The energy challenges of the 21st century Mastering Technology Enterprise Thun 28 september 2006 Hans B. (Teddy) Püttgen Professeur - Chaire, Gestion des Systèmes Energétiques Directeur - Centre Interdisciplinaire de l’Energie Ecole Polytechnique Fédérale de Lausanne - EPFL et Past-President, IEEE Power Engineering Society Background • The industrial revolution started during the 19th century with the advent of the steam engine burning coal. • The advent of electricity enabled and fueled the economic development during the 20th century. • The information and communications revolution happened during the second half of the 20th century with the broad deployment of the semiconductors. • The transportation revolution also happened during the 20th century enabled by the high energy density of petroleum. • The world has truly become a village - we can communicate enormous amounts of information quasiinstantly and we can travel to all corners of the world within a few hours. The Energy Challenges during the 21st Century 21st R & D drivers • By the year 2050, the world’s population will have increased to 9.1 billion an increase of 2.6 billion from the 2005 situation. United Nations – 2004 data. Not only will the population grow dramatically, but its geographical distribution will also evolve: – Europe’s population will decrease to 650 from 730 million at present. – Africa’s population will explode to 1,940 million from 910 at present. – Asia’s population will grow to 5.2 billion from 3.9 billion at present. – By 2050 India is expected to have a population of 1.6 billion surpassing that of China at 1.4 billion. The Energy Challenges during the 21st Century 21st R & D drivers - 2 • The end of the petroleum era of man’s presence on earth will come during the 21st century. While we can not predict the exact date, there is broad agreement that the peak production of petroleum will occur some time during the 21st century. At $60-$70 per barrel, the cost of petroleum is close to being the highest it has ever been and will encourage the deployment the more expensive extraction technologies. The recent discovery of the «Jack» oil field in the Gulf of Mexico will increase the US reserves by 50%. The era of inexpensive petroleum is definitely behind us. Indeed, future price structures will be cost driven as opposed to market driven. The Energy Challenges during the 21st Century Main R & D Challenges of the 21st century 1. Availability and broad access of reliable and affordable health services world-wide. While developed countries are rapidly running into a major crisis in terms of the cost of health services, developing countries are struggling to gain access to health services to address immediate and very large scale health crisis. The canyon between the “have” and “have-nots” is widened by the fact that most preventative medical services, including medicines, are brought to market by corporations from developed countries and at costs which are often beyond the means of developing countries. The Energy Challenges during the 21st Century Main R & D Challenges of the 21st century - 2 2. Production and distribution of food world-wide. At present, developed countries are generally the largest food producers in the world. Increasing standards of living in developed countries, coupled with intensifying competition on the world market, which drives prices down, result in heavy government subsidies provided by developed countries to their farmers. The latest round of WTO negotiations, failed due to significant tensions between poor countries which are demanding that rich countries stop subsidizing their farmers in an effort to “level the playing field”. The Energy Challenges during the 21st Century Main R & D Challenges of the 21st century - 3 3. Production, transport and delivery of energy. This is probably the one area where humanity will have to consent to the heaviest investments during the second part of this century. The Energy Challenges during the 21st Century Key statistics The Energy Challenges during the 21st Century Key statistics - 1 Total Primary Energy Supply – Terra Watt Hours (TWh) Oil Coal Natural Gas Hydro Nuclear Comb. Renew & Waste Other (wind, solar, geothermal,..) Total The Energy Challenges during the 21st Century 1973 31.6*103 17.4*103 11.4*103 1.3*103 0.6*103 7.9*103 0.07*103 2003 42.3*103 30.0*103 26.1*103 2.7*103 8.0*103 13.3*103 0.6*103 70*103 123*103 Δ% 34 72 129 114 1’166 69 777 75 Key statistics - 2 Total Primary Energy Supply – Terra Watt Hours (TWh) OECD Non-OECD Europe Former USSR Asia China Latin America Africa Middle East Total The Energy Challenges during the 21st Century 1973 43.8*103 1.1*103 10.1*103 4.3*103 5.1*103 2.6*103 2.5*103 0.8*103 2003 62.6*103 1.2*103 11.2*103 14.3*103 16.6*103 5.4*103 6.5*103 5.3*103 Δ% 43 10 11 233 229 108 165 569 70*103 123*103 75 Key statistics - 3 Total Energy Consumption – Terra Watt Hours (TWh) Δ% 1973 2003 24.9*103 7.2*103 7.8*103 7.7*103 5.1*103 36.1*103 6.3*103 13.9*103 11.9*103 13.6*103 45 -13 78 55 168 Other (wind, solar, geothermal,..) 0.9*103 3.0*103 226 Total 53*103 Oil Coal Natural Gas Comb. Renew & Waste Electricity The Energy Challenges during the 21st Century 85*103 58 Key statistics - 4 Total Energy Consumption – Terra Watt Hours (TWh) OECD Non-OECD Europe Former USSR Asia China Latin America Africa Middle East Total The Energy Challenges during the 21st Century 1973 2003 33.1*103 0.8*103 6.9*103 3.8*103 4.3*103 2.0*103 2.3*103 0.5*103 43.6*103 0.7*103 7.2*103 10.3*103 10.4*103 4.2*103 4.8*103 3.4*103 53*103 85*103 Δ% 32 -5 5 170 143 108 115 603 58 Key statistics - 5 Per Capita world-wide energy consumption – million of BTU North America Latin America Western Europe Eastern Europe & former USSR Middle East Africa Asia & Oceania Total The Energy Challenges during the 21st Century 1982 2002 264.9 37.9 127.9 173.1 65.1 15.4 19.9 278.5 48.8 149.0 134.6 105.8 15.3 33.3 61.7 65.9 Δ% 5.1 28.8 16.5 -22.2 62.5 0.0 67.3 Switzerland key statistics - 1 Total energy utilization in 2002: 323 TWh Petroleum Gross hydro Nuclear fuel Natural gas Other 45.6% 14.1% 24.1% 9.0% 7.2% End-use consumption in 2002: 273 TWh Fuel Combustibles Electricity Natural gas Other 32.7% 25.5% 22.8% 11.4% 7.6% The Energy Challenges during the 21st Century Switzerland key statistics - 2 End-use distribution in 2002 Transportation Households Industry Services Agriculture & other 33.9% 27.7% 19.7% 17.1% 1.6% Electric power production in 2002 Nuclear Hydro - storage Hydro – run of the river Thermal and other The Energy Challenges during the 21st Century 39.5% 29.1% 27.1% 4.3% Energy production The Energy Challenges during the 21st Century Present generation mix • To-day, the primary generation technologies are: – Hydro, either run-of-the-river facilities or various types of dams. – Thermal, using either coal, oil or gas. – Nuclear. • The present generation mix already is: – Distributed. – Significantly renewable. The Energy Challenges during the 21st Century Hydro China: Three Grorges: 19GW New plant under construction: 40GW Africa – Congo river Planned - Grand Inga: 40GW The Energy Challenges during the 21st Century Hydro Installed capacity United States Canada Brazil China Japan Russia Percentage of production Norway Brazil Venezuela Canada Russia China 98% 84% 66% 58% 17% 15% The Energy Challenges during the 21st Century Largest producers Canada Brazil United States China Russia Norway Japan India France Venezuela Hydro • Fully renewable and low ecological impact. • In industrialized countries, almost all feasible sites have been developed – the potential incremental capacity is very low. The only potential incremental energy capacity is by way of conversion of existing storage facilities to pumped-storage. The Energy Challenges during the 21st Century Hydro • Very significant incremental capacities are available in Africa, Asia and Latin America. Development will come at heavy ecological and societal impacts. Some of the ecological impact will go beyond regional to become world-wide. ISSUE: World-wide environmental and ecological public policy – major research needed. The Energy Challenges during the 21st Century Fossil fuels - coal Largest exporters Australia Indonesia China South Africa Russia Columbia Largest importers Japan Korea Taiwan Germany UK India The Energy Challenges during the 21st Century Largest producers China United States India Australia South Africa Russia Indonesia Poland Kazakhstan Ukraine Fossil Fuel - Coal • Heavy environmental impact. • Technologies are available to significantly mitigate the environmental impact; they are also very expensive to implement & operate. • The large scale deployment of CO2 sequestration and utilization technologies are starting to become feasible ISSUES: Can industrialized countries impose such technologies on emerging countries? Potential of • Coal liquefaction - gazeification • Combined energy use The Energy Challenges during the 21st Century Fossil fuels - petroleum Largest exporters Saudi Arabia Russia Norway Iran Nigeria Venezuela Largest importers United States Japan Korea Germany Italy Chine The Energy Challenges during the 21st Century Largest producers Saudi Arabia Russia United States Iran Mexico Chine Venezuela Norway Canada Nigeria Fossil Fuel - Oil • The “lust” of industrialized countries for oil is the major reason for the increasing tensions world wide. • There is broad agreement that the production of oil will peak sometime during the 21st century. ISSUES: When do we start focusing on the use of carbon as a material as opposed to as fuel? What new extraction technologies become feasible as the price per barrel increases? Additional reserves available using Ehanced Oil Recovery (EOR) techniques – using CO2 well injections? What is the potential of oil-shales? The Energy Challenges during the 21st Century Fossil fuels – natural gas Largest exporters Russia Canada Norway Algeria Netherlands Turkmenistan Largest importers United States Germany Japan Italy Ukraine France The Energy Challenges during the 21st Century Largest Producers Russia United States Canada UK Algeria Netherlands Norway Iran Indonasia Saudi Arabia Fossil fuels – natural gas • Environmentally more friendly. • Transportation is technologically “cumbersome” and requires heavy infrastructures. • Heavy investments in distribution infrastructures are under way in Switzerland. ISSUE: Will we be able to continue to build liquid gas harbor sites close to heavy consumption centers? Political impact of the new producers on the international scene? The Energy Challenges during the 21st Century Nuclear • 441 power plants are under operation in 31 countries – – – – – – 136 in Western Europe – 59 in France 128 in North America – 104 in the United States 89 in Asia 70 in the former USSR and Eastern Europe 16 in India and Pakistan 2 in Africa • 16% of the world-wide electricity production – – – – 80% in France 28% in Germany 20% in the United States Less than 5% in China The Energy Challenges during the 21st Century Nuclear • Heavy legacy impact. • Public policies in industrialized countries have rendered construction of new facilities unrealistic. • The pebble bed technology could provide a solution to build highly modular plants. • Countries with emerging economies want to construct nuclear power plants using existing technologies. ISSUE: How can industrialized countries “monitor” suc developments? When and where will the next nuclear power plant be built in the United States, in Switzerland, in Germany, ….. The Energy Challenges during the 21st Century Hydro, Fossil & Nuclear • How do we site the new facilities? What organization makes the decision and then assumes it? • The financing of large generation facilities have reached a scale often beyond the capabilities of the private sector. • The construction and operation of the required transmission systems are increasingly in “limbo”. China is adding 60 000 MW per year of new electric power generation capacity. Some forecasts state that in 20 years we will go from 3 700 GW to 6 000 GW of installed electricity generation capacity. The Energy Challenges during the 21st Century Bio-Fuel • Bio-fuels have an enormous potential world-wide. Brazil is the leading implementation country. • Regions with strong agriculture and emerging economies can potentially leverage their position by exporting finished product. • The transportation industry must embrace bio-fuels. • The base crop used must be adapted to regional conditions. • Competition with food production must be avoided. • Industrialized countries must settle their national subsidy policies as well as their import regulations. The Energy Challenges during the 21st Century Bio-Fuel A labeling-certification process, taking ecological, fair trade issues, labor conditions, and grey energy contents into account, must be broadly agreed upon and implemented before significant market penetration will occur. The Energy Challenges during the 21st Century Alternative Generation Technologies Renewable • Solar, photovoltaic or thermal • • • Wind Geothermal Ocean Non-renewable • Internal combustion engine, ICE • • • • Combined cycle Combustion turbine Micro-turbines Fuel cell The Energy Challenges during the 21st Century Renewables - Photovoltaïc Photovoltaic installation – 350 kW The Energy Challenges during the 21st Century Renewables - Photovoltaïc • Environmentally very friendly. • Installed capacities remain limited but growth is strong: 1 GW per year or 30-50% per year. • Capacity costs will remain high. $5,000 / installed kW • The most appropriate short-term application might be in conjunction with other technologies such as Fuel Cells. Photovoltaics does not have the potential to displace the need for installed capacity – it may only displace energy production thereby rendering existing fossilfueled plants more expensive to operate. The Energy Challenges during the 21st Century Renewables - Wind The Energy Challenges during the 21st Century Renewables - Wind • Very rapid market penetration during past years – 10GW growth per year / 10-30% per year. • 59,000 MW of installed capacity world-wide. – 18,500 MW in Germany – 10,000 MW in Spain – 9,000 MW in the United States • Large manufacturers, such as Siemens and GE are heavy market participants. The Energy Challenges during the 21st Century Renewables - Wind • • • • • Perceived as environmentally very friendly. Significant noise pollution: 60 dB @ 30 m. The installed capacity per machine is increasing – 3MW. The capacity cost is attractive – under $2,000/kW Installation of large wind farms is attractive but technically not easy. Wind power does not have the potential to displace the need for installed capacity – it may only displace energy production thereby rendering existing fossil-fueled plants more expensive to operate. Should be implemented in conjunction with large storage systems – pumped hydro? The Energy Challenges during the 21st Century Renewables - Geothermal • The geothermal energy resources are virtually limitless. • It is environmentally friendly. • Geothermal energy can be readily controlled as required for deployment within an integrated energy supply chain. • It can be installed for residential, commercial and industrial facilities. • Currently, a large demonstration site is under construction in Basel – drillling t0 5 000 m is under way under the Rhine. • Large-scale electricity production has been on-going for decades in the Geysers area in California, for example. The Energy Challenges during the 21st Century Renewables - Geothermal The Energy Challenges during the 21st Century Alternative sources – Fuel cells 200 kW fuel cell from United Technologies for the combined production of electricity and heat. The Energy Challenges during the 21st Century Alternative sources – Fuel cells • Perceived as environmentally very friendly. • Requires local hydrogen storage or reformer installation. • The installed capacities range from a few tens of kW to a few tens of MW. • The capacity costs are already compatible with large scale deployment: $1,000 - $5,000 per kW. Fuel cells can and will contribute to the installed capacity mix. ISSUE: Viability of the Hydrogen economy – large scale implementation without nuclear questionable. The Energy Challenges during the 21st Century Alternative sources – Microturbines 30 kW Microturbine The Energy Challenges during the 21st Century Alternative sources – Microturbines • Not yet on the radar screen as far as public perception is concerned. • Installed capacities range from 1 few tens of kW to a few MW. Individual units can be combined together to create larger capacities. • Small physical size provides for convenient installation within buildings. • Capital costs: $300 – $1,400 per kW. Micro Turbines can and will contribute to the installed capacity mix – on a localized basis. The Energy Challenges during the 21st Century Fusion - Energy source of the 22nd century Dream of generating energy from Deuterium (omnipresent in water) and Tritium (from Lithium – tens of thousands of years of reserves). Tokamak TCV at CRPP - EPFL The Energy Challenges during the 21st Century Fusion - Energy source of the 22nd century • Several major R&D efforts are on-going: – ITER at Cadarache iun France – Broader approach, in Japan – University centers • EPFL at Centre de Recherch pour la Physique des Plasma • TU Münich at Garching • Joint European Torus – JET, in the UK • Many difficult hurdles must still be overcome before broad commercial deployment will be possible. – Very high temperatures required: 100 M 0C – Materials resistance over longer time: radiation and temperature. – Plasma heating and containment technologies The Energy Challenges during the 21st Century End use The Energy Challenges during the 21st Century Swiss vision on the end-use side • 2 000 Watt society. The Energy Challenges during the 21st Century 2 000 Watt society • Three cities are participating in pilot programs: – Basel – Zürich – Lucern • The main R&D focus is on: – Building technologies, including natural light utilization for lighting purposes. – Transportation technologies – Water management, especially within commercial and retail facilities. • Pro-active implementation of new codes and public policies The Energy Challenges during the 21st Century Evolution of the 2 000 Watt society The Energy Challenges during the 21st Century Hybrid vehicles • Combination of internal combustion engine with an on-board electric energy generation and storage. • Consumptions of 3 liter/km are possible using present diesel technologies. • Gasoline or diesel engines can be used. • Two main architectures: – Series – Parallel • Major market players: Toyota Ford Honda Peugeot The Energy Challenges during the 21st Century Hybrid vehicles - series • Engine never idles • Engine drives the on-board generator and can operate at maximum efficiency. • Many practical implementation options The Energy Challenges during the 21st Century Hybrid vehicles - parallel • Smaller engines can be used. • The internalé combustion engine and the electric motor share the propulsion duties for the vehicle. • Complex transmission systems are required • Power can be directed to the wheels. • A generator may not be required The Energy Challenges during the 21st Century System integration The Energy Challenges during the 21st Century System Integration Most of the emerging distributed generation technologies will be implemented at the distribution level. R & D: Evolution of the distribution system from a feeder/radial configuration to a network configuration – this evolution will also be driven by the need for “premium power”. R & D: Who will the distribution system operators be as the system complexity increases? R & D: Need for ultra-fast switching. Need for very high current interruption. The Energy Challenges during the 21st Century System Integration Technical “opportunities” • Power quality – Impact of various power electronic interface devices. The Energy Challenges during the 21st Century System Integration Technical “opportunities” • Power quality • Reactive power coordination and voltage support. The Energy Challenges during the 21st Century System Integration Technical “opportunities” • Power quality • Reactive power coordination and voltage support. • Reliability – Reserve margin: not all technologies will contribute to the installed capacity – Redundancy The Energy Challenges during the 21st Century System Integration Technical “opportunities” • Power quality • Reactive power coordination and voltage support. • Reliability – Reserve margin: not all technologies will contribute to the installed capacity – Redundancy • Safety – Bi-directional energy flow on distribution systems The Energy Challenges during the 21st Century System Integration Technical “opportunities” • Power quality • Reactive power coordination and voltage support. • Reliability – Reserve margin: not all technologies will contribute to the installed capacity – Redundancy • Safety • Security – Protection of the T & D infrastructure against outside threats. – Construction of “self-healing” systems. The Energy Challenges during the 21st Century System Integration Control systems • Need for integrated controls. – As the penetration of alternative generation reaches levels where its installed capacity and/or energy production becomes significant, the need for integrated controls becomes paramount. • Need for ubiquitous and bi-directional communications – Integration of “off the shelve” IT technologies. – This is perhaps THE biggest challenge faced by all manufacturers. – Security and resiliency against external threats. The Energy Challenges during the 21st Century System Integration System concerns • Asset Management – Maximize utilization of existing assets – Cost avoidance – Cost delays • Diagnostics – Non-intrusive and reliable diagnostics – Data collection, storage and sorting The Energy Challenges during the 21st Century System Integration • Superconductivity Materials – After superconducting magnet and energy storage applications, which are already being commercially deployed, which application will first see a breakthrough: fault current limiters? • Insulation – Underground cable systems – Fast - solid state switching • Conductors – Intelligent - variable resistance The Energy Challenges during the 21st Century Public Policy and Economics The Energy Challenges during the 21st Century Public Policy “It’s the economy, stupid” Bill Clinton’s campaign staff overall strategy call The Energy Challenges during the 21st Century Public Policy “It’s public policy, stupid” • Public policy will dictate the level, the type, the spectrum and the eventual success of alternative generation. The Energy Challenges during the 21st Century Public Policy • Public policy will dictate the level, the type, the spectrum and the eventual success of alternative generation. • A successful energy public policy must be: – Global in scope and coordination. – Regional in actual formulation and implementation. R & D: Need to create systematic approach to measure the financial and societal impacts of Public Polic proposals. The Energy Challenges during the 21st Century Conclusions The Energy Challenges during the 21st Century Conclusions - 1 • Modern energy systems require very heavy investments and are highly complex to design and operate. • They are crucial infrastructures for the economic development of countries and the well-being of populations all over the world. • One of the major challenges of this century will be the development of energy production and distribution systems which are reliable, affordable and sustainable - electricity is already at the core of these issues and will so remain. The Energy Challenges during the 21st Century Conclusions - 2 • Significant challenges remain to be resolved – Integration of new energy sources. – Design of transport and distribution systems which are resilient against external threats and economical to operate. – Implementation of energy end-use techologies which have acceptable environmental impact levels and which are affordable for the population at large. • World-wide cooperation will be essential. The world is interconnected by way of the environment. • More than ever, we need well-educated and highly motivated young professionals to address and resolve the energy challenges of the future. The Energy Challenges during the 21st Century The energy challenges of the 21st century Mastering Technology Enterprise Thun 28 september 2006 Hans B. (Teddy) Püttgen Professeur - Chaire, Gestion des Systèmes Energétiques Directeur - Centre Interdisciplinaire de l’Energie Ecole Polytechnique Fédérale de Lausanne - EPFL et Past-President, IEEE Power Engineering Society