Efficiency improvement
The actors involved in the four sectors listed under efficiency improvements
in Table 10.2 are diverse and require different approaches
for purposes of technology transfer policy. Yet problems of energy efficiency
improvement in developing and transitional economies share some basic characteristics
with efficiency improvements in other areas of resource use. Few technologies
are operated at design specifications right from the start, and their performance
generally tends to diminish as time goes by. This observation is particularly
relevant for advanced technology with low operational tolerance levels. The
reasons have to do with system-wide deficiencies such as inadequate maintenance
discipline and lack of spare parts. They are not unique for certain technologies.
A brief outline of the actors and pathways involved in the four areas of potential
efficiency gain follows:
Switching to low-carbon fuels
The major option for switching to low-carbon fuels is replacing coal or oil
with natural gas. The natural gas sector is dominated by the oil and gas multinationals,
global pipeline construction companies and major gas equipment manufacturers.
It is a mature industry characterised by gradual technological innovation in
the last decade primarily on the production and conversion ends of the resource
flow (off-shore operations and gas turbine technology). Core technologies in
this chain are typically R&D intensive and logistically complex, and thus
not easily transferred to domestic firms. There are, however, substantial opportunities
for peripheral supplies during construction, and once installed operation and
maintenance can be transferred relatively easily. The projects involved are
politically highly visible and of the front page news type. This makes a stable
gas market regime essential for attracting capital at reasonable conditions.
Besides technical skills of construction and operation such projects require
entrepreneurial and bargaining skills at the recipient end to balance interests
competently. Natural gas markets and applications are a relatively new phenomenon
in most developing countries, and thus need considerable policy attention when
it comes to building up required skills and supplier industries. Regional cooperation
is an essential element of success in transnational gas ventures, because a
large part of the supply costs are in infrastructural investments with high
risks of recovery.
Decarbonisation of Fuels or Flue Gases, and CO2 Storage
The actors involved in CO2 removal and storage
will first be oil and gas companies and perhaps later electric utilities. Because
CO2 becomes available in pure form in some petrochemical
complexes (hydrogen, methanol and ammonia production), and because CO2
stripping from natural gas fields is necessary to meet commercial fuel specifications,
oil and gas companies are facing just the costs of storage. If, in addition,
the injected CO2 improves recovery rates in production
from natural gas and coal beds, niche applications can even be attractive when
carbon emission taxes are low. Removing CO2 from
natural gas (e.g. steam reforming) or from flue gas in power plants is an expensive
add-on technology, while new integrated technologies like coal gasification
or synfuels with undiluted CO2 flows are not
commercial. Technology transfer concerning this option could involve both North-North
and North-South partnerships. At the same time large-scale CO2
storage arrangements without commercial benefits will require government-driven
technology transfer pathways.
Nuclear power
Nuclear planned capacity additions in the past few years were located primarily
in Asia. Moreover, considerations of operational safety and waste management
have led to considerable involvement of industrial countries in nuclear power
plant upgrading in transitionary economies. From the point of view of technology
transfer these developments cannot be ignored. Governmental organisations at
the national and international level are the most important stakeholders in
this respect, as are the major engineering and construction companies involved
in nuclear energy. In general, nuclear power requires an elaborate national
regulatory and technical infrastructure, and affects key international political
issues. The major pathways for technology transfer in this area are thus strongly
government-driven and embedded in international agreements. With respect to
operation of existing nuclear power plants, measures to strengthen and improve
technology transfer in the areas of plant safety, personnel training, and the
nuclear fuel cycle are needed.
Biomass
Biomass technology for energy generation or fuel production is the most complex
cluster of the six major options listed in Table 10.2.
First of all, biomass technology is still evolving, which makes it difficult
to decide what exactly should be transferred in terms of knowledge and techniques.
Secondly, biomass technology requires an interconnecting series of difficult
technological choices concerning biomass sources and production, biomass handling
and transportation, and biomass conversion and end use. These choices are to
a large degree area-specific and cannot realistically be addressed on a generic
level. Finally, there are a multitude of actors who potentially could become
crucial players in global markets. Nevertheless, at least for some developing
countries in Latin America, Asia and Africa, biomass energy may become the most
important opportunity on a community level for economic development in an environmentally
conscious world. The Brazilian alcohol programme (see Case
Study 8, Chapter 16) testifies to this observation
despite its present economic difficulties (Moreira and Goldemberg, 1999). Biomass
technology transfer under current conditions is mostly dependent on government
driven pathways, such as active involvement in R&D activities, demonstration
projects financed locally or internationally, and government sponsored programmes
to determine the resource availability. An example is the joint USA-China effort
to develop a biomass resource database (Zhu, 1998). Such efforts are necessary
to prepare the ground for large-scale involvement at a later stage4
. The development of biomass energy options can also promote incremental carbon
sequestration.
Hydroelectricity
Hydroelectricity is the largest source of renewable energy now being used. Technology
transfer is occurring as shown by the intensive programme of hydro plant construction
in several developing countries. Unfortunately, local impacts due to the use
of rivers for other purposes, and the social problems related with population
displacement for water storage are making it difficult to justify large-scale
hydroelectricity as environmentally sustainable, unless several complementary
measures are added to the projects (Liebenthal et al., 1996). Hydroelectricity
generation, like most renewable energy technologies, is capital intensive which
can be an important financial barrier. The electric sector is, however, now
searching for low cost alternatives because of economic pressures due to de-regulation
or to privatisation. Run-of-the-river, small-scale hydro and pumped-storage
hydros are being considered as more sustainable alternatives to the use of large
scale hydroelectricity, despite reducing significantly the available economic
potential (Moreira and Poole, 1993).
Small-scale renewables
Small-scale sources for renewable electricity based on wind or PV have been
popular items of technology transfer programmes since the early 1970s. Only
in recent years have these led to impressive success stories such as the penetration
of wind parks in India and Mongolia (see Case Study 3,
Chapter 16) or the penetration of solar home systems in
Kenya (see Case Study 5, Chapter 16).
These technologies are to a large extent dependent on specific niche markets
created through government intervention, combined with the entrepreneurial spirit
of the involved communities. Yet they hold great potential for the immediate
future. In general, the main actors in the world market are equipment manufacturers
from industrialised countries, who try to penetrate worldwide through a variety
of cooperative agreements with counterparts in developing countries and strong
reliance on international aid funds. Their role is increasingly challenged by
domestic manufacturers. Because these technologies are generally purchased by
end users rather than power producers, arrangements with respect to marketing,
financing, and after-sales services on the local community level are just as
important as technical performance and manufacturing capability. Without competent
intermediaries the chances of successful market penetration are low no matter
the origin and performance of the product. The necessary involvement of a large
number of people distributed over a large area makes technology transfer for
renewable electricity difficult and requires continuous government intervention
to increase awareness and institutional commitment, and to stimulate appropriate
education and technical facilities.
Table 10.2 Major Transfer Options, Stakeholders, Pathways, Barriers and Policies in the Energy Supply Sector | ||||||
MAJOR TRANSFER OPTIONS | KEY STAKEHOLDERS | KEY PATHWAYS | NATIONAL BARRIERS | INT'L BARRIERS | NATIONAL POLICIES | INT'L POLICIES |
Efficiency improvement Coal mining Power Generation Cogeneration |
Oil & Gas multinationals Coal mining companies Utilities Industries |
Private sector Private sector Private sector Private sector |
Lack of competitive conditions Lack of competitive conditions Domestic technology and Management skills Economic feasibility |
Lack of competitive conditions Lack of competitive conditions Economic feasibility |
Promote FDI Promote FDI Capacity building Regulatory policies |
Promote FDI Promote FDI Promote FDI Promote FDI |
Switching to Low C fuels Decarbonisation of Flue Biomass Biomass resources Biomass conversion
|
Oil & Gas multinationals National governments Extension agencies Utilities |
Private Government to Private and Private and |
Political commitment Economic cost Public acceptance Logistic infrastructure Immature technologies |
Political commitment Economic cost Nuclear proliferation
Economic costs |
Regulatory policies Regulatory policies Regulatory issues RD&D policies RD&D policies |
Regional Regulatory policies Promote best practices
Financial policies |
Small-scale renewable
Solar
Small hydro |
Domestic manufacturers Utilities/Private Utilities/Private |
Private, public and community driven Utilities private Utilities private |
Economic cost Utilities
Utilities |
Economic cost
Economic cost
Economic cost |
Resource assessment
Green electricity regulation
Green electricity regulation |
Financial policies
Financial policies
Financial policies |
Other reports in this collection |