Role of clean energy in the context of Paris Agreement
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1 Role of clean energy in the context of Paris Agreement Peter Janoska, Energy Analyst, IEA COP 23, Bonn, 15 November 2017 IEA
2 The IEA works around the world to support an accelerated clean energy transitions that is enabled by real-world SOLUTIONS supported by ANALYSIS and built on DATA IEA 2017
3 Global CO 2 emissions flat for 3 years an emerging trend? Gt Global energy-related CO 2 emissions IEA analysis shows that global CO 2 emissions remained flat in 2016 for the third year in a row, even though the global economy grew, led by emission declines in the US and China.
4 How far can technology take us? GtCO 2 40 Reference Technology Scenario RTS Technology area contribution to global cumulative CO 2 reductions Global CO 2 reductions by technology area 2 degrees Scenario 2DS Beyond 2 degrees Scenario B2DS Efficiency 34% 40% Efficiency 40% Renewables Renewables 15% 35% 35% Fuel switching Fuel 5% switching 18% 5% Nuclear 6% Nuclear CCS 14% 1% 6% Gt CO 2 cumulative reductions in CCS 32% 14% Pushing energy technology to achieve carbon neutrality by 2060 could meet the mid-point of the range of ambitions expressed in Paris
5 The potential of clean energy technology remains under-utilised Solar PV and onshore wind Energy storage On track Electric vehicles Nuclear Transport Fuel economy of light-duty vehicles Energy-intensive industrial processes Accelerated improvement needed Lighting, appliances and building equipment More efficient coal-fired power Carbon capture and storage Building construction Not on track Transport biofuels Recent progress in some clean energy areas is promising, but many technologies still need a strong push to achieve their full potential and deliver a sustainable energy future.
6 Can we push up the low-carbon power deployment pace? Average capacity additions in different periods in the B2DS Last year Last Decade GW per year Fossil CCS (Incl.BECCS) Nuclear Hydro Wind Solar PV Other renewables Recent successes in solar and wind will have to be extended to all low-carbon solutions, and brought to a scale never experienced before.
7 Indicators of energy system transformation: Power sector example 600 Global fleet average and new-build plants emissions intensity of power generation in IEA scenarios gco 2 /kwh Energy Efficiency 12% Electricity Networks 14% Thermal Power 7% Power Generation 23% Coal 4% Historic 2DS average 2DS new build 100 Oil & Gas 46% The average carbon intensity of new power capacity needs be at around 100 grammes of CO 2 per kilowatt hour (gco 2 /kwh) in 2025 and close to zero gco 2 /kwh by 2050, requiring further steep reduction.
8 The future is electric Global final electricity demand Change in final electricity demand in Statistics RTS 2DS B2DS Transport Agriculture TWh TWh 0 Services Residential Industry DS vs RTS B2DS vs 2DS Electricity becomes on a global level the largest final energy carrier in the 2DS and B2DS, with the electricity share in final energy use more than doubling compared to today, up to 41% in the B2DS in 2060.
9 The fuel mix to generate electricity is vastly different to today 100% 80% Electricity mix 60% 40% 20% 0% RTS 2DS B2DS Fossil w/o CCS Fossil with CCS Nuclear Bioenergy with CCS Renewables The average carbon intensity of power generation falls from around 520 gco 2 /kwh today to Below zero in the B2DS
10 Nuclear additions need to double current rate to meet 2DS contributions Capacity additions and reactors under construction 2016 saw the highest nuclear capacity additions since 1990, but new construction starts down sharply
11 Global clean energy RD&D spending needs a strong boost Global clean energy RD&D spending Top 3 IT company R&D spenders USD (2016) billion Mission Innovation Private Public Top 3 firms Global RD&D spending in efficiency, renewables, nuclear and CCS plateaued at $26 billion annually, Global RD&D spending in efficiency, coming renewables, mostly from nuclear governments. and CCS plateaued at $26 billion annually, Mission Innovation coming could mostly provide from a much governments. needed boost.
12 Tap all the potential: Complementary public and private RD&D is needed Venture Capital investment breakdown for 2016 Energy efficiency (except transport) CCS Solar Wind Geothermal Bioenergy Transport Hydro and marine Nuclear Hydrogen and fuel cells Energy storage Other IEA member country spending in 2016 Public and private sector invest in different type of innovation. Global RD&D spending in efficiency, renewables, nuclear and CCS plateaued at $26 billion annually, Public spending supports technologies that are further from the market or have high development and demonstration coming mostly from governments. costs, including nuclear, CCS and ocean energy.
13 Conclusions Early signs point to changes in energy trajectories, helped by policies and technologies, but progress is too slow An integrated systems approach considering all technology options must be implemented now to accelerate progress Each country should define its own transition path and scale-up its RD&D and deployment support accordingly Achieving carbon neutrality by 2060 would require unprecedented technology policies and investments Innovation can deliver, but needs long term technology investment prioritisation across both public and private sectors
14 IEA
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