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Friday, 22 June 12
GLOBAL ACTION NEEDED ON ENERGY POVERTY - WORLD COAL
 Eradicating energy poverty is possibly the biggest challenge facing the world today. Like climate change it can only be addressed with a concerted global effort. With the Rio+20 conference underway, WCA looks at what needs to be done to achieve energy access for all.
The statistics are well known. 1.3 billion people lack access to electricity and another billion have only intermittent access.Without concerted international action, these numbers are not expected to change significantly in the next two decades. There is a huge disparity in energy access across the globe. Most developing economies struggle with low levels of energy access, and while most developed economies have almost full energy access, the amount of electricity they produce and consume varies significantly. Improving energy access is so important because it is fundamental to modern life. Light and power for homes, schools, hospitals, business and industry are all essential to strong and resilient economies that improve livelihoods. Economic and social development cannot occur in the modern world without access to energy. It is for this reason that the United Nations has declared 2012 as the International Year of Sustainable Energy for All, and it is why energy is amongst the top issues at the Rio+20 United Nations Conference on Sustainable Development.
More ambition needed
Real ambition is needed to deliver energy access across the world. The original text of "The Future We Want" draft outcome document for Rio+20 released by the UN early in 2012 included language calling for access to a "basic minimum level" of energy. Targets that refer to the basic minimum level of access reflect the target contained in the IEA's Energy for All case outlined in its World Energy Outlook 2011. This target would provide: "use of a floor fan, a mobile phone, and two compact fluorescent light bulbs for about five hours a day. In urban areas, consumption might also include an efficient refrigerator, a second mobile phone per household and another appliance, such as a small television or a computer." What is most alarming however is what is not included in the IEA definition, where it notes that "some other categories are excluded, such as electricity access to business." Ambitious energy targets will provide the energy needs to build and operate essential social infrastructure and support economic growth by allowing reliable energy supplies for business and industry. Targets for energy access must be ambitious because the problem is so fundamental to the challenges facing the modern world.
National priorities are important
The first draft of "The Future We Want" document and the UN Secretary General's Sustainable Energy for All initiative have both also focused heavily on expanding the role to be played by renewable energy. Renewable energy does have an important role to play in improving energy access but it is not the right solution everywhere. As nations develop, they seek secure, reliable and affordable sources of energy to strengthen and build their economies - coal is a logical choice in many of these countries because it is widely available, safe, reliable and relatively low cost. Accessing reliable, on-grid, base load electricity is essential for businesses and industries that cannot have intermittent supply. Strong grid structures with base load coal fired power stations are essential to even out peaks and troughs in the generation of renewable electricity and they can very effectively distribute centralised base load electricity. Many countries have very significant coal reserves and should be able to utilise those to build reliable base load electricity systems. International support for improving energy access should recognise the economic, technical and natural resources available in economies with a shortage of electricity supply. Across the world coal will play a significant role in improving energy access. The IEA's WEO 2011 projects that coal will provide more than half of the on-grid electricity needed to meet their energy for all case. It will be particularly important in places like India, Pakistan and southern Africa and will continue to strengthen China's energy supplies.
Energy access and climate change
Despite the need for countries to be able to utilise their own resources, it seems at the international level that there is a far more significant focus on renewable energy technologies. This focus is brought about by concerns over climate change. The concern is that significantly improved energy access will lead to large increases in emissions of greenhouse gases and therefore increase the risk of catastrophic climate change. Many actors in the international community therefore believe that fossil fuels cannot play a role in improving access to energy if we also want to meet the climate challenge. It is not necessary however for action to be restricted to that paradigm.
A surprising revelation in the IEA World Energy Outlook 2011 was that achieving the IEA's (albeit minimal) energy access target would only increase global CO2 emissions by 0.7%. In part that is likely to be because of the significant role of off-grid renewables included in the scenario, but it also comes in a scenario where almost a quarter of all electricity needed is expected to be provided by coal. More ambitious energy access targets may lead to higher emissions, but this will also come in the context of significantly improved economic and social outcomes for those who get access to electricity. Even more important is that significantly increased emissions can be avoided. Deployment of advanced coal technologies will play a major role in mitigating greenhouse gas emissions. One key way of reducing the emissions from burning coal is to improve efficiency levels at power stations. Highly efficient modern supercritical and ultra supercritical coal plants emit almost 40% less CO2 than subcritical plants. Efficiency improvements in power generation are amongst the most cost-effective and shortest lead time actionsfor reducing emissions from coal-fired electricity. This is particularly the case in developing countries and economies in transition where existing plant efficiencies are generally lower and coal use in electricity generation is increasing. Beyond improvements in efficiency, carbon capture and storage technology will be a key technology to reduce CO2 emissions, not only from coal, but also natural gas and industrial sources.
Figures in the IEA's World Energy Outlook 2011 report estimate the potential for CCS to contribute 22% of global CO2 mitigation through to 2035. Over time CCS will become a key technology for improving energy access consistent with global climate objectives.
What action is needed?
Concerted international action is needed to address the global challenge of energy poverty. Without providing energy to those who currently lack it, it will be impossible to eradicate global poverty. To meet this challenge, policy frameworks must be put in place, both at national and international levels, to support effective energy institutions and business models to support the deployment of a comprehensive energy infrastructure where it is needed most. With these frameworks in place, finance from all sources, public and private, domestic and international is needed to provide the finance to build energy systems. Before this can be achieved however, it must be recognised that all sources of energyare necessary to meet the vast potential demand for electricity. It is important to understand that different sources of energy will suit different countries and different environments. To ensure that energy reaches those who need it most, there cannot be a political preference for one technology over another. The decision must be based on what is most effective in meeting the energy need.
Source: World Coal
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- Mjunction Services Limited - India
- GN Power Mariveles Coal Plant, Philippines
- IEA Clean Coal Centre - UK
- Central Electricity Authority - India
- White Energy Company Limited
- Savvy Resources Ltd - HongKong
- Sarangani Energy Corporation, Philippines
- ICICI Bank Limited - India
- Eastern Energy - Thailand
- Tata Chemicals Ltd - India
- MS Steel International - UAE
- Kepco SPC Power Corporation, Philippines
- Makarim & Taira - Indonesia
- Global Green Power PLC Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- The Treasury - Australian Government
- India Bulls Power Limited - India
- Coastal Gujarat Power Limited - India
- Oldendorff Carriers - Singapore
- GVK Power & Infra Limited - India
- Parliament of New Zealand
- Gujarat Sidhee Cement - India
- Bukit Baiduri Energy - Indonesia
- Indian Energy Exchange, India
- Wood Mackenzie - Singapore
- McConnell Dowell - Australia
- Globalindo Alam Lestari - Indonesia
- Port Waratah Coal Services - Australia
- Bharathi Cement Corporation - India
- Gujarat Mineral Development Corp Ltd - India
- Renaissance Capital - South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Toyota Tsusho Corporation, Japan
- Independent Power Producers Association of India
- GAC Shipping (India) Pvt Ltd
- Pendopo Energi Batubara - Indonesia
- Attock Cement Pakistan Limited
- Indo Tambangraya Megah - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Holcim Trading Pte Ltd - Singapore
- Orica Mining Services - Indonesia
- New Zealand Coal & Carbon
- Gujarat Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Bhoruka Overseas - Indonesia
- PNOC Exploration Corporation - Philippines
- Eastern Coal Council - USA
- Bhushan Steel Limited - India
- Coalindo Energy - Indonesia
- Xindia Steels Limited - India
- Therma Luzon, Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Timah Investasi Mineral - Indoneisa
- Simpson Spence & Young - Indonesia
- Sakthi Sugars Limited - India
- Essar Steel Hazira Ltd - India
- Chettinad Cement Corporation Ltd - India
- Cement Manufacturers Association - India
- Tamil Nadu electricity Board
- Ministry of Mines - Canada
- Binh Thuan Hamico - Vietnam
- Bukit Makmur.PT - Indonesia
- Singapore Mercantile Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Star Paper Mills Limited - India
- GMR Energy Limited - India
- Ministry of Finance - Indonesia
- Indonesian Coal Mining Association
- Marubeni Corporation - India
- Sinarmas Energy and Mining - Indonesia
- Mintek Dendrill Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bangladesh Power Developement Board
- Australian Commodity Traders Exchange
- Deloitte Consulting - India
- Commonwealth Bank - Australia
- Trasteel International SA, Italy
- Banpu Public Company Limited - Thailand
- South Luzon Thermal Energy Corporation
- Ministry of Transport, Egypt
- TNB Fuel Sdn Bhd - Malaysia
- Economic Council, Georgia
- PTC India Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Siam City Cement PLC, Thailand
- London Commodity Brokers - England
- Karbindo Abesyapradhi - Indoneisa
- Mercator Lines Limited - India
- Uttam Galva Steels Limited - India
- Kobexindo Tractors - Indoneisa
- Aditya Birla Group - India
- Sical Logistics Limited - India
- Formosa Plastics Group - Taiwan
- Kumho Petrochemical, South Korea
- Riau Bara Harum - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Electricity Generating Authority of Thailand
- Planning Commission, India
- Orica Australia Pty. Ltd.
- Kohat Cement Company Ltd. - Pakistan
- Krishnapatnam Port Company Ltd. - India
- Kalimantan Lumbung Energi - Indonesia
- Madhucon Powers Ltd - India
- Kideco Jaya Agung - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Karaikal Port Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Grasim Industreis Ltd - India
- Merrill Lynch Commodities Europe
- Straits Asia Resources Limited - Singapore
- Global Business Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Global Coal Blending Company Limited - Australia
- Sindya Power Generating Company Private Ltd
- Malabar Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Directorate Of Revenue Intelligence - India
- OPG Power Generation Pvt Ltd - India
- Wilmar Investment Holdings
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Australian Coal Association
- Salva Resources Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Georgia Ports Authority, United States
- Thai Mozambique Logistica
- Central Java Power - Indonesia
- Interocean Group of Companies - India
- Edison Trading Spa - Italy
- San Jose City I Power Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Thiess Contractors Indonesia
- Kaltim Prima Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Larsen & Toubro Limited - India
- Borneo Indobara - Indonesia
- Vedanta Resources Plc - India
- Vizag Seaport Private Limited - India
- CNBM International Corporation - China
- Petron Corporation, Philippines
- Baramulti Group, Indonesia
- Chamber of Mines of South Africa
- Agrawal Coal Company - India
- Semirara Mining and Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- VISA Power Limited - India
- Indika Energy - Indonesia
- Meralco Power Generation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Medco Energi Mining Internasional
- Leighton Contractors Pty Ltd - Australia
- LBH Netherlands Bv - Netherlands
- Sree Jayajothi Cements Limited - India
- Latin American Coal - Colombia
- Alfred C Toepfer International GmbH - Germany
- Heidelberg Cement - Germany
- Ceylon Electricity Board - Sri Lanka
- Rio Tinto Coal - Australia
- Ind-Barath Power Infra Limited - India
- Bayan Resources Tbk. - Indonesia
- Africa Commodities Group - South Africa
- Energy Development Corp, Philippines
- Intertek Mineral Services - Indonesia
- Goldman Sachs - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Manunggal Multi Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Lanco Infratech Ltd - India
- SN Aboitiz Power Inc, Philippines
- Jaiprakash Power Ventures ltd
- Energy Link Ltd, New Zealand
- Parry Sugars Refinery, India
- Bulk Trading Sa - Switzerland
- Carbofer General Trading SA - India
- European Bulk Services B.V. - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Cigading International Bulk Terminal - Indonesia
- Indogreen Group - Indonesia
- Minerals Council of Australia
- Bukit Asam (Persero) Tbk - Indonesia
- SMC Global Power, Philippines
- Romanian Commodities Exchange
- Iligan Light & Power Inc, Philippines
- ASAPP Information Group - India
- Jindal Steel & Power Ltd - India
- Maheswari Brothers Coal Limited - India
- Bhatia International Limited - India
- AsiaOL BioFuels Corp., Philippines
- The State Trading Corporation of India Ltd
- Videocon Industries ltd - India
- Antam Resourcindo - Indonesia
- Electricity Authority, New Zealand
- Siam City Cement - Thailand
- Dalmia Cement Bharat India
- Altura Mining Limited, Indonesia
- PowerSource Philippines DevCo
- Mercuria Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Anglo American - United Kingdom
- Ambuja Cements Ltd - India
- Price Waterhouse Coopers - Russia
- Metalloyd Limited - United Kingdom
- The University of Queensland
- Indian Oil Corporation Limited
- Posco Energy - South Korea
- Standard Chartered Bank - UAE
- Barasentosa Lestari - Indonesia
- TeaM Sual Corporation - Philippines
- Coal and Oil Company - UAE
- SMG Consultants - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining Corp, Philippines
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