Renewables: can they deliver

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Renewables can they deliver?

• Jorgen Mads Clausen
• CEO of Danfoss
• Chairman of Danish Energy Industries Federation
• European Business Summit
• Greening The Economy
• New Energy For Business
• 21st February 2008

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VISION
- Meeting the Carbon Challenge
We are on the edge of a new energy
revolution. The coming decades will bring huge
changes to energy systems throughout the
world. The challenge will be to provide eight
billion people with energy and, at the same time,
protect resources and the environment. Technolog
y will most certainly be fundamental in making it
possible to meet the worlds growing energy needs
in a socially and environmentally responsible way.
3
A Bright Green Strategy
Tackling climate change is a pro-growth strategy
Economic growth and welfare can be maintained
without influencing the climate negatively This
is what we have experienced in Denmark, and this
is what we call "The Bright Green
Strategy" Here technology has a central role to
play
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The case of Denmark Wealth-creation at constant
energy consumption
The Danish gross domestic product (GDP) grew by
75 pct. from 1980 to 2006 (at constant prices).
In the same period the consumption of energy in
Denmark has been more or less constant. This
means that each unit of GDP requires
approximately 40 per cent less energy today than
in 1980
Source Danish Energy Authority
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The role of Technology
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World Energy Consumption
-and the role of renewables
Renewables are only part of the answer
Source Siemens
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Renewables are only part of the answer
Innovative solutions for reduction of CO2
emissions

• Efficient energy generation
• Highly efficient gas and steam turbines
• Coal carbon capture storage (CCS)
• Cogeneration
• Switch to renewables
• Wind
• Biomass
• Solar
• Efficient energy distribution
• Smart grid
• High-voltage DC transmission systems
• Distributed heating and cooling systems

GDP / Population
Influenceable with technological innovations
Carbon Intensity
The Kaya Identity
8
Meeting the carbon challenge
Making the right choices

• Some comments
• All technologies, including renewables, must
  be in play in order reach the carbon goal
• However, we need to fix the order of priority
  in order to reach the goal in an efficient
  manner
• Energy efficiency has a vital role to play
  and must not be forgotten
• Higher focus on energy efficiency will also
  ease the effort to reach the targets for
  renewables
• - Multiple business opportunities

Source Vattenfall, McKinsey
9
Making the right choices
Short term and long term

• Many future alternatives exits
• However, in the short term we need to focus on
  deploying existing, well proven and fully
  available technologies
• Especially technologies improving energy
  efficiency need to be in focus if we are going to
  reach the objectives of bringing down
  CO2-emissions
• Some of these technologies will also increase the
  share of renewables, especially district heating
  and cooling technologies

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Meeting the carbon challenge
Before 2020

• District heating and cooling technology the
  most energy efficient form of energy production
  (combined electricity and heating)
• Biomass heating technology Co2 natural and
  attractive alternative to oil and gas
• Heat pump technology high efficient heat pumps
  as the best alternative to individual oil and gas
  boilers
• Comfort controls technology to reduce energy
  use for comfort heating and to increase human
  comfort
• Energy audits and trimming to reduce energy
  usage

All the above mentioned alternatives are based on
existing, well proven and fully available
technologies
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District heating and cogeneration
The sleeping giant

• Lower import dependency of 4.5 EJ or the
  equivalent of Polands energy supply
• Giving a reduction of the primary energy supply
  of 2.1 EJ or the equivalent of Swedens energy
  supply
• Reduction of 400 million tons CO2 per year or
  the equivalent of the emissions from fuel
  combustion in France
• Higher share of renewables as district heating is
  a common carrier for renewables like wind,
  biomass, solar .

District Heating example Increasing the
District Heating share from its current 6 to 12
in Europe will have major effects
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Conclusion
A Bright Green Future
With climate change hard upon us, a new green
movement is taking shape - one that embraces the
concerns of environmentalism but rejects its
worn-out answers. Renewables are part of the
solution But, we all have an obligation to make
sure that we use existing, well proven and fully
available technologies to secure immediately
improvements of energy efficiency and CO2
reductions This is a Bright Green Strategy
See more about Bright Green here www.ei.di.dk