Energy Infrastructure and Carriers

 Energy needs have been increasing exponentially over the past few years 

  • An adequate and affordable energy supply is needed to meet the demands of industry, commerce and domestic users and to enable the movement of people and goods
  • Energy is also closely linked to poverty reduction because it is central to practically all aspects of the core conditions of poverty – such as poor health, lack of access to water, sanitation, and education.
  • Energy development also has a significant impact on the environment, locally and globally. The commercial energy sector is one of the main sources of greenhouse gas emissions, contributing to global warming. Traditional energy sources, such as biomass, used by people who lack access to modern energy supplies, can have an impact on local air quality due to the generally inefficient combustion process and frequency of exposure. 

Energy infrastructure normally includes:  

  • The physical infrastructure required for the exploration, development and production of energy;
  • Transformation of energy, such as electric power generation and oil refining;
  • Transmission and distribution of energy, such as electric power transmission lines (generation plants, electric grid, substations and local distribution) and oil and gas pipelines;
  • Storage of energy products.

Investments needed: 

According to the IEA, US$33 trillion will need to be invested in energy-supply infrastructure between now (Jan 2011) and 2035. This is over ten times more than the GDP of theUKorGermanyand over twice as much as the GDP of theUSA. Half of these investments are required in power generation and around 42% for transmission and distribution of energy. Non-OECD countries account for 64% of the total investment needs, withChinaalone representing 16% of investment needed. 

The IEA estimates that US$8.1 trillion will need to be invested in the oil-supply chain and around US$7.1 trillion in natural gas. In comparison to these figures, investments needed in the coal sector are low, with the IEA estimating that around US$721 billion is needed for mining activities and for the associated transport infrastructure. Less than 10% of this sum will be required for transport infrastructure, giving a price tag of around US$72 billion - an amount which is necessary to avoid bottlenecks and queues at international ports and on domestic transport routes. 

We urgently need to upgrade our energy infrastructure and this will require new and innovative sources of financing. Investments in energy infrastructure are not only needed to support the low-carbon transition of our energy systems, but also to continue providing energy services at current levels. 

Electrical power network 

A key part of the overall power reform strategy is to relay power effectively and efficiently from regions of surplus to deficit areas and load centers. Nations across the world are pushing ahead aggressively with their plans to build a national power grid. This is expected to ease peak-time shortages and make better use of available generating capacity. 

References: 

http://www.unescap.org/pdd/publications/themestudy2006/11_ch5.pdf

http://www.worldcoal.org/resources/ecoal/ecoal-current-issue/investing-in-energy-infrastructure 

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