Climate change, energy and electricity - An electric and renewable future for a carbon neutral economy
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Climate change, energy and electricity An electric and renewable future for a carbon neutral economy Claudio Seebach | @cseebach Executive Chairman Generadoras de Chile Chile-Norway Business Summit 2019 Santiago, 28th March 2019
Air pollution is Chile’s biggest environmental hazard +4.000 premature deaths per year
Coyhaique in Patagonia has Chile’s (and Latam’s) worst air quality
Annual average of fine particulate matter (MP 2.5) in micrograms per cubic meter
25 34 27 25 28 25
64
15 22 19 14 27 32 29 34
Air pollution is Chile’s biggest environmental hazard 86% of fine particulate matter come from the burning of wood
We still have a large energy equality gap
Poor people spend
of their income for heating and cooking 2,5x
13% of final energy consumption is still wood / biomass
We still have a large energy equality gap
In winter
poor people live -4,5o C (-8oF) below the
comfort temperature
We still have a large gender equality gap
Only
1 CEO of a power generator is a
out of six board members is a woman
We know how to have successful dialogues in the energy sector
We know how to build a shared vision and sound long term policy
Oil, coal and natural gas are still the dominant energy sources
World Chile
Solar-Eólica,
Hídrica, 7% 1%
Petróleo,
30%
Biomasa
leña, 24%
Gas Natural, Carbón,
13% 25%
68% of energy are fossil fuels
Source: Renewable energy: A world turned upside down, The Economist, 25.2.2017 Source: Balance Nacional de Energía, 20152003 2019
At the current rate of emissions the planet’s temperature
will have increased by more than 4o C by 2100
Global net CO2 emissions and expected temperature increase
3 a 4°C NDC Chile
NDCs
Global
Acuerdo de
París
Source: Global Carbon Project (2017)Energy produces almost 80% of Chile’s greenhouse gas emissions
Waste management
5%
30%
Total Electricity generation
Industrial Processes and 6%
Product Use Energy 26% Transport
10% 79% 14% Industry
6% Residential, commercial
3% and public sector
Agriculture
Other
Source: 3rd Biannual Report on Climate Change, Ministry of Environment, Chile, 2018We are fully dependant on electricity
22%
But only of energy we actually consume is electricityOil products have still the largest share of final energy consumed in Chile 57% of final energy consumed are oil products like diesel, gasoline and kerosene
We are a country rich in renewable resources
In 2018, 45% of electricity produced was renewableChile ranked #1 as the most attractive country to invest in renewables
100% of new power plants under construction recently were renewable
Our future is renewable
75% of electricity could be renewable by 2030Our future is renewable
30% of electric generation will be solar by 2030
becoming the number
1 source of electricity in ChileWe are recovering our renewable tradition
Evolution and
Evolución deprojection of power
la generación generation
en Chile (DMCM, mix in Chile
escenario [% of energy
hidrología produced]
media)
100%
31% 25%
40% 35%
75% 49% 52% 60%
75%
60% 65% 65% 69%
60% 8% 20% 30%
50% 51% 48% 13%
40% 40% 11%
58% 1% 35% 3%
3% 12%
25% 50% 46%
39% 32% 39% 34%
31% 29%
0%
1996-1999 2000-2003 2004-2007 2008-2011 2010-2013 2014-2017 2021 2025 2030
Hidro Eólica Solar Otras renovables Termoeléctrica Renovable
Fuente: Datos 1996 – 2017: Promedio cuatrianual en base a información Energía Abierta, CNE
Proyección 2021 - 2030: Resultados para escenario DMCM: demanda media, costos medios. Estudio Análisis de largo plazo del SEN considerando ERV, PSR Moray, 2018Renewables also face (new) sustainability challenges
Location of resources
Transmission
Local communities
Rights of indigenous people
Decentralization of government
Territorial planning
Impact on biodiversityWe have a voluntary agreement on the future of coal
Electricity is the only source of energy that is dramatically decarbonizing
Intensidad de emisiones de la electricidad vs combustibles fósiles
100 Electricidad
80
Gasolina
60
tCO2eq/TJ
Diesel
40
Gas Natural
20
Meta Acuerdo París 2DS
0
2020 2030 2040 2050
Transición energética: lo que está en juego 8.11.2018 24The future will be electric
Santiago has the largest fleet of electric buses in public transport outside China
Currenty only 2% of transport is electric in Chile
Energy efficiency
Health and air pollution
Greenhouse emissionsHeat pumps are the cheapest, most efficient and cleanest source of heat
Electric consumption of 10 kWh of electricity produces 30 to 40 kWh of heat
Efficiency MP2.5 Monthly cost Investment
(%) (kg/month) (USD) (USD)
Wood stove 20 – 60 % 3 - 12 55 250 - 600
LPG 95 % 102 90 - 160
Natural Gas 95 % 83 200 - 500
Kerosene 95 % 0.03 72 75 - 700
Electric heat pump 300 – 400 % 50 300 - 1500
Electric resistance 100 % 180 15 - 300Electrification and energy efficiency will drive carbon neutrality Eurelectric presented a decarbonization pathway for Europe at COP24
Electrification is key to reduce CO2 emissions and local pollution
Chile can inspire the world on becoming a carbon neutral economy by 2050
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