Global energy mix in 2030 xxxx - lsta.lt pranesimai/Leupp-Peter... · Global energy mix in 2030...

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© ABB Group October 22, 2010 | Slide 1 Global energy mix in 2030 Cost-effective solutions to the global energy challenges Peter Leupp, head of ABB Power Systems division, Montreal, Sept. 14, 2010

Transcript of Global energy mix in 2030 xxxx - lsta.lt pranesimai/Leupp-Peter... · Global energy mix in 2030...

Page 1: Global energy mix in 2030 xxxx - lsta.lt pranesimai/Leupp-Peter... · Global energy mix in 2030 xxxx Author: Nerijus Jasinskas Created Date: 10/22/2010 12:29:09 PM ...

© ABB GroupOctober 22, 2010 | Slide 1

Global energy mix in 2030Cost-effective solutions to the globalenergy challenges

Peter Leupp, head of ABB Power Systems division, Montreal, Sept. 14, 2010

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© ABB GroupOctober 22, 2010 | Slide 2

A lot can happen in 20 years…

§ Mobile communications forthe masses

1990

and 2010

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© ABB GroupOctober 22, 2010 | Slide 3

What are the prevailing trends impacting energy?Growth in population, living standards, demand, CO2

100

120

140

160

180Electricity generation

Primary energy demand

CO2 emissions

World population

2007 2020 2030

All values rebased to 100Source: International Energy Agency, Global Insight

(1.7 x population growth)

(3x population growth)

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© ABB GroupOctober 22, 2010 | Slide 4

0

20

40

60

80

100

0

20

40

60

80

100

120

Financial constraints also here to stayNeed for cost-efficient solutions is paramount

Source: GlobalInsight, EIU

Oil price (Brent,annual average)

G7 governmentdebt, % of GDP

1995 2000 2010 2014

%$ forecast

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© ABB GroupOctober 22, 2010 | Slide 5

Shaping the trends between now and 2030Cut link between growth, energy use and emissions

§ Reduce the correlationbetween economic growth

and energy use

Energy

efficiency

RenewablesCarbon capture (CCS)

Nuclear

§ Reduce the correlationbetween energy use and

emissions

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© ABB GroupOctober 22, 2010 | Slide 6

25

35

Energy efficiency is more than 50% of solutionSo why isn’t it more widely pursued?

2007 20302020

CO2 (Gt)

57%

Energyefficiency

RenewablesBiofuelsNuclearCCS

Current trend

Source: IEA

Path required tocontain climate change

§ Barriers to energy efficiencyinclude:

§ Lack of information

§ Fragmentation

§ Apathy

§ Cheap energy (esp. power)

§ Cost of efficient equipment

§ Doubts technology willdeliver

§ Misaligned incentives

§ And…

57%

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© ABB GroupOctober 22, 2010 | Slide 7

…You can’t be photographed with energy efficiency

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© ABB GroupOctober 22, 2010 | Slide 8

0

0.1

0.2

The barriers are not impossible to overcomeJapan twice as efficient as US: Why?

Tonnes of oil equivalent (toe)

Primary energy used per $1,000 ofGDPSource: International Energy Agency

§ Support for R&D since1970

§ Mandatory targets andtaxation

§ Subsidies for purchaseof efficient equipment

§ Standards

§ Price of energy

§ Storage of electricity

§ Peer pressure

Efficiency drivers in Japan

Japan US

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© ABB GroupOctober 22, 2010 | Slide 9

Information is crucialLearning to consider the total cost of ownership

§ 65% of total electricity at industrial sitesis consumed by electric motors

§ Motor purchasing price = 3-6 months ofits electricity consumption

Cost of ownership breakdown (in %)

2 Purchase &installation 4

1 Maintenance& reliability 22

97 Energy 74

LV motor MV / HV motor

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© ABB GroupOctober 22, 2010 | Slide 10

The potential for electrical energy efficiencyLosses can be reduced by half

Power generation

More efficientfuel combustion

Transport

Efficient vessels

Primary energyextraction

Improvedwell

efficiency

Power T&D

Low line losses,substationefficiency

Industry

Improvedproductivity

Commercial andresidential

Buildingmanagement andhome automation

Limited efficiency with current installed baseHigher efficiency with state-of-the-art technology

20%

40-50%

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© ABB GroupOctober 22, 2010 | Slide 11

Summary

§ Energy challenges: demand, environment, financial

§ These challenges pull in opposite directions

§ All available technologies must be deployed

§ Solution that best addresses challenges is energyefficiency:§ curbs demand without impacting end user

§ cuts emissions

§ saves money

§ Economies such as Japan show that barriers to capturingthe opportunities can be overcome

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