1. Energy Technologies for the 21 st Century: The Role for Sustainable Energy—Energy Efficiency, Renewable Energy and Clean Urban Transportation Deborah Lynn Bleviss Sustainable Markets for Sustainable Energy Program Inter-America Development Bank for Roundtable 5, 18 th World Energy Congress

2. Global Energy Challenges in the 21 st Century Minority of global population will enjoy high level of energy services; majority will have very basic level of services With rising overall demand, increasing strains on local and global environmental integrity, especially from fossil fuels More frequent periods of tightening fuel supplies with resulting impact on geopolitics

3. Global Frameworks Likely to be Used to Address Challenges Range from trade initiatives to debt/poverty reduction agreements to environmental conventions Example—UN Framework Convention for Climate Change (UNFCCC)/Kyoto Protocol

4. New Requirements for Energy Technologies Technologies that can reduce level of carbon emissions (and other greenhouse gases) for given level of energy services Technologies that can increase access to energy/electricity services more quickly, efficiently and cost effectively, especially for rural populations

5. Promising Technologies that Meet Requirements For lower carbon intensity, energy efficiency and renewable energy resources For expediting access to energy services of poor, off-grid distributed power systems –Range from systems that provide power to individual consumers to mini-grid distribution systems

6. Energy Efficiency Since oil crises of 70s, great strides made from production through transmission to final end-use –Production gains include efficient combined- cycle natural gas-fired systems, advanced coal combustion –Innovations such as combined heat and power (CHP) blur traditional transmission role

7. End-Use Energy Efficiency Gains Substantial Products on market today with energy use ½ to less than 1/10 level of products a decade ago Expectation that energy efficiency gains will continue at same pace, particularly for end-use Efficiency gains will include optimizing individual technologies into systems

8. Source: Interlaboratory Working Group, Scenarios of U.S. Carbon Reductions

9. The Challenge for Energy Efficiency and Transportation Great strides in individual transportation technologies—hybrid electric vehicles on market, fuel cell vehicles will be shortly Efficiency gains could be overwhelmed by growth in vehicle use and ownership—WEC projected 55% increase in energy use for mobility between 1995 and 2020 Increased need to take systems approach to transportation sector—mobility shift to more efficient modes, urban structure to support the modes.

10. Transit Road- and Signalization-Preference Energy Efficient, Clean-Fueled Vehicles Limited Parking Access Transit-Oriented, Mixed Use Urban Development Integration with Pedestrian and Bicycle Facilities Constrained Access to Limited- Occupancy-Vehicles with Electronic Tolling Pictures courtesy of Michael Kwartler/Environmental Simulation Center “BEST PRACTICE” URBAN TRANSPORTATION SYSTEM OF 2020

11. Renewable Energy Great strides in commercial application of renewable energy systems –Wind power systems growth rate >25% annually; offshore systems in Europe, Brazil plans substantial additions –Promising strides also in small hydropower systems, geothermal, photovoltaics (PVs) –Biomass for power has potential with combustion technology advances; biomass role for transportation not clear

12. Distributed Power Systems In developed countries, strides in combined heat and power systems (CHP) for industrial and commercial users; integration of PVs in buildings for base level of electric load In developing countries, strides in off-grid systems to reach rural populations –PV-based solar home systems –Mini-grid systems using biomass wastes, small hydro, wind, diesel generators

13. Significant Barriers Constraining Potential for These Technologies Lack of consistent research commitment –“Feast or famine” funding hinders development in time for next “crisis” –Difficult to keep professionals in the field Immature industry –Undercapitalized, cannot compete in global market –High turnover in ownership –Slow to develop energy services to complement technology sales, especially in developing countries

14. Significant Barriers Constraining Technology Potential (cont’d) Inconsistent national and international policies –Oscillate between strong incentives to develop technologies to “hands-off” approach –Abrupt policy shift very debilitating –Policy conflicts among different government entities Limited number of successful models and examples –Second- and third-generation models particularly lacking

15. Options to Address These Barriers Multi-year funding commitments from governments for R&D Coordination among governments—developed and developing—on R&D –Possibly IEA, if includes developing countries Innovative private sector partnerships, especially in energy services –Partnership among several to invest in energy services –Partnership with NGOs to undertake capacity-building, market development activities

16. Options to Address These Barriers (cont’d) Monitoring of national/international policies, and models/examples by international agency(ies); sharing information widely –IEA (if includes developing countries) –UNFCCC Secretariat Partnership of multilateral banks and other donors to catalyze additional models/examples –Creation of competitive funds to support due diligence and start-up