“Big” energy vs. renewable and local energy New opportunities for sustainable power supply and to curb power shortage Peter Wooders International Institute for Sustainable Development C-20 Summit, Moscow. 13 June 2013

IISD Champion of SD since Across the world. Independent Policy Research Institute Offices in Canada, Geneva, New York Geneva Office of 20 serves WTO, Europe Works across Sustainable Development

Energy’s role in Sustainable Development CENTRAL Energy is critical to meeting MDGs, post-2015 SDGs Electricity key to Welfare and economic opportunity in LDCs Knowledge economy

A Financially Sustainable Electricity System 1.Cover its operating costs across supply chain 2.Maintain the system minimising power outages 3.Generate investment for expansion 4.Meet environmental and social norms

Challenges to financial sustainability 1.Electricity supply getting more expensive – at least from conventional sources Fossil fuel prices high, volatile 2.Electricity is ever more valuable 3.Governments can’t finance everything 4.Internalising costs of pollution, etc. largely incomplete 5.Consumers don’t want to pay more

Positive signs It’s not all doom and gloom Normal operations generate investment capital Solar PV competitive with diesel Wind costs of same order as natural gas

Recommendations for national governments Make fair financial comparisons Create fair non-financial conditions Look for better alternatives to low electricity prices for all Debate widely

Fossil Fuel Subsidy reform and G-20 Environmental Sustainability and Energy WG Recc. #14 1.Improve reporting 2.Implement a peer review mechanism 3.Dialogue with others engaged in the issue 4.Commission research to support each G-20 Member 5.Interpret the commitment text 6.Phase out by 2020

Thank you