The IEA’s Energy Technology Perspectives project: analysis on the low-carbon technology mix for...

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© OECD/IEA 2015 The IEA’s Energy Technology Perspectives project: analysis on the low-carbon technology mix for long-term sustainable energy scenarios Climate Change: Implications for Technological Developments and Industrial Competitiveness Madrid, 4 th November 2015 Daniele Poponi Energy Technology and Policy Division International Energy Agency

Transcript of The IEA’s Energy Technology Perspectives project: analysis on the low-carbon technology mix for...

© OECD/IEA 2015

The IEA’s Energy Technology Perspectives project: analysis on the low-carbon technology mix for long-term sustainable energy scenarios

Climate Change: Implications for Technological Developments and Industrial Competitiveness Madrid, 4th November 2015 Daniele Poponi Energy Technology and Policy Division International Energy Agency

© OECD/IEA 2015

ETP 2014 ETP 2015 ETP 2016 ETP 2017 Part 1. Setting the Scene

Global Outlook, Tracking Clean Energy Progress

Part 2. Driving the Change (Thematic Focus) * Harnessing Electricity’s

Potential

Mobilising Innovation to

Accelerate Climate Action

Building Urban Energy Systems

TBD • Securing sustainable

resources • Investing in

sustainable infrastructure

Partner Country

India China Mexico TBD (Indonesia?)

ETP publication programme

© OECD/IEA 2014

Technology mix for carbon emissions reduction in the 2DS

A portfolio-approach is needed for a least-cost low-carbon scenario

Contribution of technology area to global cumulative CO2 reductions

6DS

2DS

Source: ETP 2015

© OECD/IEA 2014

Primary energy mix in the ETP scenarios

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200

400

600

800

1 000

2012

Foss

il

Non

-foss

il

2050

2012

Foss

il

Non

-foss

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2050

2012

Foss

il

Non

-foss

il

2050

6DS 4DS 2DS

EJ

Other renewables

Hydro

Biomass and waste

Nuclear

Coal

Oil

Natural gas

The primary energy mix is much more diversified in the 2DS Source: ETP 2015

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Thanks to 40 years of innovation efforts, solar PV generation is an increasingly cost competitive option

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6

9

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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/kW

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Levelised Cost of Electricity Installed capacity

Cost of electricity generated and utility-scale PV capacity installations in Germany

Some renewables are on fast-track deployment

Source: ETP 2015

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Energy efficient technologies are also constantly improving

Fuel economy is improving as policy increasingly drives the deployment of more efficient vehicle technologies

Fuel economy trends to 2025 for selected countries

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The use of fossil fuels is gradually more efficient and sustainable

The economic benefit of improved power generation efficiency is partly offsetting poor low-carbon policies

Carbon intensity of coal-fired power generation

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Aggressive cost reductions are needed in the near term to make these projections a reality

Projected Levelised Cost of Electricity of coal power generation in Asia

Assumptions on Capture Cost and Performance in the 2DS

CCS: from early stage support to future technology competitiveness

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Clean energy deployment is not ramping up fast enough

Evidence shows that despite continued progress in many areas, for the first time none of the technologies are in line with 2DS goals

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Supporting Energy Innovation: The right policy at the right time

The right support depends on the maturity of the technology and the degree of market uptake

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Annual energy-related direct CO2 emissions in the industrial sector in the 2DS

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2012 2020 2030 2040 2050

GtCO

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Energy efficiency Fuel and feedstock switching Recycling Innovative processes

6DS

2DS

Source: ETP 2015

Innovation is essential for sustainable growth in the industrial sector

The deployment of innovative technologies is crucial to making a 2DS scenario possible

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There is no “one-size fits all” solution that can meet all local requirements

National circumstances and resources will drive different technology portfolios and pathways

Regional technology shares in primary energy supply

Source: ETP 2015

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Photo Credit flickr.com - AIDG (2015)

Innovation in emerging economies has delivered….

Photo Credit: Pallava Bagla/Corbis - the Guardian (2011)

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Linking urban electricity and heat systems

ETP 2016: Building Sustainable Urban Energy Systems

Source: Fraunhofer IBP/IEA-EBC Annex 64 (2015)

Urban areas offer a significant potential for low-carbon technology deployment

© OECD/IEA 2014

Thank you

© OECD/IEA 2015

Investment in our future pays off…

…and it is cost effective to make the transition

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Energy-related CO2 emission abatement by region between 6DS and 2DS

In the 2DS, select emerging economies contribute the majority of energy-related CO2 emissions reduction.

Global energy-related Co2 reductions between 6DS and 2DS by region

6DS

2DS