Energy Biz - July/August 2008 - (Page 22) » FinAnciAl Front an Energy World in transition maRshaling ResoURCes in a neW eRa demand Is growIng for energy, particularly in Asia. Power companies worldwide are increasingly competing for resources to build tomorrow’s power plants, power grids and new renewable power installations. In these times of unprecedented turmoil in energy the world over, EnergyBiz has contacted the World Energy Council, based in London. We asked its regional representatives to provide snapshots of the energy world in their regions. The council, formed in 1923, has members in 100 countries. on fossil fuels; and neglect of the region’s renewable energy resources, solar and hydro. It is universally accepted that addressing these challenges is critical for sustainable economic and social development, and assured access to secure, affordable and reliable energy in Africa. To achieve a better utilization of energy resources within the continent, the following policy options are recommended: Transform energy companies into independent and self-reliant corporations that incorporate economic considerations in their daily operations; promote energy efficiency to reduce operating costs; enhance economic efficiency; improve the productivity and international competitiveness of energy-consuming companies; promote rural electrification using locally available renewable energy resources and smaller village-based energy systems; and establish appropriate energy pricing and tariff regimes to levels that are compatible with profit margins through the establishment of effective and appropriate independent and autonomous regulatory bodies as well as the promotion of regional integration, markets, regulations and international exchanges in energy services. Abubakar S. Sambo is World Energy Council vice chair for Africa. Dateline: africa By aBuBakar s. saMBO he African energy scene is full of contrasts and contradictions. It is a region with enormous energy resources with a high level of energy selfsufficiency and yet still has two-thirds of its population without access to modern energy services. Africa’s electricity generation was 479.8 terawatt-hours in 2001, representing only 3.1 percent of world Abubakar S. Sambo electricity production. Even this very limited supply is prone to repeated failure as manifested by power rationing and blackouts. This is due to the wellknown challenges facing the African energy scene, including high system losses in transmission and distribution; unsustainable tariffs; an unfavorable investment climate; poor technical, managerial, and financial performance; inefficient government interNewsFlash vention; low local technical expertise; obsolete and ProGress enerGy adds Generation inefficient technologies; Progress Energy seeks high energy intensities; to boost its generation high capital cost of energy capacity by 1,200 megawatts by 2013. projects; weak developThe utility serves ment of energy infrastruc1.7 million customers in Florida. ture; over-dependence T Dateline: aSia By LiM Man Onn S ince 1980, the world has doubled its use of commercial primary energy, reaching 10.9 billion tons of oil equivalent by 2006. Much of the increase has come from the Asian region due to rapid economic growth, particularly from China and India; high investments in infrastructure; and increasing population and affluence leading to a decline in the use of noncommercial energy. This growth is likely to continue as the annual per capita energy consumption in the region was only 749 kilograms of oil equivalent in 2005 compared with 1,580 for the rest of the world. In 2006, total primary energy consumption in the Asian region at 3.64 billion tons of oil equivalent represents 33.5 percent of the world’s consumption compared with Europe at 27.8 percent and North America at 25.8 percent. In Asia, coal is the 22 E n E rgyB i z July/August 2008
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