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  1. Energy Efficiency: The Role of Electricity UtilitiesCOP11 side event, 7 Dec 2005WBCSD Electricity Utilities Sector Project Speakers Jean-Paul Bouttes Electricité de France Wendy Poulton EskomDian Grueneich California Public Utilities Commission Jeff Fiedler Natural Resources Defense Council Brian Dawson United Nations Development Program Moderator: Simon Schmitz World Busines Council for Sustainable Development

  2. The WBCSD Electricity Utilities Sector Project • Eight companies within the WBCSD have come together to highlight the urgency of today’s energy challenge (working with a project consultant: ERM) • The WBCSD Electricity Utilities Sector project runs until the end of 2006 and aims to develop communication tools which will be used to encourage stakeholder dialogue • We must decide as a society what we want, based on a realistic appraisal of the options available to us, their costs and their impacts. Only concerted action can help us – we need electricity but our current path is unsustainable

  3. The WBCSD Electricity Utilities Sector Project • Communication tools under development: • A common position paper highlighting the dilemmas faced by our companies today - currently in draft format • A synthesis report – a draft to be used as a basis for discussion with stakeholders • 10 Issue briefs: • Gas, coal, nuclear, hydrogen, CCS, hydro, other renewables • Energy efficiency, access, T&D • Stakeholder engagement phase through to June 2006. Watch

  4. Sustainability Challenges for the Power Sector • Build and maintain security of supply • Affordable electricity in ample quantities is the lifeblood of society and underpins economic progress • Investment needs are huge • Manage and reduce impacts • According to most scenarios, the sector’s GHG emissions will double by 2030 in response to sharply rising demand • Most of the growth in energy demand will come from developing countries, mainly from urban areas • Provide access to electricity to those that do not have it • In 2030, 1.4 billion people may still be without access to electricity if current trends continue

  5. Electricity… • …is a highly efficient energy carrier providing an array of services to customers with a high degree of flexibility • Its crucial social value as a driver of human and industrial development means that is growing more quickly relative to other energy carriers: • Improvements in electrical applications, including automation, and a substitution of fossil fuels in end use; • Increasing numbers of electrical appliances; • Information technology and the Internet; • Continuous urbanization.

  6. What are our options (1)? • Options up to 2030, to meet demand for services and to replace existing plant: • Strong focus on end use efficiency • Zero carbon emitting technologies – nuclear, hydro and other renewables • Improving fossil fuel technologies such as CCGT and clean coal • Preparation of CCS if carbon value allows (availability of coal in high-growth countries (e.g. China, India)) • Research & Development both for existing technologies and to advance future options…

  7. What are our options (2)? • Options from 2030: • New technologies could start to dominate supply: CCS, Gen 4 nuclear, thin-layer photovoltaic • Need to maximise capabilities and minimise liabilities of a whole array of energy options: cleaner coal, end-use energy efficiency, renewables, etc.

  8. Energy efficiency in context • Energy efficiency can help address all three sustainability challenges (energy security, climate change/other impacts, access) • Electricity can be a vector for energy efficiency itself in certain applications (by shifting from a less efficient use of fossil fuels) • Good governance is needed to meet the energy challenge and to promote energy efficiency • A stable regulatory environment, market incentives and good communication are essential • A consistent framework for a long-term policy