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IEA unveils global high-level commission for urgent action on energy efficiency

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The commission will be chaired by Prime Minister Leo Varadkar of Ireland (top-left) and is composed of government ministers, top business executives and thought leaders from around the world

The International Energy Agency has established an independent high-level global commission to examine how progress on energy efficiency can be rapidly accelerated through new and stronger policy action.

Prime Minister Leo Varadkar of Ireland will be the honorary chair of the IEA Commission for Urgent Action on Energy Efficiency, composed of government ministers, top business executives and thought leaders from around the world.

The members include current and former ministers for energy and environment from Denmark, Germany, Ireland, Japan, Luxembourg, Morocco, New Zealand and Spain. Dr Amani Abou-Zeid, the African Union Commissioner for Energy and Infrastructure, and Dr Wan Gang, the previous Chinese Minister of Science and Technology, who is known as the “father of electric vehicles” in China, have also agreed to take part.

Mr Richard Bruton, Ireland’s Minister of Communications, Climate Action and Environment, will chair the commission’s ongoing work. Business leaders taking part include Mr Ben van Beurden, the Chief Executive Officer of Royal Dutch Shell; Ms Lisa Davis, the Chief Executive of gas and power at Siemens; and Mr Gil Quiniones, the President of the New York Power Authority.

More than any single fuel, energy efficiency has a central role to play in meeting global sustainable energy goals. The IEA calculates that with the right policies, the global economy could double in size by 2040 while still maintaining broadly the same level of energy use as today. Those policies alone would enable the world to achieve more than 40% of the emissions cuts needed to reach international climate goals using cost-effective technologies already available, according to IEA analysis.

But policy implementation has slowed and efficiency progress is weakening. Global energy-related CO2 emissions increased last year at their highest rate since 2013, and air pollution continues to be linked to millions of premature deaths each year.

“It is imperative that we get global energy efficiency progress back on track,” said Dr Fatih Birol, the IEA’s Executive Director. “I’m delighted that Prime Minister Varadkar and other eminent figures from around the world have agreed to commit their energy and ideas to this vital project.”

If countries implement all the economically viable energy efficiency potential available today, consumers around the world could save more than half a trillion US dollars through lower energy bills by 2040, while greenhouse gas emissions, air pollution in cities and dependence on energy imports could all be reduced. But this will require firm and rapid action from governments.

“The IEA sees energy efficiency as critical for successful clean energy transitions,” Dr Birol said. “It has huge potential to start making an immediate difference if governments act now and act decisively.”

The focus of the new energy efficiency panel will be on key policy actions that can be taken by countries across the globe. It will produce a concise list of clear, actionable recommendations next year. Plans for the commission were announced last week at the IEA’s largest ever Global Conference on Energy Efficiency in Dublin.

THE COMMISSION

Honorary Chair

H.E. Mr Leo VARADKAR, Prime Minister, Ireland

Members

Dr Amani ABOU-ZEID, Commissioner for Infrastructure and Energy, African Union Commission

H.E. Mr Richard BRUTON, Minister of Communications, Climate Action and Environment, Ireland

Mr Nick BUTLER, Visiting Professor, King’s College London

Ms Lisa DAVIS, Chief Executive Officer, Gas and Power, Siemens AG

Ms Connie HEDEGAARD, Former Commissioner for Climate Action, European Union

Mr Michael LIEBREICH, Chairman and Chief Executive Officer, Liebreich Associates

Dr Ajay MATHUR, Director General, The Energy and Resources Institute, India

H.E. Mr Aziz RABBAH, Minister of Energy, Mines and Sustainable Development, Morocco

H.E. Ms Teresa RIBERA RODRIGUEZ, Minister for Ecological Transition, Spain

Mr Gil C. QUINIONES, President and Chief Executive Officer of the New York Power Authority

Mr Adam SIEMINSKI, President, King Abdullah Petroleum Studies and Research Center, Saudi Arabia

Mr Masakazu TOYODA, Chairman and Chief Executive Officer, Institute of Energy Economics, Japan

Mr Jürgen TRITTIN, Member of the Bundestag and Former Federal Minister for the Environment, Nature Conservation and Nuclear Safety, Germany

H.E. Mr Claude TURMES, Minister for Energy and Minister for Spatial Planning, Luxembourg

Mr Ben van BEURDEN, Chief Executive Officer, Royal Dutch Shell

H.E. Dr WAN Gang, Previous Minister of Science and Technology, China

H.E. Dr Megan WOODS, Minister of Energy and Resources, New Zealand

Dr Kandeh YUMKELLA, Former Special Representative of the UN Secretary-General for Sustainable Energy for All

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Countries Raise the Sails on Offshore Renewables Sector

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Offshore renewables, including offshore wind, wave, tidal, ocean thermal, and floating solar PV, will witness substantial growth in capacity over the next decade and play an essential role in the global energy transformation. In this context, representatives from 40 countries gathered to identify collaboration areas and agree on concrete actions to accelerate progress and ensure rapid uptake of these promising technologies.

According to the International Renewable Energy Agency’s (IRENA) projections, global offshore wind and ocean energy installed capacity will reach 228 GW and 10 GW respectively by 2030.

During his welcoming remarks, IRENA Director-General Francesco La Camera stressed offshore renewables’ importance in meeting growing energy demands and improving living conditions. “Offshore renewables have the potential to meet more than four times the global energy demand of today, foster a blue economy, and bring socio-economic benefits to some of the most vulnerable areas to climate change such as small island territories and coastal areas,” he said.

The Collaborative Framework on Ocean Energy/Offshore Renewables first met on 25 June 2020, during which Members and States in Accession provided inputs on the thematic scope of the Collaborative Framework and agreed to include relevant stakeholders in future meetings. In response, this second meeting of the Collaborative Framework, moderated by H.E Ambassador ‘Akau’ola, Tonga’s Permanent Representative to IRENA, included participation, insights, and support from the Global Wind Energy Council (GWEC) and Ocean Energy Europe (OEE).

Currently, 90% of global installed offshore wind capacity is commissioned and operated in the North Sea and the nearby Atlantic Ocean. Mr. Ben Backwell, CEO of GWEC, attributed the rapid uptake of offshore wind in Europe to regional cooperation on interconnection, marine spatial planning (MSP), and sector coupling in the North Sea. Mr. Backwell highlighted the critical role that the Collaborative Framework can play in fostering similar regional partnerships in other parts of the world.

Representing the ocean energy sector in the Collaborative Framework, Mr. Rémi Gruet, CEO of OEE, suggested that ocean energy will become a game-changer, estimating that the sector can provide more than 1.2 million jobs worldwide by 2050. Mr. Gruet also underscored the predictability of ocean energy, which complements the variable renewable energy sources, as a compelling reason to make wave and tidal energy technologies essential additions to power systems that will be dominated by solar PV and wind.

Members also agreed on 13 topics of focus for the Collaborative Framework, around the areas of technology development, research and innovation, market incentives, and sustainability. The topics include analyses on accelerating technology cost reduction, grid integration, resource mapping, and coupling of offshore renewables with Power-to-X technologies. Participants also indicated the important role of IRENA and the Collaborative Framework in moving a global Offshore Renewables agenda forward in other relevant multilateral venues including the G20 and the COP26.

IRENA Members also agreed on modalities for future meetings under the Collaborative Framework, including the selection of Italy and Tonga as co-facilitators.

IRENA

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South Africa: industrial energy efficiency project wins international award

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South Africa’s largest energy efficiency initiative: Industrial Energy Efficiency Improvement in South Africa through Mainstreaming the Introduction of Energy Management Systems and Energy Systems Optimization, has won the highest international accolade for an energy programme – the International Energy Project of the Year – awarded by the global Association of Energy Engineers (AEE).

The project, which has been led by South Africa’s National Cleaner Production Centre (NCPC-SA) and the United Nations Industrial Development Organization (UNIDO) since 2010, received the award in recognition of its efforts to transform energy use patterns in South African industry and to mainstream energy management systems across economic sectors.

Since the project began in 2011, it has successfully trained 39 SANS/ISO 50001 lead auditors, held more than 320 training workshops, and achieved the participation of more than 150 large companies and 227 small and medium-sized enterprises. The project team has assisted industrial companies in saving 6.5 terawatt-hours (TWh) of energy, representing cumulative cost savings of R5.3 billion (270m.) for these companies.

The AEE’s International Awards recognize achievements in energy around the world. According to the organizers’ official communication, the awards identify those who exemplify the very best in their fields, and recognize the important work that is being done by individuals, organizations, agencies and corporations.

The AEE International Project of the Year award was accepted by national project manager, Alf Hartzenburg of the NCPC-SA, at the AEE International Virtual Awards ceremony. AEE members and executives from around the world responded with enthusiastic accolades when the summary of the IEE project achievements was read by the chairperson of the awards committee. 

The IEE project, currently its second phase, funded by the Global Environment Facility, is set to run until December 2021. Other IEE project phase II partners include South Africa’s Department of Trade, Industry and Competition, which funds the NCPC-SA, the Department of Energy and Mineral Resources and its agency, the South African National Energy Development Institute (SANEDI).

According to Hartzenburg, what sets this project apart is that it partners with and equips industry to tackle practical energy management in companies of all sizes.

He said, “Through expert-level training of industry professionals, demonstration of actual impact and methodologies aligned to international standard ISO50001, the project partners have ensured that both the skills and the appetite exist to implement energy management.”

Hartzenburg continued, “The benefits are made clear in the energy savings, which result in direct financial savings on utilities and other energy sources, and we don’t leave the companies to go it alone, but support them with skills and financial linkages, where possible.”

Hartzenburg believes that the return to post-lockdown operations offers companies an ideal opportunity to consider changes that will ultimately save them operating costs, thus aiding in the recovery process and long-term sustainability.

“SANS/ISO 50001, the energy management best practice standard, actually saves companies money. We are offering companies technical support to comply with this standard, and even some financial support if they want to apply for certification through the South African Bureau of Standards (SABS).”

Hartzenburg said his team is particularly proud of the huge environmental impact of the project. “Energy savings, particularly in a fossil-fuel based economy such as South Africa, have a direct climate mitigation benefit – which is why the GEF has funded our second phase.”

Based on internationally accepted calculations, the NCPC-SA reports that energy saved by companies through the IEE project has mitigated 6.4 million tonnes of carbon dioxide equivalent (CO2e) since April 2011 when the first savings were measured.

SANEDI is working with the information gathered through the NCPC-SA interventions, and is using them together with relevant international and national energy trends to inform national energy and policy planning, including the adaptation of the National Energy Efficiency Strategy.

Rana Ghoneim, head of UNIDO’s Energy Systems and Infrastructure Division, said the award was an excellent recognition of the strong ownership, committed leadership and multi-stakeholder partnership that is driving industrial energy efficiency in South Africa.  “The programme has always been a great example, inspiring other countries within the UNIDO global programme, where its impacts transcend beyond South Africa.”

The IEE project has a strong focus on gender mainstreaming and promoting the participation of women in energy. To date, 43% of the professionals trained through the project are female.

The project also includes awareness-raising in its activities, as evidence strongly supports the idea that sustained energy savings are brought about through behaviour change. This active communication approach made the project an even stronger candidate for the AEE International Award which encourages projects with “significant success in savings and/or visibility”.

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Islands Aim to Phase out Fossil Fuels and Build Climate Resilience

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From the Atlantic Ocean and the Caribbean to the farthest reaches of the Indian and Pacific oceans, island communities face common and increasingly daunting energy challenges.

On top of their vulnerability to climate change, Small Island Developing States (SIDS) tend to have limited primary energy resources, leaving them dependent on imported fossil fuels. This means severe price volatility and import dependencies, along with climate damage.

Small system size, however, makes island grids good candidates to demonstrate the shift in power generation from fossil fuels to local renewable sources.

In one instance, in Vanuatu, the power utility of Espiritu Santo undertook a grid assessment study that estimated 87% of electricity demand could be met with renewables by 2030. New operational procedures and enabling measures could boost solar photovoltaic (PV) power in the system as well as adding more hydropower.

Moving from predominantly thermal, fossil-based power generation to a system rich in wind and solar energy is not without challenges for SIDS. The variable nature of those sources – the sun must shine and the wind must blow – requires careful integration with existing power systems. The transition must be approached in a structured manner, with studies undertaken at key stages.

In Viti Levu, an island in the Republic of Fiji, grid assessments showed that the share of PV could increase as much as 65 megawatts (MW) with infrastructure upgrades and grid code changes to reduce constraints in the power system. After a thorough evaluation by power engineering experts, effective grid codes can be adopted and adapted from other countries with similar demand and generation profiles.

In the Dominican Republic, assessments have showed ways to integrate variable renewables into the existing power system.

By 2030, some 63% of real-time demand could be met by wind and solar energy. This means over a third more wind and nearly a quarter more solar than in recent years, while slashing the use of natural gas and oil-based fuels by more than a quarter. This could cut system operating costs as well as carbon-dioxide (CO2) emissions.

After an island state sets its policies and targets for renewables, grid assessment studies can indicate feasible shares for the existing power system, as well as future investment needs. Such studies can also offer valuable recommendations on solar and wind integration.

While SIDS contribute only to a very small percentage of global emissions, they are taking decisive steps to scale up renewable energy and fulfil their own international climate pledges.

IRENA

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