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Morgan D. Bazilian, Ph.D. IIEA, Dublin, Eire, May 17, 2016 ENERGY AND DEVELOPMENT: Geopolitics and Research

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Page 1: ENERGY AND DEVELOPMENT: Geopolitics and Research · •Roughly 600m without access in SSA now: projected to be 700m in 2030 (IEA). Only region going up in absolute terms. •Without

Morgan D. Bazilian, Ph.D.

IIEA, Dublin, Eire, May 17, 2016

ENERGY AND DEVELOPMENT: Geopolitics and Research

Page 2: ENERGY AND DEVELOPMENT: Geopolitics and Research · •Roughly 600m without access in SSA now: projected to be 700m in 2030 (IEA). Only region going up in absolute terms. •Without

Scope and Scale │ Investment │ Geopoli�cs & Security │ Research

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IIASA, Nakicenovic

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No Longer a Triangle(“all of the above” is difficult)

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“Energy is Eternal Delight”

William Blake, The Marriage of Heaven and Hell, 1793

• Lighting

• Heating/cooling

• Refrigeration

• Pumping

• Transport

• Motors

We mostly take these for granted or assume their availability in wealthy countries.

It is a very different situation in poor countries.

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Energy and development: “The golden thread”

A basis for security: migration, urbanization, equality

Impacts on environment: air pollution (indoor and outdoor), climate change

A foundation for economic activity across the economy

Essential for social development: public health, education, food security, water services

+Imminently “doable”: the physics in New York and Paris, the same as in Dhaka and Addis.

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Page 8: ENERGY AND DEVELOPMENT: Geopolitics and Research · •Roughly 600m without access in SSA now: projected to be 700m in 2030 (IEA). Only region going up in absolute terms. •Without

Three Targets:

UN Sustainable Energy for All initiative

One Goal: Achieving Sustainable Energy for All by 2030

Page 9: ENERGY AND DEVELOPMENT: Geopolitics and Research · •Roughly 600m without access in SSA now: projected to be 700m in 2030 (IEA). Only region going up in absolute terms. •Without

•Roughly 600m without access in SSA now: projected to be 700m in 2030 (IEA). Only region going up in absolute terms.

•Without South Africa, the total SSA capacity is a mere 34 GW, equivalent to the installed capacity of Argentina.

•Manufacturing enterprises experience power outages on an average of 56 days per year; costs 6-16% of GDP.

2.9 billion 1.1 billion

Access deficit almost three times as large fornon-solid fuels as for electricity

Electricity access

deficit

Cooking access

deficit

Page 10: ENERGY AND DEVELOPMENT: Geopolitics and Research · •Roughly 600m without access in SSA now: projected to be 700m in 2030 (IEA). Only region going up in absolute terms. •Without

IEA WEO 2014

Energy moving to Developing Economies

Total power system investment 2012-2035 is estimated at USD 16.9 trillion.Non-OECD countries account for 60% of cumulative investment.

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Inequity

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Non-linear growth needed(more than a light – big markets)

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Multi-tier Framework

Additional frameworks for access to energy for:

• Household cooking• Productive engagements• Community Infrastructure

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In Kinshasa DRC, In Kinshasa DRC, In Kinshasa DRC, In Kinshasa DRC, conventional access is 90%, but adjusting for service deficiencies score drops to 30%conventional access is 90%, but adjusting for service deficiencies score drops to 30%conventional access is 90%, but adjusting for service deficiencies score drops to 30%conventional access is 90%, but adjusting for service deficiencies score drops to 30%

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Precedent of household electrification

0

20

40

60

80

100

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Per

cen

tage

pop

ula

tion

wit

h e

lect

rici

ty a

cces

s

USA Mexico Mauritius China Brazil

Thailand India UK Egypt South Africa

Source: Pachauri et al., 2011: Energy Access for Development. In: The Global Energy Assessment: Toward a More Sustainable Future. IIASA, Laxenburg, Austria

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Innovation, technology and planning

In Nigeria, higher population density favours on-grid supplyLow population density in Ethiopia means show mini- and off-grid solutions

Ethiopia

Source: IEA in collaboration with the KTH Royal Institute of Technology, division of Energy Systems Analysis.

Nigeria

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Environmental Trade-offs?

International Energy Agency (IEA): “Universal modern energy access does not have any significant impact on energy or climate security”

It depends…cookstoves or modern ovens and dishwashers…

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Three Targets:

Sustainable Sustainable Sustainable Sustainable Energy for All Energy for All Energy for All Energy for All initiativeinitiativeinitiativeinitiative

One Goal: Achieving Sustainable Energy for All by 2030

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Investment flows need to triple to achieve the necessary pace of progress

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Our new estimatesOur medium estimate is roughly equivalent to other literature, including the World

Energy Outlook 2012. The large disparity between our high scenario and the available literature is mostly due to the significantly higher assumption on per capita electricity use. That “high” per capita electricity use assumption is still roughly half of the average of today’s North African demand – so still nearly an order of magnitude lower than an OECD average.

0

500

1000

1500

2000

2500

3000

3500

Ow

n e

stim

ates

(hig

h)

Ow

n e

stim

ates

(med

ium

)

Ow

n e

stim

ates

(lo

w)

Pac

hau

ri e

t al

20

13

IEA

20

12

Ria

hi e

t al

20

12

IEA

20

11

IEA

et

al. 2

01

0

AG

ECC

20

10

Cu

mm

ula

tiv

e c

ost

[b

illi

on

US

D]

Cooking

Electricity

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Current flows are not being utilised entirely

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http://rise.worldbank.org

Readiness for Investment

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The wrong image

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Nearly 50% of sub-Saharan African companies own or share a generator.

0 20 40 60 80

Bangladesh (2013)

Lebanon (2013)

Pakistan (2007)

Central African Republic (2011)

Congo, Rep. (2009)

Chad (2009)

Dominican Republic (2010)

Myanmar (2014)

Afghanistan (2014)

Kosovo (2013)

Timor-Leste (2009)

Cameroon (2009)

Nepal (2013)

Ghana (2013)

Togo (2009)

Zimbabwe (2011)

Uganda (2013)

Uzbekistan (2013)

Guinea-Bissau (2006)

Benin (2009)

Micronesia, Fed. Sts. (2009)

Gabon (2009)

Albania (2013)

Botswana (2010)

Sri Lanka (2011)

Number of unscheduled outages per month

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Source: E&Y, 2014

Page 26: ENERGY AND DEVELOPMENT: Geopolitics and Research · •Roughly 600m without access in SSA now: projected to be 700m in 2030 (IEA). Only region going up in absolute terms. •Without

Oil, Governance, Aid, and Access(an evolving story)

The $18 billion needed for access to electricity and to clean cooking stoves and cylinders,is a mere 0.4% of the government take from oil and gas export revenues in 2006-2030

0 2 4 6 8

Sudan

Nigeria

Mozambique

Gabon

Equatorial Guinea

Côte d'Ivoire

Congo

Chad

Cameroon

Angola

Billion dollars (2007)

Electrification

LPG

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Flaring and planning

About 140 billion cubic meters annually

Enough to produce 750 billion kWh power

More than the entire power consumption on the African

continent currently

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Natural gas and AfricaNatural gas and AfricaNatural gas and AfricaNatural gas and Africa

Estimated potential natural gas demand in sub-Saharan Africa by 2050.

Optimal transmission pipeline network and gas cost at city gate for the baseline scenario. Based on the estimated gas demand for 2050 and a gas production cost of $3/MMBtu. It is assumed that 1300 Bcf/year is exported from Matola (Southern Mozambique) to South Africa. The required investment is estimated at $56.7 Billion.

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Security and Geopolitics as Impetus and Lens

Providing energy services in the poorest countries can lower the risk of internal unrest and reduce the movement of people across borders.

Page 30: ENERGY AND DEVELOPMENT: Geopolitics and Research · •Roughly 600m without access in SSA now: projected to be 700m in 2030 (IEA). Only region going up in absolute terms. •Without

Towards a research agenda

1. How do we link energy and development issues firmly wider governance and security issues?

2. How to improve power planning methodologies, especially in fragile and conflict states under deep uncertainty?

3. How to respond to the challenges related to linkages with other sectors such as water and food security?

4. How to best understand links to natural gas and energy access?

5. How are the worlds financial institutions investing in the energy sector in developing countries, under what rules, and what rule-making?

Page 31: ENERGY AND DEVELOPMENT: Geopolitics and Research · •Roughly 600m without access in SSA now: projected to be 700m in 2030 (IEA). Only region going up in absolute terms. •Without

Thank you

Morgan D. Bazilian, Ph.D.

[email protected]

+1 202 458 9033

Page 32: ENERGY AND DEVELOPMENT: Geopolitics and Research · •Roughly 600m without access in SSA now: projected to be 700m in 2030 (IEA). Only region going up in absolute terms. •Without

Related references

Bazilian, M., Sagar, A., Detchon, R., Yumkella, K. 2010. More Heat and Light, Energy Policy 38 (2010) 5409–5412, Elsevier.

Bazilian, M., Nussbaumer, P., Haites, H. Levi, M., Yumkella, K. 2010. Understanding the Costs of Universal Energy Access. Geopolitics of Energy. Vol. 32 (10 and 11). CERI.

Bazilian, M. Hobbs, B., Blyth, W., MacGill, I., and Howells, M. 2011. Interactions between Energy Security and Climate Change: A focus on developing countries. Energy Policy. Vol. 39 (6).

Howells, M., Rogner, H., Strachan, N., Heaps, C., Huntington, H., Kypreos, S., Hughes, A., Silveira, S., Decarolis, J., Bazillian, M. & Roehrl, A. OSeMOSYS: The Open Source Energy Modeling System: An introduction to its ethos, structure and development. 2011. Energy Policy. Elsevier

Nussbaumer, P. Bazilian, M., Modi, V., Yumkella, K. 2011. Measuring Energy Poverty: Focusing on What Matters. Renewable and Sustainable Energy reviews. Elsevier.

Bazilian, M. Nussbaumer, P., Gualberti, G., Haites, E., Levi, M., Siegel, J., Kammen, J., Fenhann, J. 2011. Informing the Financing of Universal Energy Access: An Assessment of Current Financial Flows. The Electricity Journal.Elsevier.

Bazilian, M. Nussbaumer, P., Rogner, H., Howells, M., Hermann, S., Arent, D., Gielen, D., Steduto, P., Mueller, A., Komor, P., Tol, R., Yumkella, K. 2011. Considering the Energy, Water and Food Nexus: Towards an Integrated Modelling Framework. Energy Policy. Elsevier.

Benjamin K. Sovacool, Christopher Cooper, Morgan Bazilian, Katie Johnson, David Zoppo, Shannon Clarke, Jay Eidsness, Meredith Crafton, Thiyagarajan Velumail, and Hilal A. Raza. 2012. What Moves and Works: Broadening the Consideration of Energy Poverty. Energy Policy. Elsevier.

Bazilian, M. Nussbaumer, P., Rogner, Brew-Hammond, A., Foster, V., H., Williams, E., Howells, M., Niyongabo, P., Musaba, L., Ó Gallachóir, B., Radka, M., Kammen, D. 2012. Access Scenarios to 2030 for the Power Sector in Sub-Saharan Africa. Utilities Policy. Elsevier.

Bazilian, M. Nussbaumer, P., Eibs-Singer, C., Brew-Hammond, A., Modi, V., Sovacool, B., Remana, V., Aqrawi, P. 2012. Improving Access to Modern Energy Services: Insights from Case Studies. Electricity Journal. Elsevier.

Yumkella, K., Nakicenovic, N., Bazilian, m., Jewell, J. 2012. The UN Sustainable Energy for All Initiative and Climate Change Mitigation. WMO Bulletin. Vol 61 (1).

Bazilian, M. Rice, A. Rotich, J. Howells, M., DeCarolis, J., MacMillan, S., Vrooks, C., Bauer, F., Liebreich, M. 2012. Open source software and crowdsourcing for energy analysis. Energy Policy.

Onyeji, I., Bazilian, M. Bronk, C. 2014. Cyber security and critical energy infrastructure. Electricity Journal. Elsevier.

Taliotis, C., Bazilian, M., Welsch, M., Gielen, D., Howells, M. 2014. Grand Inga to power Africa: Hydropower development scenarios to 2035. Energy Strategy Reviews.

Bazilian, M., Van de Graaf, T., Nakhooda, S. 2014. Energy Governance and Poverty. Energy research and social science. Elsevier.

Taliotis, C., Miketa, A., Howells, M., Hermann, S., Welsch, M., Bazilian, M., Gielen, D. 2014. An indicative assessment of investment opportunities in the African electricity supply sector. Journal of Energy in South Africa.

Pedersen, A., Bazilian, M. 2014. Oil Politics in South Sudan. Extractive Industries and Society. Elsevier.

M. Welsch, M. Howells, M. Bazilian, J. DeCarolis, S. Hermann, H.H. Rogner, Modelling elements of Smart Grids: Enhancing the OSeMOSYS (Open Source Energy Modelling System) code. Energy. Elsevier

Oneyji, I. Bazilian, M., Nussbaumer, P. 2012. Contextualizing Electricity Access in Sub-Saharan Africa. Energy for Sustainable Development. Elsevier.

Bazilian, M., Welsch. M., Divan, D., Elzinga, D., Strbac, G., Howells, M., Jones, J., Keane, A., Gielen, D., Brew-hammond, A., Yumkella, K. 2012. Smart and Just Grids. Renewable and Sustainable Energy Reviews. Elsevier.

Bazilian, M. Onyeji, I. Liebreich, M., Gielen, D., Arent, D., Landfear, D. 2013. Reconsidering the economics of photovoltaic energy generation. Renewable Energy. Elsevier.

Nussbaumer, P., Patt, A., Bazilian, M. 2013. A statistical analysis of the link between energy and the Millennium Development Goals. Climate and Development. Earthscan.

Alcorta, L. Bazilian, M. Pedersen. A, DeSimone, G. 2013. Return on Investment from Industrial Energy Efficiency: Evidence from Developing Countries. Energy Efficiency. Springer

Bazilian, M. Onyeji, I. Aqrawi, P., Sovacool, B., Ofori, E., Kammen, D. Van de Graaf, T. 2013. Oil, Energy Poverty, and Resource Dependence in West Africa. International Journal of Sustainable Resource and Energy Law.

Tawney, L., Miller, M., Bazilian, M. 2013. Innovation for sustainable energy from a pro-poor perspective. Climate Policy.

Gualberti, G., Singer, C., Bazilian, M. 2013. The capacity to spend development funds in the energy sector. Utilities Policy. September, pp 36-44.

Howells.M., Welsch, M., Bazilian, M., Segerstrom, R., Alfstad, T., Gielen, D., Rogner, H., Fischer, G., Van Velthuizen, H., Wiberg, D., et al., 2013. Integrated analysis of climate change, land-use, energy and water strategies. Nature Climate Change.3,621–626

Bazilian, M., Pielke, R. 2013. Raising aspirations for energy access. Issues in Science and Technology.

Bazilian, M., Pedersen, A., Pless, J., Logan, J., Medlock, K., O’Sullivan, F. 2013. Considering Shale Gas in China. International Journal of shale gas and oil. Brussels.

Thompson, G., Bazilian, M. 2013. Democratization, Energy Poverty, and the Pursuit of Symmetry. Global Policy.

Bazilian, M. 2015. Power to the Poor. Foreign Affairs.

Bazilian, M., Roques, F. 2008. Analytical Methods for Energy Diversity and Security, Elsevier Science, Amsterdam.