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CLIMATE ROUNDTABLE - CHASING NEW IDEAS
Imagine 18 hours of power cuts every single day. That is the
everyday life for the people of Nepal. Available power rotates
between the districts of the capital Kathmandu. TV watching
and charging of mobile phones need to be planned carefully.
Those who can afford it use polluting diesel generators to
ensure continuous power supply.
Thanks to majestic mountains and heavy rainfalls, Nepal has the
second highest potential for hydropower in the world. Yet, only
one per cent of its total hydropower capacity is being utilised.
The people of Nepal are not alone. 2.5 billion people worldwide
lack access to modern energy services, most of whom live in
emerging markets like Brazil, India, Indonesia, China and Africa.
Efforts to increase access to energy are a key prerequisite for
progress within health, welfare, employment and education.
The demand for energy will increase. The OECD estimates that
by 2050 global energy demand will be 80 per cent higher than
it is today. Unless this increase is met by renewable energies,
this is a recipe for a climate disaster. For the world to meet the
two-degree target, the UN (IPCC) has estimated that renewables’
share of world production must increase from 13 to 80 per cent
over the same time period.
These facts shed light on opportunities that can be exploited
by energy companies with the knowledge and ambition to
strengthen economic and climate performance at the same
time. It is possible to meet business targets, whilst also laying
the foundation for good economic policy and sustainable
climate risk management. Statkraft believes this is achievable
and profitable to pursue. In addition, these longer-term climate
contributions give our business a deeper sense of purpose.
By providing pure energy in countries like Nepal, India, Laos and
the Philippines, we not only capitalize on a unique Norwegian
hydropower heritage; we participate in ensuring sustainable
growth in developing markets.
We are indeed seeing some positive signs. In Europe, the share
of clean energy has increased by four percentage points over the
past five years. On October 3rd 2013, Germany’s consumption of
renewable energy peaked at 60 per cent based on a combination
of solar and wind power.
Green is good
By Christian Rynning-Tønnesen
President and CEO,
Statkraft
