Energy and Sustainable Development: Global Challenges for a Sustainable Future

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.it UNESCO Rome, 2006 19th July

2. OUTLINE

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

4. The Global Energy Framework 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: Decrease the oil dependence Diversify the energy mix Increase the RES use and improve the related technologies

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 not just on: • the risk and duration of a disruption and the resulting Price shock but also on • the flexibility and resilienceof the economy to respond to and withstand higher prices • The higheran economy’soil intensityand 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 - In diversifying the sources of gas and oil imports • To extend and strengthen the motor-vehicle fuel-efficiency • standards • To find new financial incentives for renewables in Mena • countries, in Korea and to promote the renewables • (including nuclear capacity) inChina -To prolonge the new emissions-trading scheme in the EU - To adoptsome of the measures detailed in a new EU Green Paper onenergy efficiency

8. NEED OF COLLECTIVE REPONSES 2 The measures in the new EU Green Paperonenergy efficiencyregard respectively: • Demand Management - DiversifyingEuropean Sources - A Streamlined Internal Energy Market - 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 Main Problem Managing Intermittency of electricity generation Wind power and other RES using: •Power plants providing operational and capacity reserve • Electricity storage • Interconnection with other grid systems • Distributed generation • Demand-side response • Curtailment of intermittent technology

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

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

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

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

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

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

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

19. Energy and sustainable development: Global challenges for a sustainable Future 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

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: - THE GLOBAL ENERGY FRAMEWORK - G. Anselmi –Italian Agency for New Technology, Energy and Environment • IMPACT OF THE OIL SHOCK - C. Mocci - Italian Ministry of Economy and Finance - RES ROLE IN SELECTED ENERGY SCENARIOS-F. Gracceva – Italian Agency for New Technology, Energy and Environment - THE EXTERNALITYOF ENERGY PRODUCTION FROM FOSSIL FUELS - E. Mancuso - Italian Agency for New Technology, Energy and Environment - GLOBAL CHALLENGES FOR A SUSTAINABLE FUTURE - 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. Energy and sustainable development: Global challenges for a sustainable Future THANK YOU FOR YOUR ATTENTION PLEASE DO YOUR QUESTIONS NOW OR SEND THEM AFTERWORDS BY EMAIL TO:ganselmi@sede.enea.it