Efficiency can resolve energy issues economically: IEA

By Bahattin Gonultas and Sibel Akbay

ISTANBUL (AA) - Energy efficiency is a huge resource, which can offer an economic solution to the world's energy problems, International Energy Agency (IEA) Executive Director Fatih Birol said on Monday.

Speaking at the World Energy Congress, of which Anadolu Agency is the global communication partner for 2016, Birol said that the number one energy resource, energy efficiency, is underestimated.

"The first thing we need to talk about here is energy efficiency. Energy efficiency is a huge resource which can provide an economic solution to all our energy problems," he said, adding that efficiency resources are available in all countries.

"But none are making good use of these. We are not making enough use of resources for energy efficiency. This is an issue where more progress definitely has to be shown," he asserted.

As a means of mitigating the effects of climate change, Birol said the energy sector has to concentrate on ways of reducing air pollution.

“In the world, 6.5 million people die prematurely because of pollution caused by the energy sector. We have to take the necessary measures to stop this,” he added.

Speaking at the same panel, Steve Bolze, CEO and president of GE Power, said that the priority for climate change had clearly gained momentum in the past three years especially through agreements such as the COP21 in Paris and the accelerated movement towards decarbonization.

“To reach the full potential in carbon reductions, we should really concentrate on the electrification of the transportation sector. This will be a movement that will significantly reduce carbon emissions,” Bolze asserted.

Birol also affirmed that the coal industry would face serious challenges in the future in terms of clean production and efficiency.

“For example, in Southeast Asia, there has been some heavy investment in coal plants recently, but they have very low efficiency and this is a potential problem. In general, the coal industry will have to reinvent itself to move towards cleaner production,” he said.

Technological breakthroughs would enable the world to find a balance between the different sources of fuel as well as upgrade existing energy plants and build new, more modern ones, he said.

As a means of moving away from a fossil fuels-based market, Birol cited the Saudi Vision 2030 as spearheading the move away from its oil economy reliance. The Saudi Vision 2030 is a roadmap for the Saudi kingdom to follow for the kingdom's development and economy objectives for the next 15 years. Birol suggested that it could act as a model for Russia to diversify its economy.

The oil-rich Saudi kingdom is currently attempting to diversify its economy from being wholly reliant on oil income and it has launched new economic policies for that end.

“Energy is the industry that has the biggest potential for digitalization. Digitalization in energy will create real outcomes for consumers by reducing losses in both transmission and distribution,” Bolze said.

“It will eventually enable users to become producers. I believe it will be the single biggest enabler in the energy sector’s transformation towards 2060," he added.

Regine Guenther, World Wildlife Fund (WWF) Interim Leader for Climate and Energy said that OECD countries should lead the process for energy transition.

"The Paris climate agreement is about adaptation and financial supporting poor countries... Rich countries should support poor ones. Big data may be used as a solution for the future," she said.

Birol warned that two out of three people have no access to electricity in Africa and this is a scandal. "We need to discuss it here," he also said.

The 23rd World Energy Congress 2016, which brought together more than 10,000 participants from 85 countries, including four presidents and 250 ministers and top decision-makers in energy, started in Istanbul on Monday.

According to Birol, Saudi Vision2030, a roadmap for the Saudi kingdom to follow for the kingdom's development and economy objectives for the next 15 years can act as a model for Russia to diversify its economy. The oil-rich Saudi kingdom is currently setting about diversifying its economy from being wholly reliant on oil income as has began to look towards renewables as a means of achieving this.

"Russia needs to grow its economic base," he said.