Energy transition in the Greater Caspian Region: development and emissions

Harald Karch, Managing Partner, International Capital Partner S.à.r.l., Luxembourg points at the increase of energy consumption by 2.9% of all industrial levels because of the growth of population in the world. The question is how we should scope with these requirements in sustainable development growth. Karl mentions some of the achieved goals during the last decades. The current share of generation by fuel and of generating electricity is roughly 10% of nuclear powerplants, 13,8% is out of coal, 23,2% is out of gas,17,7% is out of hydropower. We have had the same power mix generation of different fuels for the last ten years. The lowest level of pollution is from nuclear powerplants. The suggestion is to use transitional fuel like natural gas for 15-20 years for reaching the level that could bring down the carbon dioxide effect by 10-15% per year and getting rid of coal fired plants and substitute them.

Pankaj Choudhary, Assistant Professor at Faculty of Law, University of Delhi, India Bhartiya Janta Party (Youth Wing) states the fact that GDP of India is growing, and it should be necessarily accomplished with sustainable goals to follow. Speaking about future of energy, it should be seen at four directions as energy access, energy sustainability, energy efficiency and energy security. Important point here is to implement clear legislation to provide security for poor people in India. Another major project is Power Great Pipeline for natural gases which is a good alternative option for the country. Pankaj believes that India should interact with the Great Caspian Region more actively for common interests and solidarity. So, the principles of coordination and cooperation run the basic concept of humanity.

Marco Passalia, Partner, ENET Energy SA and the Member of the Ticino Parliament, Switzerland highlights the importance of natural gas in the Great Caspian Region and the advantages it has. Nowadays as a transit vector it is carried in liquified forms inside and outside the region. Here the expert talks about the opportunity to convert power into gas.

Ray Leonard, Senior Avisor, Linden Strategies, Geneve, Switzerland talks about climate change in the world showing that the Earth has not been warming uniformly for the last 30-40 years, even having some areas getting cold. North of the Caspian Sea is considered to be a climate change disaster for the increase of vapors. Climate change is a normal process in the Earth geologic history, though, the rate of change now taking place is not normal. It is stated that the major rise in CO2 emissions began after the World War 2. Land temperatures rose at double the rate of temperatures over the oceans. Temperatures in Arctic rose at double the rate of rest of land area, i.e. four times of ocean rate. The rate of sea level rise increases by 50% every 15 years. Ray Leonard mentions so called "tipping point", in which the steady changes may be replaced by large-scale changes in the climate system, it could be reached in the 2030-2050 period if the world does not change anything. Current situations show that the temperature is likely to increase by 3,1-3,7 by the end of the century with the increase of CO2 emissions by fossil fuels 20% from current level by 2040. Since it is impossible to eliminate the usage of fossil fuels in the near term, it is proposed that we should shift to lower GHC emitting fossil fuels. Implementation of carbon tax and halts in construction of new coal fired power plants are the keys to the success. In Caspian region the central cities could reach the temperature level of South cities eliminating the North Caspian. Caspian region has excellent potential for production of hydro and renewable energy which could reduce greenhouse gas emissions. Wind power is claimed to be particularly favorable in the Northern Kazakhstan. The Southern Part of the Caspian region is highly favorable for generation of solar power.

Sven Haefner, CEO, 30Thirty Capital, Lusaka, Zambia mentions major problems in the South Africa such as serious and long blackouts, absence of reliable access to electricity in more than 1/3 companies; 45% biomass in energy consumption. If Africa could produce more reliable energy sources and reduce biomass, it would have a great effect on society and economic development as well. Digitalization, new technologies will have positive effect as well.

Nuclear power sector is significantly more expensive than others but is the best type of energy from the degree of emissions. The plants that produce nuclear energy are 50-60 years old and demand renovations and lots of money most of the countries cannot provide nowadays.

It is suggested that we shouldn't build new expensive pipelines, but to deliver small scale portions to rural areas on a low investment scale combining and substituting biomass-based energy creation.

The best way to change the current climate situation is for the authorities of US, Russia, China and India who produce most coal, gas and renewable energy to come together and come up with an effective agreement what to do.

Pankaj thinks we need to make some projects and create ideas how to invest into renewable sources of energy not forgetting about environment.