CHANGING LANDSCAPE OF

ENERGY IN THE INDIAN OCEAN

REGION

PRESENTED BY:

Prof. V.N. Attri

Chair of Indian Ocean Rim Studies (University of Mauritius)

Indian Ocean Rim Association (IORA)

Republic of Mauritius

DEFINING ENERGY

• Energy is a basic input to the national economy, both agricultural and industrial,

apart from being an instrument for improving the quality of life. Provision of

adequate quantities and kind of energy is and will continue to be a challenge to the

Governments and the Institutions in the country engaged in various specific tasks

relating to energy supply and transport. (source: R.C Sharma and N Sharma, “Energy from the ocean and

scope of its utilization in India”)

TYPES OF ENERGY

RENEWABLE ENERGY

Renewable energy is energy generated from natural resources such as sunlight, wind,

rain, tides and geothermal heat which are renewable in nature. Renewable energy

technologies range from solar power, wind power, hydroelectricity/micro hydro,

biomass and biofuels for transportation.

RENEWABLE ENERGY NON RENEWABLE ENERGY

Ocean, Wind Turbines, Tidal wave

power, Solar, Submarine,

Geothermal Biomass

Petroleum, Coal, Nuclear, Natural

Gas

THE ECONOMICS OF ENERGY/RENEWABLE

ENERGY

HISTORY OF ENERGY TRANSITIONS:

• History of industrial civilization is a history of Energy Transitions

• Capturing solar energy Human-Use

• Stored in firewood or other Biomass Energy

• Biomass Energy= Hydropower

• Coal Energy (19th century) = oil

• Natural Gas (20th Century) =In 1950s Nuclear Power

• Fossil Fuel (Coal, Oil, Natural Gas

• Renewable Energy due to climate change

CIRCLE OF RENEWABLE ENERGY

Fossil Energy Renewable Energy

WHY MOVING TOWARDS RENEWABLE

ENERGY?

• Renewable energy technologies are clean sources of energy with a lower environmental impact

than conventional energy technologies.

• Renewable energy will not run out. Ever. Other sources of energy are finite and will some day be

depleted

• Create jobs and boost up local economies, rather than going overseas.

• Less foreign oil import: The global oil market has become extremely volatile and dependency on

oil continues to grow. With more emphasis on renewable energy and using domestic renewable

energy sources instead of importing foreign oil can improve energy security and energy

independence

NEED FOR RENEWABLE ENERGY

• History of Industrial Civilization is a History of energy transitions

• Solar Energy: Capable of meeting pre-industrial needs – solar energy stored in firewood or other

Biomass Energy

• High growth leads to increase in energy-needs in terms of Hydropower, coal, oil and natural gas –

Fossil Fuel

TRANSITION TO RENEWABLE ENERGY

Why Transition?

• Environmental (particularly climate change)

• Limited supply of fossil fuel supplies

• Prices

• Technological Change

Objectives:

• What are available renewable energy-sources?

• Optimum Mix of Renewable Energy

• Locational variation in Renewable Energy Mix

• Direct and External costs of renewable energy sources

• How does renewable energy change the energy-use in the economy

• What kind of engineering, economic and policy adjustments will be needed to move

– accommodate to renewable energy sources?

PRESENT SCENARIO OF ENERGY

• Capital Stock and infrastructure of modern economic systems are based on Fossil

Fuel Energy

• Massive restructuring and new investments are needed

5.1

2.3

10 1

31.528.8

21.3Nuclear

Hydro

Biomass

Solar,Wind,geothermal

Oil

Coal

Natural Gas

Global Energy Consumptibility Source, 2011

Source: International Energy Agency (IEA 2013)

CHARACTERISTICS OF WORLD ENERGY

SCENARIO (2050)

1. Complexity of Energy System will increase

2. Emphasis on Energy Efficiency

3. Energy-Mix dominated by fossil based energy

4. Regional priority differ: no –one- size fit all solution to energy trilemma

5. The Global Economy’s challenge is to meet the 450 ppm target with unacceptable

carbon prices

6. A low-carbon future is not only linked with renewables: Carbon Capture,

Utilization and Storage ( CC(U)S) is important

7. CC(U)S technology, Solar Energy, and Energy Storage are the key uncertainties

upto 2050

8. Balancing the energy trilemma means making difficult choices

9. Functioning energy markets require investments and regional integration to deliver

benefits to all consumers

10. Energy policy should ensure that energy and carbon market deliver

RENEWABLE ENERGY SOURCES

• Unlimited Renewable Energy

• Theoretically daily supply of solar energy is sufficient to meet all human

energy needs.

• These sources are limited as their availability varies across space and time

-Solar Energy

-Wind Energy

-Geothermal Energy

-Hydropower (Largest source of renewable energy)

-Biomass (a fraction of total energy needs)

-Nuclear Power

Availability of Global Renewable Energy

Infrastructure requirements for supplying all Global Energy in 2030 from Renewable Resources

RENEWABLE ENERGY AVAILABILITY

WORLD ENERGY COUNCIL APPROACH

Energy Trilemma

Energy Security

Energy Equity Environmental Sustainability

Each Policy Option needs to be analyzed in terms of capital investments, impact on GDP, overall

environmental benefits, cost of climate change benefits

WORLD ENERGY COUNCIL: THE JAZZ AND

SYMPHONY SCENARIO

JAZZ SYMPHONY

Focus on energy equity with priority

given to achieving individual access

and affordability of energy through

economic growth

Focus on achieving environmental

sustainability through Internationally

coordinated policies and practices

4TYPES OF STRATEGIES:

• Free Trade Strategy: where Export Rise

• Nationalistic Strategy: where Export Fall

• International Agreement Commitments

• Carbon Markets

Convergence in these 4 policies will lead to higher GDP and

Divergence will lead to lower GDP growth rates.

RENEWABLE ENERGY OUTLOOK: World Energy

Use

WIND POWER AND SOLAR PV CAPACITIES BY

REGION

Source: International Energy Agency

POSSIBLE OUTCOMES OF THE POLICY

FRAMEWORK

• Renewable and Low Carbon Energy grows in line with market selection

• Energy Sources compete on basis of price and availability

• Certain types of renewable and low carbon energy actively promoted by

government

• Selected energy sources are subsidize and incentivize by government

MAIN PLAYERS

• Multinational Corporations

• Banks

• Venture Capitalist

• Price Conscious Consumers

Technologies are chosen in competitive markets. The Main Players are:

• Government

• Public Sector

• Private Companies

• NGOs

• Environmentally minded winners

FUTURE ENERGY LANDSCAPE

To meet the future energy demand is a key challenge of the world’s economy as well as

the IORA Region. The world’s population will increase from approximately 7 billion

in 2013 to approximately 8.1 billion in the Jazz and 9.4 billion in Symphony scenario

i.e. 26 % and 36% increase.

FUTURE ENERGY MIX

2010 Jazz (2050) Symphony (2050)

Fossil Fuel 79% 77% 59%

Renewable Energy 15% 20% 30%

Nuclear Energy 6% 4% 11%

RENEWABLE ENERGY IN IORA

AN OVERVIEW OF ENERGY AND RENEWABLE

ENERGY STATUS IN IORA

• Iran, Oman, the United Arab Emirates and Yemen (IOR-Middle East) rely almost exclusively

on natural gas and oil, and the contribution of all renewable energy sources is currently minor.

• Coal is the dominant fuel in the energy mix of Bangladesh, India and Sri Lanka with a 41%

share, Bioenergy 25% share, hydropower 12% and wind 2% as it is deployed in India.

• The vast majority of the energy needs of Australia, Indonesia, Malaysia, Singapore and

Thailand (IOR-South East Asia/Oceania) is met by oil, natural gas and coal; bioenergy

represents 15% of the energy mix, a mixture of traditional uses in Malaysia and Indonesia as

well as growing modern uses for power generation in these countries.

• Taken together, the Comoros, Kenya, Madagascar, Mauritius, Mozambique, the Seychelles,

Tanzania and South Africa (IOR-Africa) rely mostly on coal (50%) and bioenergy (30%).

Without South Africa, which represents more than two-thirds of the group total, the energy

mix completely changes: bioenergy accounts for 78% and oil for 14%.

SEA RENEWABLE ENERGY IN IORA

• Matrix on Renewable Ocean Energy are being done country wise.

• Information that will be available on the IORA Matrix are:

Rules and Regulations

Capacity Building

Organizations and Educational Institution

Marine Conservation

Country’s needs on Blue Economy

AN OVERVIEW OF ENERGY AND RENEWABLE

ENERGY STATUS IN IORA

Electricity Generation Mix by Fuel for IOR Countries in 2011

Source: IRENA, based on IEA, UNSD and country reports

POTENTIAL AREAS OF CORPORATION IN IORA

Installed Renewable Capacity in IOR Countries (MW)

Source: IRENA, based on EPIA, GWEC, Hydropower & Dams, IEA, IGA,NREL and

country reports 2011 value

Solar PV(2012)

CSP(1H2013)

Wind(2012)

Hydropower(2012)

Bioenergy (2012)

Geothermal(2012)

Iran (Islamic Republic of) - 17 91 9746 - -

Oman - - - - - -

United Arab Emirates 10 100 - - - -

Yemen - - - - - -

Bangladesh 45 - 2 230 - -

India 1205 56 18421 43200 4285 -

Sri Lanka 1 - 14 1584 13 -

Australia 2412 12 2584 8788 826* -

Indonesia 12 - 1 5258 N/A 1307

Malaysia 36 - - 3110 752* -

Singapore 10 - - - 287† -

Thailand 377 5 112 3500 2196 -

Comoros - - - 1 - -

Kenya - - 5 812 68 217

Madagascar - - 1 164 - -

Mauritius - - 1 60 264‡ -

Mozambique - - - 2187 - -

Seychelles - - - - - -

South Africa 41 - 10 2273 105 -

United Republic of Tanzania 2 - - 562 36 -

POLICY LANDSCAPING IN IORA REGION

Australia since Details

Clean Energy Finance Corporation 2012 AUD 10bn commercially-oriented investment fund

Australian Biofuels Investment Readiness Program 2012 grants

Bangladesh since Details

Renewable Energy Policy 2009

Energy Regulatory Commission Act 2003

Comoros since Details

Comoros Renewable Energy Policy 2008

Interim "Poverty Reduction and Growth Strategy" Paper 2005

India since Details

Federal Renewable Portfolio Standard and Renewable Energy Certificates system

2011 2010- 5% RE progressively increasing to 10% in 2015.

Solar cities Development programme 2011 R&D, education and training

Mauritius since Details

Energy Strategy 2011-2025 Action Plan 2011

Long Term Energy Strategy 2009-2025 2009

South Africa since Details

Regulations Regarding the Mandatory Blending of Bio-fuels with Petrol and Diesel

2012 Minimum biodiesel 5%, bioethanol 2%min to 10% max

Integrated Resource Electricity Plan 2010 – 2030 2011

Renewable Energy Independent Power Producer Programme

2011 20yr PPAs, replaces feed-in tariff

United Arab Emirates since Details

Solar water heating regulation (Dubai) 2011 New buildings, 75% hot water and 50% pool heating from solar

National Renewable Energy Atlas 2010 Solar and wind mapping; funding >USD 2m

IRENA GLOBAL WIND AND SOLAR ATLAS

Wind resource at 50 m in the IOR countries. Sample of solar irradiation datasets presented by the

IRENA Global Atlas.

Sources: HelioCLim-1 Mines ParisTech, DLR, Australian Bureau of Meteorology

RENEWABLE ENERGY RESOURCES IN IORA

IOR States Wind Solar Hydropower Biomass Geothermal Ocean

Australia

Bangladesh

Comoros

India

Indonesia

Seychelles

Iran

Kenya

Madagascar

Malaysia

Mauritius

Mozambique

Oman

Singapore

South Africa

Sri Lanka

Tanzania

Thailand

United Arab Emirates

Yemen

Legend High Medium Low Unknown

Indication of the renewable energy resources of the

IOR countries

RELATIVE COST AND BENEFITS OF THE

AVAILABLE TECHNOLOGIES

Levelized cost of electricity ranges for renewable power

generation technologies in the IOR region.

Total installed costs for renewable power generation

technologies in the IOR region, 2010 -2012

IORA : MEMBER STATES

• Member States: Australia, Bangladesh, Comoros, India, Indonesia, Iran, Kenya,

Madagascar, Malaysia, Mauritius, Mozambique, Oman, Seychelles, Singapore,

South Africa, Sri Lanka, Tanzania, Thailand, UAE and Yemen.

• Chosen Member States for Renewable Energy Analysis:

India

Australia

South Africa

Mauritius

UAE

Mauritius and UAE concentrate mainly on Renewable Ocean Energy.

RENEWABLE ENERGY IN INDIA

Source: Ministry of New and Renewable Resources

Sectorial Investment of Renewable Energy

Source: Renewable Energy Financing

COOPERATION OF INDIA WITH OTHER COUNTRIES ON RENEWABLE ENERGY

• India and USA corporate in Climate and Clean Energy

• India and Japan: Corporate in Sustainable Energy

RENEWABLE ENERGY IN AUSTRALIA

Estimated % of Renewable Energy by Installed Capacity Renewable Energy Investment

Source: Clean Energy Australia Report 2013

COOPERATION OF AUSTRALIA WITH OTHER COUNTRIES ON RENEWABLE ENERGY

• Australia and US – Solar Energy Collaboration

RENEWABLE ENERGY IN SOUTH AFRICA

Estimated % of Renewable Energy by Installed Capacity

Souce: Future for Clean Energy in Africa

COOPERATION OF AUSTRALIA WITH OTHER COUNTRIES ON RENEWABLE ENERGY

• Energy coporation between South Africa and China

Investments on Renewable Energy

RENEWABLE OCEAN ENERGY IN MAURITIUS

Institutions

• The Ministry of Energy and Public Utilities (MEPU) is responsible for the energy management in Mauritius. However, the Central

Electricity Board (CEB) which is under the ministry is responsible for the distribution, transmission and maintenance of electricity

throughout the country.

• The ministry of Ocean Economy, Marine Resources, Fisheries, Shipping and Outer Islands is also involved in the Ocean Renewable

Energy sub-sector.

Legislations

• The main regulations and legislations with regards to energy in Mauritius are the:

• Central Electricity Board Act of 25 January 1964 (promoting, coordinating and improving the generation, transmission, distribution and

sale of electricity)

• Electricity Act, 1939

• Electricity Regulations, 1939

• The Electricity Act, 2005

• The Energy Efficiency Act amended

Weaknesses:

• Lack of expertise in the field

• Slow progress due to the size of the project

• Lack of research experience in Renewable Ocean Energy

• Limited space for land-based project

Strengths:

• Strong desire to initiate Renewable Ocean Energy projects by the local government

• Good environmental conditions available

• Good basic infrastructures in terms of Roads, electricity and water distribution

• Good reputation in the Indian Ocean

RENEWABLE OCEAN ENERGY IN UAE

• Institutions:

• United Arab Emirates, Ministry of Energy

• The Abu Dhabi Water and Electricity Authority (ADWEA) – is the national organization managing energy in the UAE.

• The Federal Electricity and Water Authority (FEWA) – provides water and electricity in North Emirates

• The Dubai Electricity and Water Authority (DEWA)

• The Sharjah Electricity and Water Authority (SEWA) – provided electricity in Emirate of Sharjah

•

• Regulations:

• Law No (19) of 2007 Amending Some Provisions of Law No. (2) of 1998 Concerning the Regulation of the Water and Electricity Sector

in the Emirate of Abu Dhabi

• Law No (2) of 1998 Concerning The Regulation Of The Water And Electricity Sector

• Law No (9) of 2009 Amending Certain Provisions of Law No (2) of 1998 Concerning the Regulation of the Water and Electricity

• Sector in the Emirate of Abu Dhabi

• The Electricity Supply Regulations 2007

• The Electricity Wiring Regulations 2007 (Revision 1)

• Weaknesses:

• Lack of Natural Resources for Renewable Ocean Energy

•

• Strengths:

• Availability of funds for renewable energy projects

• Willingness of the local Government to invest in Renewable energy

• High energy demand

• Decision at Council of Ministers

• Commitments of individual Member States

• Private Sector involvement in Renewable Energy

FIRST RENEWABLE FORUM OF THE IORA, ABU

DHABI, UAE, 29 JANUARY 2014

CONCLUSION