sustainable energy - martin krause
TRANSCRIPT
Sustainable Energy - global
context and ECIS opportunities
and challenges
Brussels, 10 December 2014
Martin Krause
Global Energy Policy Team Leader &
Energy and Environment Practice Leader for Europe and CIS
Household
•Promotion
of energy
efficient
cook stoves
in Kenya
•Promotion
of PV in
rural and
peri-urban
Sudan
Village
•South
Africa
Wind
Energy
Program
National •Standards
and Labels
for
appliances
Regional /
Global
Focus of SGP – 2,000 projects GEF
•District
Heating in
Armenia,
Yerevan
Municipality
Promoting clean energy across a range of scales
Energy is central to human development
SE4ALL goals by 2030
Universal access
to modern energy
services
Doubling the share
of renewable energy
Doubling the rate of
improvement in
energy efficiency
Energy Access
4
Intermittent power supply and its consequences
Interruptions in electricity service delivery often mean reduced access to
water, sanitation, irrigation, health and other social services that rely on an
adequate electricity supply.
Consequences on
healthcare and social
wellbeing
Agriculture is dependent on irrigation, and as a result of intermittent and
unreliable electricity supply farmers turn to highly inefficient off-grid diesel-
powered generators to power irrigation pumps.
Consequences on
agricultural production
An insufficient and intermittent supply of electricity inhibits the productivity of
households and businesses as well as the types of activities and businesses
that can be sustained.
Consequences on
economic activities
Alternative off-grid solutions (such as diesel or coal fired generators) may
address the inadequate supply in the short term, however, they have serious
long-term environmental consequences.
Consequences on the
environment
Energy access and intermitten heat supply
Solid fuel use, Rural vs. Urban by Sub-region
Average % of population type using solid fuels
60.00
50.00
40.00
30.00
20.00
10.00
0.00
EU Central Asia WB and Turkey Western CIS Caucasus Region
ECIS Sub-region
Average % of Rural population
using solid fuel
Average % of Urban population
using solid fuel
Source: UNDP, 2014: Sustainable Energy and Human Development in Europe and the CIS
Energy access and energy secturity
Energy Imports Net (% of Energy Use)
Energy Imports % Percentage
100
80
60
40
20
0
-20
-40
-60
-80
-100
Mold
ova
Bela
rus
Turk
ey
Arm
enia
Kyrg
yzst
an
Georg
ia
Cro
ati
a
FY
RO
M
Ukra
ine
Taji
kis
tan
Serb
ia
BiH
Koso
vo
Alb
ania
Monte
negro
Uzbekis
tan
Russ
ia
Kazakhst
an
Turk
menis
ta
n
Azerb
aij
an
Source: UNDP, 2014: Sustainable Energy and Human Development in Europe and the CIS
Energy access and energy poverty
Electricity Price and Electricity Share of Total Household Expenditures
Electricity price (US cents/kWh)
20
18
16
14
12
10
8
6
4
2
0
0 1 2 3 4 5 6 7 8
Source: UNDP, 2014: Sustainable Energy and Human Development in Europe and the CIS
Electricity as a share of total household expenditures (%)
Opportunities to improve energy access
Reducing intermittency of supply
Increased commitments to eliminating cross
subsidisation, tariff reforms and energy price
increases.
Reducing energy poverty
In many cases, targeted social adjustment through
welfare benefits might be more cost-effective than
subsidies.
Increasing energy security
A number of countries have begun expanding
alternative capacities away from undiversified
energy power mixes.
Energy efficiency
10
Energy intensity in the building sector
Breakdown of the residential final energy consumption in selected countries
Source: UNDP, 2014: Sustainable Energy and Human Development in Europe and the CIS
3% 1% 10%
24%
62%
Uzbekistan (2010)
37%
2%
16%
31%
14%
Uzbekistan (2010) FYR of Macedonia (2013)
11%
26%
56%
7%
Heating Hot water Cooking Lighting Appliances
Further challenges of energy efficiency
Uncomfortable thermal conditions in homes, combined with low quality
lighting, contribute to higher medical bills and productivity loss.
Energy efficiency
and health
Problems at health and educational facilities, due to non-existent or low
quality heating and electricity supply, undermine the human potential and
ultimately contribute to lower labour productivity.
Energy efficiency and
productivity
An often still immature market and the marketing of the available financial
products is not well developed. Lack of experience
The high losses that occur due to energy inefficiencies result in high
greenhouse gas emissions.
Energy efficiency and
the environment
Education facilities are also affected by low thermal comfort and low lighting
and the consequent reduction in school attendance undermines the human
potential of the country
Energy efficiency and
education
Opportunities to improve energy efficiency
Huge potential to improve energy efficiency
Energy efficient construction and efficient thermal retrofitting of building
represent the highest potential for energy savings.
More countries adopt energy efficiency targets
By 2010, about half the countries of the ECIS region had adopted laws
on energy efficiency and set national energy efficiency targets.
High sectoral vs. low per capita energy consumption
As economies develop and inequalities rise, reducing energy demand
through energy efficiency technologies and practices becomes a cost-
effective solution.
Energy efficiency improvement
brings numerous cost-effective
and near-term benefits.
Renewable Energy
14
15
Current status of renewable energy in the region
World share of renewable energy source in
total primary energy supply, 2010
ECIS share of renewable energy source in
total primary energy supply, 2010
Source: UNDP, 2014: Sustainable Energy and
Human Development in Europe and the CIS
Source: UNDP, 2014: Sustainable Energy and
Human Development in Europe and the CIS
Non-Renewable Energy 86.7%
Hydro Energy 2.3%
Other Renewable Energy 11%
Geothermal 0.5%
Solar Energy 0.1%
Wind 0.2%
Renewable Municipal Waste 0.1%
Solid Biomass 9%
Others 1%
Note: Solar energy includes both
photovoltaic and thermal energy
Non-Renewable Energy 96.2%
Hydro Energy 2.4%
Other Renewable Energy 1.4%
Geothermal 0.2%
Solar Energy 0.04%
Wind 0.02%
Solid Biomass 1.1%
Others 0.01%
Note: Solar energy includes both
photovoltaic and thermal energy
Barriers to renewable energy deployment
Limited and expensive experience with renewable energy deployment and
financing
Lack of grid access and inadequate transmission infrastructure
Logistical and Supply Chain related challenges
Technical and
Informational
Lack of government commitment to renewable energy deployment
Lack of transparency in decision making processes
Retroactive policy changes
Country risk
Political and
Institutional
Difficulty doing business
Capital scarcity
Access to energy market
Market distortions
Economical and
Financial
17
Opportunties for renewable energy (1)
Tremendous technical potential for RE
exploitation
There is tremendous potential to exploit renewable resources,
such as wind, solar PV, biomass, geothermal and small
hydropower for electricity generation.
Breaking the prevalence of fossil fuels
Removal of fossil fuel subsidies and a reallocation of the
originating savings in the tax budget can actually have a reducing
effect on low income household’s energy bills.
Increasing Energy Security
Renewable energy deployment can achieve energy security by
diversifying energy portfolios.
18
Opportunties for renewable energy (2)
Increasingly adopted RE policies
The majority of countries in the region have adopted a feed-in tariff
or feed-in premium legislation in recent years.
Constantly decreasing technology costs
For example, since 2008 the cost of solar modules decreased by 80
percent.
Significant growth of RE in certain countries
Electricity from wind power installations grew by 54 percent
between 2000 and 2010.
De-risking renewable energy investment
If plants can be built in favourable geographical, as well as
favourable financial conditions including a low cost of capital,
increasing numbers of renewable energy power plants can now
financially out-compete fossil fuel alternatives.
Hydro
Sola
r
Win
d
Geoth
erm
al
Bio
mass
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0% 54.2%
1.5 % 5.4 %
13.4 %
-1.0%
19
Outlook
There are still major challenges on
the road to massive deployment of
sustainable energy solutions in the
region…
…however there are also significant
opportunities for scaling up
economically profitable solutions to
enhance energy access, energy
efficiency and renewable energy.
Key elements for promoting sustainable energy solutions
Governments: policies,
subsidies
Development partners: capacity
development + business skills
Private sector: manufacture, sell & service
energy technologies +
embrace entrepreneurial
spin-off
Civil Society: mobilize
communities & disseminate information
Financial Institutions: loans, micro-
financing
