Houston we have a problem how to realize a sustainable energy system? Emerging Industrial Technology Strategy Review Board (SRB) Meeting. Taipei Taiwan, November 19-22, 2007 André Faaij Utrecht University, Netherlands
Sustainable Energy: Energy that is produced and used in ways that simultaneously support human development over the long-term in all its social, economic, and environmental dimensions
Future Energy Use?
Economic development OECD Per-Capita GDP Middle East Africa Latin America Rest of developing Asia India Transition economies Incomes continue to grow fastest in China China -2% 0% 2015-2030 2% 4% 6% average annual growth rate 2004-2015 8% 10% 1990-2004 Incomes in the OECD are still four times higher than in rest of the world in 2030
Per Capita Primary Energy Use, 2030 Per capita energy use remains much lower in developing countries
Energy problems Demand/consumption goes up Climate! Non GHG s: acidification, urban air quality Exploitation, space, accidents Stable and secure energy supply Costs Essential prerequisite for development
Nasa, 2003
Reference Scenario: World Primary Energy Demand 18 000 Other renewables Nuclear Biomass 16 000 14 000 Gas Mtoe 12 000 10 000 8 000 Coal 6 000 4 000 Oil 2 000 0 1970 1980 1990 2000 2010 2020 2030 Global demand grows by more than half over the next quarter of a century, with coal use rising most in absolute terms
An Urban Environment Transition From Sanitation to Sustainability Household Sanitation Ambient Air Carbon Emissions Severity Increasing Wealth Poor Cities Wealthy Cities Shifting Environmental Burdens Local Global Immediate Delayed Threaten Health Threaten Life Support Systems Source: McGrananhanl and Smith
Reference Scenario: Energy-Related CO2 emissions by Region 15 Rest of non-oecd Gigatonnes of CO2 12 China 9 6 Rest of OECD United States 3 0 1990 2000 2010 2020 2030 China overtakes the US as the world s biggest emitter before 2010, though its per capita emissions reach just 60% of those of the OECD in 2030
Reference Scenario: World Primary Energy Demand by Fuel Share of Fuel in Primary Energy Demand 50% 40% 30% Modern non-hydro renewables grow fast, but remain small in absolute terms 20% 10% 0% Coal Oil Gas 1980 Nuclear Hydro Biomass Other renewables 2004 2030 Oil remains the most important fuel, but its share in the global energy Copernicus mixinstitute drops while those of gas, coal & modern renewables rise
Alternative Policy Scenario: World Primary Energy Demand 18 000 % of Reference Scenario 17 000 10% Mtoe 16 000 15 000 14 000 4% 13 000 12 000 11 000 2004 2010 2015 Reference Scenario 2020 2025 2030 Alternative Policy Scenario The impact of new policies though far from negligible is less marked in the period to 2015 because of the slow pace of capital stock turnover
Alternative Policy Scenario: Global Savings in Energy-Related CO Emissions 2 42 Increased nuclear (10%) Increased renewables (12%) Power sector efficiency & fuel (13%) Electricity end-use efficiency (29%) 38 Gt of CO2 Reference Scenario Fossil-fuel end-use efficiency (36%) 34 Alternative Policy Scenario 30 26 2004 2010 2015 2020 2025 2030 Improved end-use efficiency of electricity & fossil fuels accounts for twothirds of avoided emissions in 2030
Key policies that Make a Global Difference Energy efficiency Power generation US Tighter CAFE standards Improved efficiency in residential & commercial sectors EU Increased vehicle fuel economy Improved efficiency in electricity use in the commercial sector China Improved efficiency in electricity use in industry Improved efficiency in electricity use in the residential sector Increased efficiency of coal-fired plants Increased use of renewables Increased reliance on nuclear India Minimum requirements for energy-efficient design of buildings Improved efficiency in iron and steel sector Increased use of renewables Reduced transmission and distribution losses Increased use of renewables Increased use of renewables Just fifteen policies in the US, EU, China and India account for over 40% of Copernicus Institute the global emissions reduction in 2030 in the Alternative Policy Scenario
Full transition to a sustainable energy system? Scenario C1 Traditional renewables Biomass Hydro Nuc. 80 Gas Percent Other Oil 60 Solar 40 Coal 20 0 1850 1900 Scenario C2 1950 2000 2050 2100 Source: N. Nakićenović et.al., IIASA, 2000 100
Future worlds material/economic A1 A2 population: 2050: 8.7 billion 2100: 7.1 billion GDP: 2050: 24.2 103 billion $95/y 2100: 86.2 103 billion $95/y technological growth: high trade: maximal population: 2050: 11.3 billion 2100: 15.1 billion GDP: 2050: 8.6 103 billion $95/y 2100: 17.9 103 billion $95/y technological growth: low trade: minimal globally oriented regionally oriented B1 B2 population: 2050: 8.7 billion 2100: 7.1 billion GDP: 2050: 18.4 103 billion $95/y 2100: 53.9 103 billion $95/y technological growth: high trade: high population: 2050: 9.4 billion 2100: 10.4 billion GDP: 2050: 13.6 103 billion $95/y 2100: 27.7103 billion $95/y technological growth: low trade: low environmental/social
Total primary energy demand and energy mixture for the four SRES scenarios of the IPCC Total primary energy consumption (EJ/yr) 2200 2000 1800 1600 1400 other renewables biomass nuclear gas oil coal 1200 1000 800 600 WBGU A1 B1 A2 B2 400 200 0 2000 2030 2050 2100
The Options: Lifestyle Efficiency Renewables; solar, wind, biomass ( ) Clean fossil fuels Nuclear Energy efficient Societal change Renewable energy Clean Fossil
Energy Resources Non-renewable resource base (thousands of Exajoules) Resource Oil - Conventional - Unconventional Gas - Conventional - Unconventional Coal Fossil total Uranium - Open Cycle - Closed Cycle Non-renewable total Consumed by end 1998 5.14 4.85 0.29 2.38 2.35 0.03 5.99 13.51 Consumed in 1998 0.14 0.13 0.01 0.08 0.08 0.00 0.09 0.32 Reserves Resources 11.11 6.00 5.11 14.88 5.45 9.42 20.67 46.66 n.e. n.e. 0.04 0.36 1.89 113 48 21.31 6.07 15.24 34.93 11.11 23.81 179.00 235.24 Resource base 32.42 12.08 20.35 49.81 16.57 33.24 199.67 281.89 Additonal occurences 45 3.00 180 415 4.88 293 575 7.1 426 1,400 45 930 930 975
Energy Resources Renewable Resource Base (EJ/year) Resource Current Use Hydropower Biomass Energy Solar Energy Wind Energy Geothermal Energy Ocean Energy Total 9 50 0.1 0.12 0.6 n.e. 56 Technical Potential 50 >276 >1,575 640 5,000 n.e. >7,600 Theoretical Potential 147 2,900 3,900,000 6,000 140,000,000 7,400 > 144,000,000
Energy Resources Conventional oil and gas could last at least 50-100 years (but tightening fast ). Total fossil fuel resources will last at least several hundreds of years (especially coal) Renewable energy flows are some 1000 times current global energy use; bioenergy ad wind energy closest to the market with large possibilities.
Options to enhance energy supply security Avoid over-dependence on imports by encouraging greater reliance on local resources Increase end-use efficiency,which can also reduce dependence on imported energy resources Diversity of supply Support international cooperation Encourage technology transfers Increase national and regional strategic reserves
Energy losses EJ % Primary energy Final energy 400 100 300 75 Useful energy 150 37 Energy service <60 <15
Lighting; an illustration:
Outlook for More Efficient Use of Energy Cost effective over the next 20 years to reduce primary energy consumed per unit of energy services OECD Countries Developing Countries Economies in transition 25-35% 30- >45% >40% Greater gains in efficiency feasible with advanced energy technologies that offer multiple benefits
Indicative mitigation potentials due to biofuels and vehicle efficiency improvements (based on IEA 2006b).
Source: Statoil
Sustainable energy systems on the long term; two visions on the Dutch energy system. Exercise done for the national climate dialogue ( COOL ), aimed to involve all key statkeholders in defining a national strategy for far reaching GHG emissions and changing the energy system.
Different worlds in 2050 World Society Vision A - Free Market International orientation Global Vilage Worldwide convergence Vision B - Awareness Regional orientation, world trade unions Wealth contrasts, cultural differences Individual Low esteem natural environment No leveling of income, inequity Self interest prevails Social, Familial Environmentalism Leveling of income, equity Care for fellow man
Value Added 1200 Change compared to 1990 (%) 1000 800 1990 600 A B 400 200 0 Agriculture Food and beverages Industry & Construction Commercial services Noncommercial services
Different worlds in 2050 Vision A - Free Market Economy & Dynamic; high economical consumption growth rates Part of world economy Market-based solutions Intensive international travel. Quantity prevails over sustainability Land-use Suburbanisation and high demand for mobility. Agri-business, factory Park-like landscape Vision B - Awareness Stability; more moderate economic growth Part of EU Regulation. Recreation and holidays in the region Sustainable goods and quality Spatial planning, intensive use of public transport Ecological agriculture Large nature reserves and biomass production
The Energy Systems: 80% reduction of GHG emissions! Context Vision A Free Market - Cost minimization - Supply oriented. - Rapid diffusion of technology Energy - Revised system; CO2 infrastructure storage and hydrogen economy. - Centralized large scale. Vision B Awareness - Principal choices; no nuclear, minimal fossil fuel use. - Environmentally driven - Optimization of current system; major role for renewables - Decentralized
Energy demand Vision A Free Market Built Large dwellings; heat environment pumps and solar heating. Industry Agriculture Transport Non CO2 Vision B Awareness Compact cities; low energy dwellings, district & solar heating + PV. State-of-the-art advanced Strong emphasis on energy technology and processes; and material efficiency Integrated complexes + Integrated complexes + CHP CHP Industrial, low emission Ecological agriculture systems. Very strong growth (road Growth: Increased role for & air transport); FCV s public transport (rail); FCV s fueled by hydrogen fueled by bio-alcohols Far going reductions Far going reductions
Energy supply Vision A Free Market - Large scale application of imported coal with CO2 storage - Nuclear energy - Bio-energy (import) - Hydrogen for the transport sector - Heat pumps and solar energy in built environment Vision B Awareness - Large scale application of solar energy (PV and passive) - Large scale wind energy production - Supportive role for natural gas and CBM. - Indigenous biomass - Large scale import of bio-energy (about 50% of energy mix)
Some key technologies Vision A Free Market Fuel cell vehicles (H2) Large scale hydrogen and power production from coal (import!) and coal bed methane with CO2 removal and storage Nuclear power (and heat) generation Energy efficient dwellings + heat pumps Vision B Awareness Fuel cell vehicles (alcohols) Production of bio-alcohols, feedstocks and power from biomass (import!) in biorefineries. Power generation with PV and large scale wind parks. Very energy efficient dwellings + solar heating
Primary energy carriers A B 1% 4% 30% 41% 11% 5% 0% 4% 8% 9% 8% coal crude oil natural gas nuclear solar (PV) solar (therm) biomass wind 7% 0% 2% 3% 67%
Electricity Production Mix A B 10% 10% 40% 30% 10% coal CO2 gas nuclear biomass wind 25% 40% 15% 5% 15% coal CO2 gas Solar PVr biomass wind
~ North Sea Aquifers (350 Mt) Gasfields (1250 Mt) West Aquifers (570 Mt) Gasfields (100 Mt) North Aquifers (130 Mt) Groningen gasfield (7512 Mt) Other gasfields (2000 Mt) ~ ~ Central Aquifers (110 Mt) ~ 15 30 45 60 75km ~ Large scale power plant Hydrogen pipeline H2 ~ Large scale hydrogen plant CO2 pipeline ~ Southwest Aquifers (200 Mt) Gasfields (50 Mt) H2 Southeast Aquifers (200 Mt) Residential hydrogen market Industrial hydrogen market Automotive hydrogen market Storage reservoirs
CO2 emissions for the Netherlands: The visions compared 500 251 % 450 218 % 400 204 % CO2 emissions (Tg) 350 174 % 300 Vision A 250 200 Vision B 100% 102 % 79 % 150 49 % 100 24 % 50 20 % 19 % 0 1990 2050 frozen efficiency material savings energy efficiency renewables CO2 storage
Findings... - Two worlds, two systems, one, feasible, target. - Strong economic growth can be combined with severe GHG emission reductions - Without far going measures, strong economic growth can lead to very high GHG emission levels. - Principal choices for the organization of the energy system in 2050 can be made: standards of living, consumption patterns, sustainable use of fossil fuels, nuclear energy, renewables, import, energy efficiency, material efficiency. - Huge efforts required (R&D, revised infrastructure and processes ) - No scenario s, but starting points for the dialogue!
Source: N. Nakićenović et.al., IIASA, 1998 ESSENTIAL: Technological Learning in perspective
The Innovation Chain Research and Development Demonstration projects Early deployment (cost buy-down) Widespread dissemination
Reference Scenario: Will the Investment Come? Cumulative Investment in Energy-Supply Infrastructure, 2005-2030 = $20.2 trillion (in $2005) Exploration & development 73% Refining Other 18% 9% Electricity 56% Oil 21% Exploration & development LNG chain Transmission and distribution 56% Gas 19% rillion $0.6 t $3.9 trillion Power generation 54% Transmission & distribution 89% Mining 11% Shipping & ports $11.3 trillion $4.3 trillion Biofuels 1% 46% Coal 3% 7% 37% Just over half of all investment needs to 2030 are in developing countries, 18% in China alone
Energy R&D Reported R&D budgets and GDP in IEA countries (billions U$-1998) Year Fossil 1983 1990 1995 1997 1.61 1.74 0.90 0.69 Nuclear (fission +fusion) 7.52 5.02 4.20 3.87 Energy conservation 0.82 0.54 1.05 0.94 Renew ables Other Billion U$ 1.03 0.58 0.68 0.59 1.09 1.21 1.39 1.43 12.07 9.90 8.22 7.52 Percentage GDP 0.158 0.056 0.037 0.034 GDP (trillion 1998 U$) 7.64 16.23 22.44 21.99 The tragedy: increasing wealth and reduced expenditures on energy R&D, in particular for key alternatives!!!
Policies for Sustainable Energy An energy future compatible with sustainable development will not happen by itself, thus policy change is required, including: Making markets work better, including mobilizing investments Focusing on the innovation chain Reforming the power sector Increasing capacity to support policy and institution building, and transfer of technology
Making markets work better Setting the right framework conditions (including continued market reform and appropriate regulatory measures and policies) to encourage competitiveness in energy markets and protect public benefits Setting accurate price signals, including removal of subsidies to fossil fuel energy and some internalization of externalities (Subsidies of $100-200 billion/year to conventional energy.) Supporting technological leadership and capacity building in developing countries Encouraging greater international cooperation
Final remarks Technically, a sustainable energy system with a high level of economic development is possible around 2050 provided all key options are pursued at high speed (including saturation of demand and demographic development) and that requires fundamental changes in energy technology development, deployment and investment patterns. An international issue (of course).