Regulatory and policy options to encourage development of ...

MODULE 9: RENEWABLE ENERGY: REGULATORY AND POLICY OPTIONSpage 9.41GLOSSARY/DEFINITION OF KEY CONCEPTSA method of using the heat that is produced as a by-product of electrical generation and that would otherwise bewasted. The heat can be used for space heating of buildings(usually in district or community heating schemes) or forindustrial purposes. Utilizing heat in this way means that70-85 per cent of the energy converted from fuel can be putto use rather than the 30-50 per cent that is typical for electricalgeneration alone. Cogeneration schemes can be relativelyof small-scale, for use at the level of a factory orhospital, or they can be major power stations. The term CHPis employed in the United Kingdom and some other parts ofEurope, while the term cogeneration is employed elsewherein Europe, the United States and other countries worldwide.CHP, combined heat andpower, cogenerationConsolidation servicesIndependent services enabling generators, including smallergenerators, to combine their output and negotiate betterterms for its sale.DeregulationThe process of removing or reducing regulation. It is oftenemployed in connection with the liberalization process forprivatized industries.Energy servicesThe provision of energy supply and measures concerned withend-use in a single package.Energy services company(ESCO)Companies concerned with maximizing efficient and costeffectivesupply and end-use of energy for their customers.This can encompass a mixture of the following as appropriate:competitive purchasing of various fuels; CHP; end-useefficiency measures; consumption monitoring and managementand others. ESCOs should be distinguished from energysupply companies whose main role is to supply units of gas,electricity or heat. ESCOs can also be distinguished fromenergy management companies whose main role is to supplyenergy efficiency services.LiberalizationTechnically, the removal of restrictions on the movement ofcapital. It has come to refer to a policy of promoting liberaleconomics by limiting the role of government in the operationof the market economy. Liberalization can include privatizationand deregulation/re-regulation. Typically, it refers tothe establishment of an industry structure to allow competition.The process includes the shifting of publicly-owned