electricity generation and consumption
TRANSCRIPT
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ENERGY RESOURCES,
ELECTRICITY GENERATION
ANDCONSUMPTION
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ENERGY GLOBALIZATION
When a Brazilian brews her morning coffee today, she is
likely to use electricity from a power plant in Uruguay that
runs on natural gas from Argentina provided by a Chilean
company. She drives to work in a Ford fueled with
Venezuelan gasoline, and her Canadian-owned factory may
soon be powered by a 2,000 mile natural gas pipeline fromBolivia
Mack McLarty, former White House advisor
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THE FUTURE OF ENERGY
By the year 2020, energy consumption by the Developing
World is expected to surpass that of the Industrialized World.
What forms of energy will these countries be consuming
cheap, dirty coal or clean natural gasand where will the
supplies come from? Will this shift lead to competitionbotheconomic and politicalfor access to supplies? Can these
countries pay for the energy and supporting infrastructure,
such as power-generating plants, or will the Industrialized
World have to help out with funds and with technology
transfers? If not, the divide between North and South
becomes wider.
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THE FUTURE OF ENERGY
The coming years will see important shifts among the kinds
of fuel consumed. The relative share of oil declines as do the
shares of coal and nuclear. Natural gas is the only form of
primary energy to gain both in absolute and relative terms,
clearly reflecting its reputation as a clean-burning fuel,
especially in power generation. The relative share ofrenewables holds its own.
What happens to all the energy consumed worldwide? A
surprising 38% is burned to generate electricity, 18% goes to
fuel transportation, as does more than half the oil consumed.
Electricity is the most rapidly growing form of energy use
during the years up to 2020 at least. This growth will be
concentrated in the developing countries, where electricity
use will more than double.
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WORLD PRIMARY ENERGY* CONSUMPTION
INCREASED BY 2.4% IN 2006
*primary energy comprises commercially traded fuels only. Whilst they are important in many countries, fuels such as wood, peat and animal wasteare excluded since they are documented unreliably in terms of consumption statistics. Also excluded are wind, geothermal and solar power generation.
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REGIONAL PRIMARY ENERGY CONSUMPTION PATTERN
2006
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THE FUTURE OF PRIMARY ENERGY
Oil trends
European dependence on Gulf oil will remain significant
Asian dependence on Gulf oil will expand dramatically
US oil imports will continue to grow
Natural gas trends
Natural gas is the fastest growing primary energy source
Its use is to double, by 2020
But this growth requires major infrastructure investments
The US will become more reliant on imported natural gas
Russia, today providing 26% of the natural gas that Europeconsumes, looks forward to expand its share
Coal trends
The US is the major player, leading the world in coal reserves andChina is the dominant producer and consumer. More than 55% of thecoal consumed worldwide is for electricity generation, this willcontinue to be the basis for future growth in coal use.
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IN 2006, WORLD NUCLEAR GENERATION INCREASED BY
1.4% WITH NUCLEARPOWER PLANTS GENERATING
2,808 TERAWATT HOURS (TWH) OF ELECTRICITY, THE
HIGHEST NUCLEAR ELECTRICITY GENERATION EVER
CountryNuclear energy consumption, 2006
(million tones oil equivalent)
USA 187.5
France 102.1
Japan 68.6
Germany 37.9
Russia 35.4
Total 635.5
Source: BP Statistical Energy Review, 2007
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The nuclear future is not at all promising. Nuclear power presently
accounts for 16% of worldwide electricity generation. But by the 2020
that contribution is expected to decline to just 10%.
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RENEWABLE ENERGY
There is no universally accepted definition of renewable energy but it isgenerally agreed that it includes energy derived from natural processes that
do not involve the consumption of exhaustible resources such as fossil fuelsand uranium A large share of renewable energy is non-commercial in the sense that its
production and consumption do not involve a market transaction. Energythat is not commercially traded typically consists of combustible renewablesand renewable waste, including firewood, charcoal, crop residues andanimal waste. This source of energy is especially important in emerging
economies and accounts for the vast majority of the worlds renewableenergy use In electricity generation, renewables remain the third most important source
of energy after coal and gas, providing 18% of total electricity in 2004.Hydropower is the most important constituent among renewable sources ofelectricity. It accounts for almost 90% of total electricity generated fromrenewable sources and 16% of total electricity generation. Geothermal,
wind and solar electricity generation combined, account for approximately1% of global electricity generation. Despite the generally low share of geothermal, wind and solar electricity
generation, these sources contributed a significant share to the growth inelectricity generation in many OECD countries. Over the past five years,renewable sources accounted for 10% of the growth of electricity generationin Germany and 6% in the EU-25.
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Country Hydroelectricity consumption,2006
(million tones oil equivalent)
China 94.3
Canada 79.3
Brazil 79.2
USA 65.9
Russia 39.6
Total 688.1
Source: BP Statistical Energy Review, 2007
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The massive Three Gorges Damon the Yangzi (Chang) River aboveYichang in Hubei Province underconstruction in 2003. This is the
worlds largest-ever hydroelectricproject, yielding its first powersupplies in 2003 with capacityexpanding until the entire project isat full production in 2009.
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Installed wind power generation capacity has tripled over the last five years.Over the last decade the average annual rate of growth was close to 30%
Germany remained the worlds largest wind power market with an installedcapacity of around 20.6 GW at the end of 2006, followed by the US and
Spain with an installed capacity base of 11.6 GW. Germany has a 28%share of total installed capacity, and the US and Spain follow with 16%share each
Wind is a significant source of electricity in Denmark, Spain and Germany.Denmark generates 14% of its total electricity from wind sources, Spain 9%and Germany 5%. Among developing countries, wind was an important
source of electricity in India, contributing around 1% to total electricitygeneration. Globally, wind generated electricity is still less than 1% of totalelectricity generation
New additions in wind power generation capacity in 2006 are in: USA,Germany, India, Spain, China, France
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Solar energy is used in two main ways: to make electricity (photovoltaics)and to heat water (solar thermal). The photovoltaic (PV) application is thelarger of the two and data are also more readily available
As with wind, installed PV capacity has increased dramatically over the lastdecade. The increase was more than 18 fold, albeit from a much lower basethan wind capacity
Installed PV capacity base is concentrated in a relatively small number ofcountries. Between them, Japan, Germany and the US accounted for 90%of installed capacity in the PVPS member countries at the end of 2005. Theshare of these three countries has been increasing steadily over the pastdecade
Installed capacity in the IEA Photovoltaic Power System Program (PVPS)
member countries increased by 1,094 megawatts (MW) to reach more than3,700 MW at the end of 2005. 58% of this growth was in Germany, 26%was in Japan and 9% came from the US. The fastest growth over the pastdecade was in Germany (55%), Japan (42%) and in the UK (40%)
Germany surpassed Japan in terms of solar power generating capacity in2005.
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The main driver behind the growth in 2006 was the 190 megawattsgenerating capacity expansion in Iceland. El Salvador, Italy and Turkey alsoexpanded generating capacity in 2006
Trend growth has been modest, averaging 3% per year over the pastdecade. Slow growth resulted in a stagnating share of geothermal energy intotal power generation of approximately 0.3%
The US leads the world in installed geothermal power capacity. Most of theUS geothermal capacity is concentrated in California, making it the largestproducer of geothermal electricity in the world, and satisfying 6% of itselectricity demand
In El Salvador it accounts for a quarter of all electricity generation and in thePhilippines and Kenya approximately one fifth of electricity is generatedfrom geothermal sources. Among industrialized economies geothermal
electricity generation is significant in Iceland (around 20% of total electricitygeneration) and New Zealand (7% of total electricity generation)
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ELECTRICITY GENERATION
Country Electricity generation, 2006(Terawatt-hours)
USA 4254.0
China 2834.4
Japan 1150.3
Russia 992.5
India 726.7
Total 19027.7
Source: BP Statistical Energy Review, 2007