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20 October 2010, Milan

Millennium Development Goals Congress organised by Net Poleis Milan, 20 October 2010 Elena Virkkala Nekhaev Director of Programmes, World Energy Council. 20 October 2010, Milan. World Energy Council.

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20 October 2010, Milan

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  1. Millennium Development Goals Congress organised by Net PoleisMilan, 20 October 2010Elena Virkkala NekhaevDirector of Programmes, World Energy Council 20 October 2010, Milan

  2. World Energy Council • The only truly global, multi-energy and inclusive forum for thought-leadership and tangible engagement committed to sustainable energy future • Established in 1923 as the World Power Conference to help rebuild the electricity grid in Europe after WWI, first Congress in 1924 • Secretariat in London • Charity under the UK law

  3. Mission and Goals To promote sustainable supply and use of energy for the greatest benefit of all Four A‘s: • Accessibility: How can energy demand be covered? • Availability: What energy system guarantees the best long-term stability? • Acceptability: What solutions are sustainable and hence acceptable? • Accountability: How to define the political and regulatory framework to secure the necessary investments?

  4. World Energy Council • Member Committees in more than 90 countries, including over 3000governmental, private sector and expertorganisations • National Member Committees are chaired byenergy ministers, CEOs of major companies, experts etc. • The WEC’s impartiality is ensured by its membership representing ALL energy sectors and by its governance: the Executive Assembly (one country one vote)

  5. WEC Member Committees

  6. Patrons & Global Partners

  7. WEC’s Work Programme • Survey of Energy Resources • Energy Efficiency: a Recipe for Success • Water for Energy • Performance of Generating Plant: New Metrics for Industry in Transition • Logistics Bottlenecks • Shale Gas • Energy and Urban Innovation

  8. WEC’s Work Programme • Pursuing Sustainability: 2010 Assessment of Countries’ Energy and Climate Policies • Biofuels: Policies, Standards and Technologies • Interconnectivity • European Energy and Climate Change Policy beyond 2012 • Trade and Investment: Rules for Energy • Regional Energy Integration in Latin America • Energy Policies Scenarios to 2050

  9. Triennial Global Event • Thousands of senior level participants • 20th World Energy Congress, November 2007, Rome, Italy • 21st World Energy Congress, 12-16 September 2010, Montreal, Canada • 22nd World Energy Congress in autumn 2013 in Daegu, Korea World Energy Congress

  10. 21st World Energy CongressMontreal, 12-16 September 2010 • Over 7,000 participants (approx. 1,000 from Europe, 500 from Africa) • Representatives from 130 countries • More than 70 energy ministers • Nearly 160 sessions

  11. World Energy Congress in Montreal Transport: One billion cars are on the road now and another billion will join by 2035 (IEA)Oil: China’s energy policies will determine the future of the oil price (IEA)Rick George (Suncor):„I’ve long believed the future is about expanding energy choice, not restricting it. First we need to get increasingly creative about finding and developing conventional energy sources, whether it’s oil, gas, coal or nuclear – and do so in ways that are environmentally and socially responsible. Second, we should use these conventional sources to help drive research and development of alternative energy and new environmental technologies.“

  12. Politics of Energy Y. de Boer, KPMG, former UNFCCC Ex. Director:“We need to put the rhetoric aside and focus on implementation…” Anne Lauvergeon, CEO AREVA (France):“We need to build trust. Ignoring the fears of the people encourages irrationality.” P. Duhaime, CEO, SNC-Lavalin (Canada):“The population will grow and so will the carbon-intensive economy, but sustainable growth will be difficult with the current atmosphere of increasing tension and distrust among industry, government and the public.”

  13. Energy Poverty D. Kaberuka, President AfDB:“The whole African continent has less energy capacity than the country of Spain.” “…for the last 10 years, economic development is the best that it has been in the last 50 years.” G.H. Boyce, CEO Peabody (USA):“Study after study – and pure common sense – tell us that access to electricity helps people to live longer and better. Yet each year we lose more than 1.5 Million people to the effects of energy poverty. We can no longer turn our heads from these brutal statistics. We must put people first. That is the first value.”

  14. Finance/Investments D. Yergin, Chairman IHS CERA (USA):”…there remains one law that we all must adhere to where energy is concerned, that is the law of long lead times.“ “It is very sobering to realize that much of the infrastructure that will be needed in 2030 to meet the energy needs of a growing world economy is still to be built.” Y. de Boer, KPMG, former UNFCCC Ex. Director:“85% of the investment is coming from the private sector and the rest from the public sector.”“Finance is the big question.”

  15. Coal V. Kumar Singh, Chairman Northern Coalfieds Ltd. (India):“Coal is the only solution for the energy to elevate the standard of living.” Rob Whitney, CEO CRL Energy (New Zealand): “New Zealand with 15 billion metric tonnes, has more coal per capita than any other country in the world.”

  16. Renewables Hélène Pelosse, interim Director General, IRENA (Abu-Dhabi): “Solar will see the most growth in the period to 2050.”“We expect renewable energy to account for 50% of the global mix by 2050.” K. A. Al-Falih, CEO Saudi Aramco (Saudi-Arabia):“… alternative sources of energy should grow – and indeed must grow – in order to play their part in meeting that rising demand.”

  17. Industrialised nations: Transformation of the energy system  Financing Growing economies: Development of the energy system  Making energy available Poor regions: Fight against energy poverty  Instability Energy is a Major Concern in All Countries Around the World

  18. 3.6 Billion People Have No or Only Limited Access to Electricity Access to affordable energy is an absolute pre-requisite for achieving the Millennium Development Goals 683 85 116 1,495 805 466 Number of people in millionswithout adequate access to electricity Source: International Energy Agency 2009 World Energy Outlook and The World Bank, 2010.

  19. Earth at Night North America Europe China India Africa

  20. Further increase of energy demand from 32% to 40% by 2030 Fossil fuels will play an important role globally for decades to comeScarcity of capital is a more constraining bottleneck than reserves of crude oil, natural gas and coalReserves of fossil fuels substantially greater compared to previous estimates – the role of shale gasAccess to affordable energy and the role of energy as a driver of economic growth more important for many countries than climate changeThe expected outcome of Cancun will not deliver a binding climate change treaty Energy Demand is Growing

  21. Coal: The World’s Fastest Growing Fuel for the Past Decade 7% Nuclear 10% Oil Growth 1999 – 2009 Hydropower 25% Natural Gas 27% 46% Coal Source: BP Statistical Review of World Energy, June 2010.

  22. Global Use of Coal is Expected to Grow by 53% by 2030 +110 +150 +2,210 +380 +690 +50 Asia = 90% of Long-Term Global Coal Demand Growth 2007 - 2030 (Million tonnes} Source: World Energy Outlook 2009, International Energy Agency; Annual Energy Outlook Forecasts, Energy Information Administration; Peabody analysis.

  23. Solar*:1,800 x Current Solar Generation Wind*:2.5 Million Wind Turbines Nuclear:1,150 Nuclear Plants Natural gas: 70 tcf = 3 x Russia’s Production Hydro: 2,250 Dams Stop Using Coal? Any Alternatives? To Replace Coal, the World would need: * Requires backup baseload generation for cloudy and calm periods. Source: International Energy Agency, World Energy Outlook 2009.

  24. United China India States Electricity from Coal80% 71% 50% Projected GDPIncrease through 2030380% 290% 95% Projected GDP in 2030$33 $11 $25(Trillion US Dollars) The World’s Largest Economies Are Fuelled by Coal Source: Energy Information Administration International Energy Outlook 2010.

  25. United Nations: “Energy is at the heart of most critical economic, environmental and developmental issues facing the world today. Clean, efficient, affordable and reliable energy services are indispensable for global prosperity.” 70% of people in DCs do not have access to electricityIn Africa: 2/3 of households – more than 580m people lack access to commercial energyMany initiatives to meet the energy needs of the poorest people in developing countries, but limited success

  26. Inadequate understanding of the issue and poor political support. • Lack of specialist skills required for project initiation, implementation and later for system operation. • Energy access cannot be addressed in isolation, an integrated political, technological and socio-economic solution is needed. Energy Access – The Barriers

  27. Household Electricity Consumption

  28. CO2 Emissions From Energy Combustion (Per Capita)

  29. Final Energy Intensity In Relation To HDI (Human Development Index* 2007)

  30. New York (8 million) = Sub-Saharan Africa (800 million) • 6,000 kWh/per person vs 63 kWh/person • Ratio 1:100 • India • 17% of the world population • 4% of the world energy consumption • 20% no access to electricity The Gap is Growing

  31. 40% of the global population (2.7 billion people) rely on traditional biomass for cooking • 1.2 billion people will still have no electricity by 2030 if governments do not change their policies • US$36 billion per year investment by 2030 or 3% per year of global energy investments to 2030 Energy Policies

  32. Money Is Not a Problem: It Is a Solution • Annual Spending by 50+ in the UK USD • Cosmetics 3.3bn • Beauty treatments & hairdressing 3.5bn • Clothing and shoes 19.4bn • 26.2bn • Annual Spending on Bottled Water 30.0bn

  33. Thank you for your attention!For further information contact World Energy Councilwww.worldenergy.org

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