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A sustainable & secure transition to a low carbon future
1.
© OECD/IEA 2017 A
sustainable & secure transition to a low carbon future Dr. Fatih Birol The Round Table for Studying Energy Situations, METI , Tokyo, 27 February 2018 IEA Executive Director, International Energy Agency
2.
© OECD/IEA 2017 Tipping
the energy world off its axis • Four large-scale upheavals in global energy : - The United States is turning into the undisputed global leader for oil & gas - Solar PV is on track to be the cheapest source of new electricity in many countries - China’s new drive to “make the skies blue again” is recasting its role in energy - The future is electrifying, spurred by cooling, electric vehicles & digitalisation • These changes brighten the prospects for affordable, sustainable energy & require a reappraisal of approaches to energy security • There are many possible pathways ahead & many potential pitfalls if governments or industry misread the signs of change
3.
© OECD/IEA 2017 India
takes the lead, as China energy growth slows India, China and other developing Asia will be critical in determining the future trajectory of global energy demand & C02 emissions Change in energy demand, 2016-40 (Mtoe) India 1 005 420 Southeast Asia China 790 United States -30 Japan -50 Europe -200 270 Central and South America 485 Africa 135 Eurasia 480Middle East
4.
© OECD/IEA 2017 Government
policy choices will shape the global energy mix Even in a low-carbon energy future, there is still an important role for natural gas, oil and coal ; Efficiency, renewables, nuclear and CCUS are critical for a sustainable energy path Total primary energy demand in the world by fuel and scenario 5 000 10 000 15 000 20 000 2016 2040 Central Scenario 2040 SDS Mtoe Renewables Nuclear Gas Oil Coal Note: SDS - Sustainable Development Scenario Fossil fuels: 81% Fossil Fuels: 75% Fossil Fuels: 61%
5.
© OECD/IEA 2017 The
future is electrifying India adds the equivalent of today’s European Union to its electricity generation by 2040, while China adds the equivalent of today’s United States Electricity generation by selected region Middle East 2 000 4 000 6 000 8 000 10 000 Africa Southeast Asia European Union India United States China TWh2016 Growth to 2040 Sources of global electricity demand growth Industrial motors Cooling Large appliances Connected & small appliances Electric vehicles Other Japan
6.
© OECD/IEA 2017 The
cost of wind and solar PV have fallen sharply, with further reductions expected; Cost-optimal integration requires interconnections, flexible generation, storage & demand response Wind and solar PV average LCOEs and auction results by commissioning date Wind and solar PV costs being driven down by competition 0 50 100 150 200 250 300 350 2008 2010 2012 2014 2016 2018 2020 2022 USD 2016/MWh Onshore wind average auction price Solar PV average auction price Offshore wind LCOE Solar PV - utility scale LCOE Onshore wind LCOE
7.
© OECD/IEA 2017 A
new leader emerging on nuclear Without additional lifetime extensions, the largest nuclear fleets face significant declines, while China is soon set to overtake the United States as the global leader Nuclear power generation capacity 40 80 120 2010 2020 2030 2040 GW United States China France Japan
8.
© OECD/IEA 2017 The
potential of clean energy technology remains under-utilised Despite good progress in some areas, many technologies still need a strong push to achieve their full potential and deliver a sustainable energy future Energy storage Solar PV and onshore wind Electric vehicles ●Not on track ●Accelerated improvement needed ●On track Building energy efficiency Transport biofuels Carbon capture and storage More efficient coal-fired power Nuclear Transport – Fuel economy of light-duty vehicles Lighting, appliances and building equipment Energy efficiency in industry Hydrogen and Fuel Cells
9.
© OECD/IEA 2017 Japan’s
Power Mix: Policy determines uptake of low-carbon sources Decarbonisation of Japan’s power sector can be achieved through the uptake of variable renewables and the restart of nuclear plants while ensuring their safety Power generation mix in Japan by fuel and scenario 0% 20% 40% 60% 80% 100% 2016 Central Scenario 2040 SDS 2040 Coal Gas Oil Nuclear Renewables 33% 40% 8% 2% 18% 22% 28% 1% 22% 27% 2% 9% 0% 32% 56%
10.
© OECD/IEA 2017 Recommendations
for Japan • Enhance energy security and resilience by taking an “all fuel” and “all technology“ approach to energy policy • Continue to adjust renewable support policies in line with falling costs & ensure there is adequate system flexibility including interconnections • Pursue all low carbon options, including efficiency, renewables, nuclear (with maximum safety), to decrease emissions in a cost-optimal way • Continue to be a leader in global energy technology R&D and innovation • Take advantage of the opportunities that digitalization is creating in the energy sector, while being mindful of the associated risks • The IEA stands ready to support the clean and secure energy transition in providing cutting-edge technical advice to governments
11.
© OECD/IEA 2017 www.iea.org IEA
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