Securing European Energy Supplies: Making the Right Choices

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1 Security Securing European Energy Supplies: Making the Right Choices E CEPS Jean-Paul Peers Energy and Climate Policy cs i m no o c Cl im ate

2 Increasing power consumption even with slow global economic growth Demographic dynamics Population growth: 7.5 bn in 2020 (+1.1 bn) Megacities (>10 million inhabitants): 27 megacities in 2025 Source: UNO Increasing power consumption Seite 2 Resource scarcity Climate change Geopolitics: 70% of world oil and gas supplies only in a few countries Oil price fluctuations Climate targets: Political programs for long-term reduction of CO2 emissions Need for efficiency: Increasing electrification of society Growing demand for clean power

3 1) Optimization of energy mix Privileged feed-in of renewables - Wind power - Solar thermal power - Photovoltaic 33,000 TWh 2,2 % p.a. Renewables 17% Water 15% Nuclear 15% 20,300 TWh 3% 16% Intermediate-load/ peak-load for load leveling -With high efficient, high flexible combined cycle PP Gas 20% 13% Oil 2% 21% 6% Coal Low-emissions base load - CCS - Nuclear - Hydro 32% 41% Power Consumption Seite 3

4 Integration of Renewable Energies Use of hydro power in China Use of renewable energy in Europe Wind > GW Hydro > GW Hydro > GW k km 2000 km CO2 Abatement: t/a Solar > GW Powerful wind energy plant Wind off-shore plant High-efficient turbines solarthermal power generation Seite 4 m Load Centres Integration of renewable energies via HVDC PLUS Energy lines with UHVAC and UHVDC Gas-insulated lines (GIL)

5 2) Efficiency along the energy conversion chain Seite 5

6 Irsching - The worlds most efficient gas turbine with more than 60% efficiency CCPP Sustainability Triangle Security of Supply Economics Climate Change Seite 6 Impact >Increased electricity output >High flexibility and availability >Lower generation costs (fuel etc.) >Less EU-ETS allowances >Only 345g CO2-emissions per kwh, power generation worldwide: 578g aver. EU in the World >Decreasing dependence on energy imports >EU leading green technology for global implementation >Contributes to meet EU S international emission reduction targets

7 The usage of Power Electronics increases efficiency Example: E-Car Example: All Electric Oil&Gas In an electric car, electricity from batteries is converted to kinetic energy with 95-percent efficiency. Seite 7 Traditional Concepts: All-Electric Solutions: Gas turbine direct drive of compressors and pumps Central power generation and all drivers E-motors Efficiency: 20-25% Efficiency: 34-50%

8 3) Systemic optimization: Smart Grid The future s intelligent grid Operational factors Network conditions and requirements Greater network complexity and vulnerability Fluctuating infeed Aging infrastructure and lack of experts Integration of massive remote stochastic generation Increasing distance between generation and load High supply quality Integration of distributed energy resources External influences Drivers for flexible and (cost)-efficient grids Seite 8

9 Smart Buildings as a prosumer - a new active element within Smart Grids High energy tariffs Low energy tariffs Intelligent filling of storage capacities, e.g.: Load e-car Load thermal storage (boiler, ice, building structure, indoor air) Minimal use of CHP Use comfort band to build reserves Building is energy consumer to grid Grid CHP : Combined Heat & Power Seite 9 BMS Consumer Storage CHP BMS : Building Management System Use energy from storage, e.g.: Use reserves in e-car Empty thermal storages Maximum use of CHP Minimize el. consumption within comfort band Use or sell self produced energy (PV, wind, CHP ) Switch to oil or gas Building may even deliver energy to grid Grid PV : Photo Voltaic

10 Distribution Grid enabling load side in-feed large centralized power plants supply the majority of power demand CO2 emissions are constantly on display Smart Grid Application at Decentralized Generation large and very small generation plants need to be managed in parallel car-parking for plug-in vehicles, buy or sell electricity shaving peak loads energy corridors underground by Gas Insulated Lines or cables (DC or AC) wireless sensors and smart metering coupled to load management and market driven energy supply software Seite 10 storage plants buffer fluctuating generation

11 Transmission Grid enabling bulk renewable in-feed large storage plants buffer fluctuating generation nano-materials enhance insulation and conductivity of equipment Bulk Power Generation and Long Distance Transmission CO2 sequestration and storage facilities large centralized power plants supply the majority of power demand supply of deep-sea oil & gas exploration and production wind farm connected by Gas Insulated Lines or cables (DC or AC) Seite 11