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Energy Science & Technology Cooperation

Challenges and Perspectives

Workshop of the

Committee for Scientific and Technological Policy

Paris, 25-26 March 2009

Pieter Boot, Director

Office of Sustainable Policy and Technology

International Energy Agency

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Created in 1973; 28 Member Countries

Autonomous agency linked with the OECD

Goals:

• energy security

• environmental protection

• economic growth

Activities:

• co-ordinates efforts to ensure energy security

• compiles energy statistics

• conducts policy analysis

• reviews energy policies & programs

• provides a framework for technology collaboration

International Energy Agency

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How IEA supports energy S&T in countries

Technology and policy analysis

ETP 2006/2008/2010

technology specific analyses

Reviews of national energy policies

review every 5th year

energy technology policy review

Technology RD&D Collaboration

legal framework for collaboration (IAs)

convenes, mobilizes science & technology experts

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Content

An energy technology revolution –the role of S&T cooperation

Current status of multinational energy S&T cooperation

Strengthening S&T cooperation

Roadmaps – a way forward

Concluding remarks

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An Energy Technology Revolution

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Cutting Energy Related CO2 Emissions An Energy Technology Revolution

0

10

20

30

40

50

60

70

2005 2050

CO

2em

issio

ns (

Gt

CO

2/y

r)

CCS industry and transformation 9%

CCS power generation 10%

Nuclear 6%Renewables 21%

End use electricity efficiency 12%

End use fuel efficiency 24%

End-use fuel switching 11%

Power generation efficiency & fuel switching 7%

WEO2007 450 ppm case ETP2008 BLUE Map scenario

Baseline Emissions 62 Gt

BLUE Map Emissions 14 Gt

2030

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To bring emissions back to current levels by 2050 options with a cost up to USD 50/t are needed. Reducing emissions by 50%

would require options with a cost up to USD 200/t, possibly even up to USD 500/t CO2

Cost of Emissions Reductions

-200

0

200

400

600

800

1000

0 5 10 15 20 25 30 35 40 45 50

Marg

ina

l co

st

(US

D/t

CO

2)

2050 CO2 emissions reduction (Gt CO2/yr)

Transport alternative fuels

Industry fuel switchingand CCS

Power sector

End-use efficiencyACT Map

BLUE Map

500

10050

200

Technology

Pessimism

Technology

Optimism

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Key Messages

We are facing an urgent challenge in the energy sector and we need a global solution

Emissions stabilization – mainly energy efficiency and power sector measures (ACT scenarios)

Halving emissions by 2050 implies deep cuts for transport and industry (BLUE scenarios)

Marginal cost ACT USD 50/t; BLUE USD 200/t (optimistic technology estimates) The cost uncertainty increases with ambition level

USD 45 trillion additional investment needs for BLUE (1% of GDP)

Important supply security benefits

We need a step change in government policies, with closer international collaboration

Roadmaps can provide a focus for this

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The S&T Challenge

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Policies to develop and deploy low carbon technologies

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Niche markets Mass market

Low cost-gap

(e.g. wind onshore)

High cost-gap

(e.g. PV)

Mature tech

(e.g. hydro)

Prototype & demo stage

(e.g. 2nd gen biofuels)

Time

Mar

ket D

eplo

ymen

t

Development

1. Development

RD&D financing,

capital cost support,

investment tax credits, rebates,

loan guarantees2. Stable, low-risk, sheltered

FIT, FIP, Tenders

3. Shared/imposed market risk,

guaranteed minimum but declining support

FIP, TGC (technology banding)

4. Technology-neutral competition

TGC, Carbon trading (e.g. EU ETS)

Fostering clean energy transition towards mass market integration

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Technology development and CO2 mitigation

Power generation

Industry

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How much investment is needed?

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Public Sector Energy RD&D in IEA Countries – USD 10 bln/yr

0%

2%

4%

6%

8%

10%

12%

14%

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

1974 1978 1982 1986 1990 1994 1998 2002 2006

Sh

are

of E

ne

rgy R

&D

in T

ota

l R&

D

Millio

n U

S$ (

2005 p

rices a

nd

PP

P) Nuclear

Other

Hydrogen and fuel cells

Renewable energy sources

Fossil fuels

Energy efficiency

Share of energy R&D in total R&D

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RD&D Policies

Basic science support

Many RD&D breakthroughs depend on Basic Science Physics, materials science, including nano-technology,

applied mathematics, computer sciences, bio-science and chemistry

Role of government and university labs

Strategic plan/technology roadmap for priority identification

International collaboration in pre-competitive stage

Applied R&D and demonstration

Role of government to mobilize private sector

Gaps between basic science and applied R&D

High costs of demonstration

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RD&D Policies

“Valley of death” – Gap between RD&D and deployment

Public-private partnerships for Applied R&D, demonstration and the “Valley of Death”

Funding and direct collaborations in applied R&D

Government leadership in demonstration

Both supply-push and demand-pull supports for the “Valley of the Death”

International collaborations

Benefits Cost sharing, economies of scale and reducing redundancy

Common pool of knowledge

Combining different comparative advantages among countries

IEA Implementing Agreements

Other international energy technology collaborations

Identification of gaps and opportunities

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IEA and energy S&T cooperation

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S&T cooperation schemes

Bi-lateral cooperation International frameworks

Bi-lateral Science and Technology Agreements

IEA – Implementing agreements

OECD

UN

Multilateral cooperation on specific technologies Regional cooperation

CSLF (Carbon Sequestration)

IPHE (Hydrogen)

GEN IV (Nuclear)

ITER (Fusion)

European Framework Programme

APEC

Nordic Energy Research

Examples of modi operandi of international energy technology collaboration in IEA countries

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©OECD/IEA 2008

IEA COMMITTEE STRUCTURE

End-Use Fusion Renewable Working

Working Power Energy Party

Party Co-ordinating Working Fossil

Committee Party Fuels

INTERNATIONAL TECHNOLOGY COLLABORATION

(IMPLEMENTING AGREEMENTS)

IEA GOVERNING BOARD

COMMITTEE ON ENERGY RESEARCH

AND TECHNOLOGY (CERT) Expert Group R&D Priority

Setting & Evaluation

Expert Group on Science & Energy

Research

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What are the benefits ?

Reduced cost and duplication of work

Greater project scale

Information sharing and networking

Linking IEA member countries and non-member countries

Linking research, industry and policy

Accelerated development and deployment

Harmonised technical standards

Strengthened national RD&D capabilities

Intellectual property rights

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Who can participate ?

Open to IEA member and non-member countries, participants can be, but are not limited to:

Governmental or energy technology entities representing governments

Research institutes and universities Energy technology companies

Each signatory assigns a representative to a “board of directors”, or Executive Committee

Currently participants from 39 countries, 32 sponsors (incl. BRICC 2005), and the EC

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How is work financed ?

Financing is shared by the participants

COST SHARING

Participants contribute to a common administrative fund

Work contracted to general manager and results are shared by all participants

TASK SHARING

Participants devote specified resources and personnel administration as well as research projects

COMBINATION

Participants contribute to a common administrative fund

Participants devote specified resources and personnel to research projects

Other....

Each ExCo establishes bank accounts, maintains accounting systems, and collects annual fees and related costs

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Global roadmaps for S&T cooperation

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What is a Technology Roadmap?

Many countries use roadmaps as an energy policy tool

A dynamic set of technical, policy, legal, financial, market and organisational requirements

Agreed on by involved stakeholders

Also a process that leads to improved, transparent information and enhanced collaboration

Main goal: to accelerate technology development and market uptake

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IEA/G8 Roadmap Initiative

G8 leaders in Toyako, Hokkaido committed to establish a new initiative with the support of the IEA:

“We will establish an international initiative with the support of the IEA to develop roadmaps for innovative technologies and cooperate upon existing and new partnerships”.

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ETP 2008Technology Options 87% of emissions reduction needed for emissions halving

Supply side

CCS power generation

Coal – IGCC

Coal – USCSC

Nuclear III + IV

Solar – PV

Solar – CSP

Wind

Biomass – IGCC & co-combustion

Electricity networks

2nd generation biofuels

Demand side

Energy efficiency in buildings

Energy efficient motor systems

Efficient ICEs

Heat pumps

Plug-ins and electric vehicles

Hydrogen Fuel cell vehicles

Industrial CCS

Solar heating

Cement

Work on elaboration of 6 roadmaps has started

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Roadmaps – Wind Energy4% of CO2 reduction potential in BLUE Map

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Current Status

CCS – tech issues completed, policy issues next; tgt date for roadmap – October 09

PV – policy issues completed; tgt date for roadmap – October 09

Electric Vehicles – tech & policy workshop held in Jan 26-27; tgt date for roadmap – October 09

Cement – tech & policy issues completed, tgtdate for roadmap – October 09

Wind – 1st workshop Marseille, 2nd workshop June 09 – October 09

Nuclear – in collaboration with NEA

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Next Steps

Potential next roadmaps:

2nd generation biofuels;

zero-energy buildings;

Electricity networks

Workshop on finance – May 2009

Report to the G8 in Italy (May 09)

5 roadmaps published October 09

IEA Ministerial October 2009

Report to COP15

ETP2010

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Conclusions and Next Steps

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A global energy revolution

The energy challenge is global – an energy technology revolution is needed

Urgent action in RD&D needed in several key technologies

Government energy RD&D investments have declined – only first signs of a major ramp up

Collaboration amongst OECD and non-OECD countries urgent

A portfolio of tools for collaboration exists already – bilateral, regional, technology focused…

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S&T collaboration is an important tool

Many gaps exists

IEA is ready to support enhanced technology collaboration

Roadmaps a promising tool

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Thank you