1. Areas of collaboration between International Organizations and National Agencies PEDRO L. MARÍN Rome, March 3, 2011

2. 1. International Energy Trends 2. Current Energy Challenges Content 3. Opportunities 4. Collaboration between International Organizations and National Agencies

3. Over the last years the energy sector has suffered deep changes Volatility and price growth Emerging economies high growth rates Technological progress Climate change 1. International energy trends

8. 1. International Energy Trends 2. Current Energy Challenges Content 3. Opportunities 4. Collaboration between International Organizations and National Agencies

9. Competitiveness Energy is the main input for many industries, even more important than labour. Environmental targets Kyoto Protocol agreement on the reduction of collective greenhouse gas emissions and further agreements on technology sharing reached at Cancun COP-16. Security of supply Energy dependency is above 50% for most countries. This implies: continuous transfer of wealth to other economies, risk of supply shortages and imported volatility of domestic prices through international fuel prices and exchange rate volatility. 2. Current energy challenges

10. 1. International Energy Trends 2. Current Energy Challenges Content 3. Opportunities 4. Collaboration between International Organizations and National Agencies

11. 3. Opportunities Renewable energy: Wind Geothermal Solar Biomass Sea power Infrastructures: Grids Interconnections Storage Smart grids Saving and energy eff.: Lighting Production tech. ICT – Demand management Materials Capital equipment

12. Interconnections facilitate competition among different markets 3. Opportunities Infrastructures Electricity interconnections facilitate the management of renewable energy in the system, enhancing their deployment Smart grids will facilitate a more efficient management of demand and supply, the development of electric mobility and a larger integration of renewable energies Source: BP statistical review of world energy (June 2010) Regasification plants, storage capacity and gas interconnections provide a greater supply flexibility

13. 3. Opportunities Saving and energy efficiency: competitivity Energy intensity by geographical regions Source: U.S. Energy Administration North America Central and South America Europe Middle East Africa Asia & Oceania World Since the eighties, energy intensity has fallen by a 20% in the World. In Europe, where prices are higher due to strong energy dependency and fiscal policies, it has fallen by almost a 50% in the same period.

14. Investment in energy efficiency produces benefits since the beginning. 3. Opportunities Saving and energy efficiency: competitivity Emissions abatement costs by sector Electricity sector Energy efficiency Fuel switching and CCS Alternative transport fuels Reduction of CO2 emissions in 2050 (Gt CO2/year) Marginal cost (USD/tCO2) Source Perspectives on energy technologies 2008. IEA. Costes de abatimiento por sectores

15. From geographically concentrated production and global trade flows to… … local production and regional interconexions. 3. Opportunities Renewable energies: security of supply

16. Renewable energy sources are emissions-free. 3. Opportunities Renewable energies: environment

17. Strong cost reductions have been seen recently and are expected for the next years… CSP FV roof Offshore wind Onshore wind FV ground Year starting operations Source: BCG … and, even now, renewable energies are competitive in isolated systems 3. Opportunities Renewable energies: competitiveness Cost evolution (c€ 2010 /KWh)

19. 1. International Energy Trends 2. Current Energy Challenges Content 3. Opportunities 4. Collaboration between International Organizations and National Agencies

21. Areas of collaboration between International Organizations and National Agencies PEDRO L. MARÍN Rome, March 3, 2011