Energy development in the Arctic regions

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Danish Minister for Foreign Affairs -18.01.11 Copenhagen, Denmark "Megatrends workshop"

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RESPONSIVE AND RESPONSIBLE ENERGY DEVELOPMENT IN THE ARCTIC REGIONS Claudio PellegattaDanish Minister for Foreign AffairsCopenhagen 18.01.11ContentI. Focus and methodII. Energy trends in the ArcticIII. Critical energy needs and problemsIV. Green energy could be a solution?V. What could governments do?VI. Conclusion: Relational questionI. Focus and methods Status of present consumption patterns Characteristics of resource dependencies Overview of ongoing changes New energy trends in the Arctic regionsFocus and Methods International literature and internet review of status and perspectivesby national authorities; Analysis of micro and macro economic / energy data; Consultation and interview with a wide range of stakeholders andexperts about characteristics and needs of Green energy businessdevelopment in Arctic countries; Intensively looking at best practices around the world in Green energybusiness;II. Energy trends in the ArcticPresent consumption patternsRELATIONSHIP %(7:((1)266,/%(7:((1)266,/%(7:((1)266,/%(7:((1)266,/)8(/*5((1(1(5*Present consumption patternsElectricity consumption by source62%38% Fossil fuelHydro77%23%Fossil fuelHydro1%82%17%Fossil fuelHydroGeo39%56%Fossil fuelHydroOther21%69%10%Fossil FuelHydroRenewablePresent consumption patternsElectricity - consumption by source5,7%56%6,3%32%Fossil fuelHydroOtherNucler58%22%8%12%Fossil fuelHydroOtherNucler1%90%9%Fossil FuelRenewableNuclear1%99%Fossil FuelRenewable050100150200250Faroe Sweden Alaska Finland Canada Norway IcelandCost of electricity-heating monthly consumption for a family in the Arctic regionsPresent consumption patternsCharacteristics of resource dependenciesENERGY TYPE POSITIVE NEGATIVE WHEREWIND Renewable Harsh climate (ice/low temp)ArcticNUCLEAR Technology ready High initial cost,Expensive, Nuc.wasteRus., Fin., Swe.BIOMASS(Seaweed)Renewable Forest waste Can, Fin., Nor.SOLAR Renewable Feb/Nov,InfrastructureCanadaCharacteristics of resource dependenciesENERGY TYPE POSITIVE NEGATIVE WHEREHYDRO Renewable High initial cost, Envir. ArcticGEOTHERMAL Renewable Not in whole Arctic Can, Ice, FinWAVE SYSTEM(Floating river generators)Renewable Not in whole ArcticFaeroe IslandsDIESEL OIL Easy to get Expensive, Polluted ArcticHYDROGENGreenStorage, High reactivityIceland, GreenlandOverview of ongoing changes: new green projectsWood pellet boilers in Northwest Ter. (Canada)2009 / 2011Next step: Fort Simpson, Fort Liard, and InuvikWave energy system in Faeroe Islands2010 / 2011Oscillating Water Column technologyWind Power project in Kuolavaara-Keulakkop (Finland)2009/201118 wind power plants with a 2-3 MW capacity eachOverview of ongoing changes: new green projectsHydrogen and fuel cells as energy storage in Greenland2009 / 2013Hydrogen is concentrated to electricity and heat in a fuel cell Solar cells in Kola Penisula (Russia)2007 / 2010Replaced radioactive strontium batteries in lighthousesHydro-electric project Plan Nord in Canada2009/20142,500 km electric grid connecting Nunavik communitiesNew green energy trends Renewable electricity producers (TWh/year)2007-20090%10%20%30%40%50%60%70%80%90%100%Hydro Wind Biomas Solar Geo OtherAlaska CanadaGreenland IcelandFaroe Is. NorwaySweden FinlandRussiaIII. Critical energy needs and problemsARCTIC REGIONS HAVE DIFFERENT ENERGY SITUATIONS BUT THE SAME CRITICAL ENERGY NEEDS AND PROBLEMSCritical energy needs and problemsOIL PRICEIMPORT ENERGYNEED MOREENERGYREDUCE ENERGY COSTSEVERYBODY WANTS TO BE SELF SUFFICIENTDEVELOP GREEN ENERGYSMALL VILLAGES (POPULATIONS ARE DECLINING)SMALL PROJECTS IN REMOTE PLACE ARE MORE EXPENSIVECONSUMERS ARE NOT LINKEDHARSH CLIMATEENERGY EQUIPMENTS NEED TO BE WORKING 24/7IV. Green energy could be a global solution for the Arctic?YES, BUT NOT YETAt the moment, the simplest and most effective option to provide energy to remote areas remains the diesel powered facilitiesOIL PRICE INCREASINGGREEN ENERGY WILL BE A SOLUTION IN THE EARLY FUTURE IF:Green energy could be a global solution for the Arctic?BETTER GREEN TECHNOLOGY FORTHE ARCTICSTRONG GREEN POLICY IN THE AREAGREEN MARKETDEVELOPMENT (EASY/CHEAP)Challenges for the futureOIL PRICE INCREASINGOil tax against CO2 pollution Peak OilEmerging economies energy needsBETTER GREEN TECHNOLOGY FOR THE ARTICMore efficient (storage, linked, cold isolation building)Harsh climate Interconnected tech (not seasonal)Challenges for the futureGREEN MARKET DEVELOPMENTMass productionCheaper green power systemEasier capacity STRONG GREEN POLICY:Economy situation (CO2 emission- economic cries)Political and strategic interests in the areaDemographic situations (small villages issues)V. How could governments support green energy in the Arctic regions?- Improving public investment,- attracting private investment, - free green energy investment zone,- free trade area,- Improve infrastructures,- promote Arctic region as a focal point in a new green revolution,- establish a highly specialized district and research centre for renewable energy in the Arctic region. VI. ConclusionWhich will be the new trend? Which green energy?ConclusionComments, suggestion, remarks, new idea, information, advices, are more than welcome to claudiop@ruc.dkConclusionThank You!Grazie!Contact: claudio.pellegatta@libero.itwww.linkedin.com