowatt hour.

Power generation is measured in watts (voltage x current), while

consumption is measured in kilowatt-hours. 1,000 W 1,000,000 W 1,000,000,000 W = = = 1 kilowatt (kW) 1 megawatt (MW) 1 gigawatt (GW)

Generation Mix6 is a term referring to the diversity of

generating units used to produce electricity. For example, natural gas is the main source of power generation in Thailand, but coal and cogeneration are also important.

Myanmar

Thailand (2010)

Laos (2009)

Cambodia (2008)

Vietnam (2010)

China (2007)

Fuel Type Hydropower Natural Gas Coal Fire Cogeneration Others Oil/gas Renewable Nuclear

(2010)

Capacity MW

2,451 681 120 0 92 0 0 0

4,684 16,091 3,527 1,878 619 3,784 767 0

671 0 0 0 1 1 0 0

15 0 9 0 67 296 2 0

7,726 0 3,231 0 750 1 527 0

145,000 0 554,000 0 140 0 400 8,900

Total

3,344

31,350

673

387

12,235 708,440

As this table shows, hydropower is ranked as the number one source of power generation in Myanmar, Vietnam and Laos. Thailand relies heavily on thermal power production with natural gas accounting for 70% of power generation. In China, coal is the main fuel source for generating electricity.

Source of information: www.meenet.org, www.iisd.org

Centralized VS Decentralized Systems

Grid or electrical grid is a vast, interconnected network for delivering electricity from suppliers to consumers. Single Buyer Model: A model whereby Independent Power Producers sell electricity to transmission and dispatch facilities owned by the statethe single buyerwhich then sells electricity to distributors. Off-the-grid (OTG) or off-grid refers to living in a self-sufficient manner without reliance on one or more public utilities. Decentralized energy7 is energy generated at or near to the point of use. A decentralized energy system has two key characteristics:

It enables buildings to become power stations, using

technologies such a solar panels, wind turbines, micro-hydro power. power locally

Local energy networks proliferate in order to distribute heat and

Decentralizing Thai Power: Towards a Sustainable Energy System, Palang Thai/Greenpeace Southeast Asia.

Cost
Avoided cost8 The marginal cost for the same amount of energy acquired through another means such as construction of a new production facility or purchase from an alternate supplier. Least cost analysis9 Analysis that compares the costs of technically feasible but mutually exclusive alternatives for supplying output to meet a given forecast demand. Externality or External Cost10 from power projects can be defined as the cost resulting from impacts that are not priced in the market place. Failure to internalize negative externality costs might lead to the setting of an inappropriate financial tariff, or estimating a too low financial rate of return. Marginal cost, long run marginal cost11 The cost of providing an additional kilowatt-hour of energy output over and above any energy currently being produced.

8 source: Online Energy Dictionary at www.energyvortex.com/energydictionary 9 http://www.adb.org/Documents/Guidelines/Eco_Analysis/eco-analysis-projects.pdf 10 Nuclear Energy Agency (2001) Externalities and Energy Policy: The Life Cycle Analysis Approach. Workshop Proceedings 11 source: Online Energy Dictionary at www.energyvortex.com/energydictionary

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Efficiency
Demand-side Management (DSM)12 The modification of consumer demand for energy through various methods such as financial incentives and education, usually to encourage the consumer to use less energy during peak hours.

Energy efficiency a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Energy Security Availability of energy at all times in various forms, in sufficient quantities, and at affordable prices.
12

Wikipedia

11

Load
In a central power system, power plants are designed and operated for: base load, intermediate load, and peak load. Base load: usually large units with low operating costs. Usually operated at full capacity during most of the hours they are available. Intermediate Load: Power plants used to respond to variations in customer demand which occur during the day. Plants designed for changes in output levels. Peak Load: a power plant used to supply customer demand during peak (= highest) load hours of a given day, month, season or year.
Load curves for Typical electricity grid

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Small Scale Power Generation

Stand-alone systems are designed to provide electrical power to equipment located in areas which do not have a mains electrical supply. Micro / Pico Hydro: Small hydroelectric power generation. Micro hydro produces up to 100 kW of electricity and pico hydro under 5 kW. Biomass Gasifier13 is a specially designed reactor that heats biomass in a low-oxygen environment to produce a fuel gas. The gas produced is then used to drive a gas turbine or combustion engine which generates electricity. Solar Photovoltaics14 A solar photovoltaic panel is a cell which converts energy from the sun directly into electricity.

13,14

Powering 21st Century Cambodia with Decentralized Generation, A Primer for Rethinking Cambodias Electricity Future, Grainne Ryder.

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About MEE Net

The Mekong Energy and Ecology Network (MEE Net) was established in 2008 under the Foundation for Ecological Recovery (FER) to work on power sector issues in the Mekong region. MEE Net aims to address this problem region-wide by developing an energy network to monitor the electricity sector and develop analyses and strategies that are effective in challenging massive build-out, mega infrastructure plans by governments and utilities.

Mekong Energy and Ecology Network

Foundation for Ecological Recovery 409 Soi Rohitsuk (Ratchadapisek 14), Pracharatbumpen, HauyKhwang, Bangkok 10320 Tel: +662 691 0718 Fax: +662 691 0714 Website: www.meenet.org E-mail: info@meenet.org