“Big” energy vs. renewable and local energyNew opportunities for sustainable power supply and to curb power shortage

Peter Wooders International Institute for Sustainable DevelopmentC-20 Summit, Moscow. 13 June 2013

IISD

Champion of SD since 1990. Across the world.

• Independent Policy Research Institute

• Offices in Canada, Geneva, New York

• Geneva Office of 20 serves WTO, Europe

• Works across Sustainable Development

Energy’s role in Sustainable Development

CENTRAL• Energy is critical to meeting MDGs, post-2015

SDGs

• Electricity key to

• Welfare and economic opportunity in LDCs

• Knowledge economy

A Financially Sustainable Electricity System1. Cover its operating

costs

• across supply chain

2. Maintain the system

• minimising power outages

3. Generate investment for expansion

4. Meet environmental and social norms

Challenges to financial sustainability

1. Electricity supply getting more expensive – at least from conventional sources

• Fossil fuel prices high, volatile

2. Electricity is ever more valuable

3. Governments can’t finance everything

4. Internalising costs of pollution, etc. largely incomplete

5. Consumers don’t want to pay more

Positive signs

It’s not all doom and gloom

• Normal operations generate investment capital

• Solar PV competitive with diesel

• Wind costs of same order as natural gas

Recommendations for national governmentsMake fair financial comparisons

Create fair non-financial conditions

Look for better alternatives to low electricity prices for all

Debate widely

Fossil Fuel Subsidy reform and G-20

Environmental Sustainability and Energy WG Recc. #14

1. Improve reporting

2. Implement a peer review mechanism

3. Dialogue with others engaged in the issue

4. Commission research to support each G-20 Member

5. Interpret the commitment text

6. Phase out by 2020

Thank you

pwooders@iisd.org

www.iisd.org, www.iisd.org/gsi