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Power & Energy - Challenges and Opportunities

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My view on what will the greatest challenges facing the Power and Energy sector be, and the role I hope to be able to play in this sector in the medium term.

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Page 1: Power & Energy - Challenges and Opportunities
Page 2: Power & Energy - Challenges and Opportunities

• Energy Security

• Climate Change

• Aging Infrastructure

Page 3: Power & Energy - Challenges and Opportunities

Energy Security

The need to cope withgrowth of population andenergy demand.

• The growth of population and risein prosperity will increase the useof electrical devices and the needfor electricity.

• As a result, power consumptionwill grow over 60% from today’s20,000 TW to roughly 33,000 TWby 2030.

Page 4: Power & Energy - Challenges and Opportunities

Climate Change

The need for CO2 reductionand more renewable energysources

• To reduce greenhouse gasemissions, the increase in energyconsumption will need to comefrom renewable energy sources

• This will help protect the climateand conserve ever-scarce naturalenergy resources.

Page 5: Power & Energy - Challenges and Opportunities

Aging Infrastructure

The need to replaceoutdated infrastructure andreduce long-distancetransmission losses

• The increase in powerconsumption will take powergrids to their limit and stretchthem behind their capacities.

• Transmission and Distributionlines will have to handle large-scale, renewable generation farfrom the consumption.

Page 6: Power & Energy - Challenges and Opportunities

• Renewable Energy

• Distributed Generation

• Demand Response

• Electric Vehicle

Page 7: Power & Energy - Challenges and Opportunities

Renewable Energy

Integration of large-scale renewable energysources safely andefficiently.

The increasing penetration of large-scale renewable energy sources will help protect the climate by reducing CO2 emissions.

The energy mix will shift from thermal power plants towards the use of smaller wind farms, cogeneration plants, and biomass units.

The intermittency of large-scale renewable resources with a considerable forecast uncertainty makes the traditional dispatching impossible.

Page 8: Power & Energy - Challenges and Opportunities

Distributed Generation

Management ofdecentralized powergeneration andbidirectional power flow.

Traditional power consumers with house rooftop-mounted solar panels and micro combined heat and power units will become power producers.

Distributed Generation situated closer to the loads will alter the power flows and enhance the reliability and economics of the energy system.

The shift to a decentralized model with a number of smaller, distributed power generation units close to the consumer will stress distribution networks.

Page 9: Power & Energy - Challenges and Opportunities

Demand Response

Demand Response andConsumer Engagementto help balance supplyand demand at peaktime.

Demand Management can be used to compensate the intermittency of renewableresources and the effects of dumb charging Electric Vehicle batteries.

Residential consumers need to be aware of their consumption costs to respond tothe flexible tariffs that result from the fluctuating availability of new sources.

To provide end-users with real-time data, present metering devices must bereplaced with Smart Meters provided with bi-directional communication.

Page 10: Power & Energy - Challenges and Opportunities

Electric Vehicle

The emergence ofElectric Vehiclescharging infrastructureand services.

Large-scale market introduction of hybrid electric vehicles and battery electric vehicles is going to reduce emissions in the transportation industry.

Electric vehicles are new resources that can serve as mobile energy storage devices to counteract fluctuation in demand and intermittency of generation.

However, Electric vehicles are also new loads that will affect electricity demand and pose operational problems if batteries are charged during peak time.

Massive integration of EVs will require new charging infrastructures, such as public charging stations, and new information and communication technologies.

Page 11: Power & Energy - Challenges and Opportunities

My medium-term goals

• In the future I aim to hold a seniormanagement position within aninternational financial institutionsuch as the Inter-AmericanDevelopment Bank as arecognized leader in the energysector.

• In this institution I will play anactive role in addressing climatechange issues, improving energysecurity and efficiency, andpromoting diversification ofsupply in the Latin America region.

Page 12: Power & Energy - Challenges and Opportunities