1 COPENHAGEN – KEY TO CLIMATE INVESTING Corporates: Challenges and Opportunities Ramón de Miguel...
-
Upload
hannah-bailey -
Category
Documents
-
view
221 -
download
3
Transcript of 1 COPENHAGEN – KEY TO CLIMATE INVESTING Corporates: Challenges and Opportunities Ramón de Miguel...
1
COPENHAGEN – KEY TO CLIMATE INVESTING
Corporates: Challenges and Opportunities
Ramón de MiguelAdvisor for International AffairsChairman Iberdrola Engineering & Construction
04 December 2009
Index
The challenge: Sustainability and Energy
Confronting the challenge: Iberdrola’s Strategy
Conclusions
2
3
Diagnosis: Today’s Energy Model
We all probably agree that the current energy model is unsustainable
Energy demand outperforming global GDP growth
Energy demand outperforming global GDP growth
Economic development
Energy sector, a main contributorEnergy sector, a main contributorClimate change
Limited fossil fuel reservesLimited fossil fuel reservesTraditional energy
resources
High and rising dependence on politically unstable regions
High and rising dependence on politically unstable regions
Security of supply
4
Trends
Even before the recent financial and economic turmoil, the growing tensions suffered by this model …
World population expected to rise from 6.6 to 8.2 billion inhabitants by 2030, mainly concentrated in the poorest regions
Developing country growth, improving life styles and convergence with the developed world's consumption levels
Infrastructure congestion
Exponential demand growth
Competition for resources
Carbonemissions
5
Consequences
… were leading to a collapse of the energy system
COCO2 2 EmissionsEmissionsBillion tonsBillion tons
Will climate change reach a turning point?
Global Energy DemandGlobal Energy Demand
Million toeMillion toe
Can supply catch up with demand … at the right price?
Source: World Energy Outlook 2009Source: World Energy Outlook 2009
6
New Energy Model: Challenges
Three key drivers of change for the energy model
2 Decarbonization
1 Energy efficiency“Do the same
using less energy”
“Reach a CO2-free energy mix”
3 Security of supply
“Satisfy energy demand driven by
economies
Need for coordinated action to restrict the global temperature rise to 2°C (450 ppm of CO₂ concentration) …
7
New Energy Model: Challenges
3.8 Gt13.8 Gt
Source: World Energy Outlook 2009
… … 13.8 Gt of total abatement, to reach the 450ppm CO13.8 Gt of total abatement, to reach the 450ppm CO22 scenario.... scenario....
8
New Energy Model: Challenges
… with a critical role for the electricity sector in shaping that new model...
9.3 Gt
Source: World Energy Outlook 2009
……Power sector accounts for about 70% of world COPower sector accounts for about 70% of world CO22 savings. savings.
9
1
2
3
Role of electricity in driving the model change
A higher penetration of electricity in the energy mix will strongly support these drivers of model change …
Electricity generation is already the most efficient meansto transform primary energy
Electricity generation presents significant advantages in terms of primary energy diversification
A wide range of reliable and proven technologies are available to generate CO2-free electricity (wind, solar, hydro, nuclear)
10
… with a key contribution to decarbonising the energy supply…
Role of electricity in driving the model change
Source: World Energy Outlook 2009
Investments needed to achieve 450 ppm COInvestments needed to achieve 450 ppm CO₂₂ scenario in the power sector at scenario in the power sector at 2010-20302010-2030
… … 60% will be from renewables, 16% from nuclear and 7% from carbon 60% will be from renewables, 16% from nuclear and 7% from carbon capture and storage (CCS).capture and storage (CCS).
11
Need for favourable environment to commit to investments in renewables …
ContextContext
Regulatory frameworkRegulatory frameworkNatural and Technical Natural and Technical
ConditionsConditions
Social Consensus Political supportLegal/regulatory framework Macro-Economic Situation
Profitability: defining a sufficiency scenario.Stability: The legal framework must be based on criteria of non retroactivity.Predictability: remuneration defined for the entire live of the assets.
Resources: sufficient, intermittent, predictability, .Grid Access : adequate planning and implementation for the new generation access.
INVESTMENT
Investment drivers
Index
The challenge: Sustainability and Energy
Confronting the challenge: Iberdrola’s Strategy
Conclusions
12
13
44.2 GW of generation capacity owned
World’s largest wind-power company >10 GW operational and >57 GW pipeline of projects
Market capitalisation ~ €33billion**
Among the top-five world energy utilities
Iberdrola Today*
27 MM electricity and gas customers 33,000 employees in 30 countries
A world energy leader…
*Data as of Q3 09 closing
>50% emission-free generation portfolio with a CCS technology plant installed in Longannet, UK
14
North America:No. 2 wind power operator
Relevant electricity and gas distributor in the Northeast
Latin America: No. 1 private generator in
MexicoNo. 1 distributor in Brazil
United Kingdom:No. 1 wind power operatorTop-3 electricity distributor
Top- 5 retailer
IberiaLeading integrated electricity operator
Iberdrola’s regional footprint
… with a distinctive positioning in key Atlantic Basin economies
15
CO2 emissions reduction 2020
Today, Iberdrola is one of the cleanest companies in Europe, with emissions clearly lower than Electricity
sector´s average…
gr CO2/kWh436
309
… … and has an objective to maintain emissions intensity at least 20% and has an objective to maintain emissions intensity at least 20% below the European electricity sector level in 2020below the European electricity sector level in 2020
IberdrolaIberdrolaEuropean Power
European Power
Index
The challenge: Sustainability and Energy
Confronting the challenge: Iberdrola’s Strategy
Conclusions
16
17
Conclusions
The energy sector must evolve toward one sustainable model…
… in which renewable energy will play a fundamental role
A stable regulatory framework is needed to consolidate this change, with important benefits to the economy
Iberdrola’s investment strategy is in line with recommendations of most independent international agencies, offering a strong commitment to
emission-free technologies