Facts and Figures Electricity Generation

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1 Facts and Figures 2008 Electricity Generation

2 Electricity Demand Development of the European and Global Electricity Demand The global population is increasing by 78 million people per year. Consequently, the number of people has doubled between 1960 and today i.e. within roughly five decades. At present, approximately one quarter of the global population of 6.8 billion people does not yet have access to electricity. Electricity consumption will grow faster than any other form of energy consumption. It is expected that today s electricity consumption of 18,988 TWh will almost double to roughly 37,800 TWh worldwide by One-fifth of the electricity generated globally roughly 3,310 TWh is required in the European Union (EU). A 30 % rise in demand is alone expected by Experts estimate that fossil fuels will continue to cover most of the extra demand. Fossil fuels will still account for roughly 70 % of electricity generated worldwide in About a half of the electricity generated in the EU will come from fossil fuels by that time. Renewable energy sources will play a growing role in the global primary energy consumption structure. Likewise, nuclear power will maintain an important position in global electricity generation and will even grow in some countries. Contents Electricity Demand 2-3 Availability and Import Dependencies 4-5 Electricity Generation in the EU 6 Electricity as Rationalisation Energy 7 New Power Plants in the EU 8-9 Electricity Generation Options Renewables EU Targets Renewables and Decentralised Small Plants Nuclear Power Worldwide Nuclear Power in Europe Efficient Coal and Gas Power Plants Carbon Capture and Storage (CCS) Climate Policy VGB Activities 26-27

3 Expected growth in electricity generation in 10 9 kwh (TWh) in the EU Expected growth in electricity generation in 10 9 kwh (TWh) worldwide 4,500 4,000 35,000 30,000 3,500 3,000 25,000 2,500 2,000 1,500 1, ? Hydro power, wind, biomass, solar Nuclear Coal Gas Oil 20,000 15,000 10,000 5, Hydro power, wind, biomass, solar Nuclear Coal Gas Oil Source: Eurostat, IEA, own calculations Source: IEA Page 2 3

4 Availability and Import Dependencies Availability, Range and Import Dependency of Energy Sources Existing primary energy reserves and resources, in particular when including unconventional sources, are still sufficient in terms of fossil fuels and uranium around the world. Hard coal and lignite as well as uranium are the most widespread. However, energy sources have an uneven geographical distribution, which means that some countries and regions, including the European Union, are becoming increasingly dependent on imports. The EU s fossil fuel reserves amount to approx. 75,000 million tonnes of coal equivalent, accounting for only 5 % of the known reserves worldwide, and consist mainly of lignite and hard coal. The natural gas and oil reserves amount to approximately 5,000 million tonnes of coal equivalent. Europe s dependency on imported coal will grow from approx. 30 % today to more than 60 % by An import dependency of 81 % is expected for natural gas and of as much as 88 % for oil. Overall, the share of imported energy will increase from approx. 50 % today to roughly 70 % by The causes of this are the nuclear phase-out chosen by some countries, along with the decreasing of cost-effectively exploitable European energy reserves. Only lignite will still be extractable from open cast mines at competitive costs in some countries in the long term. Static range of energy sources worldwide as well as reserves and resources (in years) Oil Conventional Nonconventional Natural gas Conventional Nonconventional Hard coal Lignite >200 > 1,000 Years Source: Bundesanstalt für Geowissenschaften und Rohstoffe (BGR), OECD/NEA Reserves: Share of the resources which are documented and which can be used costeffectively with today s available technologies. Resources: Additional deposits that are documented but cannot be exploited economically with current technology Uranium = Reserves = Resources 1,425 1,264

5 Development of dependence on energy imports of the EU between 1990 and 2030 Dependence on imports in % % Hard coal Oil Natural gas +165 % +100 % Total Mean trend of prices (1990 until 2007) Source: European Commission, Statistik der Kohlenwirtschaft e.v. Page 4 5

6 Electricity Generation in the EU Demand for New Power Plant Capacity Electricity demand in the EU is expected to rise from roughly 3,300 TWh per year today to around 4,300 TWh in Due to the age structure of the power generation portfolio and the political decision to phase out nuclear power in Germany, there will be a generation shortage of around 2,000 TWh. With regard to the installed electricity generation capacity of approx. 752,000 MW, this means there will be replacement demand for new plant capacity of around 300,000 MW by So how will this gap be filled? Assuming a technically feasible average utilisation period of 7,500 hours per year for thermal power plants and 3000 hours per year for wind power plants (both onshore and offshore), the following requirements can be calculated: 167 1,600 MW nuclear generating units, or 242 1,100 MW lignite generating units, or MW hard coal generating units, or MW combined gas and steam power plants, or 133,333 5 MW wind power plants (+ reserve capacity of 80 %, e.g. 267 hard coal generating units or gas and steam power plants) These figures alone make it clear that a mixture of energy sources is required both now and in the future to safeguard electricity generation. Demand for new plant capacity due to ageing of the portfolio and increase of the demand 1) 2006 Wind and other renew. 8 % Nuclear 17 % Coal, gas, oil 57 % Hydro power 18 % Installed capacity in EU in GW Wind Coal, gas, oil Nuclear Hydro power Additional demand 300,000 MW until 2020 Replacement demand 1) The planned operation years of the power plants in the EU vary considerably. Aging curves are only qualitatively. Source: EU - Energy and Transport Outlook

7 Electricity as Rationalisation Energy Primary Energy Saving through the Efficient Use of Electricity Over the last years many developed countries have been able to separate growth in gross domestic product from increases in primary energy consumption. This has been especially due to the increased use of the particularly flexible and efficient form of energy, electricity. On the one hand, this development is reflected by the trend towards a service society. On the other hand, advances in energy generation and use have also played an important role. These were achieved, for example, through more efficient power plants and improved energy efficiency on the end-use sector, e.g. via electronic control systems. Against the background of drastic price increases for oil and gas, we can expect to see new areas of application in the transport and heating sectors in future. Innovative electric vehicles (e.g. plug-in hybrid concepts) are being developed by car manufacturers while electrically operated heat pumps using geothermal heat are also gaining ground. To summarise: More electricity is needed to save energy. Otherwise, there is a risk that primary energy and emission balances will deteriorate unnecessarily because of prescribed or forced electricity savings. Development of important indicators for the EU-27 Index 2,2 2 1,8 1,6 1,4 1,2 1 0,8 0, Gross domestic product Electricity consumption 1998 Year Primary energy consumption Source: Eurostat 2008 Page 6 7

8 New Power Plants in the EU Planned New Power Plant Projects in the EU The need to replace older power plants and the increase in electricity consumption in Europe have led many companies to plan new construction projects. Also, against the backdrop of CO 2 emissions trading and the worldwide increase in energy demand coal, natural gas and nuclear power remain the most important primary energies for generating electricity. Currently new projects based on natural gas with a capacity of around 83,000 MW have been announced. New construction projects based on coal and lignite as well as peat at present make up a plant capacity of approximately 40,000 MW. In regard to nuclear power two new plants are currently being built in the EU, in Finland (Olkiluoto) and in France (Flamanville), with around 3,300 MW, while another 4,000 MW are planned in Bulgaria, Romania and Slovakia. Capacity increases are also planned for or being implemented in existing power plants. Roughly 53,000 MW of new power plant capacity is currently planned on the basis of renewable energies, such as wind, hydro power and biomass. On the whole, new projects with a total capacity of approximately 186,700 MW have been announced. New power plant capacities in the EU Share of energy sources Annouced from 2007 by 2016: Total 186,685 MW Gas (82,731 MW, 44 %) Oil (3,100 MW, 1.5 %) Hard coal (35,048 MW, 19 %) Lignite and peat (4,730 MW, 3 %) Nuclear (7,770 MW, 4.0 %) Hydro power (3,233 MW, 2 %) Wind (48,979 MW, 26 %) Biomass (819 MW, 0.4 %) Residues and waste (187 MW, 0.1 %) Whether all the new projects that have been announced will actually be Other renewables (88 MW, 0.03 %) built will depend largely on future developments of primary energy prices and also on underlying political conditions (country-specific bonus/penalty arrangements) in the course of CO 2 reduction strategies. Source: Data base VGB as of 8/2008

9 Total capacity of announced new power plant projects in the EU (since 2005 and outlook) 60,000 50,000 Other renewables Wind Capacity in MW 40,000 30,000 20,000 Hydro power Nuclear Residues and waste Biomass Lignite and peat Hard coal 10,000 Oil Gas 0.0 Austria Belgium Denmark Finland France Germany Greece Ireland United Kingdom Hungary Italy The Netherlands Norway Poland Country Portugal Spain Sweden Czech Rep. Slovakia Romania Bulgaria Source: VGB Page 8 9

10 Electricity Generation Options 46 % of Electricity Generation in Europe is Already CO 2 -free Share of the individual energy sources in the EU s electricity generation energy mix (2007) 10 % Hydro power 6 % Wind, Biomass, other Renewables renewable 30 % Nuclear 31 % Coal 20 % Gas Others (Oil etc.): 3 % Source: Eurostat, Europrog

11 Advantages and disadvantages of the relevant electricity generation alternatives Hydro power Pros Climate-protecting electricity generation with no CO 2 emissions High plant efficiency Cost-effective operation Network services are available extremely quickly Flood protection support Wind/Biomass Pros Climate-protecting CO 2 -free/ CO 2 -neutral electricity generation Potential for further improvement in efficiency Construction of offshore wind parks Biomass plants can be used in base load Nuclear Pros Climate-protecting electricity generation with no CO 2 emissions Cost-effective and reliable supply with no critical import dependency High safety standard at western nuclear power plants Coal Pros Hard coal can be procured cost-effectively by many providers on the world market Lignite coal in Europe is a readily available domestic raw material Power plant technology has great potential for efficiency improvement Gas Pros Most environmentallyfriendly fossil fuel with relatively lowest CO 2 emissions Electricity generation in highly efficient power plants Short erection times and low investment costs for new plants Cons Serious obstacles imposed by new environmental protection targets Expansion of existing potential is problematic for environmental policy reasons High investment costs for new plants due to extensive compensatory measures not relating to electricity generation Cons Generation not yet economic Wind power plants can be used only in combination with conventional power plants and/or storage facilities due to the wind-related fluctuations Electricity generation from biomass is in competition with heat generation and fuel production Cons Social acceptance problem in some European countries Long licensing process under nuclear law Extensive effort and cost required for safety Disposal and final storage of nuclear fuel not yet resolved politically Cons Growing demand for hard coal (predominantly from China and India) and limited transport capacities entail price risks CO 2 emissions higher than for natural gas Flue gases require cleaning with corresponding cost and effort for plants Cons Volatile natural gas prices are leading to large fluctuations in electricity generation costs Dependency on imports form a possible supply risk Increasing concentration of export sources in politically unstable regions Page 10 11

12 Renewables EU Targets Renewable Energies EU s Ambitious Targets for 2020 The share of renewable energy sources in total energy consumption in the European Union is to be increased to 20 % by The EU Commission set this as a binding target in the energy package passed in spring As a comparison, at the end of 2005 the share of renewable energy sources in total energy consumption was 8.5 %. As the frame conditions and the potentials terms of renewables and also the energy mix in the individual member countries vary considerably, the European Commission tied the national targets for the use of renewable energy sources to the total energy consumption and published these figures on 23 January To achieve this extremely ambitious target a 20 % share of renewables in total energy consumption the share of renewable energy sources used in electricity generation in the European Union must rise from about 15.5 % in 2006 to approx. 34 % in For direct heating and cooling an increase to around 18 % would be required. Hydro power is still a reliable renewable energy source. It also plays a very important role in the provision of reserve power/peak load and network services by pumped storage plants. Numerous new hydro power projects as well as expansions and retrofits are being implemented or are planned for Electricity generation based on renewables in EU (15.5 % of total electricity generation in 2006) 41 TWh 82 TWh 90 TWh 302 TWh Total: 521 TWh RES-electricity in EU % 34 % 6 TWh Biomass Geothermal Large hydro power Small hydro power Wind Source: Eurostat

13 the near future, for example, in Austria, Switzerland, France, Germany and Portugal. Essentially, these deal with the utilisation of more supplementary generation or (pump) storage capacities by expanding or optimising the systems at existing locations. An important step is also increasing the efficiency of plants by replacing older machines and components with new, higher performance designs. The continuing expansion of renewables in Europe and also in Germany will be characterised mainly by the use of wind energy. At the end of 2007 in Germany there were around 19,460 wind power plants with a capacity of 22,247 MW in operation. At this time the installed capacity in Europe was 57,136 MW and worldwide 93,864 MW. But the weather-related fluctuation and unreliable electricity generation of wind turbines places considerable demands on the existing and future power plants, for example, in terms of providing reserve power. To fulfil the targets of the European Union it will be necessary to expand the use of wind power further. However, this should be done mainly at very favourable wind locations and with consideration of power plant-specific criteria. These requirements can be supported by various measures, such as integrating a condition monitoring system or developing appropriate EU sets target of 20 % from renewables for total energy consumption by 2020 Sweden 39.8 Latvia 34.9 Finland 28.5 Austria 23.3 Portugal 20.5 Denmark 17 Estonia 18 Slovenia 16 Romania 17.8 France 10.3 Lithuania 15 Spain 8.7 Germany 5.8 Greece 6.9 Italy 5.2 Bulgaria 9.4 Ireland 3.1 Poland 7.2 United Kingdom 1.3 The Netherlands 2.4 Slovakia 6.7 Belgium 2.2 Czech Rep. 6.1 Cyprus 2.9 Hungary 4.3 Luxembourg 0.9 Malta 0 EU 2005: 8.5 % 2020: 20 % Share of renewables for total energy consumption in 2005 Gap by 2020 Source: European Commission Page 12 13

14 Renewables and Decentralised Small Plants maintenance strategies. In addition, the use of the reference designation system for wind power plants developed by VGB (RDS-PP) can also make a contribution for this purpose. In particular, for more use of offshore wind energy it will be necessary to professionalise the operation of wind power plants. The existing offshore wind parks in Denmark and the UK show that the design of wind power plants is not yet ideal and that numerous damages have occurred. There are also many safety and maintenance issues that still have to be solved. Besides, electricity generation from offshore wind parks in Germany also faces some special challenges because most of the parks are planned in much deeper waters than the existing ones. In addition to wind power the use of biomass can make a considerable contribution to electricity generation. However, further market penetration will be shaped by price developments and the availability of fuels and feedstock. Electricity generation from biomass is also in competition with heat generation and fuel production. In 2020 biofuels are supposed to have a minimum share in the fuel sector in every member country of the European Union. For the use of biomass the issue of sustainability is very important, especially in terms of the provision of food. Wind power: Development of installed capacity Installed capacity in MW 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, Germany USA Spain EU Worldwide Source: EWEA

15 The co-combustion of biomass has developed into an important technology for CO 2 -neutral electricity generation across Europe in the last few years, such as in the UK, Italy, Denmark, Belgium and the Netherlands. The main advantages of co-combustion are the shared use of existing plants, a widely usable range of fuels and the achievement of higher levels of efficiency for electricity generation from biomass. A very dynamic market is evolving in the area of biomass pellets for use in power and heating plants, which should grow significantly in the coming years. Decentralised small plants fuel cells, micro gas turbines and Stirling engines could open up new areas of application for combined heat and power generation. But market-oriented developments have to be realised for these plants. Only when system costs are drastically reduced and suitable technical solutions are available these innovative energy conversion technologies can be integrated into the energy market. Biomass: Development of electricity generation in the EU 90 Electricity generation in TWh Germany 80 Finland 70 United Kingdom Sweden 60 EU Source: Eurostat Page 14 15

16 Nuclear Power Worldwide Nuclear Power Continued Expansion Worldwide In 2007, net electricity generation from nuclear power was around 2,600 billion kwh worldwide. The share of nuclear power in worldwide electricity generation has been roughly 15 % for more than a decade. On a cumulated basis since the first commercial nuclear power plant was commissioned in Calder Hall in England in 1956 around 55,000 billion kwh of electricity have been produced. This corresponds to roughly three times the current annual global electricity demand. Experience in operating nuclear power plants has grown to 12,750 reactor years. The growth of nuclear electricity generation in the 1980s is remarkable. During this time the large power plant projects with unit outputs in excess of 1,000 MW, which were started in the 1970s due to the pressure of the first oil price crisis, went into operation and provided considerable generation capacity. In the 1990s through to the present there was a smaller increase, mainly in threshold countries and in Asia s industrialised countries, where demand for electricity has grown considerably. Electricity generation from nuclear power worldwide Availability in % Others Japan USA Year EU 3,000 2,500 2,000 1,500 1, Electricity generation in 10 9 kwh Source: atw 4/2008

17 Nuclear Power: Plants, Planned Shutdowns, New Plants and Projects USA France Japan United Kingdom Russia Canada Germany Rep. Korea India Ukraine Sweden Spain Belgium Taiwan Bulgaria Slovakia Switzerland Italy Czech Rep. Finland Hungary China Argentina Brazil Lithuania Mexico Pakistan South Africa Armenia The Netherlands Romania Slovenia Iran Planned shut downs: 23 Under Construction: 62 Projects: 175 Currently 443 nuclear power plants with a total of 391 GW operate in 31 countries, another 62 are being built and are at the conceptual engineering stage, while roughly 175 more are planned to be commissioned by After limitations and reversals in the decisions to phase out nuclear power in Sweden, Belgium and Spain, Germany is the only country in the world committed to phasing out nuclear power in the short term. In addition, because of their age, four plants will close in the UK in the next few years. The EU made the two plant shutdowns in Lithuania and Slovakia conditions of them joining the union. Source: IAEA, Deutsches Atomforum, E.ON Page 16 17

18 Nuclear Power in Europe Nuclear Power: New Plants in Europe In the energy mix of the future nuclear power and large hydro power plants will offer an important option to provide CO 2 -free base load electricity at a reasonable price. Consequently, worldwide and also in Europe, where nearly half of the worldwide nuclear capacity is located (193 units), countries are once more increasing their development of nuclear power. In 7 of the 19 European countries using nuclear power new nuclear power plants are currently being constructed or are in the planning phase. The UK, Switzerland and Italy have also announced extensive programmes to build new plants. Over the last years the development of sophisticated reactors has been advanced worldwide. The focus of this work is to further optimise safety, resource conservation and economic efficiency. These Generation III+ nuclear power plants are ready for the market and are the basis for the new plants that will be built in coming years. As a consistent further development of the nuclear power plants operating today they combine experience and innovation. On an international level producers offer more than eight different Generation III+ reactor types covering a capacity spectrum from 500 to 1,700 MW. Site Type Start of con struction In service Rostov 2 Russia VVER Kalinin 4 Russia VVER Olkiluoto 3 Finland EPR Flamanville 3 France EPR Novovoronesh 6-7 Russia VVER St. Petersburg 5-6 Russia VVER Belene 1-2 Bulgaria VVER Kmelnitzki 3-4 Ukraine VVER Cernavoda 3-4 Romania Candu Mochovce 3-4 Slovakia VVER Sites UK Type 1, 2 oder Olkiluoto 4 Finland? Fennovoima Ltd Finland SWR-1000? Sites Italy Ansaldo/ West Beznau 3 Switzerland? Mühleberg 2 Switzerland? Niederamt Switzerland?

19 1. AREVA EPR 2. Westinghouse AP Atomenergoprom VVER-1000/V-491 PWR MW PWR MW PWR 950 MW 4. Mitsubishi APWR 5. AECL ACR General Electric/Hitachi ESBWR PWR MW CANDU MW PWR MW Page 18 19

20 Efficient Coal- and Gas Power Plants Efficient Coal and Gas Power Plants are Still Indispensable Technological development CO 2 emissions can be reduced gradually through technological development. The volume of CO 2 produced from hard coal electricity generation alone could be reduced by around 35 % worldwide if low-efficiency power plants (the average global efficiency factor currently stands at 30 %) were replaced by power plants with a 46 % efficiency factor (current state-ofthe-art). Therefore the gradual reduction of CO 2 emissions by technological development is the first option. It would result profitable on three counts: Resource protection, as less fuel is required for generating the same amount of electricity Substantial reduction of CO 2 emissions Increased electricity generation from the same fuel amount In the long term, electricity generation from fossil fuels could take place virtually CO 2 -free through capture and underground storage of CO 2. From today s perspective, the following technologies are possible in this respect: Pre-combustion CO 2 capture Pre-combustion capture can be used for gas turbine combined cycles. In an IGCC process, the fuel reacts with air or oxygen to produce a synthetic fuel-gas that contains CO 2. The CO 2 is separated and the fuel-gas is used in a gas turbine combined cycle. Post-combustion CO 2 capture Post-combustion capture normally uses a solvent to capture CO 2 from the flue gas of power plants. The flue gas comes into direct contact with the solvent in an absorber column and CO 2 is scrubbed. The CO 2 is then dissolved in a further process step. Combustion with oxygen (Oxyfuel) Oxy-combustion is the term for the combustion of fossil fuels with pure oxygen. The required oxygen is obtained from an air separation unit. The flue gas contains CO 2 and steam. The steam is condensed and separated as water from the flue gas. Thus the CO 2 can be stored with no further downstream processing.

21 CO 2 reduction potential of coal-fired power plants 1) Average worldwide CO2 emissions per kwh 30 % 1,116 g CO 2 /kwh 480 g coal/kwh Total climate gas emissions Efficiency 1) CO 2 emissions Fuel consumption 1) Average data for hard coal-fired power plants EU 38 % 881 g CO 2 /kwh 379 g coal/kwh State-of-the-art technology 45 % 743 g CO 2 /kwh 320 g coal/kwh Steam power plant 700 C-technology about 50 % 669 g CO 2 /kwh 288 g coal/kwh CCS technology But: Efficiency loss 7 to 12 % points Time CCS: Carbon Capture and Storage. Source: VGB Page 20 21

22 Carbon Capture and Storage (CCS) Fossil Fuel Power Plants with Virtually no CO 2 Emissions in Europe from 2020 Experts agree that the technology of CO 2 Capture and Storage (CCS) is a solution which could massively reduce CO 2 emissions. The Zero Emission Fossil Fuel Power Plants (ZEP) European technology platform has developed a research and market launch strategy for this, in order to realise the vision of CO 2 -free electricity generation from 2020, specifically: 1. Initiate necessary research and development work Fastest possible implementation of major CCS network demonstration projects in Europe Development of new concepts, which have already been identified but not yet verified, for demonstration by and launch after 2020 Promotion of long-term research and development activities for progressive, innovative ideas in order to implement next-generation technologies 2. Support of the EU-Flagship-Programme By end-2010: Development of a detailed portfolio of 10 to 12 large scale CCS demonstration plants. Technical, economical, political, operational, and commercial aspects should be taken into account. 3. Develop legal framework for geological storage of CO 2 By mid-2008: supplement existing EU law (regarding waste and water) in order to clarify the conditions for underground CO 2 storage By early 2010: implement new EU directives on geological storage into national law (including risk management, site selection, operation, monitoring, reporting, verification, closure, maintenance) 4. Provide information about CCS Harmonised EU-wide information campaign (TV, Internet, print media) Intensive on-site information programme to assist early mover CCS projects

23 CCS - Bridge to a Sustainable Energy System As a safe and efficient method for capturing and storing several billion tonnes of CO 2 underground for thousands of years, CCS could form a bridge to a sustainable energy system. The underground storage of CO 2 must not pose any risk to health, safety or the environment neither in the short term nor the long term. Once the potential of CCS technology will have been fully exhausted, CO 2 emissions within the European Union could be cut by 50 % by 2050 compared to today according to a model calculation of the Bellona environmental association. This will take into account all sectors including industry and transport. The power plant sector alone would provide a reduction of around 30 %. However, the work will all be in vain without the authorisation and approval of licensing authorities and the general public. Therefore it will be essential that CCS involves safe and reliable technology. Source: Page 22 23

24 Climate Policy Climate Policy: Global Approach Needed Between 1990 and 2006 greenhouse gas emissions in the European Union (EU-27) fell by 7.7 %; for the EU-15 the decline is 2.7 %. These figures were given in the latest annual report from the EU on the inventory of greenhouse gas emissions in the EU. In accordance with the Kyoto Protocol the EU is committed to reduce greenhouse gas emissions by 8 % for the period 1990 to 2008/2012. The European Council has also set an ambitious target of a 20 % reduction by A global approach is needed: To stabilise and reduce CO 2 emissions worldwide action based on the principle of effectiveness and cost efficiency has to be taken. Cost-efficient measures such as insulation of buildings, fossilfired power plants with higher levels of fuel efficiency, expanded use of renewables at the right locations or further use of nuclear energy, etc. must be applied with priority and without prejudice. The International Energy Agency, IEA, has developed a stabilisation concept with which a reduction to 23 Gt (450 ppm CO 2 in the atmosphere) compared to the reference scenario (42 Gt CO 2 in 2030) will be achieved through a range of such measures. Development for worldwide CO 2 emissions 1990 to 2030 by regions 10 9 t of CO Other regions China/India 5 0 USA EU Source: UNFCC 2004

25 CO 2 emissions of different power plants in g CO 2 equivalent per kwh, calculated for the life cycle of the power plant Lignite Hard coal Oil Natural gas Gas Combined Cycle Solar Nuclear Wind Hydro power 16 to 23 8 to 16 4 to to to Ranges result from different methods of calculation and different site implications. 980 to 1, to 1, CO 2 Emissions ppm Stabilisation Case Achievable or Science Fiction? Gt of Energy-Related CO 2 Emissions Gt Reference Scenario 450 ppm Stabilisation Case 42 Gt 10 Year By 2030, emissions are reduced to some 23 Gt, a reduction of 19 Gt compared with the Reference Scenario. CCS in industry 3 % CCS in power generation 9 % Nuclear 13 % Renewables 20 % Switching: coal to gas 8 % End use electricity efficiency 17 % End use fuel efficiency 30 % 23 Gt Source: PSI Paul-Scherrer-Institut, Switzerland Source: IEA, World Energy Outlook 2007 Page 24 25

26 VGB Activities Tasks of the VGB Secretariat VGB PowerTech e.v. is the European technical association of electricity and heat generation. According to its tasks, the VGB Secretariat is divided into the Competence Centers: Nuclear Power Plants, Fossil-fired Power Plants, Renewables and Distributed Generation, Environmental Technology, Chemistry, Safety and Health Operational Services. These competence centres are dealing with all issues of power and heat generation and related environmental topics in close co-operation with EURELECTRIC at European level and with BDEW at national German level. To perform its duties the VGB Board has opted for honorary committees. The VGB Technical Advisory Board is responsible for appointing the members and fixing the tasks. Currently four General Committees are active with their numerous Technical and Special Committees as well as Working Panels. Scientific Advisory Board Competence Centers for the generation of power and heat Nuclear Power Plants Fossil-fired Power Plants General Assembly Board of Directors Management Renewables and Distributed Generation VGB Committees Environmental Technology, Chemistry, Safety and Health Technical Advisory Board Operational Services Teams Research IT Marketing Administration

27 VGB PowerTech e.v. We are a voluntary association of companies that focus on power plant operation and related technologies, i.e. these fields are an important basis of the entrepreneurial activities of our members. The offices of the association are located in Essen. Our objective is the support and improvement of operating safety and environmental compatibility as well as availability and efficiency of power plants for electricity and heat generation, either in operation or under construction. Currently we have 444 members in total, comprising operators, manufacturers and institutions connected with energy engineering. Our members come from 32 countries worldwide and represent an installed power plant capacity of 500,000 MW, 441,000 MW of which are in Europe. Our tasks are to utilise and bundle international experience, offer expertise for current tasks and tomorrow s challenges, represent our members interests. Currently 444 companies from 32 countries are members in our association: Fossil-fired power plants 306,000 MW Nuclear power plants 130,000 MW Hydro power plants and other renewables 64,000 MW Total 500,000 MW EU: 412 members in 20 countries Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, The Netherlands, Poland, Portugal, Romania, Slovenia, Spain, Sweden, United Kingdom Europe: 18 members in 4 countries Croatia, Russia, Switzerland, Turkey Outside Europe: 14 members in 8 countries Argentina, Brazil, India, Israel, Japan, Libya, Mongolia, South Africa Total: 444 members in 32 countries Page 26 27

28 VGB PowerTech e.v. Klinkestraße Essen Germany Editorial: K.A. Theis (responsibel), Ulrich Langnickel, Hans-Joachim Meier, Ludger Mohrbach, Christopher Weßelmann Internet: Tel.: