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Sustainable Growth - A Nordic Point of View Nordic Council of Ministers' side event May 9. 2007 Fifteenth Session of the United Nations Commission on Sustainable Development Geothermal in Iceland in a Global Perspective Helga Barðadóttir, Special Adviser, Ministry of Industry and Commerce in Iceland Member of the Nordic Committee of Energy Officials CHECK AGAINST DELIVERY Honourable Ministers, ladies and gentlemen, One of the major concerns of mankind today is the ever increasing emission of greenhouse gases into the atmosphere and the threat of global warming. In the last few months our attention has been drawn to the problem by many reports that have been published regarding the issue of climate change. The biggest reason for this threat is our use of fossil fuels and emissions of CO2 and other greenhouse gases. This is no news for you. But what can we do? Globally, it is estimated that CO2 emissions will have to be reduced by 50%. At the same time 1,6 billion people have no access to electricity, a basic need that must be met. This is a two sided task which we have to deal with, that is to reduce greenhousegas emissions and give 1,6 billion people access to electricity. If we are to have any expectation to succeed in that task, we have to find a way to adopt new technology and use of climate friendly energy for transport and production of electricity. In Iceland we have been blessed with our renewable energy, geothermal and hydropower, which stands for 72% of our total energy consumption. Our experience from harnessing our renewable energy resources can benefit the global efforts in combating climate change. In particular geothermal energy can play an important role in this aspect in many parts of the world, while also bringing secure electricity to millions of people. It is important to realise that the world primary energy demand is expected to increase by just over one-half between now and 2030, an average annual rate of 1.6%, according to a recent Scenario of the International Energy Agency (IEA). Demand grows by more than one-quarter in the period to 2015 alone. Over 70% of the increase in demand over the projection period is in the developing countries. Almost half of the increase in global primary energy use goes to generating electricity and one-fifth to meeting transport needs – almost entirely in the form of oil based fuels. (IEA – world energy outlook - 2006). According to the International Energy Agency, fossil fuels will count for 80% of sources of energy until 2030 and geothermal energy – along with other renewables is only expected to increase from a small base the next 3 decades, although potential geothermal energy sources can easily be found and harnessed in many places around the world. Assessments indicate that using existing geothermal technology could provide adequate energy for six hundred million people, both in the form of electricity and heat. Why are we not using this energy source to a greater extent? There are numerous obstacles facing geothermal in particular and renewable energy in general. This is particularly true for many developing countries and it is extremely important to increase the share of geothermal use in these countries in near future. Contrary to what many people belief, exploitable geothermal resources are widely available. Geothermal energy is accessible in up to 90 countries, many of them developing countries. Already, geothermal energy is harvested in one way or another in 73 countries. Geothermal energy has multiple uses, including house heating, hygiene, energy exchange, industrial processes and electricity generation. Geothermal energy has also the advantage of being based on proven technologies with a century of practical experience behind it, and it can be easily transferred to developing countries. In many places around the world where there is a great geothermal potential, it has not been harnessed due to lack of skills do so. Inadequate local technical skills can be looked at as a barrier. Renewable energy is the solution but it can be hard to adopt new technology. If the right skills are not at hand in the country, it can not be expected to thrive. Iceland has a long experience of assisting in enabling developing countries to harness their geothermal energy. Since 1979, the United Nations University Geothermal Training Programme has been operated in Iceland and since then 359 fellows from 40 countries have finalised the 6 month training. The programme is an important contributor to the increase of geothermal utilization in the world. The aim of the UNU-Geothermal Training Programme is to assist developing countries with significant geothermal potential to build up or strengthen groups of specialists that cover most aspects of geothermal exploration and development. The Government of Iceland has moreover secured core funding for the United Nations University Geothermal Training Programme to expand its capacity building activities by annual workshops in geothermal development in selected countries. The first workshop was held in Africa in 2005 and in Central America in 2006. The next will be held in Asia, probably in 2008. This was announced at the International Conference for Renewable Energies held in Bonn, Germany in June 2004. This is a contribution of the Government of Iceland towards the Millennium Development Goals of the United Nations. The “Workshop for Decision Makers on Geothermal Projects in Central America” was held in San Salvador in November 2006. The fifty participants came mainly from the four countries of Central America who are active in geothermal development, i.e. Costa Rica, El Salvador, Guatemala and Nicaragua. In Central America geothermal power stations provide about 12% of the total electricity generation of the four countries Costa Rica, El Salvador, Guatemala and Nicaragua. Only a small portion of the geothermal resources in the region have been harnessed so far. With the large untapped geothermal resources and the significant experience in geothermal as well as hydro development in the region, Central America may become an international example of how to reduce the overall emissions of greenhouse gases in a large region. This will require considerable human capacity building in geothermal research and development in the region. Many formal UNU Fellows trained in Iceland are among the leading experts in their respected countries, for example in Central America. In the sector of direct use of geothermal, the largest potential is, however, in China. Due to the geological conditions, there are widespread low-temperature geothermal resources in most provinces of China which are already widely used. Icelandic companies have been exporting know how, particularly regarding harnessing of geothermal energy. The largest project Icelandic companies have been involved in is a geothermal district heating project in the city of Xian yang in China. The district heating is replacing the coal-fired heating facilities for the community. The first phase of the project is up and running and the 2nd phase is in construction. The air quality of the city will improve dramatically after the geothermal district heating facilities will start replacing the coal burning facilities. This renewable energy project will have a very positive impact on the living conditions in Xian yang city, while also serving as an example to other Chinese cities that can also harness geothermal resources found in many parts of China. Though it has been emphasized that that there is a great potential of geothermal in developing countries, it should not be forgotten, that there are also unused opportunities in the field of geothermal in the industrialized world, for example in Europe and North America. If that would be harnessed, it could be a contribution to the reduction of greenhouse gases related to energy production. It is important to use all the options available in utilising renewable energy sources to combat climate change, especially where we have available clean technologies that can be used much more widely than today. Geothermal energy is very competitive in many parts of the world, and although it is not found in every country, it is estimated that hundreds of millions of people could benefit from both electricity and heat from new geothermal resources. That opportunity should be used. In conclusion, I want to emphasize that Iceland is willing to share its experience in the field of renewable resources with other nations. The threat we all are facing has to be dealt with in a global perspective. No country can think locally.