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Energy for Sustainable Development in the Americas

Energy for Sustainable Development in the Americas. Mark Lambrides Department of Sustainable Development Organization of American States (OAS). Why are we gathered here today ?. 37 th OAS General Assembly – Panama City

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Energy for Sustainable Development in the Americas

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  1. Energy for Sustainable Development in the Americas Mark Lambrides Department of Sustainable Development Organization of American States (OAS)

  2. Why are we gathered here today? • 37th OAS General Assembly – Panama City • The Declaration of Panama “Energy for Sustainable Development” declares: “Their recognition also that the region must endeavor to reduce its vulnerability to fluctuations in the price and supply of energy and seek to increase its energy independence through measures such as the diversification of the energy matrix, favoring an increase in the sustainable use of renewable and cleaner energy or other modalities...” (5) “Their request to the Permanent Council and the Inter-American Council for Integral Development (CIDI) to convene an inter-American meeting of national authorities and experts, with the participation of other relevant institutions, … for the discussion of experiences, best practices, and other information relating to the subject of this Declaration that will contribute to the sustainable development of all countries in the Hemisphere …”(24)

  3. Presentation Outline • Energy Situation in the Americas • Key Challenges for the Energy Sector • Several Strategies to Address Energy Sector Challenges • OAS/DSD Energy Programs and Actions

  4. Overview of the energy sector in the Americas • In 2006, the electricity consumption in the Hemisphere was 6,014 TWh (OLADE, 2007) • It is expected that energy consumption in the Americas will increase at an annual rate of 1.3% during 2003-2030. • North America 1.1% • LAC, 2.4% (EIA, 2007) • LAC’s energy sector requires between 3 and 6% of GDP per year • Approximately 10% of the total population in LAC does not have access to electricity ~50 million people (Between 20% and 90% of the rural population in LAC does not have access to electricity)

  5. Overview of the Energy Sector in LAC

  6. Energy Demand in LAC (excluding Mexico), 2004 - 2030 900 800 Other Renewables 700 Biomass and Waste 600 Hydro 500 Mtoe Nuclear 400 Gas 300 Oil 200 Coal 100 0 2004 2015 2030 Year Overview of the Energy Sector in LAC Fuente: IEA, 2007 Source: EIA,2007

  7. Principal Characteristics of the Electricity Sector in the Americas: Supply and Demand • Generalizations regarding the generation of electricity in the Americas • Latin America: Electricity generation dominated by large scale hydropower (59%), natural gas, and oil/diesel (31%), and nuclear (7%) • Caribbean: Almost exclusively oil/diesel generator (imported oil) (93%)

  8. Canada: 57% of electricity generation comes from hydro, 26% thermal, and 15% nuclear United States: Electricity generation dominated by thermal (70%) and nuclear (20%); hydro represents 7% of the total electricity generation Principal Characteristics of the Electricity Sector in the Americas: Supply and Demand

  9. 2006 2006 Petroleum DERIV. PETRÓLEO Derivatives GAS NATURAL Natural Gas 10,2% 10,2% 12,1% 12,1% Hydro HIDRÁULICA 32,2% 32,2% Mineral CARBÓN Coal MINERAL 1,2% 1,2% Industrial GAS Biomasse BIOMASA Gas INDUSTRIAL 32,9% 32,9% 11,4% 11,4% Electricity overview: Brasil Percentage of Electricity Generation per source Total Electricity Generation419,337 GWh (2006) Source: Balance Energético Nacional 2007, Ministerio de Minas y Energía, Brasil

  10. Electricity overview: Mexico Installed Capacity by Source (MW)

  11. Electricity generation portfolio: Central America

  12. Installed Capacity in the Caribbean (MW) Electricity generation portfolio: The Caribbean

  13. Key challenges for the energy sector • Electricity connected to the grid • Address generation needs • Respond to the increasing demand (generation additional capacity, multinational interconnections) • Extension of transmission and distribution lines • Reliability of “fuels supply” (pipelines, drought, interruption of fuels supply) • Rising/fluctuation of fossil fuels prices (established by international markets) • An important part of the region depends on imported fuels • High costs of renewable energy options • Energy efficiency: Generation and use

  14. Key challenges for the energy sector • Rural electrification • Grid extension vs. household/community systems (solar, diesel generation…) • Poverty alleviation (household pollution/safety, community/agricultural applications)

  15. Key challenges for the energy sector • Transportation issues • Reliability and cost of fuel supplies • Adequate roads and other modes of transport • Biofuels (and other alternatives)

  16. Key challenges for the energy sector • Environment • Local contamination (smog/other effluents, visual) • Global – Climate Change (mitigation by CO2 emission reductions, vulnerability issues) • Geography • The region has important energy sources but with dissimilar distribution • Differentiated consumption patterns (economic variants) • Region highly urbanized

  17. Summary – Key issues for the energy sector in the Americas • The countries of the Hemisphere confront a variety of preoccupations: • Supply/security of energy sources • High energy costs and import • Vulnerability/adaptation to climate change • Pressure to mitigate climate change • Energy resources management • Energy efficiency and energy saving benefit everyone • Also for LAC: • Rural poverty/urban migration • Urban contamination/household • Synthesis of key challenges: • ECONOMIC DEVELOPMENT AND ENERGY SECURITY

  18. Strategies to address the energy sector challenges • Energy resources diversification • Interconnections/Cooperation between countries • Energy savings

  19. Strategies to address the energy sector challenges • Energy resources diversification • Expand portfolio of electricity fuels/resources (renewables, fossil fuels, nuclear) • Diversify transportation fuel options (i.e. biofuels Brazil; hybrid vehicles USA) • Diversify sources of fossil fuel supplies

  20. Strategies to address the energy sector challenges • Interconnections/Cooperation among countries • Link power grids (i.e. SIEPAC in Central America; US-Mexico; South American interconnections) • Link fuel supply lines (i.e. Natural gas pipelines Bolivia/Brazil/Argentina; PetroCaribe “virtual connection”) • Harmonization of policies, regulations, codes & standards

  21. Strategies to address the energy sector challenges • Energy Savings • Demand Side Management (DSM) Programs (i.e. Mexico’s CONAE/FIDE) • Commercial efficiency programs (i.e. Caribbean Hotel Association Efficiency Program) • Improve transportation systems (roads, public transport, efficiency standards)

  22. Renewable energy in the Americas: DDS/OEA’s action • Sustainable Energy Policy Assistance • Guatemala Renewable Energy Incentive Law (approved) • Rep. Dom.: Renewable Energy Incentives Law and Special Regulations (2007) • Sustainable energy plans (St. Lucia, Dominica, St. Kitts and Nevis, Granada, St. Vincent and the Grenadines, Antigua and Barbuda, The Bahamas) • Mexico, Argentina and Ecuador (RE Laws in consideration)

  23. Renewable energy in the Americas: DDS/OEA’s action • Renewable Energy Technical/Resource Assistance • Bio-Energy Feasibility Study (El Salvador, Dominican Rep., Haiti, St. Kitts & Nevis) • Waste to Energy Program (concept) • Eastern Caribbean Geothermal Development Project (Dominica, St. Lucia, St. Kitts & Nevis) • Rural Schools Electrification Program [link to FEMCIDI] (Honduras, El Salvador, Guatemala) • Andean Region Geothermal Workshop (Chile, Argentina, Bolivia, Peru, Ecuador) • Solar and Wind Energy Resource Assessment (Central America – UNEP) • Sustainable energy policy workshops (Argentina, Dom. Rep., Guatemala, Mexico y Peru)

  24. Renewable energy in the Americas: DDS/OEA’s action • Knowledge/Information Management & Hemispheric Energy Partnerships • Energy Experts Database • Establishment of the Sustainable Energy Partnership of the Americas (SEPA) • Renewable Energy and Energy Efficiency Partnership (REEEP) – OAS/DSD serves as LAC Technical Secretariat • Global Village Energy Partnership (GVEP) – OAS/DSD organized hemispheric conference and provides technical assistance

  25. Renewable energy in the Americas: DDS/OEA’s action • Increase Access to Sources of Financing • Cooperate with the IADB Sustainable Energy Financing Initiative • Facilitate access to the Global Environment Facility (GEF) and the World Bank • Technical Assistance in issues relating to climate change/Clean Development Mechanism (CDM) tools • Facilitate the activities for bioenergy development in Central America and the Caribbean (US-Brazil agreement)

  26. What are the expectations for today’s meeting? Goals: • Provoke a stimulating dialogue between energy experts and high level delegations representing each of the OAS Member States • Catalyze new initiatives that will effectively lead us to improved energy sustainability throughout the Americas

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