Power Co.s Open Dialogue on Sustainable Electricity Future

Source: WBCSD
[May 11, 2006]


Electricity is at the heart of the world’s energy challenge. Its crucial social and economic value means that the demand for it has been and is growing faster than that for any other energy carrier. So widespread is its use, so successful its integration into our world, that we barely give it a second thought. We take it for granted until it isn’t there.

At the same time, power generation contributes around 40 percent of global CO2 emissions and causes significant local pollution in many countries. In addition, 1.4 billion people lack access to modern forms of energy in our world today. Predictions in business-as-usual scenarios do not reduce this number substantially in the future, even though that is crucial for meeting the Millenium Development Goals.

The potential of power companies to contribute to solutions to these challenges is enormous. Power companies make large investments in infrastructure that lasts 40 years or more, and they often enjoy a direct link with their customers through the electricity network. This makes them a powerful agent for change in the quest for more sustainable energy supply and consumption. But they can’t do it alone.

The power companies in the WBCSD’s Electricity Utilities Sector Project have joined forces to highlight the urgency to act, and to clarify their role in addressing these challenges.
These companies are now engaging policy makers, civil society and other stakeholders in a serious dialogue about what each can contribute to spark change, with the next dialogue taking place on 8 May during UNCSD 14 in New York (see below for details).

The companies do not pretend to have all the answers to the challenges outlined above, but have organised their position on solutions into six main objectives that need to be tackled through concerted efforts by business and a range of other stakeholders:

* Continuously improving energy efficiency
* Diversifying and decarbonising the fuel mix
* Investing adequately in infrastructure and securing a reliable grid
* Bringing to market the promising technologies that can make our long term path more sustainable
* Providing wider access to electricity, and
* Building partnerships and developing a dialogue with decision-makers and civil society

The New York event follows an international roundtable discussion in China in March 2006 that focused on the challenge of satisfying the rapidly growing demand for secure and affordable electricity in China, while reducing GHG emissions and other impacts. The discussion showed that the situation is far from rosy. China is currently building one coal-fired power plant roughly every two weeks. All participants agreed that China should make all possible efforts to increase energy efficiency and the diversity of its fuel mix.

However, this is easier said than done, and the rapid expansion of coal use in power plants is likely to continue for a long time, especially with gas prices as high as they are now as a result of high oil prices. This puts at centre stage the question of how to accelerate the deployment of clean coal technologies.

“The challenges that we are facing require not only the involvement of all stakeholders, but also a focus on key objectives and clarity on the role of different players”, says Simon Schmitz, who is heading the WBCSD project. “Many NGOs and policymakers who are concerned about these issues will attend UNCSD, and by scheduling a dialogue during the conference in New York, we hope to be able to engage with a global audience.”
On the same day as the side event, the project will also launch a four-week public internet consultation, for specific feedback on the current drafts for discussion.