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Promoting the sustainable supply and use of energy for the greatest benefit of all © World Energy Council 2010 Millennium Development Goals Congress organised.

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Presentation on theme: "Promoting the sustainable supply and use of energy for the greatest benefit of all © World Energy Council 2010 Millennium Development Goals Congress organised."— Presentation transcript:

1 Promoting the sustainable supply and use of energy for the greatest benefit of all © World Energy Council 2010 Millennium Development Goals Congress organised by Net Poleis Milan, 20 October 2010 Elena Virkkala Nekhaev Director of Programmes, World Energy Council 20 October 2010, Milan

2 Promoting the sustainable supply and use of energy for the greatest benefit of all World Energy Council The only truly global, multi-energy and inclusive forum for thought-leadership and tangible engagement committed to sustainable energy future Established in 1923 as the World Power Conference to help rebuild the electricity grid in Europe after WWI, first Congress in 1924 Secretariat in London Charity under the UK law

3 Promoting the sustainable supply and use of energy for the greatest benefit of all Mission and Goals To promote sustainable supply and use of energy for the greatest benefit of all Four As: Accessibility:How can energy demand be covered? Availability:What energy system guarantees the best long-term stability? Acceptability:What solutions are sustainable and hence acceptable? Accountability:How to define the political and regulatory framework to secure the necessary investments?

4 Promoting the sustainable supply and use of energy for the greatest benefit of all World Energy Council Member Committees in more than 90 countries, including over 3000 governmental, private sector and expert organisations National Member Committees are chaired by energy ministers, CEOs of major companies, experts etc. The WECs impartiality is ensured by its membership representing ALL energy sectors and by its governance: the Executive Assembly (one country one vote)

5 Promoting the sustainable supply and use of energy for the greatest benefit of all AlbaniaGabonMacedonia (Rep.)Serbia AlgeriaGermanyMexicoSlovakia ArgentinaGhanaMonacoSlovenia AustriaGreeceMongoliaSouth Africa BelgiumHong Kong, ChinaMoroccoSpain BotswanaHungaryNamibiaSri Lanka BrazilIcelandNepalSwaziland BulgariaIndiaNetherlandsSweden CameroonIndonesiaNew ZealandSwitzerland CanadaIran (Islamic Republic)NigerSyria (Arab Rep ChinaIrelandNigeriaTaiwan, China ColombiaIsraelNorwayTajikistan Congo (Dem. Rep.)ItalyPakistanTanzania Côte d'IvoireJapanParaguayThailand CroatiaJordanPeruTrinidad & Tobago CyprusKazakhstanPhilippinesTunisia Czech RepublicKenyaPolandTurkey DenmarkKorea (Rep.)PortugalUkraine Egypt (Arab Rep.)LatviaQatarUnited Arab Emirates EstoniaLebanonRomaniaUnited Kingdom EthiopiaLibya/GSPLAJRussian FederationUnited States FinlandLithuaniaSaudi ArabiaUruguay FranceLuxembourgSenegal WEC Member Committees

6 Promoting the sustainable supply and use of energy for the greatest benefit of all© World Energy CouncilApril 17, 2009 ABB LtdE.On*Mercuria Energy Group Holding Siemens AG American Electric Power Company EskomOliver WymanSNC-Lavalin Group Inc. AlstomGdF-SuezPWCSPX* BHP Billiton LtdHydro-QuebecRio Tinto AlcanTokyo Electric Power Co. Daesung GroupIBMRSW Inc.Vattenfall AB Duke Energy Corporation Korea Electric Power Corp. Saudi AramcoVestas* EdF Electricité de France KPMGSchneider Electric VNG - Verbundnetz Gas AG Eni SpAMedia TenorSK Corporation Patrons & Global Partners

7 Promoting the sustainable supply and use of energy for the greatest benefit of all WECs Work Programme 1.Survey of Energy Resources 2.Energy Efficiency: a Recipe for Success 3.Water for Energy 4.Performance of Generating Plant: New Metrics for Industry in Transition 5.Logistics Bottlenecks 6.Shale Gas 7.Energy and Urban Innovation

8 Promoting the sustainable supply and use of energy for the greatest benefit of all 8.Pursuing Sustainability: 2010 Assessment of Countries Energy and Climate Policies 9.Biofuels: Policies, Standards and Technologies 10.Interconnectivity 11.European Energy and Climate Change Policy beyond Trade and Investment: Rules for Energy 13.Regional Energy Integration in Latin America 14.Energy Policies Scenarios to 2050 WECs Work Programme

9 Promoting the sustainable supply and use of energy for the greatest benefit of all Triennial Global Event Thousands of senior level participants 20th World Energy Congress, November 2007, Rome, Italy 21st World Energy Congress, September 2010, Montreal, Canada 22nd World Energy Congress in autumn 2013 in Daegu, Korea World Energy Congress

10 Promoting the sustainable supply and use of energy for the greatest benefit of all 21 st World Energy Congress Montreal, September 2010 Over 7,000 participants (approx. 1,000 from Europe, 500 from Africa) Representatives from 130 countries More than 70 energy ministers Nearly 160 sessions

11 Promoting the sustainable supply and use of energy for the greatest benefit of all World Energy Congress in Montreal Transport: One billion cars are on the road now and another billion will join by 2035 (IEA) Oil:Chinas energy policies will determine the future of the oil price (IEA) Rick George (Suncor):Ive long believed the future is about expanding energy choice, not restricting it. First we need to get increasingly creative about finding and developing conventional energy sources, whether its oil, gas, coal or nuclear – and do so in ways that are environmentally and socially responsible. Second, we should use these conventional sources to help drive research and development of alternative energy and new environmental technologies.

12 Promoting the sustainable supply and use of energy for the greatest benefit of all Politics of Energy Y. de Boer, KPMG, former UNFCCC Ex. Director: We need to put the rhetoric aside and focus on implementation… Anne Lauvergeon, CEO AREVA (France): We need to build trust. Ignoring the fears of the people encourages irrationality. P. Duhaime, CEO, SNC-Lavalin (Canada): The population will grow and so will the carbon-intensive economy, but sustainable growth will be difficult with the current atmosphere of increasing tension and distrust among industry, government and the public.

13 Promoting the sustainable supply and use of energy for the greatest benefit of all Energy Poverty D. Kaberuka, President AfDB: The whole African continent has less energy capacity than the country of Spain. …for the last 10 years, economic development is the best that it has been in the last 50 years. G.H. Boyce, CEO Peabody (USA): Study after study – and pure common sense – tell us that access to electricity helps people to live longer and better. Yet each year we lose more than 1.5 Million people to the effects of energy poverty. We can no longer turn our heads from these brutal statistics. We must put people first. That is the first value.

14 Promoting the sustainable supply and use of energy for the greatest benefit of all Finance/Investments D. Yergin, Chairman IHS CERA (USA): …there remains one law that we all must adhere to where energy is concerned, that is the law of long lead times. It is very sobering to realize that much of the infrastructure that will be needed in 2030 to meet the energy needs of a growing world economy is still to be built. Y. de Boer, KPMG, former UNFCCC Ex. Director: 85% of the investment is coming from the private sector and the rest from the public sector. Finance is the big question.

15 Promoting the sustainable supply and use of energy for the greatest benefit of all Coal V. Kumar Singh, Chairman Northern Coalfieds Ltd. (India):Coal is the only solution for the energy to elevate the standard of living. Rob Whitney, CEO CRL Energy (New Zealand): New Zealand with 15 billion metric tonnes, has more coal per capita than any other country in the world.

16 Promoting the sustainable supply and use of energy for the greatest benefit of all Renewables Hélène Pelosse, interim Director General, IRENA (Abu-Dhabi):Solar will see the most growth in the period to We expect renewable energy to account for 50% of the global mix by K. A. Al-Falih, CEO Saudi Aramco (Saudi-Arabia): … alternative sources of energy should grow – and indeed must grow – in order to play their part in meeting that rising demand.

17 Promoting the sustainable supply and use of energy for the greatest benefit of all Industrialised nations:Transformation of the energy system Financing Growing economies:Development of the energy system Making energy available Poor regions:Fight against energy poverty Instability Energy is a Major Concern in All Countries Around the World

18 Promoting the sustainable supply and use of energy for the greatest benefit of all Number of people in millions without adequate access to electricity Access to affordable energy is an absolute pre- requisite for achieving the Millennium Development Goals , Source: International Energy Agency 2009 World Energy Outlook and The World Bank, Billion People Have No or Only Limited Access to Electricity

19 Promoting the sustainable supply and use of energy for the greatest benefit of all India China Africa Earth at Night Europe North America

20 Promoting the sustainable supply and use of energy for the greatest benefit of all Further increase of energy demand from 32% to 40% by 2030 Fossil fuels will play an important role globally for decades to come Scarcity of capital is a more constraining bottleneck than reserves of crude oil, natural gas and coal Reserves of fossil fuels substantially greater compared to previous estimates – the role of shale gas Access to affordable energy and the role of energy as a driver of economic growth more important for many countries than climate change The expected outcome of Cancun will not deliver a binding climate change treaty Energy Demand is Growing

21 Promoting the sustainable supply and use of energy for the greatest benefit of all Source: BP Statistical Review of World Energy, June % Growth 1999 – % 10% 25% 7% Coal Hydropower Oil Natural Gas Nuclear Coal: The Worlds Fastest Growing Fuel for the Past Decade

22 Promoting the sustainable supply and use of energy for the greatest benefit of all Source: World Energy Outlook 2009, International Energy Agency; Annual Energy Outlook Forecasts, Energy Information Administration; Peabody analysis. Asia = 90% of Long-Term Global Coal Demand , Growth (Million tonnes} Global Use of Coal is Expected to Grow by 53% by 2030

23 Promoting the sustainable supply and use of energy for the greatest benefit of all Solar*: Solar*:1,800 x Current Solar Generation Wind*: Wind*:2.5 Million Wind Turbines Nuclear: Nuclear:1,150 Nuclear Plants Natural gas: Natural gas: 70 tcf = 3 x Russias Production Hydro: Hydro: 2,250 Dams To Replace Coal, the World would need: Source: International Energy Agency, World Energy Outlook * Requires backup baseload generation for cloudy and calm periods. Stop Using Coal? Any Alternatives?

24 Promoting the sustainable supply and use of energy for the greatest benefit of all Source: Energy Information Administration International Energy Outlook The Worlds Largest Economies Are Fuelled by Coal United China India States Electricity from Coal Electricity from Coal 80% 71% 50% Projected GDP Increase through 2030 Projected GDP Increase through % 290% 95% Projected GDP in 2030 Projected GDP in 2030 $33 $11 $25 (Trillion US Dollars)

25 Promoting the sustainable supply and use of energy for the greatest benefit of all United Nations: Energy is at the heart of most critical economic, environmental and developmental issues facing the world today. Clean, efficient, affordable and reliable energy services are indispensable for global prosperity. 70% of people in DCs do not have access to electricity In Africa: 2/3 of households – more than 580m people lack access to commercial energy Many initiatives to meet the energy needs of the poorest people in developing countries, but limited success The Importance of Energy Access

26 Promoting the sustainable supply and use of energy for the greatest benefit of all Energy Access – The Barriers Inadequate understanding of the issue and poor political support. Lack of specialist skills required for project initiation, implementation and later for system operation. Energy access cannot be addressed in isolation, an integrated political, technological and socio-economic solution is needed.

27 Promoting the sustainable supply and use of energy for the greatest benefit of all Household Electricity Consumption

28 Promoting the sustainable supply and use of energy for the greatest benefit of all CO 2 Emissions From Energy Combustion (Per Capita)

29 Promoting the sustainable supply and use of energy for the greatest benefit of all Final Energy Intensity In Relation To HDI (Human Development Index* 2007)

30 Promoting the sustainable supply and use of energy for the greatest benefit of all The Gap is Growing New York (8 million) = Sub-Saharan Africa (800 million) 6,000 kWh/per person vs 63 kWh/person Ratio 1:100 India 17% of the world population 4% of the world energy consumption 20% no access to electricity

31 Promoting the sustainable supply and use of energy for the greatest benefit of all Energy Policies 40% of the global population (2.7 billion people) rely on traditional biomass for cooking 1.2 billion people will still have no electricity by 2030 if governments do not change their policies US$36 billion per year investment by 2030 or 3% per year of global energy investments to 2030

32 Promoting the sustainable supply and use of energy for the greatest benefit of all Money Is Not a Problem: It Is a Solution Annual Spending by 50+ in the UK USD Cosmetics 3.3bn Beauty treatments & hairdressing 3.5bn Clothing and shoes 19.4bn 26.2bn Annual Spending on Bottled Water30.0bn

33 Promoting the sustainable supply and use of energy for the greatest benefit of all Thank you for your attention! For further information contact World Energy Council


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