INTERNATIONAL ENERGY AGENCY Todays Energy Challenges ENERGY TECHNOLOGY

INTERNATIONAL ENERGY AGENCY Today’s Energy Challenges: ENERGY TECHNOLOGY PERSPECTIVES 2008 The Role of District Energy and CHP Scenarios & Strategies to 2050 Euroheat & Power Conference Brussels, Belgium 5 June 2008 Pieter Boot, Director, Long-Term Office International Energy Agency INTERNATIONAL ENERGY In support of the G 8 Plan of Action © OECD/IEA - 2008 AGENCY © OECD/IEA - 2008 1

Overview l Today’s Energy Challenges l The Role of District Energy l The IEA’s District Energy Analysis and Outreach l Looking to the Future ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 INTERNATIONAL ENERGY In support of the G 8 Plan of Action © OECD/IEA - 2008 AGENCY

A New Energy Revolution. . . Cutting Energy-Related CO 2 emissions ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 Improved efficiency and decarbonising the power sector could bring emissions back to current levels by 2050. To achieve a 50% cut we have to revolutionise the transport sector. In support of the G 8 Plan of Action © OECD/IEA - 2008 INTERNATIONAL ENERGY AGENCY

Policy Messages l Deep emissions cuts are technically achievable Ø But we need an energy revolution l Cooperation with developing nations is essential l The task is urgent ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 Ø Capital stock turnover is low Ø Technology deployment needs time l Start with existing opportunities Ø Governments should identify and pursue all cost-effective district energy today In support of the G 8 Plan of Action © OECD/IEA - 2008 INTERNATIONAL ENERGY AGENCY

Wasted Energy Is a Huge Opportunity Energy Flows in the Global Electricity System ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2008). 2/3 of the fuel we use to produce power is wasted -District energy/CHP can more than double this efficiency In support of the G 8 Plan of Action © OECD/IEA - 2008 INTERNATIONAL ENERGY AGENCY

CHP as a Share of Total National Power Generation ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 INTERNATIONAL Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2008). Average use of CHP is just 9% In support of the G 8 Plan of Action ENERGY © OECD/IEA - 2008 AGENCY 6

One Model: Denmark ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 INTERNATIONAL Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2008). In support of the G 8 Plan of Action ENERGY © OECD/IEA - 2008 AGENCY 7

CHP Potentials, 2015 and 2030 ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 INTERNATIONAL Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2008). In support of the G 8 Plan of Action ENERGY © OECD/IEA - 2008 AGENCY 8

CO 2 Emissions Benefits 16000 14000 ENERGY TECHNOLOGY PERSPECTIVES 12000 2008 CO 2 emissions (Mt/yr) 10000 8000 Scenarios & Strategies to 2050 6000 4000 2000 0 IEA Reference IEA APS Accerated CHP IEA Reference 2015 IEA APS Accerated CHP 2030 INTERNATIONAL Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2008). ENERGY In support of the G 8 Plan of Action © OECD/IEA - 2008 AGENCY 9

…So Why Are We at 9%? l Difficulties in coordinating local heat supplies/infrastructure l District energy/CHP benefits are not recognised in GHG regulation l Lack of information about cost savings, other benefits l Developing countries only beginning to see potential ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 INTERNATIONAL ENERGY In support of the G 8 Plan of Action © OECD/IEA - 2008 AGENCY

The IEA’s International CHP/DHC Collaborative l Who: The IEA, working with government, industry leaders worldwide l What: Raise the profile of CHP/DHC among policy makers, industry l When: Launched March 2007 with a 2 -year Work Plan ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 Ø Collect and publish data Ø Analyze benefits Ø Document best-practice policies INTERNATIONAL ENERGY In support of the G 8 Plan of Action © OECD/IEA - 2008 AGENCY 11

Next Steps Ø July 2008: IEA Information Paper on CHP/DHC and Emissions Trading Schemes Ø July, October, December 2008: country scorecards for G 8 +5 countries Ø Ø Evaluation of current policies, markets Country-specific benefits analysis Recommendations for possible improvements First profiles to be announced in July at G 8 side event in Japan ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 Ø October 2008: Best practice policies, approaches Ø CHP/DHC in cities - technologies, financing Ø Transitioning to biomass/renewable CHP/DHC In support of the G 8 Plan of Action © OECD/IEA - 2008 INTERNATIONAL ENERGY AGENCY 12

Energy & Cities: Four Themes Modelling urban energy use ENERGY TECHNOLOGY PERSPECTIVES National-local partnerships 2008 Scenarios & Strategies to 2050 Enhanced energy efficiency Best practice Benchmarking District energy a key best practice In support of the G 8 Plan of Action © OECD/IEA - 2008 INTERNATIONAL ENERGY AGENCY

Conclusions l We are facing an urgent set of energy challenges l Deep emissions cuts are technically achievable l We need an energy revolution l Leadership is needed by government, industry, and cities l District energy is a key opportunity to get started ENERGY TECHNOLOGY PERSPECTIVES 2008 Scenarios & Strategies to 2050 INTERNATIONAL ENERGY In support of the G 8 Plan of Action © OECD/IEA - 2008 AGENCY