The Journal of the International Energy Agency - IEA
The Journal of the International Energy Agency - IEA
The Journal of the International Energy Agency - IEA
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CURRENT FOCUS<br />
PRIVATE SECTOR<br />
HOW THE EBC CAN HELP<br />
<strong>The</strong>re are a number <strong>of</strong> pending issues in <strong>the</strong><br />
development <strong>of</strong> renewables that could benefit<br />
from sharing ideas and proposals among<br />
members <strong>of</strong> <strong>the</strong> EBC, and things could be<br />
speeded up if consensus is reached within<br />
<strong>the</strong> group at an early stage.<br />
<strong>The</strong> Tatanka Wind Farm extends across <strong>the</strong> border between <strong>the</strong> Dakotas in <strong>the</strong> United States.<br />
First <strong>of</strong> all, I would highlight <strong>the</strong> definition <strong>of</strong><br />
<strong>the</strong> right mix in order to achieve a sustainable<br />
energy system. True, this is a strategic<br />
decision that falls to governments, but it is<br />
a complex issue that requires co-operation<br />
among all parties to find <strong>the</strong> best solutions.<br />
It is not just a case <strong>of</strong> deciding on <strong>the</strong> system<br />
we want to achieve (and its consequences)<br />
but also <strong>of</strong> working out <strong>the</strong> plans and mechanisms<br />
required to reach <strong>the</strong> objectives set.<br />
contribute to achieving strategic objectives<br />
<strong>of</strong> general interest such as <strong>the</strong> fight against<br />
climate change, security <strong>of</strong> supply, <strong>the</strong> creation<br />
<strong>of</strong> a domestic industrial fabric, and<br />
economic stability through a reduction in imports<br />
<strong>of</strong> oil and gas. <strong>The</strong>n <strong>the</strong>re is <strong>the</strong> income<br />
that <strong>the</strong>se technologies generate locally,<br />
helping to create wealth in communities, a<br />
THE <strong>IEA</strong>’S KEY ROLE<br />
As you see, I have mentioned <strong>the</strong> <strong>IEA</strong>’s reports<br />
in several <strong>of</strong> my previous answers,<br />
and particularly <strong>the</strong> WEO. For us, it is a<br />
benchmark for <strong>the</strong> great energy trends in<br />
<strong>the</strong> world. I think it should be an essential<br />
tool for all stakeholders in <strong>the</strong> energy field<br />
worldwide; it is ideal for analysing situations<br />
and taking decisions in <strong>the</strong> field,<br />
providing a wide-ranging perspective and<br />
a medium- and long-term vision.<br />
Decisions on energy are <strong>of</strong>ten negatively<br />
influenced by <strong>the</strong> pressures <strong>of</strong> <strong>the</strong> short<br />
term. This is hardly suitable for processes<br />
that should be consistent and carried out<br />
over a longer period, such as <strong>the</strong> creation<br />
<strong>of</strong> a new energy system for <strong>the</strong> world. For<br />
example, postponing <strong>the</strong> fight against climate<br />
change as a result <strong>of</strong> <strong>the</strong> economic<br />
downturn, instead <strong>of</strong> using it as an opportunity<br />
to overcome <strong>the</strong> crisis, is a shortterm<br />
measure that does not go in <strong>the</strong> right<br />
direction, one that is clearly marked out<br />
by reliable reports such as <strong>the</strong> WEO.<br />
factor that is particularly important in times <strong>of</strong><br />
recession.<br />
We must improve <strong>the</strong> power grid<br />
<strong>The</strong> improvement <strong>of</strong> <strong>the</strong> power grid is essential<br />
for <strong>the</strong> deployment <strong>of</strong> large-scale renewable<br />
energy. It is necessary to increase interconnections<br />
between countries and regions to<br />
facilitate <strong>the</strong> optimal exploitation <strong>of</strong> renewable<br />
resources, bringing <strong>the</strong>ir energy to significant<br />
demand hubs, helping trade to grow and facilitating<br />
effective cross-border energy exchange.<br />
It is also necessary to enhance power<br />
infrastructures inside countries to improve<br />
<strong>the</strong>ir systems’ stability and operation and renew<br />
distribution systems, increasing <strong>the</strong>ir intelligence<br />
and capability, to make better use<br />
<strong>of</strong> local resources and increase consumer<br />
participation.<br />
<strong>International</strong> and inter-regional co-operation is<br />
essential, not only for developing interconnections<br />
across <strong>the</strong> seas but also to harmonise<br />
regulations, to reach a consensus on market<br />
rules and to achieve a common operational<br />
framework and technical standards.<br />
Finally, improving <strong>the</strong> operation <strong>of</strong> distribution<br />
systems through <strong>the</strong> deployment <strong>of</strong> smart<br />
grids and storage systems will help with <strong>the</strong><br />
integration <strong>of</strong> local renewable resources and<br />
matching load and generation curves; this is<br />
particularly relevant in <strong>the</strong> case <strong>of</strong> <strong>the</strong> massive<br />
deployment <strong>of</strong> <strong>the</strong> electrical vehicle. We<br />
need to change <strong>the</strong> traditional conception <strong>of</strong><br />
passive loads into a paradigm <strong>of</strong> active consumers.<br />
Stronger promotion <strong>of</strong> <strong>the</strong> penetration <strong>of</strong> renewables<br />
in <strong>the</strong> energy system could also<br />
benefit from a consensus on, for example,<br />
supranational market mechanisms. <strong>The</strong><br />
EBC can be <strong>the</strong> ideal forum for agreeing on<br />
mechanisms for public-private collaboration<br />
to increase this penetration, and also <strong>the</strong><br />
mechanisms required to undertake projects<br />
in developing incipient technologies.<br />
O<strong>the</strong>r points for discussion are how to bring<br />
renewable energy sources to developing<br />
countries, how to facilitate <strong>the</strong> evolution <strong>of</strong><br />
<strong>the</strong> energy systems by using low-carbon<br />
technologies, and how to deploy systems to<br />
achieve total electrification, taking advantage<br />
<strong>of</strong> <strong>the</strong> lessons learned by companies<br />
like Acciona <strong>Energy</strong> with experience in contributing<br />
to <strong>the</strong>se objectives. <strong>The</strong> exchange<br />
<strong>of</strong> experiences is also useful in defining and<br />
carrying out required modifications to existing<br />
power grids so that we can build efficient<br />
and clean electricity systems.<br />
Last, but not least, I would like to highlight <strong>the</strong><br />
idea that some governments have <strong>of</strong> changing<br />
<strong>the</strong> remuneration schemes <strong>of</strong> renewable<br />
plants through <strong>the</strong> retroactive modification<br />
<strong>of</strong> regulation affecting installations currently<br />
operating. Such measures, aimed at fighting<br />
<strong>the</strong> economic downturn, signal to investors<br />
that subsidies for renewable electricity generation<br />
are unreliable. Bankability is essential<br />
for large energy-development projects,<br />
and retroactive cuts have provoked a crisis<br />
<strong>of</strong> confidence not only on <strong>the</strong> renewable energy<br />
sector but on <strong>the</strong> economy as a whole.<br />
32<br />
<strong>The</strong> <strong>Journal</strong> <strong>of</strong> <strong>the</strong> <strong>International</strong> <strong>Energy</strong> <strong>Agency</strong>