Tapping technology’s potential to secure a clean energy future Ms. Maria van der Hoeven Executive Director International Energy Agency Stavanger, 29 August 2012 © OECD/IEA 2012
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Tapping technology’s potential to secure a clean energy future Ms. Maria van der Hoeven Executive Director International Energy Agency Stavanger, 29 August 2012 © OECD/IEA 2012 Key messages 1. 2. 3. 4. 5. Sustainable energy future is still feasible and technologies exist to take us there Despite potential of technologies, progress is too slow at the moment A clean energy future requires systemic thinking and deployment of a variety of technologies It even makes financial sense to do it! Government policy is decisive in unlocking the potential Energy demand and emissions have doubled in the past 40 years From 6000 Mtoe to 12 000 Mtoe Rapid demand growth outside OECD CO2 emissions from 14Gt to 30Gt Since 2005, non-OECD countries emit more than OECD Source: IEA statistics ETP 2012 – Choice of 3 Futures 2DS a vision of a sustainable energy system of reduced Greenhouse Gas (GHG) and CO2 emissions The 2°C Scenario 4DS reflecting pledges by countries to cut emissions and boost energy efficiency The 4°C Scenario 6DS where the world is now heading with potentially devastating results The 6°C Scenario © OECD/IEA 2012 Clean energy: slow lane to fast track Cleaner coal power Nuclear power Renewable power CCS in power CCS in industry Industry Buildings Progress is too slow in almost all technology areas Significant action is required to get back on track Fuel economy Electric vehicles Biofuels for transport © OECD/IEA 2012 Energy RD&D has slipped in priority 12% 25 6% 10 4% 5 4 3 2 2% 1 1990 1994 1998 2002 2006 2010 Energy efficiency Fossil fuels Renewable energy Nuclear Hydrogen and fuel cells Other power and storage technologies Other cross cutting technologies/research Share of energy RD&D in total R&D South Africa 1986 Russia 1982 Mexico 1978 India 1974 China 0 0% 0 Brazil USD billion 15 2008 non-IEA country spending USD billion 8% Share of energy RD&D in total R&D 10% 20 © OECD/IEA 2012 A smart, sustainable energy system Co-generation Renewable energy resources Centralised fuel production, power and storage Distributed energy resources Smart energy system control H2 vehicle Surplus heat EV A sustainable energy system is a smarter, more unified and integrated energy system © OECD/IEA 2012 Renewables need to dominate EU electricity 5 000 100% 4 500 90% 4 000 80% 3 500 70% 2 500 2 000 13% 17% Other renewables Other renewables Other renewables 10% Wind Wind Wind 21% Generation share TWh 3 000 4% 4% 28% 28% 7% 60% Solar Solar Solar 9% 50% 40% 1 500 30% 1 000 20% 500 10% 0 0% 22% Hydro Hydro Hydro 13% Nuclear Nuclear Nuclear 1% 53% 23% Fossil w CCS Fossil w CCS Fossil w CCS 27% 7% 2% 4DS 2009 2009 10% 2009 Fossil w/ow/o CCS CCS Fossil Fossil w/o CCS 4DS 2DS 2DS 2050 2050 2050 Renewables cover two-thirds of the electricity mix in 2050 in the 2DS, with wind power alone reaching a share of 30% in the mix. © OECD/IEA 2012 Two very different profiles for power generation Power generation from natural gas increases to 2030 in the 2DS and the 4DS. From 2030 to 2050, generation differs markedly. 10 000 10 000 TWh 4DS 2DS 7 500 7 500 5 000 5 000 2 500 2 500 0 2009 2020 2030 OECD 2040 2050 0 2009 2020 2030 2040 2050 Other non-OECD Non-OECD Natural gas-fired power generation must decrease after 2030 to meet the CO2 emissions projected in the 2DS scenario. © OECD/IEA 2012 Natural gas is not a panacea The global average CO2 intensity from power generation falls below the carbon intensity of CCGTs in 2025 in the 2DS; CCS can play a role in reducing emissions from gas © OECD/IEA 2012 GtCO2 Industry must become more efficient 12 6DS 10 Other industries 8 6 Chemicals and petrochemicals Aluminium 4 Pulp and paper 2 Iron and steel 0 2010 Cement 2020 2030 2040 2050 Significant potential for enhanced energy efficiency can be achieved through best available technologies. © OECD/IEA 2012 CCS is applied in power and industry Note: Capture rates shown in MtCO2/year The majority of CO2 is captured from power generation globally, but in some regions CO2 captured from industrial applications dominates © OECD/IEA 2012 Clean energy investment pays off USD trillion Every additional dollar invested in clean energy can generate 3 dollars in return. © OECD/IEA 2012 Recommendations to Governments 1. Create an investment climate of confidence in clean energy 2. Unlock the incredible potential of energy efficiency – “the hidden” fuel of the future 3. Accelerate innovation and public research, development and demonstration (RD&D) © OECD/IEA 2012 For much more, please visit www.iea.org/etp © OECD/IEA 2012