1. UNESCO Desire – Net project Energy and sustainable development: Global challenges for a Sustainable Future Giovanna Anselmi Italian Agency for New Technology, Energy and Environment ganselmi@sede.enea.itUNESCO Rome, 2006 19 th July

2. OUTLINE Global Energy Framework & Global Challenges NEEDS of Collective Reponses POTENTIAL of Clean and Safe Energy RES INTEGRATION in modern electricity grids

3.  Limited reserves of Energy  Volatility of OIL Price  Increasing energy demand  Vulnerability to supply shocks  Pollution emission  Availability of RES Technologies at low costs MAIN PROBLEMS The Global Energy Framework

4. CONCLUSION From economic data emerge a strong incentive : To technological change and innovation To a wide cooperation among people and countries To a better and more efficient use of the energy sources From the energy data the recommendations are: From the energy data the recommendations are: Decrease the oil dependence Diversify the energy mix Increase the RES use and improve the related technologies The Global Energy Framework

5. CHALLENGES TO FACE Energy Security  Oil and gas production will become increasingly concentrated in fewer and fewer countries  Those countries will seek to use their dominant market position to force up prices at some point in the future through: > deliberate withholding of supplies for political reasons > co - ordinated production cutbacks  The rising dominance of MENA in global markets intensifies these risks

6. CHALLENGES TO FACE Energy Security  Vulnerability depends  Vulnerability depends not just on:  the risk and duration of a disruption and the resulting Price shock but also on  the flexibility and resilience of the economy to respond to and withstand higher prices  The higher an economy’s oil intensity and the less fuel- switching capability there is, the more vulnerable it will be  Sudden loss of even a modest volume of oil can lead to sharp increases in prices, especially if associated with: > limited spare capacity > rising geopolitical tensions

7. NEED OF COLLECTIVE REPONSES 1 - To prolonge the new emissions-trading scheme in the EU - To adopt some of the measures detailed in a new EU Green Paper on energy efficiency - To find new financial incentives for renewables in Mena countries, in Korea and to promote the renewables (including nuclear capacity) in China - In diversifying the sources of gas and oil imports - To extend and strengthen the motor-vehicle fuel-efficiency standards

8. NEED OF COLLECTIVE REPONSES 2 - Diversifying European Sources - A Streamlined Internal Energy Market The measures in the new EU Green Paper on energy efficiency regard respectively: - Demand Management - External Supply Controll

9. POTENTIAL OF CLEAN AND SAFE ENERGY § Global solar energy potential is estimated to be between 1 575 and 50 000 exajoules (EJ) per year § Between 3.5 and 110 times higher than the world’s current energy consumption § The economic potential is much lower because of the high costs of producing electricity from solar thermal or PV power plants compared with conventional alternatives

10. POTENTIAL OF CLEAN AND SAFE ENERGY

11. RES INTEGRATION IN MODERN ELECTRICITY GRIDS Power plants providing operational and capacity reserve Managing Intermittency of electricity generation Wind power and other RES using: Main Problem Electricity storage Distributed generation Curtailment of intermittent technology Interconnection with other grid systems Demand-side response

12. RES INTEGRATION IN MODERN ELECTRICITY GRIDS Power plants providing operational and capacity reserve Managing Intermittency of electricity generation Main Problems power plants for balancing services reliability of combined-cycle gas turbines (CCGT) and coal-fired power stations availability and cost

13. RES INTEGRATION IN MODERN ELECTRICITY GRIDS Electricity storage Managing Intermittency of electricity generation Main Problems Hydro storage facilities Conventional Batteries Hydrogen Fuel Cells Flywheels Flow Battery Compressed Air Storage

14. RES INTEGRATION IN MODERN ELECTRICITY GRIDS Electricity storage : Various storage technologies and typical technical performance Managing Intermittency of electricity generation Main Problems

15. RES INTEGRATION IN MODERN ELECTRICITY GRIDS Interconnection with other grid systems Managing Intermittency of electricity generation Main Problems Danish grid Need of grid development Benefits : better utilisation of resources, gains from market competition and trade, increased security of supply Spain Grid Distribution of power resources

16. RES INTEGRATION IN MODERN ELECTRICITY GRIDS Distributed generation Managing Intermittency of electricity generation Main Problems System Benefits for local distribution companies: relieving congestion, reducing transmission losses and delivering ancillary services to the system - need of a big amount of information for sophisticated monitoring and control of the system Need of deepen the S&D activities Barriers to a wider integration of DG into electricity grids: - DG and intermittency may have similar requirements

17. RES INTEGRATION IN MODERN ELECTRICITY GRIDS Demand-side response Managing Intermittency of electricity generation Main Problems Electricity produced at different times of the day has different values, DSR can be an important aspect of load management both to cope with peak demand and with intermittency. Identical balancing service is provided by customer swichtcing off his appliance as far from producer to supply more DSR can reduce the need for reserves more elastic and sensitive to price changes

18. RES INTEGRATION IN MODERN ELECTRICITY GRIDS Curtailment of intermittent technology Managing Intermittency of electricity generation Main Problems Curtailment of intermittent technologies represent an option to cope with system variability Reduce costs Large wind farms, with a significant number of megawatt-sized turbines can provide the same ancillary services that conventional generators Tariff systems or contractual arrangements let wind turbine owners benefit from the system saving

19. CONCLUSION It is clear that in the future the use of RES will have one even more important role in front of the petroleum peack: - BP (Bayond Petroleum) says: “ for two barrel consumption we can discover and estract one only” - Chevron suggests to be prepared to the change of the energy system - The peack of petroleum seriousely concern the multinationals - Shell explain that to find and to estract petroleum is even more expensive Energy and sustainable development: Global challenges for a sustainable Future

20. Energy and sustainable development: Global challenges for a sustainable Future This lecture was the last of a module composed by five synchronous lessons, respectively, on: - GLOBAL CHALLENGES FOR A SUSTAINABLE FUTURE - G. Anselmi – Italian Agency for New Technology, Energy and Environment Agency for New Technology, Energy and Environment - THE EXTERNALITY OF ENERGY PRODUCTION FROM FOSSIL FUELS - E. Mancuso - Italian Agency for New Technology, Energy and Environment Mancuso - Italian Agency for New Technology, Energy and Environment I - RES ROLE IN SELECTED ENERGY SCENARIOS - F. Gracceva – Italian Agency for New Technology, Energy and Environment - IMPACT OF THE OIL SHOCK - C. Mocci - Italian Ministry of Economy and Finance - THE GLOBAL ENERGY FRAMEWORK - G. Anselmi – Italian Agency for New Technology, Energy and Environment Prepared by Giovanna Anselmi Comments and questions are welcome and should be addressed to: Dr. Giovanna Anselmi. Email: ganselmi@sede.enea.it

21. THANK YOU FOR YOUR ATTENTION PLEASE DO YOUR QUESTIONS NOW Energy and sustainable development: Global challenges for a sustainable Future OR SEND THEM AFTERWORDS BY EMAIL TO: ganselmi@sede.enea.it SEND THEM AFTERWORDS BY EMAIL TO: ganselmi@sede.enea.it