INCREASED EFFICIENCY, MIX OF ENERGY SOURCES, NEEDED IN DEVELOPING COUNTRIES, COMMITTEE ON NEW AND RENEWABLE SOURCES OF ENERGY TOLD
Press Release
EN/231
INCREASED EFFICIENCY, MIX OF ENERGY SOURCES, NEEDED IN DEVELOPING COUNTRIES, COMMITTEE ON NEW AND RENEWABLE SOURCES OF ENERGY TOLD
19960213 Continues Discussion of Progress and Policies in Efficient Energy Use; Paper Presented on 'Development of Energy Resources in Developing Countries'Developing countries should progressively reduce waste and emissions in their production and use of energy by increasing efficiency and developing a better mix of energy sources, the Committee on New and Renewable Sources of Energy and on Energy for Development was told this afternoon, as it continued its consideration of energy and sustainable development.
Kyaw Kyaw Shane of the United Nations Energy and Natural Resources Branch, introducing a paper on "Energy and Sustainable Development: Development of Energy Resources in Developing Countries", said that energy was a critical component of economic growth and development, particularly in developing countries, where demand for commercial energy was rapidly growing as a result of increased population, industrialization and urbanization.
Developing countries' share of world energy demand had doubled in the past two decades, he continued. Those countries now consumed some 28 per cent of world supplies, as compared to 53 for the countries of the Organization for Economic Cooperation and Development (OECD). World energy demand was expected to double in the next 20 years, with demand driven by the forces of demography and urbanization, especially in the developing world.
The high growth rates of energy demand in the developing world and their dominance in world energy production would substantially alter the world energy balance, he said. Despite increased energy use by developing countries, over the next quarter century the average energy use of an inhabitant of the developing world was expected to be only one fifth the amount consumed by a citizen of an OECD country.
Fossil fuels were expected to account for 85 per cent of world energy consumption by the year 2010, Mr. Shane said. Oil production in developing countries was increasing rapidly. The output of countries that were not members of the Organization of Petroleum Exporting Countries (OPEC) had
tripled in the last two decades. Non-OPEC countries accounted for 20 per cent of world production in 1994, as compared with 12 per cent in 1984. Developing countries imported almost 2 billion barrels of oil last year, at a cost of some $40 billion. Consumption was projected to rise to 2.7 billion barrels by the year 2000.
Despite increasing world supplies of natural gas, that energy source would not significantly impact developing countries in the near term due to the high fixed costs of exploration and production and of establishing distribution pipelines, he said. Coal would likely play a continuing role, as it currently accounted for nearly 40 per cent of world electricity generation.
At the same time, there was a critical need to instal increased electricity generation capacity, particularly in developing countries, to meet the expected doubling of demand in the next decade and to replace ageing and inefficient power plants. The prospects for grid-connected electricity generation from renewable sources such as wind power were improving, but the cost of solar energy systems was a barrier to their use in grid-based markets. Also, developing countries would face daunting challenges in mobilizing the capital necessary to meet their growing energy requirements.
Also this afternoon, the Committee discussed a paper on "Energy and Sustainable Development -- Efficient Use of Energy and Materials; Progress and Policies", which had been presented at the morning session.
One expert said that policies on energy efficiency should be kept to the minimum, with an emphasis on immediate and long-term planning. Developing countries and countries in transition should establish national energy management agencies, with emphasis on capacity-building, training and networking. Energy and environmental policies should be coordinated and common standards established for household products.
Experts generally agreed that energy efficiency should be practised for sound economic reasons. One expert observed that reduced consumption should be achieved through the lifting of subsidies, as world energy consumption was currently subsidized to the tune of $200 billion worldwide. He urged that consumption patterns be re-examined.
Another expert said that the report had enormous shortcomings because the unique problems facing a number of regions -- notably those in transition -- had not been covered. For example, the Russian Federation used about 10 per cent of its energy in exporting natural gas to eastern Europe, he said. Another expert suggested that the Committee should urge financial institutions to develop energy financing schemes to help developing countries and those with economies in transition to improve energy efficiency. In that connection, it was observed that developing countries would need to initially
Energy Committee - 3 - Press Release EN/231 4th Meeting (PM) 13 February 1996
increase their consumption, so as to develop their economies. Only then could they address the issue of conservation.
Responding to the comments about the report's shortcomings, Ernst Worrell, of Utrecht University, Netherlands, who was involved in its preparation, said they had relied on information received from experts in some republics of the former Soviet Union. The scenarios presented would not replace a forecast of future energy use, but could show the possible impact of energy efficiency policies. Energy efficiency varied widely per sector and country. Efficient use of materials was important in industrialized countries now, especially with regard to consumption reduction. However, material efficiency policies in developing countries could help produce "clean products" which would strengthen their exports and economies.
Experts from Italy, France, Russian Federation, Romania, Netherlands, Germany, Algeria and India took part in this afternoon's discussion.
When it meets again at 10 a.m. Wednesday, 14 February, the Committee is expected to discuss the report on the development of energy resources in developing countries.
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