Energy in transition - navigating through uncertainty

2. Energy in transition - navigating through uncertainty . Dr Christoph Frei Secretary General & CEO World Energy Council . London 28 January 2014 twitter: @chwfrei

3. World Energy Issues Monitor World, 2013 climate framework energy prices Middle East dynamics global recession electric storage commodity prices nuclear ccs unconventionals capital markets energy subsidies renewable energies business cycle innovative regulation electric vehicles trade barriers large scale accidents EU Cohesion energy efficiency terrorism energy affordability hydrogen economy regional interconnection biofuels smart grids Russia US policy China India sustainable cities currency uncertainty corruption energy water nexus new market players talent large scale hydro energy poverty Brazil critical uncertainties uncertainty need for action weak signals impact

4. World Energy Issues Monitor World, 2013 climate framework energy prices Middle East dynamics global recession electric storage commodity prices nuclear ccs unconventionals capital markets energy subsidies renewable energies business cycle innovative regulation electric vehicles trade barriers large scale accidents EU Cohesion energy efficiency terrorism energy affordability hydrogen economy regional interconnection biofuels smart grids Russia US policy China India sustainable cities currency uncertainty corruption energy water nexus new market players talent large scale hydro energy poverty Brazil critical uncertainties uncertainty need for action weak signals impact

5. World Energy Issues Monitor World, 2013 climate framework energy prices Middle East dynamics global recession electric storage commodity prices nuclear ccs unconventionals capital markets energy subsidies renewable energies business cycle innovative regulation electric vehicles trade barriers large scale accidents EU Cohesion energy efficiency terrorism energy affordability hydrogen economy regional interconnection biofuels smart grids Russia US policy China India sustainable cities currency uncertainty corruption energy water nexus new market players talent large scale hydro energy poverty Brazil critical uncertainties uncertainty need for action weak signals impact

6. World Energy Issues Monitor World, 2013 climate framework energy prices Middle East dynamics global recession electric storage commodity prices nuclear ccs unconventionals capital markets energy subsidies renewable energies business cycle innovative regulation electric vehicles trade barriers large scale accidents EU Cohesion energy efficiency terrorism energy affordability hydrogen economy regional interconnection biofuels smart grids Russia US policy China India sustainable cities currency uncertainty corruption energy water nexus new market players talent large scale hydro energy poverty Brazil critical uncertainties uncertainty need for action weak signals impact

7. World Energy Issues Monitor . World, 2013 . . climate framework . energy prices Middle East dynamics . global recession electric storage . commodity prices ccs nuclear capital markets unconventionals business cycle renewable energies . Asia energy subsidies innovative regulation . . . electric vehicles energy efficiency terrorism EU Cohesion large scale accidents . . . . . . . Africa . . . . . energy affordability NonOECD trade barriers MENA smart grids hydrogen economy regional interconnection LatAm Russia biofuels . currency uncertainty US policy China India sustainable cities corruption . energy water nexus new market players NAm talent . large scale hydro OECD G20 Europe energy poverty . Brazil . . critical uncertainties uncertainty energy water nexus need for action weak signals impact

8. Water for Energy – Energy for Water The water energy nexus is an accelerating vicious circle driven by increasing energy for water use and increasing energy for water needs. Energy for Water Source: Water for Energy, WEC, 2010

9. Water for Energy – Energy for Water The case for Energy Efficiency water for energy 2005-2050 with/without improved energy efficiency Water for energy consumption continues to grow without strong energy efficiency measures. Source: Water for Energy, WEC, 2010

10. Water for Energy – Energy for Water Water for Energy Consumption per Fuel Type Almost 90% of freshwater used to produce primary energy is for the production of biomass, which accounts for not even 10% of total primary energy production. Water is always a local issue: In water scarce regions biomass opportunities for energy uses should be minimized. Regional energy for water consumption varies greatly and therefore requires specific regional examination and solutions. Source: Water for Energy, WEC, 2010

11. World Energy Issues Monitor . World, 2013 . . climate framework . energy prices Middle East dynamics . global recession electric storage . commodity prices ccs nuclear capital markets unconventionals business cycle renewable energies . Asia energy subsidies innovative regulation . . . electric vehicles energy efficiency terrorism EU Cohesion large scale accidents . . . . . . . Africa . . . . . energy affordability NonOECD trade barriers MENA smart grids hydrogen economy regional interconnection LatAm Russia biofuels . currency uncertainty US policy China India sustainable cities corruption . energy water nexus new market players NAm talent . large scale hydro OECD G20 Europe energy poverty . Brazil . . critical uncertainties uncertainty energy water nexus need for action weak signals impact

12. Water for Energy – Energy for Water The Energy – Water – Food – Climate Nexus Water consumption for thermoelectric power plants with / without CCS CCS changes significantly the water for energy consumption of thermoelectric power plants Source: Water for Energy, WEC, 2010

13. Water for Energy – Energy for Water Summing it up • The accelerating EWFC nexus requires rethinking infrastructure resilience:EWF security is increasingly intertwined and requires integrated planning and design of infrastructure. • The future water needs of energy production and conversion will increase along with the overall increase of water stress. Energy efficiency measures can mitigate growing water consumption. • Traditional biomass represents 90% of energy for water uses. • Supply from unconventional sources is increasing, many of which (e.g., oil sands, oil shales, deep gas shales) require large amounts of water, adding further stress. • Many emerging technologies show promise to mitigate the water footprint. RD&D efforts in this regard must be further increased (e.g. CCS, unconventionals). • Great regional differences require specific examination and different solutions by region.