Day 4: Securing a sustainable energy future

UN Secretary General Ban Ki-moon addresses trained 500 elderly women from 64 countries to become the Daegu 2013 Congress solar panel engineers. After leaving the Barefoot College campus, they return to their homes and help bring electricity On the closing day of the World Energy Congress, UN to their villages for the first time. When delivering energy Secretary General Ban Ki-moon reaffirmed his pledge to the world’s unconnected, “we need to keep solutions to provide 1 billion people across the globe access to simple,” Roy said. sustainable energy by 2030. “Energy is the golden thread that connects economic Sustainable Energy For All: One year later growth, environmental health, social fairness and opportunity,” said Ban in a Providing energy for more than a billion of the world’s poor pre-recorded video address. will need good governance in developing countries and a In 2010, the UN, with collaboration from willingness in developed nations to tolerate increases in the World Bank, launched the Sustainable greenhouse gas emissions, the World Energy Congress Energy for ALL (SE4ALL) Initiative. “Clean, was told on 17 October. Kandeh Yumkella modern, and affordable energy services § “In one petroleum-rich country with a population of 150 CEO, SE4ALL essential for sustainable development and million, half the people are off the electricity grid. If they spent achieving the Millennium Development 0.6 per cent of their oil income on electrification, they could Goals (MDGs),” the Korean-born Secretary General said. provide electricity for everyone,” said Fatih Ban set out the initiative’s three primary goals, which include Birol, Chief Economist of the International providing universal access to modern energy sources, Energy Agency (IEA). “So it is essentially a double the worldwide rate of energy efficiency, and double governance issue.” But Birol warned that the global share of renewable energy. where strong governments have been able Secretary General Ban urged his audience to take swift to provide electricity to large numbers of action to bolster his energy agenda. “No other energy citizens, the fuel of choice was not green, gathering brings together such a wide range of actors,” he but black. “It was coal,” said Birol. “Take said. “I ask you to lead by example in securing tomorrow’s the Korean example. The government has Fatih Birol energy today.” articulated a policy of green growth. And Chief Economist Kandeh Yumkella, the UN Secretary General’s Special yet if you look at the figures you will see International Energy Representative & CEO of the SE4ALL initiative, praised that Korea achieved its miraculous growth Agency (IEA) South Korea for setting an example of how fast a country can thanks largely to coal. And this is true for the industrialise and bring prosperity to its citizens. “Energy was region as a whole.” the core of the revolution here,” he told at the Daegu 2013 Birol was speaking on a panel discussing the UN’s SE4ALL Congress on 17 October. Yumkella noted the government- Initiative, unveiled one year ago by Secretary General Ban led drive that brought Korea from the third world to first world Ki-moon. Experts from other international agencies agreed in just one generation can be a model for today’s developing that requiring the developing world not only to provide economies. the poor with energy but also to demand that the energy The official said a major flaw within the UN’s MDGs was sources be sustainable was inconsistent with reality. that access to energy was left off the table. He said without “We cannot tell people in Kenya that we will give them electricity, hospitals cannot operate and four million women financial support but only if they refrain from using coal,” and children die from smoke inhalation in their homes. “If said Kandeh Yumkella, the UN Secretary General’s Special you care about health, if you care about women, we better Representative & CEO of SE4ALL. “These people cannot make sure they have access to energy,” he said. afford to be green.” Bringing electricity to poor communities starts from the The World Bank’s Director of Sustainable Energy, Vijay ground up, said Sanjit Bunker Roy, Founder of India’s Iyer stressed that it was up to the developed world to Barefoot College. “What’s happening at the top is not “help bring costs down.” Iyer raised the example of reaching those at the bottom,” he said. His foundation has hydroelectricity as an option for cheap and sustainable

World Energy Insight 2013 35 energy for developing countries. national grid. “By 2030, we will make solar energy count for 40 Bruno Lescoeur, CEO of Italy’s Edison, cited the case per cent of our energy mix,” said Noureddine Boutarfa, CEO of a hydro project in Laos that sells part of the electricity of Sonelgaz. So far, solar panels have delivered electricity to it produces to Thailand while providing some for Laos to 18 villages and there are plans to introduce the technology to promote industrial development. Lescoeur also argued other desert communities. Boutarfa added that Algeria is an on behalf of nuclear energy. “The industry has good ideal country for further innovations in renewable resources infrastructure and good capability.” since it enjoys 3,000 hours of sunlight a year. Birol stated that large turn-key projects may prove too Following the Fukushima nuclear accident, the future of expensive for the poorest of the world’s poor. “You cannot Japan’s energy policy has become unclear. Nuclear power tell people who have no access to energy that they need to was expected to supply half of Japan’s total energy needs, use clean energy if it is more expensive than what they can but that is now impossible, according to Kenji Yamaji, afford. You have to let them use whatever makes economic Director General of RITE in Japan. Japan “must fill the gap sense.” Birol indicated that in all likelihood that will mean and renewables will play an important role,” he said. This coal. “But even if all the 1.3 billon people who at present may mean the use of solar panels could see an even greater lack access to energy were to rely on thermal energy for increase during the upcoming years as Japan tries to devise their power, the amount of CO2 that would be released a new energy strategy. However, the recent return to power in the atmosphere is a tiny fraction of amounts released of the Liberal Democratic Party could mean a return to a today,” Birol said. nuclear driven policy, Yamaji added. Clear policies and government regulations are basic Renewables: Making the business case for essentials to implementing a successful renewable energy distributed energy mix into a nation’s power grid, said José Luis Aburto, Planning Director of Mexico’s Governments across the globe are still innovating ways Federal Electricity Commission (CFE). to incorporate renewables into their national energy mix. But, he added, what works in one region This process presents challenges for both developed and doesn’t always mean the same results developing economies. Perhaps the biggest can be achieved in another. The strategy question for poor countries remains how “has to be designed for the needs of the to make new technologies affordable for community” and depends on mature citizens, many of whom live on $1 a day. technology that can produce energy And for wealthy nations, such as Japan, the reliably. William introduction of renewables has become a D’haeseleer necessity following the 2011 accident at the Creating Utilities 2.0: New Chair, Belgian Fukushima nuclear power plant. business models for smart National Member Noureddine For Lebanon’s government, some of energy Committee, WEC Boutarfa those answers were found in already existing CEO, Sonelgaz financing structures. Pierre El Khoury, The rise of new technologies in “smart energy” and customer Director the Lebanese Centre for Energy behavioural changes is reshaping the utility industry, posing Conservation (LCEC), said renewable energy became “a a possible threat to the centralised utility model. serious alternative to [diesel] generators and blackouts.” That Instead, the utilities business may be moving towards was thanks to zero-interest loans that the central bank gave to a decentralised energy system, which can put power citizens who gave up generators in favour of solar panels. El sources closer to the consumer, foster the more optimal Khoury said Beirut is hoping to expand its renewables policies use of renewables, and increase eco-efficiency, said by working with the national bank to start offering “green William D’haeseleer, Chair of the Belgian National Member energy” loans to more power deprived Lebanese. Committee of the World Energy Council. “Is the decentralised The Algerian government also has found success installing model the natural way to go?” D’haeseleer asked. “When solar panels to communities that are not connected to the we talk about the new model, are we only talking about the

36 World Energy Insight 2013 context of sustainability, or can we still play with oil and gas new energy sources to structuring the best mix of public systems?” He also asked if traditional utilities can survive and private incentives to curb carbon emissions, the the coming market shifts. discussion session attempted to draw lessons from Participants offered differing forecasts for the utilities the four days of meetings among more than 250 global industry, ranging from complete decentralisation to partial energy leaders. decentralisation with homes and products that still interact “The need to include new players at the heart of the mainly with a centralised grid. They agreed, international system is very clear,” said Ged Davis, CEO however, that the centralised model may of Forescene SA, a Swiss-based energy consultancy be breaking down, and that the utilities “This is no longer a world where government and market is moving towards decentralisation. government industries control things — we’re moving The discussants also agreed that the into an open source governance world,” he said, adding changes offer hope rather than perils. there would be increasing instances of tension between “This is an opportunity to address national sovereignty and the need for international energy poverty,” said Charles-Emmanuel cooperation. Davis added that the tremendous strides Michael Howard Chosson, the Paris-based Global in world population and GDP growth afforded by the CEO, EPRI Assurance Power and Utilities Leader for fossil fuels revolution of the previous century were EY. “Smart energy” can improve efficiency unlikely to be repeated in the 21st century, but that the and capacity. At the same time, technology can allay world would likely turn its attention to environmental concerns and address the “intermittency pressing environmental issues. problem” that erodes the efficiency of renewables, he said. Leena Srivastava, Honorary Executive “In terms of the power system, in generation, delivery and Director of The Energy and Resources for consumers of electricity, there has been a tremendous Institute in India, urged the global amount of change,” said Michael Howard, President & CEO industry to look at the developing world of the Electric Power Research Institute (EPRI) in the US. It in a holistic and inclusive way. “Energy is “critical” that the various parts of the power system work in its wider context can bring about together, he said. He used the example of microchips inside huge changes on the social side as Adnan Shihab- products such as refrigerators, which could detect peak well as the environmental side,” she Eldin usage, communicate with the electricity grid, and adjust the said. “A lot of what we need in the Director General, timing of processes like defrosting. That prospect would cut developing world has yet to take place Kuwait down waste, offering a new level of energy efficiency. — but it requires us to think outside of Foundation for the Others identified the coming challenges. Colin Calder, our comfort zone.” Srivastava pointed Advancement of Founder & CEO of PassivSystems, a maker of smart home to microfinance programmes and the Sciences products in the UK, said that energy companies have a soaring demand for mobile phones, “weak” understanding of information communication and along with the energy innovations required to charge technology (ICT) and consumer behaviour. “Consumers them, as trends that arose in the developing world but are being empowered to generate their own power for less are of global relevance. money and a fixed cost,” he said. “The more we empower Adnan Shihab-Eldin, Director General of the Kuwait consumers, the better we will be as a nation.” Foundation for the Advancement of Sciences, called for government to play a strong role in fostering energy Energy Leaders: New thinking, more changes. “We need to ensure that government can take participation needed for tomorrow’s challenges the lead — the benefits take time, so the government needs to take over,” he said. He stressed the need for The world needs to revamp much of its thinking to meet policies that ensure all countries can use renewable the energy challenges of the 21st century, industry energy from the beginning of planning their energy mix. experts said on October 17 at the closing plenary At the same time, “we cannot pick and choose which session of the World Energy Congress. From fostering one of the new sources will win or lose.”q

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