IAEE Energy Forum
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Issn 1944-3188 First Quarter 2019 IAEE Energy Forum COntents President’s Message 7 Are Community Energy Systems the Solution for nergy in all its dimensions! Growing Urban Energy EOil, nuclear, electricity networks, residential and Demand? industrial consumers, energy and environmental policies, 9 RGGI: Not a Proven Template technologies, marketing... All these disciplines are fields for State Action Yet of researches and studies for IAEE members, but they are 11 The Future of World Energy also the professions that I have had the opportunity to 13 The Digital World Knocking at practice throughout my career that I started in Dhahran, Electricity’s Door: Six Building the city where Saudi Arabia’s first oil well was drilled. Blocks to Understand Why My first contact with IAEE took place at a conference 17 OPEC Is an Important Energy in Washington, DC more than thirty years ago. I never Policy Tool to Keep Oil imagined then that I would be called upon to preside Markets Stable over it one day. 20 North American Conference Report Dear members and friends, it is therefore an honor 33 Forget the Government: and an immense pleasure to ensure the leadership of Promoting Renewables with this great international institution. Voluntary Action I thank the past presidents, and in particular the last one, David Knapp, as well as 37 Eurasian Conference Report all IAEE officers such as our Executive Director David Williams and his team, the chief 41 The Role of Renewables in editors of our publications, for leading IAEE to this state of excellence and for making Nigeria’s Energy Policy Mix it a reference for energy economics. 47 Renewable Integration Impact In developing our institution’s strategic action plan in 2018, I was able to identify Assessment: The MISO high expectations from the community of energy experts, economists, policy makers, Experience and more broadly from all stakeholders in the global energy system. 51 Technological Change in To date, our community includes 3900 members in 120 countries. Aware of the Service of the Environment extent and diversity of expectations, I want 2019 to be a year of transformations in 55 Solar PV Electrification in New the services we will provide to the global economy. Regions: International Low-carbon Energy Transition • Because we are experiencing an awakening of global geopolitical tensions, new power relations are emerging that are affecting security of supply in the 59 The Political Economy of Carbon Pricing After the U.S. short and long term. Exit from the Paris Agreement • Because we are aware of the two-way relationship between economic growth 61 Enhancing Renewable Energy and access to affordable energy, all States on the planet must benefit from for Sustainable Development economic science applied to energy to build their public policies. in Nigeria • Because new capital-intensive technologies, and in particular RES and per- 64 Asian Conference Report haps CCUS, are needed in the energy mix, financing needs and market rules 70 Calendar should be adapted. • Because, as responsible energy economists, our duty requires us to look be- yond the short term, we must together mobilize opinions and leaders on two Published By: priorities: the fight against climate change and the fight against fuel poverty. Thus, for IAEE to strengthen its effectiveness in its competence areas, several projects will be launched or strengthened: • Geographical extension: because ‘one size does not fit all’, we must adapt and fight against inequities, especially including Africa with appropriate academic research. After South Africa in 2018, we want to strengthen the community of economists elsewhere in Africa, in Central Asia, in India and in the Middle East, continued on page 2 International Association for Energy Economics president’s message (continued) the consumer become the master of the game? • The dissemination of our community’s research work Centralized production and governance leave more is necessary to support energy transition projects in room for local production and decision-making. Positive different countries. We will strengthen the services energy territories are being imagined all over the world. provided by social networks that will value and The deployment of renewable energies connected to enhance our conferences and publications, local networks accelerates this decentralization process. What is the declared objective of this decentralization • Close monitoring and enhanced exchanges with the movement? To best meet the needs of each locality and, world’s leading research institutes will be set up to ultimately, each consumer. enhance the impact factor of our publications and Indeed, the consumer himself is gaining more and our influence on public policies. more weight in the energy system. It is impossible to think • One of our institution main strengths comes from local without taking into consideration the individual, the the innovative visions brought to us by the many IAEE consumer. Tomorrow’s consumer will decide whether or PhD students members. As they move to professional not to install solar panels or acquire an electric vehicle, life, we want them to remain IAEE members and I and manage his or her energy program. V2G” schemes will invite them to make it a priority. could, for example, substantially modify the power Last year, I had the opportunity to meet many of distribution investment priorities. The paradigm shift is you at our conferences in Pretoria, Athens, Groningen, therefore great: the final consumer is no longer just a Washington DC, Baku, Wuhan,... consumer; he produces, when he wants to. The energy This year, the IAEE agenda will be framed by several board is thus on the verge of being overthrown: the pawn conferences, including: gradually becomes the master of the game. This phenomenon is further exacerbated by severe • The 7th IAEE Latin American Conference in Bue- environmental constraints. The latest IPCC report, nos Aires (Argentina) from 10 to 13 March 2019 published in October 2018, warns that in 15 years’ time, • The 16th IAEE European Conference in Ljubljana not a single gram of CO2 can be emitted if the target of (Slovenia) from 25 to 28 August 2019 +1.5°C is to be achieved. These constraints imply not only • The 1st IAEE / EVER Monaco Conference: local the mobilization of States, but also of local authorities, governance of electromobility in Monte Carlo companies and citizens. The maturation of CO2 capture (Monaco) on 8 May 2019 and storage technologies, the massive deployment of • The 4th Eurasian IAEE Conference in Astana (Ka- renewable energy sources and/or the adoption of large- zakhstan) from 17 to 19 October 2019 scale energy efficiency measures are also emerging as key • The 1st IAEE Energy Summit in Bangladesh on 21 technological solutions. Here, taking the consumer into October 2019 consideration is again decisive. Environmental constraints • The 37th IAEE North American Conference in will probably only increase the role of the consumer in Denver, November 3-6, 2019 the energy system. IAEE’s highlight will be the 42nd International Conference, At the same time, a centralized energy planning is probably held in Montreal from May 29 to June 1, on the theme still necessary. The legitimate aspirations of territories to “Local Energy, Global Markets”. contribute more to their own energy governance must All over the world, governance systems are changing be taken into account, without compromising solidarity and are getting closer to the end consumer. This is why and economic performance at the global level. A balance I propose to our community an article based debate on between the local and the centralized is not impossible. the possible transformations of the energy system: will newsletter disClaiMer IAEE is a 501(c)(6) corporation and neither takes any position on any political issue nor endorses any candidates, parties, or public policy proposals. IAEE officers, staff, and members may not represent that any policy position is supported by the IAEE nor claim to iaee MissiOn stateMent represent the IAEE in advocating any political objective. However, issues involving energy policy inherently The International Association for Energy Economics is an independent, non-profit, global involve questions of energy economics. Economic membership organisation for business, government, academic and other professionals analysis of energy topics provides critical input to energy policy decisions. IAEE encourages its members concerned with energy and related issues in the international community. We advance the to consider and explore the policy implications of their knowledge, understanding and application of economics across all aspects of energy and work as a means of maximizing the value of their work. IAEE is therefore pleased to offer its members a neutral foster communication amongst energy concerned professionals. and wholly non-partisan forum in its conferences and web-sites for its members to analyze such policy implications and to engage in dialogue about them, We facilitate: We accomplish this through: including advocacy by members of certain policies or positions, provided that such members do so with full • Worldwide information flow and • Providing leading edge publications respect of IAEE’s need to maintain its own strict political exchange of ideas on energy issues and electronic media neutrality. Any policy endorsed or advocated in any IAEE conference, document, publication, or web-site posting • High quality research • Organizing international and should therefore be understood to be the position of regional conferences • Development and education of its individual author or authors, and not that of the IAEE nor its members as a group. Authors are requested students and energy professionals • Building networks of energy concerned to include in an speech or writing advocating a policy professionals position a statement that it represents the author’s own views and not necessarily those of the IAEE or any other members. Any member who willfully violates IAEE’s political neutrality may be censured or removed from membership.