Sustainable Energy Development Myth or Reality

1
Sustainable Energy Development Myth or Reality ?

• Sustainable Energy Day 2001
• Harry Schaap
• Assistant Director Environment and Sustainable
  Energy
• ESAA Ltd
• Schaap_at_esaa.com.au

2
Overview

• Using electricity supply as a focus
• Where are we now and where are we going ?
• Some sustainable energy development dimensions
• Policy setting
• Energy efficiency
• Renewables
• Taking some of the hard steps

3
SUSTAINABLE DEVELOPMENT

• Development which meets the needs and aspirations
  of the present generation without compromising
  the ability of future generations to meet their
  own needs
• Using, conserving and enhancing the community
  resources so that ecological processes, on which
  life depends, are maintained, and the total
  quality of life, now and in the future, can be
  increased

4

• Where Are We Now and Where Are We Going ?

5
ENERGY GROWTH 1993 to 1998 (per annum)

• Overall world energy growth 2.4
• Overall renewable energy growth 2.0
• Nuclear 2.2
• Fossil fuel 2.6
• Wind 25
• Photovoltaics 4.9
• World electricity generation from renewables
  20.2 (mostly large hydro)

6
Total Energy Supply, Exports and Consumption
(98/99) (Pj)
Australia
Total supply 14196 Pj Total exports
8983 Pj Conversion losses 1945
Pj Total consumption 3268 Pj
3.9 Pj
7
Energy Available for Final Consumption 3268 Pj
(98/99)
8
Primary Energy Use in Electricity Production
(98/99)
Primary energy 1990.4 Pj (fuel conversion loss
66.3, power station and network loss
2.3) Electricity for final consumption 624.8 Pj
(173.5 TWh)
9
Public End-use Consumption (1998/99)
161 762 GWh
10
The Value of Electricity, Gas and Water in
1999-2000

• Value added 11,314m
• This amounted to 2.8 of national GDP
• The annual growth rate was 2.9
• The electricity, gas and water sector employed
  0.9 of Australias labour force.
• Source Dept of Industry Science Resources 2001

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Electricity Price Comparisons Large User -
January 2000
12
Total Electricity Generation Growth (GWh)
13
Greenhouse gas emissions by sector (1999
inventory, excluding land-use change (Mt CO2
equiv.))
108 of 1990
14
Greenhouse Gas Emissions(Excluding Land-use
Change) (Mt)
estimate
15
Emissions (Including Renewables and Generation
Efficiency)
16

• Sustainable Energy Development
• Policy Setting
• Energy Efficiency
• Renewables

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SUSTAINABLE ENERGY POLICY

• Commitment to improving the well-being of this
  generation of Australians and to laying a firm
  foundation that this will enable future
  generations to prosper
• Commitment to implement measures in the energy
  sector that provide continued improvements in our
  economic prosperity and protect our natural
  environment from unacceptable and irreversible
  damage

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Towards a National Energy Policy (1)

• Objectives
• Encourage efficient provision of reliable,
  competitively-priced energy services
• Encourage responsible development of Australias
  energy resources, technology and expertise
• Mitigate local and global environmental impacts,
  notably greenhouse impacts

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Towards a National Energy Policy (2)

• Principles
• Recognise the importance of competitive and
  sustainable energy markets
• Continuously improve Australias national energy
  markets
• Enhance the security and reliability of energy
  supply
• Stimulate sustained energy efficiency
  improvements
• Encourage efficiency economic development and
  increase application of less carbon-intensive
  energy sources and technologies
• Recognise the Australias energy markets operate
  in a wider global context
• Provide transparency and clarity in government
  decision-making
• Consider social and economic impacts on regional
  and remote areas
• Facilitate constructive, effective
  inter-jurisdictional cooperation and productive
  international collaboration

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Ministerial Council on Energy

• Objectives
• Provide national oversight and coordination of
  policy development to address the opportunities
  and challenges facing Australias energy sector
• Provide national leadership so that consideration
  of broader convergence issues and environmental
  impacts are effectively integrated into energy
  sector decision-making

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UN Commission on Environment and Development

• Requirements of business
• Integrate environmental criteria in purchasing
  policies
• Design more efficient products and services
• Increase life spans of durable goods
• Improve after sales service
• Reuse and recycle
• Promote sustainable consumption through
  advertising, marketing and product information
• In other words improving energy and resource use
  efficiency and reduce consumption

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What Governments Must Do?

• Stimulate market forces
• Promote more efficient use of materials and
  energy
• Establish pricing structures that internalise
  environmental costs
• Support recycling and reuse on a life-cycle
  basis
• Provide flexibility to choose effective solutions
• Support a process of continuous improvement
• Stimulate economic growth
• Promote innovation
• Minimise trade barriers
• Encourage technology and systems sharing

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World Business Council for Sustainable Development

• Companies have a responsibility to
• Address entire life-cycle of goods and services
• Apply principles of eco-efficiency
• Procure and request products and services with
  reduced environmental impact
• Make available accurate, scientifically sound
  environmental information in order to inform
  purchasing, use and disposal

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SUSTAINABLE ENERGY DEVELOPMENT

• ultimate sustainability of energy is based on
  renewable resources
• extending sustainability of fossil fuels through
  supply and end-use efficiency and through new
  technologies
• Using current energy resources to create economic
  and intellectual wealth for sustainability
• Improving energy efficiency and reduce the carbon
  intensity of energy supply
• making fossil fuels technologically obsolete or
  redundant

25
Electricity and Sustainable Development

• Prerequisite for a networked world of the future
  vehicle for the most productivity gains
• Key role in addressing the problems of
  population, poverty and pollution
• 1000 kWh/person/year minimum needed to move from
  immediate survival needs to amenity needs such as
  education, environment, and intergenerational
  investment
• Ideal energy carrier for economic and social
  development

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Electricity Use Per Capita (kWh)
27
Energy Intensity per US1000 of GDP
28

• Sustainable Energy Development
• Policy Setting
• Energy Efficiency
• Renewables

29
Electricity, Greenhouse and Cost Benefit Test (in
2010)

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• Sustainable Energy Development
• Policy Setting
• Energy Efficiency
• Renewables

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MRET Supply and Demand Issues
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Commissioned, Committed and Proposed Capacity
(GWh/year) (after Redding)
Generation 10800 GWh/year
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Projected Generation Costs in 2010 (/MWh) (after
Redding)
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Green Power Customers -- Are Numbers Increasing
and Do They Buy Energy?
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Renewable Energy Action Agenda

• Vision To achieve a sustainable and
  internationally competitive renewable energy
  industry, which has annual sales of 4 billion by
  2010
• Five key strategies
• Market development
• Building community commitment
• Building industry capability
• Setting the policy framework
• Encouraging a culture of innovation
• Nine initiatives covering twenty-five identified
  actions are in the process of being implemented

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• Taking Some of the Hard Steps

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Global Sustainability Targets

• Education universal access to education and
  technical training
• Industrial ecology reduce industrial waste
  streams to near zero and minimise the need for
  virgin resources
• Transportation electrify over 50 of global
  transportation
• Water use cut agricultural and industrial water
  use by half
• Decarbonisation triple the global rate of
  decarbonisation from 0.3 to 1 per year
• Energy efficiency double energy efficiency of
  total energy chain from 5 to 10
• Energy intensity accelerate decline from 1 to
  2 per year
• Electrification universal global
  electrification, basic service of 1000 kWh per
  person per year
• Infrastructure universal availability of fresh
  water, sanitation, commercial energy and
  communications