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Energy as a Global Issue ECSAC - Workshop on Geothermal Energy Velj Lošinj, August 25 th , 2014 Vanni Lughi Department of Engineering and Architecture, University of Trieste, Italy [email protected]

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Page 1: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy as a Global Issue ECSAC - Workshop on Geothermal Energy

Velj Lošinj, August 25th, 2014

Vanni Lughi Department of Engineering and Architecture, University of Trieste, Italy

[email protected]

Page 2: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

The key strategic framework

Page 3: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Contents • Energy as a complex, global issue

• Interconnectedness with global issues • Many new players

• The «Energy Chain»: from the source to the final use

• Key role of energy efficiency and savings

• Trends and outlooks in energy demand, supply and price

• The disruptive role of gas • Lessons learned from photovoltaics

• Tools for assessing energy quality

• Trends in energy technology

• The Peri-Adriatic Region

Page 4: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

• Energy as a complex, global issue • Interconnectedness with global issues • Many new players

• The «Energy Chain»: from the source to the final use

• Key role of energy efficiency and savings

• Trends and outlooks in energy demand, supply and price

• The disruptive role of gas • Lessons learned from photovoltaics

• Tools for assessing energy quality

• Trends in energy technology

• The Peri-Adriatic Region

Page 5: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy: A global issue - complexity

Energy

Health

Environment

Economy

Population Food

Security

Water

Page 6: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final
Page 7: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy use forecast

GEA - Global Energy Assessment Report 2012

Page 8: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final
Page 9: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy, stability and security

GEA - Global Energy Assessment Report 2012

Page 10: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy, stability and security

Center for preventive action, US Council on Foreign Relations

Page 11: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and the environment Emissions and climate change

Carbon concentration always changes over time… …but never at the rate and to the levels that we have seen over the past 50 years

Page 12: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and the environment Emissions and climate change

Carbon emissions are antropogenic

Page 13: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and the environment Emissions and climate change

Carbon concentration and temperature are correlated

Moberg et al., Nature 433 (2005)

Page 14: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and the environment Emissions and climate change

Temperature seems to be raising

Page 15: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and the environment Emissions and climate change

Page 16: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and the environment Emissions and climate change

Page 17: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy, Environment, and Economy

Page 18: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and Health

GEA - Global Energy Assessment Report 2012

Page 19: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and Population

Page 20: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and Population

DeLong JP et al, PLoS ONE 5, e13206 (2010)

Installed power per capita [W]

Energy might not be sufficient to sustain stabilization of the population

Page 21: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and Economy

Page 22: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and Food

• Food vs Energy dilemma (food cropland substituted by energy crops)

• Link between prices of food and prices of energy

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oo

d P

rice

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Food Prices and Oil Prices, 2000 - 2010

US Energy Information Agency

Page 23: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy: A global issue - complexity

Energy

Health

Environment

Economy

Population Food

Security

Water

Page 24: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy and complexity - a different standpoint -

Complexity arising from large number of players and strong interconnectedness E.g.: Integration of different energy sources Smart grid

Page 25: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

• Energy as a complex, global issue • Interconnectedness with global issues • Many new players

• The «Energy Chain»: from the source to the final use

• Key role of energy efficiency and savings

• Trends and outlooks in energy demand, supply and price

• The disruptive role of gas • Lessons learned from photovoltaics

• Tools for assessing energy quality

• Trends in energy technology

• The Peri-Adriatic Region

Page 26: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy Supply Chain: Examples

Page 27: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy Supply Chain

End use Storage

Distribution «Production» (Transformation)

Losses

Page 28: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Complexity of the Energy Supply Chain

MASTER IN COMPLEX ACTIONS | NEXT GENERATION LEADERS | SISSA TRIESTE

Page 29: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Complexity of the Energy Supply Chain

MASTER IN COMPLEX ACTIONS | NEXT GENERATION LEADERS | SISSA TRIESTE

Page 31: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Role of efficiency for a carbon-free energy system

Page 32: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

• Energy as a complex, global issue • Interconnectedness with global issues • Many new players

• The «Energy Chain»: from the source to the final use

• Key role of energy efficiency and savings

• Trends and outlooks in energy demand, supply and price

• The disruptive role of gas • Lessons learned from photovoltaics

• Tools for assessing energy quality

• Trends in energy technology

• The Peri-Adriatic Region

Page 33: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy demand growth

Page 34: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy Transitions

Page 35: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Global Energy Consumption

BP Statistical Review of World Energy – June 2014

Page 36: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Global Energy Consumption

Enerdata – Global Energy Statistical Yearbook 2014

0

2000

4000

6000

8000

10000

12000

14000

16000

1990 1995 2000 2005 2010

Mto

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World

OECD

BRICS

Page 37: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy demand: Global imbalance

Population [millions of people]

Page 38: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Price dynamics of primary energy sources

Page 39: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Price dynamics: the effect of shale gas

Page 40: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Price of energy from new sources

Page 41: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Price Lessons learned from the photovoltaic technology

iSupply Corp., 2011

Page 42: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

0,05

0,07

0,09

0,11

0,13

0,15

0,17

0,19

0,21

0,23

0,25

1000 1200 1400 1600 1800 2000

LCO

E [€

]

Yield [kWh/kWp per year]

No

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Life of PV plant: 30 yrs Degradation rate: 0.7%/yr O&M cost: 1.5% of OCS

Price and Grid Parity Lessons learned from the photovoltaic technology

Lughi and Pavan, ICCEP 2013

Page 43: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Breyer C, Gerlach A. Global overview on grid parity Progress in photovoltaic: research and applications 2012. John Wiley & Sons, Ltd. DOI 10.1002/pip.1254

Price and Grid Parity Lessons learned from the photovoltaic technology

Page 44: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Price and consumption

statista.com; BP energy statistics review 2014

Page 45: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

International Energy Agency Renewable Energy Status Report 2013

Price and Subsidies

Global subsidies for fossil fuels : 523 B$ in 2011 (+ 27% from 2010) Global subsidies for renewables: 88 B$ in 2011 (+ 24% from 2010)

Page 46: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Future Trends

Page 47: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Scenarios

(GEA)

Page 48: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Scenario Shell (source-focused)

Page 49: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Scenario IEA (2013)

Page 50: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Scenario WWF (EcoFYS)

Page 51: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy: towards a carbon-free system

Page 52: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Oil is in fact going to end…

Page 53: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final
Page 54: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Alternative resources

Page 55: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Alternative resources

Page 56: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Alternative resources

Page 57: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Alternative resources

Page 58: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Alternative resources

Page 59: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Energy Supply Chain

End use Storage

Distribution «Production» (Transformation)

Losses

Page 60: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Imagine Future Scenarios

Solar

Water electrolysis

Solar thermal

Storage, Transportation, Reconversion (Hydrogen)

Electric grid

Energy Storage

Storage, Transportation, and Distribution (electricity)

Fuel Cells

Production

Biofuels

Transportation (heat) – short distance

Use

Transportation (fuel)

Geothermal

Geothermal

Page 61: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

• Energy as a complex, global issue • Interconnectedness with global issues • Many new players

• The «Energy Chain»: from the source to the final use

• Key role of energy efficiency and savings

• Trends and outlooks in energy demand, supply and price

• The disruptive role of gas • Lessons learned from photovoltaics

• Tools for assessing energy quality

• Trends in energy technology

• The Peri-Adriatic Region

Page 62: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Carbon Footprint

Amount of CO2 equivalent emitted – by a population, system or activity

– within a space- and timeframe

Footprint is commonly calculated for: – Individuals, households, populations

– Energy production systems

– Products

Page 64: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

LCOE – Levelized Cost of Energy

http://en.openei.org/apps/TCDB/ Dynamic calculator:

Page 65: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

EROEI

Energy Return On

Energy Invested: Eout: energy provided by the system over its lifetime Ein: total energy required to create and operate the system

Gupta et al., Sustainability 2011, 3, 1796

Geothermal: 6 - 39

Page 66: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Concluding remarks

Page 67: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Trends

• Diversification of the energy sources (mostly alternative/renewable)

– Mini- and microgeneration

– «Democratization» of energy

– Principle of locality of the source

– Integration of energy sources

– Higher complexity

• Storage

– Large scale to compensate unpredictability of renewable resources

– Small scale to enable reliability of local (integrated) systems

Key role of social aspects! (see for example the case of photovoltaics in Italy)

Page 68: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Scenarios in the Peri-Adriatic Region

Source: EU Commission

Page 69: Energy as a Global Issue · • Energy as a complex, global issue • Interconnectedness with global issues • Many new players • The «Energy Chain»: from the source to the final

Scenarios in the Peri-Adriatic Region

Source: EU Commission

oil and gas exploration

Need for clear, shared, coherent and long-sighted policies and regulations!