Tapping technology’s potential to secure a clean energy future Ms. Maria van der Hoeven Executive Director International Energy Agency Luxembourg, 28 September 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 25 12% 6% 10 4% 5 4 3 2 2% 0 1986 Energy RD&D 1990 1994 1998 2002 2006 2010 South Africa 1982 Russia 1978 Mexico 1974 India 0% China 0 1 Brazil USD billion 15 2008 non-IEA country spending USD billion 8% Share of energy RD&D in total R&D 10% 20 Share of energy RD&D in total R&D © 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 All flexibility sources will be needed Dispatchable power plants Demand side Response (via smart grid) Energy storage facilities Interconnection with adjacent markets Industrial Biomass-fired power plant residential Pumped hydro facility Scandinavian interconnections © 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 Natural gas as a transitional fuel Power generation from natural gas increases to 2030 in the 2DS and the 4DS. From 2030 to 2050, generation differs markedly. TWh 10 000 4DS 4DS 10 000 7 500 7 500 5 000 5 000 2 500 2 500 0 2009 2020 2030 2040 OECD 2050 2DS 2DS 0 2009 2020 2030 Non-OECD 2040 2050 Natural gas-fired power generation must decrease after 2030 to meet the CO2 emissions projected in the 2DS scenario. © OECD/IEA 2012 Global Passenger LDV sales (million) Electric vehicles need to come of age 200 FCEV Fuel Cell Electric Vehicles Electricity 150 Plug-in hybrid diesel Plug-in hybrid gasoline Diesel hybrid 100 Gasoline hybrid CNG/LPG 50 Diesel 0 2000 Gasoline 2010 2020 2030 2040 2050 More than 90% of new light duty vehicles need to be propelled by an electric motor in 2050 © OECD/IEA 2012 Clean energy investment pays off Additional investment Additional investment Power Industry Transport Fuel savings Residential Total savings Commercial Undiscounted Fuel savings Biomass 10% Coal Oil - 120 - 80 - 40 USD trillion 0 40 Gas 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