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08/05/2015

Is it possible to double the share of renewable energy in the global energy mix? Rio+20-June16

We participated today in the session: Double share of Renewable Energy in the Global Energy Mix to achieve Sustainable Energy for all.

Sustainable Energy for All

We  participated today in the session: Double share of Renewable Energy in the Global Energy Mix to achieve Sustainable Energy for all.

Sustainable Energy  for All” is the  Secretary General Ban Ki Moon initiative, whose goals are: ensuring universal access to modern energy  services by 2030; doubling  the  global rate of improvement in energy efficiency by 2030; and doubling the share of  renewable energy  in the global energy mix by 2030.

How to double  this share is our  topic today.

It is  a privilege to be in the Global Compact Corporate Sustainability Forum, and to have the opportunity to share our vision on how to double the renewable energy percentage in the global energy mix.

I consider five key  issues to make this possible:Renewable energies

First: renewable energy is a capital intensive business, disbursement of investment capital is make effective all in year 0. On the cost side, along with the operating costs you are paying financial costs for twenty years. The revenues came from three factors, PPA’s (power purchase agreementFITs (Feed in Tariff) and the Load Factor (ratio between operating hours of your facility and the 8760 yearly hours). To  function properly, this model needs stability.

The first condition to double the renewable energy percentage in the global energy mix is a minimum regulatory framework. To maintain positive evolution and investment stimulus it is necessary a degree of stability, predictability and long-term orientation on policy that is nonexistent today.

Second: A necessary step to advance is to gradually remove subsidies to fossil fuels so as to achieve a real competitive market reflecting the real prices of all technologies.

In the  document The future we want”, which is being  discussed now in  Rio, and is meant to be the official document to  be signed by  chiefs of state in the  next days;  in the  Section V: Framework for  action, in the  ENERGY section, #6 in a shy manner but clearly, is stated that fossil fuels subsidies inhibit  sustainable development.

Third: The implementation success of the different measures have to take place during the present decade, otherwise, the negative effects would be very difficult to reverse. One of them is to lock-in the  GHG emissions trajectory. The last  measures of the Mauna Loa  observatory (April 2012) registered more  than  393ppm’s of  CO2 in the  atmosphere. We are in close danger  to  surpass the  450ppm’s goal for 2050.

Fourth: there are still 1,5 billion people in the world without access to electricity and it is Goverments and Leader Business Companies who have the responsibility of reducing this number down to the minimum. Distributed energy systems out of renewable energy are part of the solution to provide electricity to this rural areas, isolated from the grid.

Fifth: we need a stable and supporting regulatory framework that combines utilities and distributed energy in urban areas. Smart grids and fully  integrating renewable energy are the right path to take. Of course, this will require a considerable investment which, in the long term will imply cost savings, improving energy  efficiency and security  of supply and last but not least, reducing costs and GHG emissions.

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