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Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

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Page 1: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy
Page 2: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

The Great Transition:Shifting from Fossil Fuels to

Solar and Wind Energy

A book by

Lester R. Brown

with Janet Larsen, J. Matthew Roney, and Emily E. Adams

A presentation for

Page 3: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Contents

1) Changing Direction

2) The Rise and Fall of Oil

3) Closing Coal Plants

4) Nuclear Power in Decline

5) The Solar Revolution

6) The Age of Wind

7) Tapping the Earth’s Heat

8) Hydropower: Past and Future

9) Accelerating the Transition

Page 4: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Changing Direction

The worldwide transition from fossil fuels to renewable

sources of energy is under way. As fossil fuel resources

shrink, as air pollution worsens, and as concerns about

climate instability cast a shadow over the future of coal, oil,

and natural gas, a new world energy economy is emerging.

The old economy, fueled largely by coal and oil, is being

replaced with one powered by solar and wind energy.

– Chapter 1, The Great Transition

Page 5: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Glimpses of the Energy Transition

• South Australia: Wind farms supply more

electricity than coal plants

• China: Water for 170 million households is

heated by rooftop solar water heaters

• United Kingdom: For several days in August

2014, wind electricity eclipsed that from coal

• Spain: Wind is close to overtaking nuclear

power as the leading source of electricity

Page 6: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Global Annual Energy Growth, 2008-2013

0

10

20

30

40

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70

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rce

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Source: EPI from BP, EIA, and REN21

Page 7: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Drivers

• Economic: Cost of renewables falling

• Technological: Advances in PV, batteries

• Social: Growing opposition to coal and

nuclear power

• Geological: Remaining fossil fuels harder

to access and more costly

• Climatic: Carbon emissions destabilizing

the climate, threatening civilization

Page 8: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Climate Disruption

• Fossil fuel burning is increasing carbon dioxide (CO2) levels in the atmosphere, raising the earth’s temperature

• Continued heavy fossil fuel reliance could raise the global temperature up to 6°C(nearly 11°F) by 2100

260

280

300

320

340

360

380

400

13.4

13.6

13.8

14.0

14.2

14.4

14.6

14.8

1880 1900 1920 1940 1960 1980 2000

Atm

osp

he

ric C

O2

(pp

m)

Te

mp

era

ture

(de

gre

es C

els

ius)

Source: NASA GISS; NOAA ESRL; Worldwatch

Average Global Temperature and Atmospheric Carbon Dioxide Concentration, 1880-2014

Temperature

CO2

Earth Policy Institute - www.earth-policy.org

Page 9: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

2° Safety Limit

• The international community agreed to limit warming to 2°C (3.6°F) to prevent dangerous climate change

• Higher temperatures:

– Melt ice sheets and glaciers

– Raise sea level

– Increase drought in some areas

– Intensify rainfall in others

– Cause more-destructive storms

Photo Credit: Nomadic Lass (Flickr: Columbia Glacier)

Page 10: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Stranded Assets• To keep global warming to

2°C, most fossil fuels need to stay in the ground

• Fossil energy companies will likely lose value

• Related infrastructure may also become stranded– Power plants

– Coal mines

– Pipelines

– Coal handling and storage facilities

Photo credit: Emily Adams

Page 11: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

T H E R I S E A N D FA L L

O F O I L

Photo Credit: U.S. Coast Guard

Page 12: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

The Rise and Fall of Oil

0

10

20

30

40

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60

70

80

90

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1965 1975 1985 1995 2005 2015

Mill

ion

Ba

rre

ls D

aily

Source: BP

World Oil Consumption, 1965-2013

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• Worldwide oil use

continues to grow

• But “easy oil” is getting

tapped out

• In some countries, like

the United States and

Japan, oil use has

peaked and is on the

decline

Page 13: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

0

5

10

15

20

25

1965 1975 1985 1995 2005 2015

Mill

ion

Ba

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er

Day

Source: EPI from EIA

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Consumption

Production

U.S. Oil Use Down

• U.S. #1 consumer

• U.S. oil use fell 8.5% from 2005 to 2014– People driving less

– Better vehicle efficiency

– Public transit expanding

– Culture change: young people no longer prioritizing cars

– Car sharing and bike sharing spreading

U.S. Oil Consumption and Production, 1965-2014

Page 14: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Natural Gas: A Bridge to Nowhere

• Horizontal drilling and hydraulic fracturing (“fracking”) have created a U.S. oil and gas boom

• Methane leaks along the supply chain mean gas may be more climate disrupting than coal

• Other concerns: wasted investment in short-term infrastructure; water and air pollution; earthquakes

Photo Credit: Bilfinger SE/U.S. Department of Energy

Page 15: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

C L O S I N G C O A L P L A N T S

Photo Credit: National Renewable

Energy Laboratory

Page 16: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

World Electricity Profile, 2012

Coal41%

Natural Gas23%

Hydro16% Nuclear

11%

Oil5%

Wind2% Biofuels and

Waste1.9%

Solar0.4%

Geothermal0.3%

Ea

rth

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licy In

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Source: OECD

Page 17: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Coal: Last Century’s Dirty Fuel

• Air pollution from

coal-burning leads to

heart and lung

diseases, early death

• Leading source of

CO2 emissions

• Coal-fired power

plants require large

amounts of water

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1965 1975 1985 1995 2005 2015

Mill

ion T

ons O

il E

quiv

ale

nt

Source: BP

World Coal Consumption, 1965-2013

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Page 18: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Coal Plants Closing

• Lower natural gas prices,

air pollution regulations,

and local campaigns are

closing coal plants across

the United States

• Of the 523 U.S. coal-fired

power plants, 188 have

recently closed or plan to

close

• Australia, Canada, and

many E.U. countries have

also passed peak coal

Coal Consumption in the United States,

1965-2014

0

100

200

300

400

500

600

700

1965 1975 1985 1995 2005 2015

Mill

ion

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Source: EIA

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Page 19: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Peak Coal in China?• China’s coal use:

– Exceeds the rest of the world combined

– But fell in 2014 for the first time in recent history

• Peak coal is near:– Air pollution concerns

– Environmental regulations

– Wind and solar booming

– Improving efficiency

– Slowing economic growth

– U.S.-China climate agreement

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1965 1975 1985 1995 2005 2015

Mill

ion

To

ns O

il E

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iva

len

t

Source: BP; NBS

Coal Consumption in China, 1965-2014

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Page 20: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

India Coal Use Growing

• Indian government claims to be doubling down on coal, planning hundreds of new plants

• How many will be built remains to be seen– Urban air pollution worse

than in China

– Local opposition to coal

– Taxes on coal doubled, partly funding solar development

– Solar costs undercut the grid in much of the country

0

50

100

150

200

250

300

350

1965 1975 1985 1995 2005 2015

Mill

ion T

ons O

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quiv

ale

nt

Source: BP

Coal Consumption in India, 1965-2013

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Page 21: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

N U C L E A R P O W E R I N

D E C L I N E

Photo Credit: Sandia Science & Technology Park

Page 22: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Nuclear Power in Decline

• Global nuclear generation peaked in 2006

• Peaked in France in 2005; United States in 2010

• Number of operating reactors dropped from high of 438 in 2002 to 390 as of end-2014

0

500

1,000

1,500

2,000

2,500

3,000

1970 1980 1990 2000 2010 2020

Te

raw

att

-ho

urs

Source: EPI from BP, IAEA/Chabot

World Electricity Generation from Nuclear Power Plants, 1970-2014

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Page 23: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Costly from Cradle…

• Unlike with wind and solar

power, building new nuclear

facilities has become more

expensive over time

• Construction delays and cost

overruns are typical features of

nuclear projects

• Of 66 reactors under

construction in mid-2014, 49

were behind schedule,

including all 5 in the United

States and 20 of 27 in China

Photo Credit: Wikimedia Commons/

Tennessee Valley Authority

Page 24: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

…to Grave

• Costs rising for aging plants—

operation, maintenance, fuel

• Squeezed by cheap renewables

and natural gas, 5 U.S. reactors

have retired early since 2013

• Closing is costly: ~$4.4 billion for

two California reactors; $130

billion for 4-reactor U.K. site with

legacy of weapons-grade

plutonium

• Nuclear waste disposal problem

remains unresolved

Photo credit: Wikimedia Commons/awnisALAN

Page 25: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Fukushima Meltdown Hastens Decline

• 2011 earthquake/tsunami

crippled Fukushima plant,

leaked radiation

• All Japanese reactors

eventually off-line; no

nuclear generation since

mid-2013, as of early 2015

• Germany, Switzerland,

Belgium announced

nuclear phase-outs

• France cutting nuclear

reliance from 75% of

electricity to 50% by 2025

Data provided by: Mycle Schneider Consulting

www.worldnuclearreport.org

Page 26: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Low-Carbon, Low-Risk Energy

Building wind and solar power capacity is

quicker and more affordable than building

nuclear—without the financial, environmental,

and health risks associated with atomic power

Photo Credit: Wikimedia Commons/ILIOTEC Solar

GmbH; Iberdrola Renewables Inc.

Page 27: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

T H E S O L A R R E V O L U T I O N

Photo Credit: Dennis Schroeder / NREL

Page 28: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

The Solar Revolution

• Solar PV converts sun’s energy into electricity

• Fastest-growing electricity source worldwide

• > 50% annual growth 2008–2013

• Can scale up from small rooftop systems to massive utility-scale arrays

0

20

40

60

80

100

120

140

2000 2005 2010 2015Te

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Source: BP

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World Solar-Generated Electricity,

2000-2013

Page 29: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Solar Beating the Grid

• In growing number of markets, solar-generated electricity now cheaper than grid average

• U.S. utility-scale PV system costs down ~80% since 2009

• Globally, solar panels cost over $74/watt in 1972

• Mid-2014 price: below 70¢/watt

• Innovation and policy drove remarkable price decline

Image Credit: Lazard

Levelized Cost of Energy for Utility-scale

Solar PV Systems in the United States,

2009-2014

Page 30: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

The Utility Death Spiral

• Spread of rooftop PV threatening traditional utility business model

– Customers with PV buy less electricity from utility

– More PV electricity on grid drives down power prices

– Utility forced to raise rates, more people go solar

• RWE and E.ON, Germany’s two largest utilities, caught off-guard

– Did not anticipate fast rise of solar and wind

– Overinvested in fossil fuel and nuclear generation

– Now reinventing themselves to survive in new energy landscape

Page 31: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2000 2005 2010 2015

Me

ga

wa

tts

Source: EPI from BP, IEA-PVPS

Germany

Japan

U.S.

Italy

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China

Solar Goals Expanding

• Chinese goal for 2020

was 20,000 MW of PV;

then 50,000; now it’s

70,000 MW by 2017

• India was aiming for

22,000 MW by 2022;

government indicates

new target will be

100,000 MW

Cumulative Installed Solar Photovoltaics

Capacity in Leading Countries, 2000-2014

Page 32: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

PV Improving Access to Electricity

• For the 1.3 billion people without access to

electricity, PV is cheaper than building centralized

power systems

• India:

– Replacing polluting kerosene lamps with PV charging

for CFL or LED lamps and a cell phone: 1) lowers

monthly outlays, and 2) pays for itself in ~3 years

• Bangladesh:

– As of 2014, with World Bank help, over 70,000 solar

home systems were being installed each month

Page 33: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Concentrating Solar Power

• In CSP systems, mirrors concentrate sunlight to drive conventional steam turbines or engines

• By mid-2014, world had 4,100 MW of CSP, mostly in Spain and the U.S.

• Thermal storage in molten salts allows for generation after sundown

Photo Credit: Sandia National Laboratories

Page 34: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Solar Water Heaters

• Rooftop solar thermal collectors

heat water directly

• China dominates: enough

installed rooftop systems to

supply 170 million households

• Used in some 85% of Israeli

homes

• Also popular in Europe (e.g.

Germany and Austria)

Photo Credit: www.davidlearnschinese.com

Page 35: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

T H E A G E O F W I N D

Photo Credit: Wikimedia Commons/Drenaline

Page 36: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

The Age of Wind

• Wind is abundant and widespread

• Wind farms are easily scalable, and increasingly cheap

• Nearly 370,000 MW installed in some 90 countries produce enough electricity to power 90 million U.S. homes

0

100

200

300

400

500

600

700

1985 1990 1995 2000 2005 2010 2015

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Source: BP

World Wind-Generated Electricity, 1985-2013

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Page 37: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

World Wind Leaderboard

• In Spain, wind output now

exceeds that from coal

plants

• India targeting at least

60,000 MW by 2022

• Offshore installations

expanding; half the world’s

capacity in the U.K

• Development heating up in

Latin America

Cumulative Installed Wind Power Capacity in

Leading Countries, 1995-2014

0

15,000

30,000

45,000

60,000

75,000

90,000

105,000

120,000

135,000

1980 1985 1990 1995 2000 2005 2010 2015 2020

Me

ga

wa

tts

Source: EPI from GWEC, Worldwatch, CREIA, EWEA, BWEA

United

States

Germany

Spain

China

IndiaE

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United

Kingdom

Page 38: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Wind Overtakes Nuclear in China

• Wind is now China’s #3 electricity source behind coal and hydro

• Wind’s lead over nuclear will grow

– Much quicker to build

– No water constraints

– Wind potential could meet current electricity demand 10 times over

– Goal = 200 gigawatts of wind capacity by 2020

Wind- and Nuclear-generated Electricity

in China, 1995-2014

0

20

40

60

80

100

120

140

160

180

1995 2000 2005 2010 2015

Te

raw

att

-ho

urs

Source: EPI from BP, NEA, CNEA

Nuclear

Wind

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Page 39: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

U.S. Wind Power

• China has greater installed

wind capacity, but U.S.

wind farms generate more

electricity

• Nine states generate >12%

of electricity from wind

• In Iowa and South Dakota,

the share exceeds 25%

• If Texas were a country, it

would rank sixth in installed

wind power capacity

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

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Cumulative Installed Wind Power Capacity in Leading Countries and Texas, 2014

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Source: EPI from GWEC, AWEA

Page 40: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

42.8

24.1

20.0

18.9

9.4

9.1

8.8

0 10 20 30 40 50

Denmark

Portugal

Spain

Ireland

UnitedKingdom

Germany

Romania

Percent

Source: Compiled by EPI

from Energinet.dk; REN;

REE; EirGrid; DECC;

BDEW; Transelectrica

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More Wind on the Grid

• European countries

dominate in the share of

electricity generated from

wind farms

• Four German states get

more than 50% of their

electricity from wind

• On some days wind power

exceeds half of Ireland’s

electricity generation

Wind Share of Electricity Generation in

Leading Countries, 2014

Page 41: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Wind-Powered Denmark

• In 1970s, began using electricity taxes to pay for renewable energy R&D

• Home to Vestas, world’s #1 wind turbine installer

• Got 62% of its electricity from wind in January 2014

• For 2014 as a whole: 40%

• By 2016, new wind farms will supply electricity at half the cost of new coal or gas plants

• Goal is 50% wind by 2020

Photo Credit: Dirk Ingo Franke

Page 42: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

TA P P I N G T H E E A R T H ’ S

H E AT

Photo credit: Wikimedia Commons/Gretar

Ívarsson

Page 43: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Tapping the Earth’s Heat

• Geothermal resources richest in areas with high tectonic activity

• Some 40 countries with 860 million people could meet all their electricity needs with geothermal energy

Image Credit: NOAA mod. USGS/Topinka

Page 44: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Iceland: Geothermal Powerhouse

• Space heating:

– In 1970, over 50% came from burning oil, 43% from geothermal

– Today geothermal heat covers close to 90%

• Other direct uses:

– Swimming/bathing, fish farming, greenhouse heating, snow melting

• Electricity:

– 29% of electricity from geothermal, more than any other country

– Cheap electricity from geothermal and hydropower allowed Iceland to become a leading aluminum producer

Photo Credit: Wikimedia Commons/Bloody-libu

Page 45: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Geothermal Energy – Direct Use

• In China, geothermal district heating rose 5-fold in last decade

• Japan has 2,000 spas, 5,000 bathhouses, and 15,000 hotels using nature’s hot water

• Ball State University in Indiana expects geothermal heating and cooling to save the school 33,000 tons of coal and $2 million per year

0 2,000 4,000 6,000 8,000

China

Turkey

Iceland

Japan

India

Italy

United States

Hungary

New Zealand

Brazil

Megawatts

Installed Direct-Use Geothermal Capacity in Leading Countries, 2014

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Source: EPI from Lund

Page 46: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Geothermal Power

• Philippines’ goal is 3,300 MW by 2030

• Indonesia’s target is 10,000 MW by 2025

• Japan has enough geothermal power potential to meet over half its electricity needs

• Enhanced Geothermal Systems technology could lead to some 500,000 MW of geothermal power in the United States

0 1,000 2,000 3,000 4,000

United States

Philippines

Indonesia

Italy

New Zealand

Mexico

Iceland

Japan

Kenya

Turkey

Costa Rica

El Salvador

Nicaragua

Megawatts

Source: BP

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Geothermal Electricity-Generating Capacity in

Leading Countries, 2013

Page 47: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Photo credit: Grand Coulee, Farwestern / Gregg M.

Erickson via Wikimedia Commons

H Y D R O P O W E R :

PA S T A N D F U T U R E

Page 48: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Hydropower Worldwide

• Used in 150 countries

• Supplies 16% of the

world’s electricity

• Global capacity of

1 million MW

• Of the world’s 45,000

large dams, 8,600

generate electricity

• Pumped storage

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1965 1975 1985 1995 2005 2015

Te

raw

att

-hou

rs

Source: BP, IEA

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World Hydroelectric Generation, 1965-2013

Page 49: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

• Industrialized country rivers near dam saturation

• Lower-income countries still expanding hydro

• Race is on to develop remaining hydropower frontiers, including the powerful Congo River and rivers originating in the Himalayas

0 200 400 600 800 1,000

China

Canada

Brazil

United States

Russia

India

Norway

Venezuela

Japan

France

Terawatt-hours

Source: BP

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Hydropower Development

Hydroelectric Generation in Leading Countries, 2013

Page 50: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Large Hydropower: a Mixed PicturePros

• Abundant energy resource

• Renewable

• Dams can provide flood

control

• Can provide irrigation water

• Can provide continuous

baseload power or quickly

ramp on or off

Cons

• Flooding displaces people,

plants, and animals

• Weakens river resilience

• Traps sediment, shrinking

downstream lakes and wetlands

• Impedes the movement of fish

and other creatures

• Reservoirs emit climate-

disrupting methane gas

• Power distribution required

• Expensive: typically >2x original

cost estimate, per Oxford study

• Long build time; opportunity cost

Page 51: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Three Gorges Dam• Location: Yangtze River, China

• Online in 2003, complete in 2012

• Height: 600 feet

• Capacity: 22,500 MW

• Annual output: 83 million

megawatt-hours

– Equivalent to 45 million tons

of coal, 12 nuclear reactors

• Flooded 244 square miles and

displaced 1.4 million people

• Total cost could reach $88 billion

Photo Credit: Le Grand Portage

derivative work: Rehman via Wikimedia Commons

Page 52: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Hydropower in the United States

• Supplies 7% of all electricity

generation, 51% of

renewable generation

• Most in Pacific Northwest

• Fewer than 3% of the

80,000 U.S. dams generate

electricity

• Over the last quarter

century, nearly 900 U.S.

dams have been removed

• Powering unequipped dams

could ramp up generation

Photo credit: Clubber Lang via Flickr

Page 53: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

A C C E L E R AT I N G T H E

T R A N S I T I O N

Photo Credit: iStockPhoto / Joe Gough

Page 54: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Saving Energy Saves Money

• Investing in efficiency is less costly than building new generating capacity

• Efficiency measures by 11 industrial countries since the 1970s saved $740 billion in avoided energy costs in 2011 alone

• A systemic switch from incandescent bulbs to efficient lighting solutions worldwide could allow closure of some 270 coal-fired power plants

• Japan’s Top Runner Program is a model for ratcheting up efficiency standards on lighting, electronics, vehicles, and more

Page 55: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Policy Matters

• Artificially cheap fossil fuels still heavily subsidized

• Renewable feed-in tariffs, tax credits, and energy mandates help level playing field

• Unpredictable policy environment has led to boom-bust cycle in U.S. wind industry

Net Annual Installed Wind Power Capacity

Additions in the United States, 1998-2014

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1998 2001 2004 2007 2010 2013

Me

ga

wa

tts

Source: EPI from Worldwatch, DOE, AWEA

Production Tax Credit Lapses

Eart

h P

olic

y I

nstitu

te -

ww

w.e

art

h-p

olic

y.o

rg

Page 56: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Putting a Price on Carbon

• Can supercharge the transition by systematically pricing carbon to better reflect fossil fuels’ true social and environmental costs

• Cap-and-Trade

– Regulators set a limit on emissions and polluters can either reduce their emissions or buy permits on the carbon market

– EU had first international Emissions Trading System (ETS)

• Carbon Tax

– Tax levied on each ton of carbon dioxide emitted

– Far simpler than cap-and-trade

– Potentially revenue-neutral – can be offset by reductions in income taxes

Page 57: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Carbon Pricing in Action

Image Credit: World Bank

Page 58: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Carbon Tax Successes

• Ireland: set carbon tax on natural gas and oil

consumption in 2010; by 2013, emissions

had fallen some 6% while economy grew

• British Columbia: set economy-wide carbon

tax in 2008; per person consumption of

gasoline and other petroleum products fell

15%, three times the national average, while

economic growth has kept pace

Page 59: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Fossil Fuel Divestment

• Campaign is encouraging

divestment from coal, oil, and

natural gas companies

• Rockefeller Brothers Fund’s

original resources came from

Standard Oil; now ditching all

fossil fuel related holdings

• Others divesting from all

fossils incl.: Guardian Media

Group; Syracuse University

• Coal focus: World’s largest

sovereign wealth fund

(Norway); Stanford University

Photo Credit: 350.org

Page 60: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Green Power Purchasing

• > 600 entities generate or purchase enough

renewable electricity to meet 100% of their needs

in U.S.—including Intel, Kohl’s, Staples, Unilever

• Google aiming for 100%

renewable electricity

– Buys staggering amount of

wind-generated electricity

– Turning abandoned

California oil and gas field

into an 82-MW solar farm

Image Credit: SunEdison

Page 61: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Renewables Make Business Sense

• Apple’s 25-year, $850 million solar power purchase

agreement with First Solar to supply CA operations

• Large investment institutions like Morgan Stanley and

Goldman Sachs channeling tens of billions of dollars

into renewable energy

“It’s a business decision. The renewable

energy we buy meets or beats prices from

the grid.” – Walmart CEO Bill Simon, 2014

• Walmart has 260 PV systems

on its U.S. buildings, aiming for

400 more by 2018

Photo Credit: Walmart/Flickr

Page 62: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Billionaires Betting Big on Renewables

Photo Credit: Todd Spink

• Warren Buffett– $15 billion invested in solar

and wind by early 2014

– “There’s another $15 billion ready to go.”

• Ted Turner– With utility Southern Power,

acquired 7 solar PV farms totaling ~300 MW

• Philip Anschutz– Will soon have a massive

3,000 MW wind farm under construction in Wyoming to supply CA, NV, AZ

Page 63: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

New Energy Economy

• Each country can

take advantage of its

unique mix of

renewable resources

• Developing countries

may bypass the

electric grid and

jump straight to

distributed solar

Photo Credit: Flickr/SELF

Page 64: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

The Future of Energy

• Unlike fossil fuels,

energy from the

wind and the sun

– is clean

– is inexhaustible

– the costs are falling

fast

– the fuel is free

Photo Credit: MrRenewables via.

Wikimedia Commons

Page 65: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Energy Independence

• Rooftop solar panels power homes and recharge car batteries, delivering a degree of personal energy independence not known for generations

• The old energy economy was tightly controlled by those who held fossil fuel deposits; the new energy economy is much more democratic

• Results we can live with: Cleaner air, cleaner water, and a more stable climate

Page 66: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

Our Clean Energy Future

The energy transition will change not only how we view

the world but also how we view ourselves. Coal plant

smokestacks that dirty the air and alter the climate will

be replaced by solar panels on our rooftops and wind

turbines turning gracefully in the distance.

Welcome to the clean energy era.

– Chapter 9, The Great Transition

Page 67: Summary Presentation for The Great Transition: Shifting from Fossil Fuels to Solar and Wind Energy

To learn more about the energy

transition…

read The Great Transition:

Shifting from Fossil Fuels to

Solar and Wind Energy

by Lester R. Brown

with Janet Larsen, J. Matthew

Roney, and Emily E. Adams.

The book and supporting

data are available at

www.earth-policy.org


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