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SUSTAINABLE ENERGY MANAGEMENT Planning, Implementation, Control, and Security Second Edition MIRJANA RADOVANOVIC(cid:1) Professorof Energy and Environment, Educons University, Sremska Kamenica, Republic of Serbia AcademicPressisanimprintofElsevier 125LondonWall,LondonEC2Y5AS,UnitedKingdom 525BStreet,Suite1650,SanDiego,CA92101,UnitedStates 50HampshireStreet,5thFloor,Cambridge,MA02139,UnitedStates TheBoulevard,LangfordLane,Kidlington,OxfordOX51GB,UnitedKingdom Copyright©2023ElsevierInc.Allrightsreserved. Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,electronic ormechanical,includingphotocopying,recording,oranyinformationstorageandretrievalsystem, withoutpermissioninwritingfromthepublisher.Detailsonhowtoseekpermission,further informationaboutthePublisher’spermissionspoliciesandourarrangementswithorganizations suchastheCopyrightClearanceCenterandtheCopyrightLicensingAgency,canbefoundatour website:www.elsevier.com/permissions. Thisbookandtheindividualcontributionscontainedinitareprotectedundercopyrightbythe Publisher(otherthanasmaybenotedherein). Notices Knowledgeandbestpracticeinthisfieldareconstantlychanging.Asnewresearchandexperience broadenourunderstanding,changesinresearchmethods,professionalpractices,ormedical treatmentmaybecomenecessary. Practitionersandresearchersmustalwaysrelyontheirownexperienceandknowledgeinevaluating andusinganyinformation,methods,compounds,orexperimentsdescribedherein.Inusingsuch informationormethodstheyshouldbemindfuloftheirownsafetyandthesafetyofothers,including partiesforwhomtheyhaveaprofessionalresponsibility. Tothefullestextentofthelaw,neitherthePublishernortheauthors,contributors,oreditors,assume anyliabilityforanyinjuryand/ordamagetopersonsorpropertyasamatterofproductsliability, negligenceorotherwise,orfromanyuseoroperationofanymethods,products,instructions,orideas containedinthematerialherein. ISBN978-0-12-821086-4 ForinformationonallAcademicPresspublications visitourwebsiteathttps://www.elsevier.com/books-and-journals Publisher:CharlotteCockle AcquisitionsEditor:PeterAdamson EditorialProjectManager:SaraValentino ProductionProjectManager:SojanP.Pazhayattil CoverDesigner:VickyPearsonEssar TypesetbySTRAIVE,India Acknowledgments ThisbookispartoftheJeanMonnetErasmus+projecttitled“Thecircular economy:‘thenumberonepriority’fortheEuropeanGreenDeal,”Refer- ence Number: 619927-EPP-1-2020-1-BG-EPPJMO-PROJECT. The book was translated by Mrs. Sanela Sˇipragic Ðoki(cid:1)c. vii Contents Acknowledgments vii 1. Introduction 1 2. Energyand sustainable development 9 Definitionofsustainabledevelopment 10 Sustainabledevelopmentprinciples 14 Energysustainabilityascriteriafordevelopment 17 Dimensionsofenergysustainability 20 Basicconceptofenergysustainability 22 Basicproblemsoffutureenergydevelopment 26 Legislation 30 Casestudy 32 References 33 3. Strategies forsustainableenergy management 35 Basicapproachestoimplementingstrategyofsustainableenergy management 36 Traditionalapproach 37 Systemapproach 41 Eco-managementapproach 50 Totalqualitymanagementapproach 63 Lifecycleanalysis 76 Gapanalysis 83 Casestudy 92 References 92 4. Planning of energy management 95 Traditionalconceptofenergymanagement 95 Sustainableapproachtoenergymanagement 104 Strategicanalysisofenergysector 114 Strategicobjectivesofsustainableenergymanagement 117 Casestudy 120 References 120 v vi Contents 5. Implementation of sustainable energy management 123 Developmentofstrategyofsustainablemanagementofenergy 123 Traditionalapproachestoimplementationofsustainableenergy management 130 Creationoforganizationalstructureandcorporateculture 134 Transformationofgoalsandallocationofresources 142 Managingtheprocessofimplementingsustainableenergy management 147 Controlandauditofthestrategy 153 Casestudy 161 References 161 6. Control of sustainable energy management implementation 165 Elementsofstrategiccontrol 165 Controllingfinancialeffectsofimplementation 176 Controllingnonfinancialeffectsofimplementation 178 Casestudy 179 References 179 7. Strategicpriorities of sustainable energy development 181 Firststrategicobjective:Exploitationofrenewableenergysources 181 Secondstrategicobjective:Energyefficiency 249 Thirdstrategicobjective:Riskmanagement 261 Casestudy 270 References 271 8. Energy security 279 Theconceptofenergysecurity 279 Energysecurityandenergyrisk 282 Energysecuritymeasurementmethodologies 291 EnergyTrilemmaIndex 295 ReliabilityassessmentoftheInternationalIndexofEnergySecurityRisk 297 Energysecurityandpolicymaking 300 Casestudy 303 References 303 Index 305 CHAPTER 1 Introduction Sustainable development is a comprehensive concept of development that wasadoptedinordertopreservetheplanet’sresourcestotheextentthatwill satisfytheneedsofpresentgenerationswithoutcompromisingtheabilityof thenextgenerationtomeetthesameneeds.Theconceptiscomprehensive, multidimensional, and multidisciplinary, and it can be applied widely. The study of sustainable development involves considering the whole range of relevant issues, mechanisms, solutions, and critical attitudes. Cur- rently,thereisnosingleconceptofsustainabledevelopmentthatcanbeuni- versallyappliedinallareasofhumanactivitythroughouttheworld,anditis necessarytoexamineitinsomesectorsthatareofspecialinterestforacertain range of issues. Since the creation of contemporary mankind, especially with the pro- gressivedevelopmentofhumanactivities,therehasbeenaneedforthepro- vision and consumption of certain types and amounts of energy. Every activity is related to the pending charges of energy that are created, trans- ferred, transformed, and consumed. Energyproductionandconsumptionareaspecialprobleminthemod- ernworld,anditneedstobeunderstoodonseveralgrounds.Firstofall,with aproportionalincreaseinpopulation,thereisanincreasingneedforthepro- vision of sufficient energy. Given the nature of population growth and inability to stop this growing trend, the problem of providing energy for all human needs becomes global and constant (Radovanovi(cid:1)c, Dodi(cid:1)c, & Popov, 2013). Energyneedsareverydifferentindifferentpartsoftheworld.Thehigh- estenergyconsumption,sincethebeginningoftheIndustrialRevolutionin thelate18thcentury,hasbeenfoundinthemostdevelopedcountries.Con- sumption of large amounts of energy has brought these countries a signifi- cant economic advantage and created the need to face a constant requirement of providing sufficient energy for future economic and social development (Arto, Capella´n-P(cid:1)erez, Lago, Bueno, & Bermejo, 2016). Energyconsumptionintheworldcanbedefinedandmeasuredonsev- eral grounds, but the most suitable is the energy consumption in the total SustainableEnergyManagement Copyright©2023ElsevierInc. https://doi.org/10.1016/B978-0-12-821086-4.00001-5 Allrightsreserved. 1 2 Sustainableenergymanagement amount oftime,insomeregions,aswellasenergyconsumptionfrompar- ticular sources. The total energy consumption in the world undergoes complex moni- toringandcontrol,whichhasmultipleobjectives.Firstofall,monitoringof energy-relatedindicatorsintheworldisnecessarybecauseitprovidesinsight intothegeneralsituationoftheenergysector,helpsidentifythedifferences amongparticularregions,aswellasunderstandthetrendsandpredictfuture tendencies.Trackingenergy-relatedindicatorsrequiresextremelycomplex measurements,sothataccuratedatacanbeobtainedonlyafterseveralyears. The framework overview of energy consumption in the world until 2010 with projections up to 2050 is shown in Fig. 1.1. Energyconsumptionhasbeenmeasuredinanorganizedandpreciseway since 1965. Power consumption in the world is characterized by three periods. In the base year 1965, energy consumption in the world was less than 5TW. Out of the 5TW, the largest portion was provided by exploi- tation of traditional sources (oil and coal), almost in equal ratios. Half that amountsofenergywasobtainedfromgas,andtheleastamountwasobtained byexploitationofwaterenergy.Eventhen,1%ofenergywasobtainedfrom nuclear power plants (Paul, Michael, & Jim, 2015). Fig. 1.1 Global energy demand. (Based on Global Energy & CO Status Report. (2019). 2 https://iea.blob.core.windows.net/assets/23f9eb39-7493-4722-aced-61433cbffe10/ Global_Energy_and_CO2_Status_Report_2018.pdf.) Introduction 3 Inthesecondperiod,whichstartedin1970,theenergyconsumptionof petroleumwasdoubledandreacheditsmaximumin1980.Consumptionof coal was alsogrowing, but it wasmuch slower andmore balanced. Energy consumptionincreased steadily fromgas, whichcanbepartlyexplained by population growth and technology. The huge increase in consumption of petroleumcanbeunderstoodonlybecauseoftheincreaseintraffic.Inthis period(from1980to1990),theconsumptionofwaterresourcesremainedat thesame levels,andtheconsumptionof energy fromnuclear sourcesgrew slowly but not significantly. Thethirdperiodbeganin1990andischaracterizedbythebeginningofa stableandbalancedgrowthinenergyconsumptionfromtraditionalsources. Consumption of oil and gas continued to grow almost evenly, while the consumption of coal was stabilized and even slightly reduced by the end oftheperiod.Productionofenergyfromwaterandnuclearsourcesreached its peak in 1990, and there were no significant changes until 2000. In the beginning of the new millennium, by a shift in the third distinct period,energyconsumptionfromoilandgascontinuedtogrowatthesame pace,whiletheconsumptionofenergyobtainedfromcoal,afteradecadeof stabilization,begantogrowagain.Attheendofthethirdperiod,in2019,for whichtheprecisedataisavailable,thetotalworldenergyconsumptionwas less than 15TW, three times more than what was recorded 40years earlier (World Energy Outlook Report, 2019). The reasons for increased consumption and related predictions are numerous and complex and include the increase in the number of people intheworld,improvementoftheneedsofindustryandtransport,inefficient consumption,andpoorenergyefficiencyindicators.Whateverthereasons, this large consumption of energy, apart from the exhaustion of the world energy resources, has led to significant environmental consequences. All ofwhichraisestheneedforastrategicredirectinginthefieldofenergyman- agement at all levels, with the knowledge that energy consumption is uneven in some parts of the world, as shown in Fig. 1.2. Along with the monitoring of the total consumption of energy in the world,themonitoringofenergyconsumptioninsomeregionsoftheworld is connected with a number of problems, so final estimates cannot be con- sidered absolutely accurate, although they provide valuable information about the approximate values of energy consumption. ThehighestenergyconsumptioncanbeseenintheUnitedStates,Can- ada,Norway,andSaudiArabia,whichcanbelargelyexplainedbythehigh level of technological development and living standards, as well as the Fig.1.2 WorldEnergyConsumptionin2021.(BasedonWorldEnergyData.https://www.worldenergydata.org/world-final-energy/.) Introduction 5 intensity of traffic. Somewhat weaker consumption has been recorded in Russia,Scandinavia,andAustralia.Comparedwiththefirstgroupofcoun- tries,withthehighestenergyconsumption(indicatedabove),theEuropean countries, Japan, South Africa, and Argentina spend half that energy, fol- lowedbytheEasternEuropeancountries.Evenlowerpowerconsumption has been recorded in Brazil, and the lowest in Africa and the Far East. Energyconsumptioninsomeregionsdependsonmanyfactors,butitis evidentthatitisrelatedtothequestionofwhethertheregionalsoproduces the energy. Countries with the largest energy reserves are also the biggest consumers of energy, which cannot necessarily be considered justified. The European countries are mainly well-developed countries, with higher valuesofenergyefficiency,whichismainlyduetothegreateffortsforratio- nal management of energy (Fawcet, Rosenow, & Bertoldi, 2019). Consumption of energy per sector also has its particularities. From the beginning of the industrial revolution (technical and techno- logicalimprovementsandexpansionoftransport),energyfromoilismostly used, and one-third of the world’s energy needs is provided in that way. Apart from this, the trend of oil consumption is obvious. Over the years, oil consumption has continued to grow and that trend is expected to con- tinue. Somewhat less energy is obtained by exploitation of coal (25%), but that trend has decreased, which can be explained by specific technological processesandtheuseofautomobilesthatcannotusecoalasfuel.Aboutone- fifthofworldenergydemandisobtainedbytheexploitationofgas(World Energy Outlook Report, 2019). Theremainingquantitiesofenergyareprovidedinthesameproportion ofenergyfromthebiomass(11%),nuclear(6.4%)energy,andwatercourses (21%). Exploitation of nuclear energy is limited to countries where such productionisallowed.Theleastquantitiesofenergyareobtainedfromalter- nativesources(2.2%).Theaveragegeneralvalueshavebeenpresented,butit shouldbeemphasizedthattherearesignificant differencesincertaincoun- tries and regions (World Energy Balances, 2020). Takingintoaccounttheenergydependenceofdevelopedcountriesand theunevendistributionofenergyresources,productionanddistributionof energyhavebecomeaproblemofparticularinternationalpoliticalandeco- nomicimportance. Energy inall itsformshasbecomeasubjectofinterna- tional trade, numerous disputes, negotiations, and military conflicts. Since the demand for energy on the planet is constantly growing, it will occupy a more important place in global economic and political changes in the future.

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