1. Copper Contribution to Combat Climate Change Fernando Nuño European Copper Institute fng@eurocopper.org April 2011

2. The European Copper Institute (ECI) Network of Associations Non profit organisation Mission Brussels based headquarters with a network of 11 Copper Development Associations Representing the world's mining companies and the European copper industry Communicate copper's essentiality for health, technology and quality of life.

3. Index Electric Motors Transformers Cabling Renewables

4. ELECTRIC MOTORS

5. Electric motors : key figures 65% of EU industrial electricity use 202 TWh / year savings potential by switching to energy efficient motor driven systems http://www.leonardo-energy.org/high-efficiency-motor-systems-0

6. Electric motors : electricity savings potential 7% of total electricity consumption of EU Total amount of EU network electricity losses 35 nuclear power plants (1000 MW) 70% load factor 130 fossil fuel power plants (350 MW) 50% load factor 1.1 times the EU’s total 2010 wind capacity (181 TWh generated in 2010) 202 TWh annual savings potential by switching to energy efficient motor driven systems Electricity System impact

7. Electric motors : GHG savings potential 100 Million Tonnesannually CO2 saved About20% of the GHG emission reduction in EU between 1990 and 2010 (400 - 500 MT)* 202 TWh annual savings potential by switching to energy efficient motor driven systems GHG impact GHG impact Significant reductions in NOx, SO2, heavy metal, and dust emissions *Source : Report of the review of the initial report of the European Community, FCCC/IRR/2007/EC. UNFCCC, 15 February 2008. 2008 GHG inventories 1990-2006 (submissions to UNFCCC)

8. Electric motors : economic savings potential € 10 Billionannual operating costs saved € 50 Billion investment saved for new generation capacity Lower Life Cycle Cost — a typical reduction of 35% 6% reduction on fossil fuel imports 202 TWh annual savings potential by switching to energy efficient motor driven systems Economic impact

9. Electric motors : barriers to be removed Split Budgets : purchase department and operating costs managers need to make a common approach on Life Cycle Cost basis Existing stocks : back-up spares of the same type and efficiency in the warehouses, even if LCC is higher Lack of Information : education is needed in terms of definitions and Life Cycle Cost Long Life Cycle : 20 years. A poorly-reasoned purchasing decision will have a negative impact lasting for 20 years. High efficiency motors (Eff1) represent only 12% of the market in the EU. If energy efficient motor systems have in the large majority of the cases the lowest Life Cycle Cost (LCC), why is the adoption rate so slow?

10. How Copper saves CO2 emissions in motors Increasing Copper 22 kW Increasing Efficiency +1 kg Cu -> - 3 Tons CO2 Eco-design analysis Utilisation Manufacturing End of Life Decreasing CO2 Given that one kg of copper takes 3 kg of CO2emissions in production the environmental payback is more than a factor 1000, while at the end of life, the kg copper can be recycled for the next application. http://www.leonardo-energy.org/webfm_send/359

13. The European Copper Institute : removing barriers through education Eco-design Policy Briefings Technology Dissemination Seminars on the Web

14. Index Electric Motors Transformers Cabling Renewables

15. TRANSFORMERS

16. Distribution transformers : key figures 222 TWh EU electricity network losses 19 TWh / year savings potential by switching to energy efficient distribution transformers http://www.leonardo-energy.org/seedt-highlights-european-distribution-transformers

17. Distribution transformers : electricity savings potential 0,7% of total electricity consumption of EU 9% of total amount of EU network electricity losses 3 nuclear power plants (1000 MW) 70% load factor 13 fossil fuel power plants (350 MW) 50% load factor 10% of EU’s total 2010 wind capacity (181 TWh generated in 2010) 19 TWh annual savings potential by switching to energy efficient distribution transformers Electricity System impact

18. Distribution transformers : GHG savings potential 10 Million Tonnesannually CO2 saved About2% of the GHG emission reduction in EU between 1990 and 2010 (400 - 500 MT)* 19 TWh annual savings potential by switching to energy efficient distribution transformers GHG impact GHG impact Significant reductions in NOx, SO2, heavy metal, and dust emissions *Source : Report of the review of the initial report of the European Community, FCCC/IRR/2007/EC. UNFCCC, 15 February 2008. 2008 GHG inventories 1990-2006 (submissions to UNFCCC)

19. Distribution transformers : economic savings potential € 1 Billionannual operating costs saved € 5 Billion investment saved for new generation capacity Lower Life Cycle Cost — IRR from 10% to 70% A reduced dependency on fossil fuel imports 19 TWh annual savings potential by switching to energy efficient distribution transformers Economic impact

20. Transformers : barriers to be removed Regulatory Model Proposal Do not remove benefits before a period long enough Current Regulatory Practice Discourages investments in efficient transformers Life Cycle Cost Analysis The higher efficiency, the higher benefit 2, 3 or more regulatory periods before benefit removal encourages renovation using efficient equipment Benefits removed at regulatory review avoid positive NPV Investment premium is recovered and generates positive NPV 80% of EU distribution transformers population belong to electricity distribution companies, whose activity is regulated Regulatory Models to integrate Life Cycle Cost analysis Legend: Investment premium (green),energy savings (yellow),net present value (red) 400 kVA C-C’ vs. A-A’; 5% discount rate (real); energy valued at 35 €/MWh

21. How Copper saves CO2 emissions in transformers Increasing Copper 1.6 MVA Increasing Efficiency +1 kg Cu -> - 0.5 Ton CO2 Eco-design analysis Utilisation Manufacturing End of Life Decreasing CO2 One kg of copper takes 3 kg of CO2emissions in production, while at the end of life, the kg copper can be recycled for the next application. http://www.leonardo-energy.org/webfm_send/361

23. SEEDT builds the business case for development and diffusion of energy efficient distribution transformers.

24. A project within the framework of the Intelligent Energy program of the European Union.

26. Removing barriers by active regulatory actions EU Regulators Group-ERGEG Treatment of Electricity Losses - CONSULTATION WEBINAR SERIES Regulatory Incentives for Energy Efficiency in Networks REPORT Insuficient Regulatory Incentives for Investments in Electricity Networks Active contribution to promote regulatory reform Spreading the regulatory proposals to the professionals Pointing at the savings potential and the regulatory proposals REGULATORY MODEL http://www.leonardo-energy.org/huge-potential-energy-savings-improved-regulatory-models-efficient-investment-and-loss-reduction

27. Index Electric Motors Transformers Cabling Renewables

28. CABLING

30. L : Length of conductor

31. C : Current

32. γ : Conductivity of the conductor

33. S : Section of the conductorΔV : Voltagedrop S: Cross-section

34. Goingbeyondstandards ΔV : Voltagedrop ΔP : Power losses S: Cross-section

35. Utilization (operation cost) End of life (dismantling cost) Manufacturing (investment cost) Evolving in theway of thinking: fromminimalinvestmentcosttominimallifecyclecost Highersectionmeanslowerpowerlosses, loweroperationcost Highersectionmeanshigherinvestmentcost

36. Lifecyclecost as a function of crosssection Optimal cross section: 3 sizes up beyond the code Increasingcross-section Net savings: (avoidedlosses – extra investment) (€) S0 S1 S2 S3 S4 S5 S6 S0 : size according to the standard

37. ECI isrunningsimulationstoestimatethe EU savingspotential Advanced Software € / MWh € / Ton CO2 Kg CO2 / MWh CO2 in Cu manufacturing Cost of labour Financial parameters

38. Determiningtheeconomicallyoptimal cable sectionincrease Net savings: (avoidedlosses – extra investment) (€) Increasingcross-section Highest value solution in this example: 4 sections up beyond the code

39. Determiningtheenvironmentalimprovement Lifecycle CO2 emmissions Increasingcross-section CO2 savings at economic optimal section Maximum CO2 savings at environmentally optimal section

40. Expectedresults Up to 3% of electricity in buildings could be saved by optimizing the cable section

41. 12 nuclear power plants (1000 MW) 70% load factor 47 fossil fuel power plants (350 MW) 50% load factor 0,5 times the EU’s total 2010 wind capacity (181 TWh generated in 2010) Expectedresults Up to 83 TWh energy savings in EU27

42. Index Electric Motors Transformers Cabling Renewables

43. RENEWABLES

44. Renewables : key figures EU to reach 20% renewables in final energy consumption by 2020 Electricity : from 15% to 35% Heating : from 10% to 25% Fuels : from 1% to 10%

45. Generator 0,7 - 4,0 Tm/MW Cabling 0,7 Tm/MW 2,5 - 6 Tonnes Cu / MW Transformers Earthing Miscellaneous Where is copper in WIND technology?

46. Where is copper in PHOTOVOLTAIC technology? Cabling Earthing 5 Tonnes Cu / MW Inverter Transformer PV cellribbons

47. Where is copper in SOLAR THERMAL ELECTRICITY technology? Cabling 3 Tm / MW 4 Tonnes Cu / MW Motors Transformers

49. Precise deadlines for planning approval

50. Lighter process for smaller projects

51. Administrative charges transparent and cost-related

52. Development of technical specifications

53. European Standards (eco-label, energy-label…)

54. Needed more EU Research interaction and cooperation

55. Improve spreading the quickly evolving technology of renewables

56. Grid infrastructure development

57. Interconnections between countries

58. Rules for bearing and sharing the costs of grid development and reinforcement

59. Provide physical access to grid

60. Dispatching priority

61. Dealing with variability and forecast abilityAs indicated in the proposal for Directive by EC : http://ec.europa.eu/energy/climate_actions/doc/2008_res_directive_en.pdf

63. Solar Photovoltaic and Thermal systems

64. Heat pumpsObjective : consider the use of RE and district heating & cooling when planning, designing, building and renovating industrial or residential areas As indicated in the proposal for Directive by EC : http://ec.europa.eu/energy/climate_actions/doc/2008_res_directive_en.pdf

65. The European Copper Institute : removing barriers for renewables Leonardo ENERGY Technology introduction, project assessment, engineering practice, support mechanisms, addressing barriers, case studies, how to manuals for small scale…

66. Removing barriers for renewables:Leonardo Energy PARTNERSHIP Program Partnership with RETSCreen Addressing LEGAL issues and PROJECT assessment Partnership with European RENEWABLE ENERGY RESEARCH Centres Agency Partnership with ESTELA / PROTERMOSOLAR European Solar Thermal Electricity Association Supporting and spreading 43 PROMINENT RESEARCH GROUPS from all over Europe in strengthening and rationalizing European Research Clean Energy Project Analysis Tools Intensive WEBINAR PROGRAM Spreading the technology, congress contributions, relevance of CSP as a dispatchable technology LEGAL / ADMINISTRATIVE TECHNOLOGY / RESEARCH GRID INTEGRATION Other relevant partners for renewables : REEEP / Reegle, Green Power Labs, CSP Today, Deuman Climate Change Consulting, OLADE…

67. Activities focusing barriers for renewables WEBINAR PROGRAM Generation of a wide and INTERACTIVE COMMUNITY of PROFESSIONALS TECHNOLOGY INTRODUCTION Solar Thermal Electricity and Photovoltaics Technology Educational Series IN-DEPTH ANALYSIS Grid Integration, Support Mechanisms Documentaries, Webinars, Partnership with 3000+ professionals community Weekly : Renewables, Clean Development Mechanism… LEGAL / ADMINISTRATIVE TECHNOLOGY / RESEARCH GRID INTEGRATION

68. Concrete contribution to European Commission objectives on INFORMATION and TRAINING Briefing WEBINARS and WEBCASTS introducing the EU Directive and Support Measures SMALL SCALE RENEWABLES How To Manuals Partnership with REEGLE CERTIFICATION schemes Information on SUPPORT MEASURES Guidance for PLANNERS and ARCHITECTS Information on BENEFITS, COSTS and ENERGY EFFICIENCY Valuable resource center for project developers Photovoltaics, Wind, Heat Pumps Renewables and Energy Efficiency dedicated SEARCH ENGINE

69. Copper contributestocombatclimatechange in itsvariousapplications… 300 TWh/year savings potential in EU (> 10% electricity consumption)

70. … and coppernetworkworkstodeploythebenefits of copper

71. Thankyou! Fernando Nuño European Copper Institute fng@eurocopper.org