Basics on electricity
-
Upload
pierrette-roger -
Category
Documents
-
view
40 -
download
1
description
Transcript of Basics on electricity
October 2006 1
UNFCCC – DIALOGUESecond WorkshopDecember 16, 2006NAIROBI
EDF contribution to the dialogue : sharing our experience on climate change, development and policy instruments
Claude NAHONEDF Senior Vice president Sustainable Development
October 2006 2
1
Basics on electricity
October 2006 3
Electricity key drivers
Access to electricity, like water and transport
• a key driver to ensuring sustainable developmentSecurity of supply in oil/gas/electricity : a major question
• increasing interdependence• gradual exhaustion of fossil fuels:
Climate change : the need to control CO2 emissions
• Electricity sector an important contributor to the whole GHG emissions• CO2 free technologies available such as renewables, hydro and nuclear• electricity use important vector to generate energy saving in other sectors
Massive need for new investments : an opportunity
• renewal of existing facilities in developed countries• growth in developing countries• no silver bullet, no "miracle technologies“
incl. Gas, the price of which has doubled with regard to the 90s and which emits CO2
October 2006 4
What are the main basics concerning electricity sector ?
Two thirds of the world electricity are generated from fossil fuels
40% of greenhouse gas emissions
Over the next 30 years:
• Huge demand Developing countries (China,
India...) Europe (700 GW for renewal) USA
• Ready answer: coal Accessible and affordable But would double volumes of
greenhouse gas emissions
Necessity to:
• Improve energy efficiency • Improve demand side management• Deploy low carbon and carbon-free
technologies • Accelerate R&D on promising
technologies, including carbon sequestration (demonstrators)
Coal
35%
Nuclear
17%
Renewables 19%
(up to 92% Hydro)
Oil
10%
Gas
19%
October 2006 5
2
What does EDF group do ?
October 2006 6
EDF group strategy
Energy efficiency : Meeting our obligations in France or in UK
All our sales departments have now energy efficiency targets Our new promotion campaigns are “energy efficiency oriented”
CO2 free electricity :
Remaining the group with the lowest emission per kWh rate among the main European companies
• Investment in Renewables and nuclear EDF "Energies Nouvelles" n°1 in wind power in France with 20% market share. EDF Group will invest 3 billions € in new wind farm projects by 2010 (same
magnitude as investment in new nuclear plant)
Access to electricity :
Keeping momentum
Promoting our replicable “SSD” model Through PPPs
R&D :1% of our turnover is spent in R&D programs
• which include : New renewables geothermal, photovoltaic Energy efficiency Smart metering and network
October 2006 7
Public/Private partnerships – Development/Environment
• Promoting the concept of “decentralized services companies” in developing countries
• pilot experiments in rural areas in Mali, Senegal, Morocco and South Africa
• to ensure access to basic energy services
• Presently developing the Nam Theun 2 project in Laos– construction is now underway.
• 1100MW hydroelectric plant• 1.4 billion € investment (in partnership with
mainly the Laotian government, the World Bank, the Asian Development Bank and Thai investors)
• 13% of the investment for social and environmental issues (biodiversity, water usage, populations’ movements)
• rising Laos’s GDP by 30% • saving more than 1 million tonnes of CO2 per
year
Public-private partnerships
• are an important and appropriate tool for development given the character of the electricity industry
• need a clear regulatory framework stable in the long term providing the right incentives to
investors.• need a financial framework that allows
the development of replicable and viable financial models
October 2006 8
Working within partnerships :e8, Eurelectric, WBCSD, ….
Testing and gaining experience with the CDM process with the e8 group.
• Bhutan CDM-registered project
supplying hydro-electricity to a remote village in Bhutan
First e8 project to be officially registered under the CDM
• Potential CDM projects: Ecuador (Galapagos): Re-
powering using wind energy Madagascar: Development
of a mini-hydro project and distribution system in a remote area
Collaborating in discussions and statements in Eurelectric through the Joint Statement on Future Climate Change Frameworkpresented last year
Or working with WBCSD
• in the Energy and climate focus area in its trilogy : Facts and trends, Pathway 2050 and the last presented yesterday “Policy directions 2050”)
• In different working groups (electricity utilities, energy efficiency in buildings,…
October 2006 9
3
Policy Instruments, Markets Oriented Approaches and International Regimes
October 2006 10
The Emissions Trading Scheme experiment in EU :a Market based approach
We are entering in the third year of the system
a carbon price has emerged and starts to channel behavior changes in day to day operations, but not on the investment side
it is the first time that such a market instrument works at a regional scale with different national entities
The implementation of the ETS system in the electricity sector enables underlying difficulties to surface :
Energy policies at member state level but not at EU level Strong diversity of the member states’ electricity mix Subsidiarity in the implementation of some critical ETS rules
Many lessons can be taken on board to make the ETS instrument incentives investment correctly in our sector and possibly pay a larger role
give long term visibility move to more harmonization between national implementations articulate markets approach with other policies and measures
October 2006 11
Routes to follow or to be experimented : we need all !
Up to 2012, make the Kyoto Protocol work as well and well as possible
• realize the full benefits of JI and CDM• learn the lessons of all experiences, including the ETS trading experience
Fuel the ongoing process with appropriate ideas in order that they become shared by all
Have in mind that sectoral approach would help to move to an appropriate international architecture
Find the right balance between UNFCCC framework, Kyoto Protocol framework and local frameworks
Use the market-oriented mechanisms to build progressively linkages between the various approaches :
• How are Parties ready to use markets ?• Are Parties ready to sign on targets on the short term ?
October 2006 12
Thank you for your attention