Chapter 1
Global Energy Development: The Reality and Challenges
Abstract
Energy security carries socioeconomic implications. Global energy development is closely linked with resource endowment. The Earth is endowed with not only plenty of fossil energy, that is, coal, oil, and natural gas, but also with large quantities of renewable clean energy, such as hydro, wind, and solar power. Global energy development has traditionally depended excessively on fossil energy, resulting in a host of increasingly prominent problems, such as resource constraints, climate change, and environmental pollution, which severely threaten human existence and development. In response to the challenges of the situation, mankind must develop a good understanding of the new features of globalization on the economic development, resource allocation and environmental fronts to set the stage for secure, clean, efficient and sustainable development of world energy.
Keywords
energy development
global energy interconnection
energy supply
fossil energy
clean energy
energy environment
1. Global Energy Development: the Reality
Global energy development has gone through a course of evolution from firewood to coal and further to oil, gas, and electricity. Currently, world energy supply is dominated by fossil fuels as a gigantic motive force for economic development. Meanwhile, hydro, wind, solar power, and other clean energy alternatives are being developed and applied at increasingly high speeds to accommodate future energy demands, thereby playing an increasingly significant part in ensuring security of global energy supply and promoting clean energy.
1.1. Background
Total world energy consumption has maintained a long-standing growing trend with constant adjustments to the energy structure. In the mid-nineteenth century, firewood was the primary source of energy consumed by humans, compared to coal that accounted for a less than 20% share of total energy consumption. With the progress of the Industrial Revolution, the proportion of coal consumption soared significantly to more than 70% till the beginning of the twentieth century. In the twentieth century, the share of coal consumption plummeted along with the growing popularity of oil and natural gas. In the 1960s, oil surpassed coal as the most widely used energy source. The proportion of oil consumption peaked in 1973 before gradually falling after the two global oil crises from the 1970s to the 1980s. In the meantime, natural gas consumption rose constantly, while coal consumption rebounded slightly. It is most notable that profound changes in the global energy structure in the recent two decades have brought about a new pattern marked by equal predominance of coal, oil, and natural gas as well as rapid development of clean energy. See Fig. 1.1 for the changes in the composition of world energy consumption since 1850.
1.1.1. Energy Resources
Global energy resources include primarily fossil fuels (e.g., coal, oil, and natural gas) and clean energy (e.g., hydro,1 wind, solar, and marine energy). Despite its massive fossil energy resources, the world is facing many practical problems, such as serious resource depletion and waste emissions, which are the legacy of large-scale exploration since the Industrial Revolution a couple of centuries ago. By contrast, clean energy is abundant, low-carbon, environment-friendly and renewable, with huge potential for future development.
By 2013, the world’s remaining proven recoverable reserves of coal, oil, and natural gas were estimated at 891.5, 238.2 billion tons, and 186 trillion m3, respectively, accounting for 52.0, 27.8, and 20.2%, respectively, of a total of 1.2 trillion tons of standard coal.2 Based on the current average mining intensity, the global reserves of coal, oil, and natural gas can sustain 113, 53, and 55 years, respectively. Distribution of these fossil fuels is extremely unbalanced on a global basis. Ninety-five percent of coal is distributed in Europe, the Eurasian continent, Asia-Pacific, and North America (Fig. 1.2); 80% of oil is distributed in the Middle East, North, South, and Central America; and Europe, the Eurasian continent, and the Middle East are home to over 70% of natural gas reserves. See Table 1.1 for the distribution of coal, oil, and natural gas resources in the world. Coal dominates China’s fossil energy structure,3
Figure 1.2 Global Distribution of Coal, Oil, and Natural Gas Resources
Note: Regional classification in the diagram is based on British Petroleum (BP) statistical standards. Data in the subsequent text follow the same regional classification as long as they are sourced from BP.
Note: Regional classification in the diagram is based on British Petroleum (BP) statistical standards. Data in the subsequent text follow the same regional classification as long as they are sourced from BP.
Table 1.1
Global Distribution of Coal, Oil, and Natural Gas Resources
| Regions | Coal | Oil | Natural Gas | ||||||
| Remaining Proven Recoverable Reserves (billion tons) | Percentage | R/P ratio (year) | Remaining Proven Recoverable Reserves (billion tons) | Percentage | R/P ratio (year) | Remaining Proven Recoverable Reserves (trillion m3) | Percentage | R/P ratio (year) | |
| North America | 245.1 | 27.5 | 250 | 35.0 | 13.6 | 37 | 12 | 6.3 | 13 |
| Central and South America | 14.6 | 1.6 | 149 | 51.1 | 19.5 | >100 | 8 | 4.1 | 44 |
| Europe and the Eurasian Continent | 310.5 | 34.8 | 254 | 19.8 | 8.8 | 23 | 57 | 30.6 | 55 |
| Middle East | 1.1 | 0.1 | >500 | 109.4 | 47.9 | 78 | 80 | 43.2 | >100 |
| Africa | 31.8 | 3.6 | 122 | 17.3 | 7.7 | 41 | 14 | 7.6 | 70 |
| Asia-Pacific | 288.4 | 32.4 | 54 | 5.6 | 2.5 | 14 | 15 | 8.2 | 31 |
| Total | 891.5 | 100 | 113 | 238.2 | 100 | 53 | 186 | 100 | 55 |
Source: Ref. [65].
while oil and natural gas resources are comparatively scarce. The remaining proven recoverable reserves of fossil fuel in China amount to about 89.6 billion tons of standard coal, including coal (91.2), oil (3.9), and natural gas (4.9%). The reserves-to-production ratio (R/P ratio) of the three fuel types is 31, 12, and 28 years, respectively.4
The earth is endowed with various forms of clean energy, such as hydro, wind, and solar power. Based on World Energy Council (WEC) estimates, the theoretical developable potential of clean energy worldwide surpasses 150,000,000 TWh a year, amounting to 45 trillion tons of standard coal (coal consumption rate: 300 g/kWh) or 38 times the remaining proven recoverable reserves of fossil energy on earth. Clean energy resources are distributed very unevenly. Water resources are distributed primarily in the drainage basins of Asia, South America, North America, and Central Africa. Wind resources are distributed mainly in the Arctic, Central and Northern Asia, Northern Europe, Central North America, and East Africa. To a lesser extent, quality wind resources are also found in the near-shore regions of each continent. Solar energy resources are distributed primarily in North Africa, East Africa, the Middle East, Oceania, Central and South America, and other regions near the Equator. Besides, other areas of arid climate, like the Gobi and other deserts, are also endowed with quality solar resources. Mostly concentrated in sparsely populated areas several hundred to thousands of kilometers away from population and production centers, clean energy cannot be explored and utilized without the capability of allocation over vast areas. See Table 1.2 for the global distribution of hydro, wind, and solar energy resources.
Table 1.2
Global Distribution of Hydro, Wind, and Solar Energy Resources
| Regions | Hydropower | Wind Energy | Solar Energy | |||
| Theoretical Reserves (TWh/year) | Percentage | Theoretical Reserves (TWh/year) | Percentage | Theoretical Reserves (TWh/year) | Percentage | |
| Asia | 18,000 | 46 | 500,000 | 25 | 37,500,000 | 25 |
| Europe | 2,000 | 5 | 150,000 | 8 | 3,000,000 | 2 |
| North America | 6,000 | 15 | 400,000 | 20 | 16,500,000 | 11 |
| South America | 8,000 | 21 | 200,000 | 10 | 10,500,000 | 7 |
| Africa | 4,000 | 10 | 650,000 | 32 | 60,000,000 | 40 |
| Oceania | 1,000 | 3 | 100,000 | 5 | 22,500,000 | 15 |
| Total | 39,000 | 100 | 2000,000 | 100 | 150,000,000 | 100 |
1.1.2. Energy Consumption
Global energy consumption has maintained a growth momentum on an aggregate and per capita basis. From 1965 to 2013, world population growth, industrialization, urbanization, and numerous other factors led to a sharp rise in annual primary energy consumption from 5.38 billion tons of standard coal to 18.19 billion tons of standard coal (or approximately 19.5 billion tons of standard coal if noncommercial energy is included), registering a 2.4-fold increase in about half a century or average annual growth of 2.6%. At the same time, per capita annual energy use rose from 2.1 tons of standard coal to 2.6 tons of standard coal, representing a 23.8% increase or an average annual growth rate of 0.4%.
The Asia-Pacific region is gradually becoming the world’s largest energy consumer in terms of total consumption and demand growth. Due to the shift of industries and the changing demographic structure, the world’s developed countries registered a decreasing trend in primary energy demand, whereas developing countries registered an increasing trend. From 1965 to 2013, the share of the Asia-Pacific in global energy consumption rose from 11.7% to 40.5%, representing an annual growth rate of 5.2% and making this region, the fastest-growing energy consumer in the recent five decades. Of the increase of 12.81 billion tons of standard coal in global primary energy consumption, 52.6% came from Asia-Pacific. Since 2003, Asia-Pacific has surpassed North America and Europe in terms of total energy use, ranking as the largest energy consumer in the world. See Fig. 1.3 for changes in the composition of world primary energy consumption during 1965–2013.
Figure 1.3 Changes in the Composition of Global Primary Energy Consumption, 1965–2013 Source: Ref. [65].
Since the implementation of its reform and policies of opening up, China has maintained continued progress in economic growth and national quality of life. This drives energy consumption year by year such that China has now replaced the US as the largest energy consumer in the world. China’s total annual energy consumption soared from 600 million tons of standard coal to 3.75 billion tons of standard coal, registering average annual growth of 5.5% or 2.8 times the world’s average annual growth in the same period. Average per capita energy consumption climbed from 0.6 tons of standard coal to 2.8 tons of standard coal, representing an increase from 26% of the global average to 104% of the global average.
Although the world’s energy consumption has been dominated by fossil energy, the share of fossil energy in global consumption is declining gradually. During 1965–2013, global annual fossil energy consumption soared from 5.05 billion tons of standard coal to 15.75 billion tons of standard coal, registering a 2.1-fold increase and annual growth of 2.3%. The share of fossil fuels in primary energy consumption fell by approximately 7.6 percentage points from 94.3% to 86.7%. See Fig. 1.4 for the world’s total primary energy consumption and the share of fossil energy in total consumption during 1965–2013.
Figure 1.4 The World’s Total Primary Energy Consumption and the Share of Fossil Energy, 1965–2013 Source: Ref. [65].
The share of electric power in terminal energy consumption is gradually increasing. With higher levels of electrification, the share of fossil power in the world’s terminal energy consumption is falling as ever-larger quantities of fossil fuels (e.g., coal and gas) are being transformed into electricity. From 1973 to 2012, the shares of coal and oil in the world’s terminal energy consumption fell by 3.6 and 7.5 percentage points, respectively, while the share of electricity increased from 9.4% to 18.1%, second only to oil. In 2012, the share of electricity exceeded 20% to reach 22.6% of China’s total terminal energy consumption, higher than the world average but still lower than Japan and some other highly electrified countries. See Fig. 1.5 for the change in the world’s energy end-use structure during 1973–2012.
Figure 1.5 Change in the Global Energy End-use Structure, 1973–2012 Source: IEA, Key World Energy Statistics 2014.
1.1.3. Energy Production
Currently, world energy production is rising steadily; fossil energy production is going up gradually, and clean energy is developing leaps and bounds. Since the age of industrialization, fossil energy has been fuelling the growth of the global economy. In fossil energy production, oil plays the most important role, followed by coal and natural gas. From 1980 to 2013, world annual oil production increased by 33.7% from 3.09 billion tons to 4.13 billion tons, registering annual growth of 0.9%. While the Middle East and Africa were playing a more prominent role in global oil production, North America showed an opposite trend. Annual gas production increased from 1.4 trillion m3 to 3.4 trillion m3, registering a 1.3-fold increase or average annual growth of 2.6%, as Europe and the Eurasian continent became the most important gas producer. Annual coal production jumped from 3.84 billion tons to 7.90 billion tons, registering a 1.1-fold increase or average annual growth of 2.3%, as the Asia-Pacific became the world’s largest producer of coal. Development of wind, solar and other clean energy alternatives has experienced rapid growth in the twenty-first century. From 2000 to 2013, the installed capacity of wind farms and solar farms in the world went up from 17400 MW to 320 GW and from 1640 MW to 140 GW, respectively, registering a 17-fold increase (annual growth rate: 24.8%) and a 111-fold increase (annual growth rate: 43.7%), respectively. However, starting from a small base, wind, solar, and other types of nonhydro renewables accounted for a still relatively limited share at just 2.2% of the world’s total primary energy production. See Fig. 1.6 for the world’s primary energy production structure in 2013.
Figure 1.6 World’s Primary Energy Production Structure, 2013
1.1.4. Energy Trading
Taking place primarily in the fossil fuels sector, global energy trading is rising steadily on a total volume basis. The distribution of fossil energy production and consumption is highly imbalanced, requiring the capability to optimize allocations of energy resources across the world. Transnational and intercontinental energy trade flows have been expanding increasingly along with the development and improvement of energy transport networks, including ocean transport, railway, and oil/gas transmission networks. In 2013, transcontinental fossil energy trade flows globally amounted to 6.3 billion tons of standard coal, with oil, gas, and coal accounting for 63, 22, and 15%, respectively. Fig. 1.7 shows the change in the trade volume of different fossil energies as a percentage of global consumption between 2002 and 2013. As shown, the trade volumes of oil, gas, and coal accounted for 66.4, 31.9, and 17.1% of global consumption, respectively. Due to grid transmission capacity constraints, electric power is geared mainly toward achieving a balance at the local and regional levels, while transnational and transcontinental trade operates on a small scale. In terms of calorific value equivalents, transnational and transcontinental electricity trade accounted for only 1.3% of global fossil energy trade.
Figure 1.7 Change in Trade Volume of Different Fossil Energies as a Percentage of Total Global Consumption, 2002–2013
Note: Statistics of global coal trading volume are not available for the period 2002–2007.
Note: Statistics of global coal trading volume are not available for the period 2002–2007.
Currently, oil trade accounts for the largest share of global energy trade volume. In 2013, the Middle East and Russia produced 45% of the world’s oil5, but accounted for only 12.9% of global consumption. By comparison, North America, Europe, and Asia-Pacific produced 35.8% of the world’s oil, while accounting for 75.6% of global consumption. See Fig. 1.8 for global oil production and consumption in 2013.
Global energy production and consumption still depends primarily on fossil energy, while the share of clean energy and electricity is increasing relatively rapidly. Imbalanced energy distribution leads to a widening gap between demand and supply, although global energy trade keeps growing.
1.2. Fossil Energy
Fossil energy refers primarily to coal, oil, natural gas, and other nonrenewable energy alternatives formed from organic remains over hundreds of millions of years ago. Since the first Industrial Revolution, fossil energy has been a pillar of modern and contemporary industrial development. Global fossil energy consumption is growing and exhibiting a trend marked by structural optimization and expansion of long-distance distribution. Coal, oil, natural gas, and other forms of fossil energy account for over 80% of global primary energy consumption.
1.2.1. Coal
As the first fossil energy developed on a large scale by humans, coal has been used as a fuel for more than three millenniums till date. In the late eleventh century, coal began to be utilized as a building material and a metallurgy-purpose fuel. In the 1780s, James Watt invented an improved steam engine that contributed to large-scale exploration and consumption of coal and brought about the first Industrial Revolution, with the rapid growth of the textiles, steel, machinery, and railway industries driven by mechanization to propel the world into the Steam Age. By the end of the nineteenth century, coal became the world’s predominant energy option but its share in global consumption had since fallen somewhat. Until the mid-twentieth century, coal had accounted for the largest share of the world energy structure. In recent years, the share of coal in the world energy structure has decreased slightly, although coal exploration and utilization on a global level keeps growing all the time.
Coal is the most abundant fossil energy resource on earth. In 2013, global remaining proven recoverable reserves of coal amounted to 891.5 billion tons and, in terms of calorific value, represented 1.8 and 2.5 times the remaining proven recoverable reserves of oil and natural gas, respectively. Europe and the Eurasian Continent are richest in coal deposits, totaling 310.5 billion tons or approximately 34.8% of the world’s total reserves. The second on the list is the Asia-Pacific, totaling 288.4 billion tons or 32.4% of the world’s total reserves. North America is also rich in coal resources, totaling 245.1 billion tons or approximately 27.5% of the world’s total. By contrast, Central and South America, the Middle East, and Africa have only very limited coal resources, totaling merely 5.3% of the world’s total. See Fig. 1.9 for the regional distribution of the world’s remaining proven recoverable reserves of coal in 2013.
Figure 1.9 Global Distribution of Remaining Proven Recoverable Reserves of Coal, 2013 Source: Ref. [65].
Coal production is continuing to grow as the Asia-Pacific has become the world’s most important coal producer. Global coal production in 2013 was 7.9 billion tons, up 100% from 1980 or representing annual growth of 2.3%. Currently, coal production is concentrated primarily in the Asia-Pacific, North America, Europe, and the Eurasian continent. From 1980 to 2013, the share of the Asia-Pacific in global coal production rose from 26.7% to 68.8%. By contrast, other coal production areas experienced different levels of decrease. As a share of world total, production in North America dropped from 26.3% to 14.1%, and production in Europe and the Eurasian Continent declined from 42.4% to 11.6%. Since 1985, China has replaced the United States as the largest coal producer in the world, turning out 3.68 billion tons in 2013 alone or approximately half of the world’s total production. See Fig. 1.10 for the change in the regional distribution of the world’s coal production during 1980–2013.
Coal consumption is on an increase in overall terms, albeit falling as a share of total energy consumption. World coal consumption climbed from 2.58 billion tons of standard coal in 1980, to 5.47 billion tons of standard coal in 2013, representing annual growth of about 2.3% and basically in proportion to the growth in the world’s total energy consumption. However, from the second half of the twentieth century, coal, as a percentage of world primary energy consumption, began to fall from 38.1% in 1965 to 30.1% in 2013, representing an 8 percentage point decrease. From the 1980s, the world’s new economies, represented by China and India, entered a stage of fast economic growth, supporting a rapid increase in coal consumption and stalling the otherwise falling trend of coal as a percentage of energy consumption.
International coal trade is predominantly sea based. Due to the high delivery costs involved and concerns about environmental pollution, coal is consumed primarily in producing countries and within a limited geographical scope, while long-distance trade takes place on a relatively small scale. Typically, international coal trade among neighboring countries is conducted primarily through sea transportation except for a few interconnected inland countries and regions where coal is transported by rail or highway. Global coal trade in 2013 came to around 1.33 billion tons or 17% of global coal production, with sea transportation accounting for 90% of the trade volume.6 Today’s international coal market is divided roughly into two regional markets – Asia-Pacific and the Atlantic across the United States and Europe. In the Asia-Pacific, exporters include primarily Australia and Indonesia, and importers include primarily China, Japan, South Korea, and India. In the United States/European Atlantic market, exporters include primarily South Africa and Russia and importers include primarily the United Kingdom, France, and Germany. See Fig. 1.11 for world coal trade flows.
Figure 1.11 World Coal Trade Flows
1.2.2. Oil
Oil is the predominant energy source supporting the modern industrial system. Humans began to develop and utilize oil in the nineteenth century. After the world’s first oil well was drilled and operated in the state of Pennsylvania in 1859, the United States became one of the major oil producers and consumers in the early years. Later, the Soviet Union also began drilling oil, marking the nascent development of the modern oil industry. With the wide application of internal combustion engines, the demand for fuel oil soared and some countries commenced oil development and refining on a large scale, leading to skyrocketing production. After the 1920s, oil began to be widely used and after the 1940s, major developed nations began to shift the focus of energy consumption from coal to oil. In the 1960s, oil surpassed coal as a share of energy consumption to become the world’s predominant energy option. In the 1990s, oil accounted for more than 40% of world primary energy consumption. It can be said that world energy development entered into the Oil Age after the mid-twentieth century. Thanks to the development of the oil industry and the discovery and application of electricity, the second Industrial Revolution ensued and drove significant growth in the transportation, chemical engineering, electrical engineering, automobiles, and electric appliance industries.
Global distribution of oil resource is highly unbalanced. The Middle East, Central and South America, and North America are richest in oil resources. As at the end of 2013, the world’s remaining proven recoverable oil reserves were estimated at 238.2 billion tons, concentrating mainly on the Middle East (approximately 109.4 billion tons, or 47.9% of the world total). Central and South America had 51.1 billion tons of remaining proven recoverable oil reserves (19.5%), compared to North America’s 35 billion tons (13.6%). Together, Europe, the Eurasian continent, Africa, and Asia-Pacific accounted for a relatively small share (only 19.0%). See Fig. 1.12 for the global distribution of remaining proven recoverable oil reserves as at the end of 2013.
Figure 1.12 Global Distribution of Remaining Proven Recoverable Oil Reserves as at End of 2013 Source: Ref. [65].
On the whole, global oil production maintains steady growth as the world economy develops quickly and oil demand keeps rising. For nearly half a century, global oil production has been rising steadily, reversed only in the two oil crisis periods (i.e., 1973–1974 and 1979–1980). From 1965 to 1980, the world’s annual oil production rose from 1.57 billion tons to 3.09 billion tons, representing a onefold increase or average annual growth of 4.6%. Since the mid-1980s, global oil production has experienced a marked slowdown. Between 1980 and 2013, world production registered average annual growth of a mere 0.9%, amounting to 4.13 billion tons in 2013. See Fig. 1.13 for the change in global oil production from 1965 to 2013.
Figure 1.13 Change in Global Oil Production, 1965–2013
The Middle East, together with Central and South America, is playing an increasingly important role in global oil production, while production in Europe and North America tends to decline. During 1980–2013, as a share of global total, production in the Middle East increased from 30.2% to 32.1%, Central and South America increased from 6.4% to 9.1%, and North America decreased from 21.7% to 18.9%. The three largest oil producers were Saudi Arabia, Russia, and the United States, which produced 13.1, 12.9, and 10.8%, respectively, of the world total in 2013. As the fourth largest oil producer in the world, China has maintained steady growth in oil production. China’s production in 2013 totaled to 208 million tons, approximately 5% of world oil production. However, due to resource constraints, annual oil production in China is close to peak levels, with limited growth potential in the future. See Fig. 1.14 for the change in oil production of different producing regions during 1980–2013.
Asia-Pacific is becoming the center of consumption, with year-on-year growth of global oil consumption. During 1965–2013, global oil consumption leaped from 1.53 billion tons to 4.19 billion tons, representing a 1.7-fold crisis or an average annual growth rate of approximately 2.1%. Oil consumption in the Asia-Pacific jumped from 10.8% to 33.8% of global consumption; at the same time, oil consumption in North America declined from 40.5% to 24.5%, and oil consumption in Europe fell from 38.6% to 21.0%.
Oil is the most heavily traded fossil energy resource worldwide. Global oil trade volume in 2013 totaled 2.78 billion tons, accounting for 63% of fossil energy trade globally. Global oil trade volume has been increasing year by year. Between 2003 and 2013, global annual oil trade volume rose from 2.26 billion tons to 2.78 billion tons, representing an annual growth rate of 2.1%. Oil trade as a percentage of global oil consumption rose from 62.1% to 66.4%. The Middle East and Russia are the most important exporters in world oil trade. Africa and Central and South America are also seeing higher exports year by year. Although export flows still center on developed countries (e.g., those in North America and Europe), exports to developing countries are also on the rise year by year. Currently, more than 60% of the world’s oil trade is conducted by ocean-going tankers and the remaining less than two-thirds transported by pipeline. See Fig. 1.15 for the world’s oil trade flows in 2013.
1.2.3. Natural Gas
Natural gas is a relatively clean fossil fuel. The commercialization of natural gas first commenced in the state of Pennsylvania in the United States in 1821, after which a large number of natural gas fields were gradually found. However, the safety risks involved in gas pipeline delivery led to the natural gas industry falling seriously behind the oil industry. Between 1945 and 1970, worldwide efforts were stepped up to invest more in oil and gas drilling, with a sharp increase in natural gas reserves and production levels around the world. Production in the Soviet Union, the United States, and the Netherlands grew the fastest of all. In recent years, the share of natural gas in global primary energy consumption has increased, narrowing the gap between oil and coal.
Global distribution of natural gas resources is highly unbalanced. At the end of 2013, the world’s remaining proven recoverable reserves of natural gas amounted to 186 trillion m3, distributed primarily in the Middle East and Europe and the Eurasian Continent. The Middle East had 80 trillion m3 of remaining proven recoverable reserves of natural gas, accounting for 43.2% of the world total, while Europe and the Eurasian Continent had 57 trillion m3 of remaining proven recoverable reserves of natural gas, accounting for 30.5% of the world total. Together the two regions accounted for 73.7% of the world total. The rest of the world’s remaining proven recoverable reserves of natural gas were divided roughly equally among Asia-Pacific (8.2%), Africa (7.6%), and North America (6.3%). Progress in gas exploration technology continues to push up the remaining proven recoverable gas reserves. Between 1980 and 2013, the world’s remaining proven recoverable gas reserves rose from 72 trillion m3 to 186 trillion m3, representing an annual growth rate of 2.9%. On the other hand, increasing exploration activities have driven the R/P ratio from 57 years down to 55 years. See Fig. 1.16 for the global distribution of remaining proven recoverable reserves of natural gas.
Figure 1.16 Global Distribution of Remaining Proven Recoverable Natural Gas Reserves Source: Ref. [65].
Global natural gas production has continued to grow, with Europe and the Eurasian continent, and North America as the major producing regions. Global natural gas production in 2013 totaled 3.4 trillion m3, representing 2.3 times the level in 1980 or an annual growth rate of 2.6%. World gas production is concentrated primarily in Europe and the Eurasian continent and North America, which accounted for 88.6% of the world total in 1980, falling to 57.5% in 2013. With gradually rising gas production in recent years, the Middle East, Asia-Pacific, and Africa as a share of global production rose 14.4, 9.6, and 4.3 percentage points, respectively, in 2013 from 1980. As the world’s most productive countries/regions in natural gas production currently, the United States, Russia, and the Middle East account for 20.6, 17.9, and 16.8% of global production, respectively in 2013 or collectively over one half of the world total. In recent years, China has also entered into a period of fast-growing natural gas production. In 2013, as the world’s sixth largest gas producer, China turned out 117.05 billion m3 of natural gas, 8.2 times the level in 1980 or an approximately 3.5% share of global production. See Fig. 1.17 for the distribution of the world’s natural gas producing areas during 1980–2013.
Total natural gas consumption continues to grow, accounting for a steadily increasing share of global energy consumption. From 1965 to 2013, global annual natural gas consumption shot up from 644.5 billion to 3.3476 trillion m3, representing an approximately fourfold increase. In 1971, global natural gas consumption topped 1 trillion m3 for the first time, rising to 2 trillion m3 in 1991 and further to 3 trillion m3 in 2008. In 1965, natural gas consumption accounted only for 15.6% of global primary energy consumption, soaring to 23.7% in 2013, representing an approximately 8 percentage point increase within nearly five decades.
World natural gas trade registers a relatively high growth rate. World natural gas trade is conducted primarily through pipeline and in the form of liquefied natural gas (LNG). In regard of pipeline transmission, gas is delivered from Russia to Europe and from Canada to the United States. With regard to LNG, natural gas is delivered primarily from the Middle East and North Africa to East Asia, Europe, and North America. Between 2003 and 2013, global annual natural gas trade volume increased from 623.7 billion m3 to 1.0360 trillion m3, representing annual growth of 5.2%. International gas trade as a percentage of total natural gas consumption had also climbed from 24.7% in 2003 to 31.9% in 2013. In 2013, piped natural gas and LNG accounted for 68.6 and 31.4% of total natural gas trade, respectively. See Fig. 1.18 for the world’s natural gas trade flows in 2013.
1.2.4. Unconventional Oil and Gas
The world has large, albeit unevenly distributed, reserves of unconventional oil and gas. Unconventional oil mainly consists of heavy oil, oil sand, shale oil, etc. Heavy oil is distributed mainly in South America, Middle Asia, Russia, and the Middle East while most oil sand is in North America, Africa, Middle Asia, and Russia. The world has recoverable shale oil reserves of 47.1 billion tons, mainly in Russia and the United States. See Table 1.3 for the world’s top five nations in terms of recoverable shale oil reserves in 2013.
Table 1.3
Top Five Nations in Terms of Technologically Developable Capacity of Shale Oil
| Rankings | Nations | Technologically Developable Capacities (million tons) |
| 1 | Russia | 10,200 |
| 2 | USA | 7,900 |
| 3 | China | 4,400 |
| 4 | Argentina | 3,700 |
| 5 | Libya | 3,500 |
Source: Ref. [92].
Unconventional natural gas includes combustible ice, shale gas, coal seam gas, tight sandstone gas, shallow biogas, water-soluble gas, abiogenetic gas, etc. With the advantages of abundant reserves, high energy density and low pollution from burning, combustible ice (also known as natural gas hydrate) is generally found in the slopes off continental shelves, deep seas, deep lakes, and permanent tundras. It is estimated that the world has combustible ice reserves of 20,000 trillion m3. The world’s shale gas resource is mainly distributed in Asia, North America, and other regions, with technologically developable capacity of 207 trillion m3. See Table 1.4 for the world’s top five nations in terms of technologically developable capacity of shale gas in 2013. The world’s coal seam gas is mainly distributed in North America, Middle Asia, Russia, and other Asia-Pacific regions, with total reserves estimated at 225 trillion m3.
Table 1.4
2013 Top Five Nations in Terms of Technologically Developable Capacity of Shale Gas
| Rankings | Nations | Technologically Developable Capacities (Trillion m3) |
| 1 | China | 32 |
| 2 | Argentina | 23 |
| 3 | Algeria | 20 |
| 4 | USA | 19 |
| 5 | Canada | 16 |
Source: Ref. [92].
China has large reserves of unconventional natural gas. Combustible ice has been found in the South China Sea, the East China Sea, and Qinghai–Tibet Plateau tundra. The combustible ice reserves in the north of the South China Sea alone are equivalent to half of China’s onshore oil reserves. China’s prospective onshore combustible ice reserves are estimated at more than 50 billion tons of standard coal. The potential shale gas reserves are estimated at 134 trillion m3,7 with 25 trillion m3 (excluding the reserves in the Qinghai–Tibet Plateau) mainly distributed in offshore shale formations in the south and also in onshore sedimentary basins, such as the Songliao Basin in the northeast, the Erdos Basin in Inner Mongolia, the Turpan–Hami Basin, and the Dzungaria Basin in Xinjiang. Coal seam gas reserves with embedment depth of less than 2000 m are estimated at approximately 36.8 trillion m3, ranking third in the world. The reserves are mainly distributed in the Erdos Basin in Inner Mongolia, the Qinshui Basin in Shanxi, the Turpan–Hami Basin, and the Dzungaria Basin in Xinjiang.
Due to cost and technology constraints, most nations have not achieved large-scale development of unconventional oil and gas. Shale is characterized by high hardness, low porosity, and low permeability. Development of unconventional oil and gas requires higher processing and refining technologies, such as horizontal drilling, hydraulic fracturing, logging while drilling, geosteering drilling, and microseismic detection, which entail much higher requirements compared to conventional oil and gas development. Unconventional oil and gas wells generally have a pressure that is more than three times that of conventional oil and gas wells. The cost of a fracturing truck for unconventional oil and gas wells is more than 10 times that of a fracturing truck used for conventional oil and gas wells. As shale formations in the United States are marine sediments distributed in relatively stable geotectonic elements, shale oil and gas development in the United States is relatively more economically viable, based on several decades of development experiences. Currently, just the United States and a few other nations have achieved larger scale development of unconventional oil and gas (the development cost of unconventional oil and gas in China is two to three times the cost in the United States). In addition, development of shale oil and gas is water-intensive, and the chemicals for fracture processing pollute the environment and underground water. Such impacts on the ecogeological environment warrant further research and evaluation. Though an abundant source of energy, combustible ice is still in the stage of resource investigation and technology R&D, far from the level of commercialized development and utilization on a large scale.
1.3. Clean Energy
Clean energy refers to hydro, wind, solar, nuclear, marine, and biomass energy, among other renewable energy alternatives. Clean energy is an abundant resource with great development potential. Following breakthroughs in development technologies, the economics of clean energy have greatly improved and the substitution of clean energy for fossil fuels will become an important trend in global energy development. With more than 10,000 GW of hydropower resources, more than 1,000 TWh of onshore wind resources and more than 10,000 GW of solar energy resources, the global developable capacity of clean energy is far more than enough to meet all mankind’s energy needs.
1.3.1. Hydropower
Hydropower is currently the most technologically sophisticated, the most economically viable and the most extensively developed type of clean energy. According to the WEC, the theoretical reserves of the world’s hydropower resources are estimated at 39,000 TWh per year, being mainly concentrated in Asia (18,000 TWh or 46% of the world total), South America (8,000 TWh or 21% of the world total), and North America (6,000 TWh or 15% of the world total).
The developable capacity of the world’s water resources is estimated at 16,000 TWh or 41% of the global theoretical reserves. Of this total capacity, Asia accounts for 7,200 TWh (46% of the global total), South America for 2870 TWh (18% of the global total), North America for 2420 TWh (16% of the global total), and Europe for 1040 TWh (7% of the global total). See Table 1.5 for the global distribution of hydropower resources.
Table 1.5
World’s Hydropower Resources by Continent
| Regions | Theoretical Reserves | Technologically Developable Capacities (TWh/year) |
| Asia | 18,310 | 7,200 |
| Europe | 2,410 | 1,040 |
| North America | 5,510 | 2,420 |
| South America | 7,770 | 2,870 |
| Africa | 3,920 | 1,840 |
| Oceania | 650 | 230 |
Source: Ref. [77].
The world’s top five nations in terms of theoretical hydropower reserves are China, Brazil, India, Russia, and Indonesia, amounting to 6080, 3040, 2640, 2300, and 2150 TWh, respectively. The world’s top five nations in terms of developable hydropower capacity are China, Russia, the United States, Brazil, and Canada, amounting to 2470, 1670, 1340, 1250, and 830 TWh, respectively on a yearly basis. See Table 1.6 for the top three nations on each continent in terms of water resources.
Table 1.6
Top Three Nations on Each Continent by Water Resources
| Region | Nation | Theoretical Reserves | Technologically Developable Capacity (TWh/year) |
| Asia | China | 6080 | 2470 |
| Russia | 2300 | 1670 | |
| India | 2640 | 660 | |
| Europe | Norway | 600 | 240 |
| Turkey1 | 430 | 220 | |
| Sweden | 200 | 130 | |
| North America | USA | 2040 | 1340 |
| Canada | 2070 | 830 | |
| Mexico | 430 | 140 | |
| South America | Brazil | 3040 | 1250 |
| Venezuela | 730 | 260 | |
| Columbia | 1000 | 200 | |
| Africa | Democratic Republic of Congo | 1450 | 780 |
| Ethiopia | 65 | 260 | |
| Cameroon | 29 | 120 | |
| Oceania | Australia | 270 | 100 |
| New Zealand | 210 | 80 | |
| Papua New Guinea | 180 | 50 |
Source: Ref. [77]; 2005 Investigation Results for Hydropower in the People’s Republic of China from National Leading Group for Nationwide Hydropower Review.
1 Turkey’s territory stretches across Europe and Asia. It is grouped under “Europe” for the research purpose of this book.
The future development of large-scale hydropower bases is focused on Asia, Africa, and South America. Most of Asia’s hydropower resources are concentrated along the Yangtze River, the Yarlung Zangbo River, and the Ganges River with theoretical installed capacity of more than 1100 GW. Africa has the second largest theoretical installed capacity at approximately 580 GW, concentrated along the Congo River and the Zambezi River. The current low level of development in Africa indicates huge growth potential in the future. Most of South America’s hydropower resources are found along the Amazon River and the Orinoco River, amounting to approximately 463 GW. The Amazon River, with a theoretical installed capacity of 279 GW, holds great potential for large-scale development. See Table 1.7 for the theoretical installed capacities of the world’s major hydropower bases.
Table 1.7
Theoretical Installed Capacities of World’s Major Hydropower Bases
| Regions | Hydropower Bases | Theoretical Installed Capacity (GW) |
| Asia | The Yangtze River | 268 |
| The Yarlung Zangbo River | 160 | |
| The Ganges River | 153 | |
| The Yenisei River | 149 | |
| The Lena River | 121 | |
| The Indus River | 88 | |
| The Irrawaddy River | 79 | |
| The Mekong River | 75 | |
| The Yellow River | 43 | |
| River Ob | 42 | |
| Total | 1178 | |
| Europe | The Danube | 40 |
| North America | The Columbia River | 54 |
| The Mississippi River | 49 | |
| Total | 103 | |
| South America | The Amazon River | 279 |
| The Orinoco River | 95 | |
| The Parana River | 89 | |
| Total | 463 | |
| Africa | The Congo River | 390 |
| The Zambezi River | 137 | |
| The Nile | 50 | |
| Total | 577 |
Source: see Ref. [34] [102] [105] [106] [107].
Note: Figures for the Yenisei River, the Lena River, and River Ob refer to technologically developable installed capacity.
China ranks first in the world in terms of water resources. It has more than 3,800 rivers each with a theoretical reserve of 10,000 kW or above, producing theoretical energy output of 6,080 TWh per year. Technologically developable installed capacity amounts to 570 GW with annual energy output of 2470 TWh. China’s water resources are distributed mainly along the Yangtze River, the Yarlung Zangbo River, and the Yellow River, respectively accounting for 47, 13, and 7% of the country’s technologically developable capacity. By the end of 2013, China’s installed hydropower capacity was 280 GW or about half of its technologically developable capacity, indicating huge potential for future expansion.
Despite the continued growth in the world’s installed hydropower capacity in recent years, the share of hydropower in total installed capacity has been declining. During 1990–2013, the world’s hydropower capacity increased 57.6%, from 640 GW to 1010 GW, representing an average annual growth rate of 2.0%. In 2013, hydropower capacity accounted for 17.7% of the world’s total installed generation capacity, came down to 5.6 percentage points compared to 1990. See Fig. 1.19 for details.
Figure 1.19 The World’s Installed Hydropower Capacity and Share of Hydropower in Global Installed Capacity, 1990–2013
In 2013, Asia had the world’s largest installed hydropower capacity at 370 GW, accounting for 36.7% of the global total. It is followed by Europe, North America, South America, Africa, and Oceania, with installed hydropower capacities of 250 GW (24.8% of the global total), 200 GW (19.8% of the global total), 140 GW (13.7% of the global total), 30 GW (3.0% of the global total), and 20 GW (2.0% of the global total), respectively.
During 1990–2013, the world’s hydropower output increased from 2210 TWh to 3780 TWh, representing an average annual growth rate of 1.6%. See Table 1.8 for the world’s hydropower installed capacity and electricity generation in 2013.
Table 1.8
World’s Hydropower Installed Capacity and Electricity Generation in 2013
| Regions | Installed Capacities | Electricity Generation | ||
| Installed Hydropower Capacities (GW) | Installed Hydropower Capacity as a Percentage of World’s Total (%) | Hydropower Generation (TWh) | Hydropower Generation as a Percentage of World’s Total (%) | |
| World’s Total | 1010 | 100 | 3780 | 100 |
| Asia | 370 | 36.7 | 1400 | 37.0 |
| Europe | 250 | 24.8 | 830 | 22.0 |
| North America | 200 | 19.8 | 690 | 18.3 |
| South America | 140 | 13.7 | 710 | 18.8 |
| Africa | 30 | 3.0 | 110 | 2.9 |
| Oceania | 20 | 2.0 | 40 | 1.0 |
The world’s top five nations in terms of installed hydropower capacity are China, the United States, Brazil, Canada, and Russia, boasting installed capacities of 280, 101, 81, 76, and 49 GW, respectively. The top three in Asia are China, Russia, and Japan. Placed among the top three in North America are the United States, Canada, and Mexico, while the top three positions in South America are held by Brazil, Venezuela, and Columbia. The top three in Europe are Norway, France, and Italy. The top three in Africa are Egypt, Democratic Republic of Congo, and Mozambique. The top three in Oceania are Australia, New Zealand, and Papua New Guinea. See Table 1.9 for the top three nations on each continent in terms of water resources.
Table 1.9
Top Three Nations on Each Continent by Water Resources (year 2013)
| Regions | Nations | Installed Hydropower Capacities (GW) | Hydropower Generations (GWh) |
| Asia | China | 280 | 892,100 |
| Russia | 49 | 181,200 | |
| Japan | 49 | 82,200 | |
| Europe | Norway | 30 | 129,000 |
| France | 25 | 68,400 | |
| Italy | 22 | 51,500 | |
| North America | USA | 101 | 271,900 |
| Canada | 76 | 391,600 | |
| Mexico | 12 | 27,400 | |
| South America | Brazil | 81 | 385,400 |
| Venezuela | 15 | 83,800 | |
| Columbia | 15 | 44,400 | |
| Africa | Egypt | 3 | 12,900 |
| Democratic Republic of Congo | 2 | 7,800 | |
| Mozambique | 2 | 16,800 | |
| Oceania | Australia | 9 | 20,100 |
| New Zealand | 5 | 23,000 | |
| Papua New Guinea | 0.25 | 1,000 |
Source: United Nations World Energy Statistics Yearbook 2013; Ref. [65].
The current low level of the world’s hydropower development indicates relatively significant scope for future expansion. A nation’s water resource utilization rate is determined mainly by its hydropower endowment, electricity demand, and energy strategy. In 2013 the global water resource utilization rate amounted to approximately 20%, varying markedly from nation to nation. Japan, Norway, Sweden, and Canada started hydropower development earlier, with a high utilization rate of above 40%. The United States, despite its abundant water resources, has a relatively low utilization rate of 20.3% in hydropower development. Water resource utilization rates in China, Brazil, and Venezuela are between 30% and 40%, compared to just 10.9 and 20.0% for Russia and India, respectively. See Table 1.10 for the hydropower utilization rates of a selected few countries.
Table 1.10
Hydropower Utilization Rates of Selected Countries in 2013
| Rankings | Nations | Hydropower Utilization Rates (%) | Rankings | Nations | Hydropower Utilization Rates (%) |
| 1 | Japan | 60.2 | 6 | Venezuela | 32.2 |
| 2 | Norway | 53.8 | 7 | Brazil | 30.8 |
| 3 | Sweden | 47.2 | 8 | USA | 20.3 |
| 4 | Canada | 47.2 | 9 | India | 20.0 |
| 5 | China | 36.1 | 10 | Russia | 10.9 |
Note: Hydropower utilization rate (%) = annual generation capacity/technologically developable capacity/year × 100%.
1.3.2. Wind Energy
Wind power generation is the principal means of wind energy utilization. Since the 1990s, the development costs of wind energy have gone down sharply, thanks to continued breakthroughs in wind power technology around the world. In recent years, development costs of wind power have become increasingly comparable to the costs of conventional power generation, on basically the same scale of expansion with nuclear development. Though accounting for a mere 3% of global generating capacity at present, wind power is being incorporated as a part of the national energy development strategy and plan by more and more countries. In the future, with the growing economic benefits and market competitiveness of wind power technology, wind power will become one of the world’s most important energy option.
Global wind resources are very abundant. See Fig. 1.20 for the global distribution of wind resources. The theoretical reserves of global wind resources are estimated at 2,000,000 TWh/year, distributed unevenly around the world as determined by factors such as atmospheric circulation, terrain, land–sea topography and water bodies. By continent, Africa, Asia, North America, South America, Europe, and Oceania account for 32, 25, 20, 10, 8, and 5%, respectively, of the world’s theoretical reserves of wind energy. See Table 1.11 for the wind resources of each continent in the world.
Figure 1.20 Diagram of Global Distribution of Wind Resources Source: American 3TIER Resources Evaluation Company for Wind Energy and Solar Energy.
Table 1.11
Wind Resources of Each Continent
| Areas | Theoretical Reserves (TWh/Year) | Shares of Global Total (%) |
| Asia | 500,000 | 25 |
| Europe | 150,000 | 8 |
| North America | 400,000 | 20 |
| South America | 200,000 | 10 |
| Africa | 650,000 | 32 |
| Oceania | 100,000 | 5 |
The theoretical reserves of Asia’s wind energy are estimated at 500,000 TWh/year, located mainly in Russia, China, and Kazakhstan. Wind resources in Russia are concentrated on the coast of the Arctic Rim in Siberia, especially the Kara Sea and the Bering Strait, where the average wind speed reaches 7–9 m/s. Wind resources in China are mainly found in the so-called “Three North” region (north-west, north-east, and northern China), the south-eastern coastal region and the islands in its vicinity. Among them, the average annual wind speed of “Three North” region reaches 6–9 m/s. Kazakhstan is the richest country in Central Asia in terms of wind resources, with half of its territory providing average wind speeds over 4 m/s. Quality wind resources are concentrated in the central and southern parts and Caspian Sea region of the country.
The theoretical reserves of Europe’s wind resources are estimated at 150,000 TWh/year, found mainly in the Nordic countries such as Denmark (including Greenland8) and Norway. The coastal regions of these three countries boast the richest wind energy resources with average wind speeds of 9 m/s. On the European continent, wind speeds in most areas basically exceed 6–7 m/s, with the exception of central Iberian Peninsula, northern Italy, Romania, Bulgaria, and Turkey.
The theoretical reserves of North America’s wind resources are estimated at 400,000 TWh/year, located mainly in the United States, Canada, and Mexico. Wind resources in the United States are mainly in the midwest, eastern, and western coastal regions, and the Caribbean Coast, especially the central region with the expansive North American prairies where the open, flat terrain supports annual average wind speeds more than 7 m/s, and even up to 9 m/s across the eastern and western coasts. Quality wind resources in Canada are located mainly in the central and north-eastern regions of the country where 40% of power demand nationwide can be met by the wind resources of northern Quebec alone. The wind resources in Mexico are also abundant, concentrated principally in the Yucatan Peninsula, Campeche, and Oaxaca.
The theoretical reserves of South America’s wind resources are estimated at 200,000 TWh/year, located mainly in Brazil, Argentina, and Chile. Wind resources in Brazil are concentrated in the south-eastern plateau with wind speeds above 7 m/s. Argentina occupies wind resource-rich areas where wind speeds are over 6 m/s and can even reach 8–9 m/s in the south with a flat terrain and low altitudes. Wind speeds in southern Chile are between 7 m/s and 9 m/s.
The theoretical reserves of Africa’s wind resources are estimated at 650,000 TWh/year, located mainly in Sudan, Somalia, and Egypt, among other nations. Sudan is the richest country in terms of wind resources in Africa, with half of its territory yielding annual wind speeds above 5 m/s and over 5% of its land area boasting quality wind resources with wind speeds between 7 m/s and 9 m/s. Annual average wind speeds covering 90% of Somalia’s land area are above 5 m/s and can reach between 7 m/s and 10 m/s in 70% of its land area. Average wind speeds in the Gulf of Suez in Egypt reach 10.5 m/s, with abundant wind resources in the desert on both sides of the Nile and some parts of the Sinai Peninsula.
The theoretical reserves of Oceania’s wind resources are estimated at 100,000 TWh/year, found mainly in Australia and New Zealand. Wind speeds in Australia’s land territory exceed 7 m/s, going up between 8 m/s and 9 m/s in all coastal regions along its coastline. New Zealand is also abundant in wind resources, which is concentrated mainly in the coastal regions along its coastline having wind speeds between 8 m/s and 9 m/s.
Regions with average wind speeds below 4.5 m/s are generally considered not suitable for wind power development on a large scale, given the current technical and economic conditions. By eliminating land area where low wind speeds and the presence of natural reserves render wind power development unsuitable, we can work out the technologically developable capacity of wind power for each continent based on the installed capacity per unit area and the number of operating hours at full load. See Table 1.12 for the countries with abundant onshore wind resources on each continent.
Table 1.12
Countries with Abundant Onshore Wind Resources on Each Continent
| Regions | Nations |
Technologically Developable Capacity (TWh) |
| Asia | Russia | 68,000 |
| China | 20,000 | |
| Kazakhstan | 3,000 | |
| Europe | Denmark (including Greenland) | 26,000 |
| Norway | 2,000 | |
| Spain | 1,000 | |
| North America | USA | 33,000 |
| Canada | 25,000 | |
| Mexico | 4,000 | |
| South America | Brazil | 10,000 |
| Argentina | 6,000 | |
| Chile | 3,000 | |
| Africa | Sudan | 46,000 |
| Somalia | 44,000 | |
| Egypt | 37,000 | |
| Oceania | Australia | 21,000 |
| New Zealand | 1,000 |
For the development of wind power bases, consideration must be given not just to wind resources, but also engineering geology, site coverage, natural disaster, potential land or nearshore development, and utilization. At present, wind power development is mainly restricted by space and other economic constraints. In the future, wind power development for Asia will be concentrated in China’s “Three North” region, northern Russia, and Kazakhstan in central Asia due to a number of factors. In North America, development will be focused on the central and eastern and western coastal regions of the United States with great potential. Wind power development in South America will center on the south-western plateau of Brazil, southern Argentina, and southern Chile. In Europe, the development focus will be on the North Sea and the coastal regions of the Atlantic Ocean. In Africa, development will be focused on countries in the eastern and northern parts of the continent, such as Sudan, Somalia, Egypt, and others. In Oceania, wind power development will be concentrated in the coastal regions of Australia and New Zealand. See Table 1.13 for the major wind resource–rich regions around the world.
Table 1.13
Major Wind Resource-Rich Regions
| Regions | Countries | Areas of Abundance | Average Wind Speeds (m/s) | Technologically Developable Capacities (TWh) |
| Asia | Russia | Siberia | 6–9 | 45,000 |
| Kara Sea and Bering Strait and surrounding regions | 7–9 | 10,000 | ||
| China | “Three North” region | 6–9 | 14,000 | |
| Kazakhstan | Central and southern parts and Caspian Sea region | >6 | 2,000 | |
| Europe | Denmark | Greenland | 5–14 | 95,000 |
| 5–12 | 30,000 | |||
| North America | USA | Central region of USA | 7–10 | 11,000 |
| South America | Brazil | Brazil | >6, southern parts 8–9 | 4,000 |
| Argentina | Argentina | Southeast parts >7 | 2,000 | |
| Africa | Sudan, Ethiopia, Somalia | East Africa | 8–9 | 60,000 |
| Oceania | Australia | Northwest, southeast | Land >7 | 10,000 |
Currently, wind power, as one of the fastest growing options for power generation, has become the third most popular source of clean energy after hydropower and nuclear power. In 2013, global installed capacity of wind power totaled 320 GW. Of the 24 countries each having an installed wind power capacity of over 1 GW, 16 are in Europe, including Germany, Spain, and Britain; 3 are in Asia, including China, India, and Japan; 3 are in North America, including the United States, Canada, and Mexico; in addition to Australia in Oceania and Brazil in South America. In June 2012, China overtook the United States as the world’s largest nation in terms of installed wind power capacity. Globally, developed capacity is found mainly in the regions blessed with quality wind resources, close proximity to load centers, and excellent access to power grids. So far global wind resources have only been developed to a very limited extent. With the development and application of long-distance power transmission technology, pockets of quality wind resources far away from load centers can also be developed efficiently.
1.3.3. Solar Energy
Originating from solar radiation, solar energy is the most abundant and widely dispersed form of clean energy. Solar power generation is the most important means of solar energy development and utilization. Since the twenty-first century, global solar power generation has demonstrated strong growth momentum to surpass wind power as the fastest-growing source of renewable energy generation. Solar power generation in Germany, the United States, Japan, and other countries or regions has developed relatively early and quickly to the large scale we see today. Despite a late start, solar power generation in China has seen a rapid growth. It is now on a scale second only to Germany in the world. Due to technology and cost constraints, the current capacity of global solar power generation is not significant, with an installed capacity less than half than that of wind power. However, given the abundance of solar resources, solar power generation holds great growth potential to become the most important source of energy in the future, provided that these costs can be brought down significantly through technological breakthroughs.
Solar energy holds great growth potential. With the exception of nuclear energy, tidal energy, and geothermal energy, all other energies on Earth come from the sun directly or indirectly. The amount of solar radiation falling on the Earth’s surface is equivalent to 116 trillion tons of standard coal per year or 6500 times the world’s total consumption of primary energy in 2013 (18.19 billion tons of standard coal). See Fig. 1.21 for the global distribution of solar resources.
Figure 1.21 Diagram of the Global Distribution of Solar Resources Source: SolarGIS, http://solargis.info.
The amount of solar resources in a given location is determined by two major factors. One is the angle of sunlight. The energy from direct sunlight on the Earth’s surface on a per unit-area basis definitely exceeds that from slanting rays of sunlight. Therefore, solar resources are richest between the Tropic of Cancer and the Tropic of Capricorn with the equator at the center. The other one is atmospheric scattering. The more particles there are in the atmosphere, the stronger scattering is and the less sunlight reaches the Earth’s surface. In a plateau region where the air is thin, the atmosphere’s diffusion effect on the sun’s rays is limited, which explains why solar resources in high terrain are more abundant compared to regions at the same latitude but lower sea levels. China’s Qinghai–Tibet Plateau, for instance, has much more solar resources than many regions at low latitudes. With a higher water content in the atmosphere and more scattering of sunlight, regions covered by tropical rainforests close to the Equator have a lower amount of solar radiation than the arid and semiarid zones near the Equator. See Table 1.14 for the theoretical reserves of solar energy by continent.
Table 1.14
Theoretical Reserves of Solar Energy by Continent
| Areas | Theoretical Reserves (TWh/Year) | Shares of Global Total (%) |
| Asia | 37,500,000 | 25 |
| Europe | 3,000,000 | 2 |
| North America | 16,500,000 | 11 |
| South America | 10,500,000 | 7 |
| Africa | 60,000,000 | 40 |
| Oceania | 22,500,000 | 15 |
The theoretical reserves of Asia’s solar energy are estimated at 37,500,000 TWh, found mainly in China, Saudi Arabia, and Kazakhstan, among other nations. China’s solar resources are concentrated in the Qinghai–Tibet Plateau, northern Gansu, northern Ningxia, and southern Xinjiang, with an annual irradiation intensity that exceeds 1600 kWh/m2, compared to over 2300 kWh/m2 in some parts of the Qinghai–Tibet Plateau. Half of Saudi Arabia is desert land with an annual irradiation intensity of over 2200 kWh/m2. The comparative figure for Kazakhstan is 1300–1800 kWh/m2.
The theoretical reserves of Europe’s solar energy are estimated at 3,000,000 TWh, found mainly in Spain, Italy, Portugal, and other southern European countries. An annual irradiation intensity of 1600–1800 kWh/m2 is recorded in over 60% of Spain, 50% of Italy, and 70% of Portugal. As for the other regions, the comparative figure is 1400–1600 kWh/m2.
The theoretical reserves of North America’s solar energy are estimated at 16,500,000 TWh, concentrated in the United States and Mexico, among other countries. Solar resources in the United States are found mainly in the south-west and one-third of the country’s land territory has an annual irradiation intensity of 1700 kWh/m2 to 2200 kWh/m2. The comparative figure for most regions of Mexico is comparable to that of the American southwest. In the northern region of Mexico, 20% of the land has an annual irradiation intensity of over 2200 kWh/m2.
The theoretical reserves of South America’s solar energy are estimated at 10,500,000 TWh, concentrated in Chile, Peru, and Brazil, among other nations. The solar resources in Peru and Chile are found mainly in the Atacama Desert. The annual irradiation intensity of southern Peru and northern Chile exceeds 2100 kWh/m2. Solar resources in Brazil are mainly found in the country’s plateau regions. Regions with an annual irradiation intensity of above 1500 kWh/m2 account for 20% of Brazil’s total land area.
The theoretical reserves of Africa’s solar energy are estimated at 60,000,000 TWh, distributed mainly in Sudan, South Africa, Tanzania, etc. The regions in Sudan, South Africa, and Tanzania with an annual irradiation intensity of 1500–2000 kWh/m2 account for 20, 25, and 18% of the total land area of the respective countries. The comparative figures for regions with an annual irradiation intensity of 2000–2500 kWh/m2 are 56, 8, and 5%, respectively.
The theoretical reserves of Oceania’s solar energy are estimated at 22,500,000 TWh, distributed mainly in Australia and New Zealand. Australia has abundant solar resources, where regions with annual irradiation intensities of over 2200, 1900–2200, and 1600–1900 kWh/m2 accounting for 54, 35, and 8%, respectively, of the country’s land territory. Most regions of New Zealand also have an annual irradiation intensity of about 2000 kWh/m2.
The technologically developable capacity of solar energy is determined mainly by factors such as solar irradiation intensity, conversion efficiency, and space availability. Generally, only regions with an annual irradiation intensity of over 1500 kWh/m2 are suitable for solar power development. At present, the conversion efficiencies of photovoltaic modules and photothermal power stations are 16.5 and 14%, respectively. Space availability refers to the area suitable for installation of solar power generation systems after exclusion of natural reserves, especially disadvantageous terrain, etc. See Table 1.15 for countries with abundant solar energy resources on each continent around the world.
Table 1.15
Countries with Abundant Solar Resources on Each Continent
| Region | Nation |
Technologically Developable Capacity (TWh) |
| Asia | China | 110,000 |
| Saudi Arabia | 98,000 | |
| Kazakhstan | 74,000 | |
| Europe | Turkey | 13,000 |
| Spain | 5,000 | |
| Italy | 3,000 | |
| North America | USA | 254,000 |
| Mexico | 78,000 | |
| South America | Chile | 35,000 |
| Peru | 25,000 | |
| Brazil | 20,000 | |
| Africa | Sudan | 66,000 |
| South Africa | 43,000 | |
| Tanzania | 40,000 | |
| Oceania | Australia | 251,000 |
| New Zealand | 7,000 |
A mix of centralized and distributed systems is the way forward for solar power generation. Large-scale centralized solar power bases that deliver power to load centers through extra-high voltage and ultrahigh voltage transmission corridors are well attuned to regions with high irradiation intensities, sparse populations, and expansive desert areas, such as North Africa, East Africa, the Middle East, Australia, western China, American south-west, and Chile. The development of distributed photovoltaic power generation is suitable for cities and villages with high population and building densities where local demand load is satisfied partly by access to local grids. See Table 1.16 for the world’s major solar resource-rich regions.
Table 1.16
Major Solar Resource-Rich Regions
| Region | Areas of Abundance | Annual Irradiation Intensity (kWh/m2) | Technologically Developable Capacity Per Year (TWh/h) | |
| Asia | The Middle East | Israel, Jordan, Saudi Arabia, United Arab Emirates | 2000–2700 | 120,000 |
| Western China | Five provinces (municipalities) in the west and northwest: Xinjiang, Inner Mongolia, Tibet, Gansu, Qinghai | 1500–2150 | 14,000 | |
| Europe | South Europe | Portugal, Spain, Italy, Greece, Turkey | 1600–2100 | 3000 |
| North America | The Southwest | California, Kansas, Colorado, Oklahoma, Texas, Utah, New Mexico, Nevada, Arizona | 2100–2500 | 80,000 |
| South America | Peru, Chile | Atacama Desert | 2000–2500 | 15,000 |
| Africa | North Africa | The Sahara and its north | 2000–2700 | 141,000 |
| East Africa | Ethiopia, Sudan, Kenya, etc. | 1900–2800 | 187,000 | |
| Oceania | Australia | Northern region | 1800–2500 | 65,000 |
Source: Huangxiang, International Solar Energy Resource and Solar Power Generation Trend, Huadian Technology; 2009(12); Refs. [89] and [85].
Solar power generation is one of the most important ways to use solar energy efficiently. As the basic principle of power generation, there are two major types of solar power namely photovoltaic and photothermal. Recently, photovoltaic power generation has entered the stage of large-scale commercial development. By the end of 2013, the total installed capacity of global photovoltaic power generation reached approximately 140 GW. In terms of annual installed capacity additions, solar power is at par with hydropower and has exceeded wind power for the first time. Countries with an installed capacity of photovoltaic power generation of over 10 GW include Germany, China, Italy, Japan, and the United States, compared to 1 000 MW for 17 countries. By project type, the share of photovoltaic power stations in global newly installed capacity additions, had increased gradually from 23% in 2009 to 45% in 2013, whereas the share of building-integrated photovoltaics (including applications in residential projects and industrial and commercial buildings) had decreased from 77% to 55%, in the same period.
Since 2008, photothermal power generation has experienced rapid growth. Accumulative installed capacity posted annual average growth of 47.6% from 2008 to 2013. But compared to photovoltaic power generation, the scale of photothermal power generation has remained small. By the end of 2013, photothermal power generation projects had been built and in operation in nine countries, including Spain, the United States, and India, with a total installed capacity of 3630 MW. In addition, projects under construction and projects approved for development are expected to provide installed capacities of 2000 MW and 10 GW, respectively. In Spain, 2206 MW has come from completed photothermal power generation projects, with a further 50 MW to come from projects under construction and 185 MW from projects approved for development. For the United States, the comparative figures are 1073 MW (completed), 615 MW (under development), and 3615 MW (approved for development), compared to 156, 425, and 551 MW, respectively, for India. Based on project developments and approvals announced, photothermal power generation in China, India, South Africa, Morocco, the United Arab Emirates, Chile, and other nations is expected to grow substantially in the coming years. See Table 1.17 for the development of photothermal power generation by country as at end of 2013.
Table 1.17
Photothermal Power Generation Development by Country as at End of 2013 (MW)
| Nation | Completed Capacities | Capacities Under Construction |
Approved Capacities |
| Spain | 2,206 | 50 | 185 |
| USA | 1,073 | 615 | 3,615 |
| India | 156 | 425 | 551 |
| UAE | 100 | 0 | 0 |
| China | 21 | 170 | 1,670 |
| Egypt | 20 | 0 | 350 |
| Morocco | 20 | 160 | 300 |
| Algeria | 20 | 0 | 150 |
| Australia | 10 | 44 | 31 |
| South Africa | 0 | 300 | 350 |
| Chile | 0 | 110 | 765 |
| Others | 37 | 18 | 2,951 |
| Total | 3,663 | 1,892 | 10,918 |
Source: China New Energy Chamber of Commerce, Global New Energy Development Report 2014.
1.3.4. Nuclear Energy
Natural uranium resources are relatively rich and intensively distributed in the world. In 2013, the world’s total proven uranium resources minable at a cost of less than 260 USD/ton amounted to 7.6352 million tons,9 compared to less than 130 USD/ton for 5.9029 million tons, less than 80 USD/ton for 1.9567 million tons, and less than 40 USD/ton for 682,900 tons (Table 1.18). According to preliminary estimates, global nuclear fuel resources are ten times of all fossil energy, with proven uranium resource mainly distributed in Australia, Kazakhstan, Russia, Canada, Niger, Namibia, South Africa, Brazil, United States, China, and other countries. These 10 countries combined boast proven uranium resources of 5.1936 million tons minable at a cost of less than 130 USD/ton, representing approximately 88.0% of the global total.
Table 1.18
Global Uranium Resources in 2013
| Item | Resources Classification (USD/t) | Quantity of Resources (10,000 tons) | |
| Proven resource | <260 | 763.52 | |
| <130 | 590.29 | ||
| <80 | 195.67 | ||
| <40 | 68.29 | ||
| Including | Reliable resources | <260 | 458.72 |
| <130 | 369.89 | ||
| <80 | 121.16 | ||
| <40 | 50.74 | ||
| Inferred resources | <260 | 304.80 | |
| <130 | 220.40 | ||
| <80 | 74.51 | ||
| <40 | 17.55 | ||
Source: Ref. [80].
In 2013, there were 21 countries in the world with uranium mining operations, producing total annual output of approximately 59,500 tons. Kazakhstan is the world’s largest producer of uranium with an output of about 22,500 tons, representing 37.8% of the world total. It is followed by Canada, with a uranium output of about 9000 tons or 15.1% of the world total. Australia ranks third, with a uranium output of about 6700 tons or 11.3% of the world total. In recent years, China’s uranium output has basically remained at 1300–1500 tons.
The share of nuclear power in the world’s total installed capacity has been declining. In the 1970s to 1980s, nuclear leaking accidents in Three Mile Island in the United States and Chernobyl in the Soviet Union plunged the global nuclear power industry into a “trough” of slow development. In 2011, nuclear safety sparked global concerns after the nuclear leakage accident in Fukushima. Comprehensive safety inspections and assessments of nuclear power stations in operation were then conducted in different parts of the world. Switzerland, Germany, Italy, and other countries announced plans to abandon nuclear power development. The United States, France, United Kingdom, Russia, Vietnam, the United Arab Emirates, Turkey, and many other countries expressed intentions to continue with nuclear power development subject to stringent safety standards. Currently, the major obstacles that stand in the way of nuclear power development are safety, nuclear waste disposal and other issues. As at the end of 2013, 434 nuclear power generating units were in operation in 30 countries or regions around the world, with an installed capacity of about 370 GW distributed mainly in the United States, France, Japan, and other developed countries. See Fig. 1.22 for the installed capacity of global nuclear power and its share in total electricity generation in 1990–2013.
Figure 1.22 Installed Capacity of World Nuclear Power and its Share in Total Electricity Generation During 1990–2013 Source: Ref. [66]; World Nuclear Association, http://world-nuclear.org/nucleardatabase/advanced.aspx.
Nuclear fission technology is a common means of utilizing nuclear power, and nuclear fission reactors are adopted for global nuclear power stations. Nuclear fusion is the way forward for nuclear power development, despite an uncertain future given the current technology constraints. Nuclear fusion has certain advantages namely: power from nuclear fusion on Earth is richer than energy generated by nuclear fission, and deuterium, abundantly present in seawater, is the main fuel for controllable fusion power stations. Safe and clean, nuclear fusion does not emit radioactive substances that pollute the environment. However, commercial application of power generated by nuclear fusion poses grave challenges in the coming 30 years as technology in this area is far from being mature.
1.3.5. Other Clean Energies
Marine energy refers to seawater-based renewable energy, including tidal energy, wave energy, ocean current energy, and energy created from temperature and salinity differences. The energy density of various ocean energies is relatively low in general. The maximum tidal range of tidal energy in the world is about 17 m, and the maximum range in China is 9.3 m. The average wave height of wave energy for the largest single station in the world is 2 m above, and that for the largest single station in China is 1.6 m. The maximum flow rate of ocean current is 2.5 m/s, and the maximum in China is 1.5 m/s. For energy created from temperature differences, the maximum temperature difference between surface seawater and deep seawater in the world is 24°C, comparable to the value in China. Energy created from salinity differences has the greatest energy density among all ocean energies, with an osmotic pressure of 24 atm, equivalent to a head of 240 m and also comparable to the value in China.10 Statistics show that the theoretically developable capacity of ocean energies is 76,600 GW, including a technologically developable capacity of 6,400 GW (Table 1.19). Tidal power generation is a relatively well-developed ocean power generation technology. As at the end of 2013, the installed capacity of ocean power generation in the world had reached approximately 530 MW, and the world’s largest ocean power station is the 254 MW tidal power generation station in South Korea.
Table 1.19
World Marine Energy Resources
| Type | Theoretical Reserves | Technologically Developable Capacity (GW) |
| Tidal energy | 3,000 | 100 |
| Wave energy | 3,000 | 1,000 |
| Ocean current energy | 600 | 300 |
| Energy from temperature differences | 40,000 | 2,000 |
| Energy from ocean salinity | 30,000 | 3,000 |
Source: UNESCO, ocean energy development.
Biomass energy is a clean energy with biomass as its carrier. It comes mainly from agricultural waste, forestry waste, domestic waste, and industrial waste as well as potential artificial biomass energy, energy crops, and energy forests. Currently, the theoretical productive potential of biomass energy in the world is 37.6–51.2 billion tons of standard coal each year. Given environmental and other constraints, a more practical productive potential could reach 6.8–17 billion tons of standard coal.11 Globally, biomass energy is mainly distributed in South America, South Africa, Eastern Europe, Oceania, and East Asia. Biomass is mainly used for supply of heat, power generation and production of liquid biofuels, but is not used to any significant extent for generating power. As at the end of 2013, the installed capacity of world biomass power generation reached about 76.4 GW, and annual energy output was 257.6 TWh. The European Union ranks first in biomass power generation in terms of scale.
Geothermal energy is a general term for thermal energies in the Earth’s crust. It is categorized mainly into categories such as hot water type, steam type, ground pressure type, hot dry rock type, and lava type. It is estimated that the workable reserves of global geothermal energy is equivalent to 5 billion tons of standard coal, mainly distributed in the Pacific Rim geothermal belt, the Mediterranean–Himalaya geothermal belt, the Atlantic midocean ridge geothermal belt, and the Red Sea–Aden–East African Rift Valley geothermal belt. Heat utilization and geothermal power generation are two major means of utilizing geothermal energy. As at the end of 2013, the installed capacity of global geothermal power generation reached approximately 11.71 GW.
1.4. Energy Development in the Arctic and Equatorial Regions
In terms of the distribution of world clean energy resources, the Arctic Circle and its surrounding areas (the Arctic region12) are found to have rich wind energy resources, while solar energy resources are also abundant at the Equator and its vicinity (the equatorial region13). Centralized development of wind resource in the Arctic and solar resources at the Equator will be an important direction of development for world resources. Resources will be delivered to load centers across the continents via ultra-high voltage and other electric power transmission techniques in mutual support for large energy bases and distributed generation to ensure a safer and more reliable supply of clean energy.
1.4.1. Energy Development in “The Arctic Region”
1.4.1.1. Overview of Resources
Wind energy resources are rich and widely distributed in the Arctic region, with a technologically developable capacity of 100 TW or 20% of global onshore wind resources. Wind resources are most abundant in the Kara Sea, the Barents Sea, the Bering Strait, and Greenland along the Arctic Ocean. The Arctic region schematic diagram is shown in Fig. 1.23.
Figure 1.23 Arctic Region Schematic Diagram
Wind energy resources in the Arctic Ocean and offshore areas are mainly distributed in Greenland, the Norwegian Sea, the Barents Sea, the Kara Sea, and the Bering Strait, with relatively high annual mean wind speeds. The annual mean wind speeds within the Arctic Circle are up to 10–11 m/s, being present in Greenland and north of Iceland. The second highest wind speed is 9–10 m/s, present in Norwegian Sea. Wind force on one side of the Atlantic is relatively strong, with an average speed of higher than 7 m/s. The wind speed across most land in Greenland is 5–8 m/s. The sea surface wind speed (Kara Sea) to the east of Novaya Zemlya on the north side of Eurasia is 6–8 m/s. Wind speed at the Bering Strait is 8–9 m/s. The average wind speed at the eastern islands of North America and its sea surface is mainly below 5 m/s, going up to 5– 9 m/s in a few zones. Future development of wind power in the Arctic is focused on Greenland, the Norwegian Sea, the Barents Sea, the Kara Sea, the Bering Strait, and other regions rich in wind energy.
With a total area of approximately 2 million km2, the Scandinavian Peninsula in Northern Europe and the North Sea region are blessed with favorable wind energy resources along the coasts where the annual mean wind speed is 8–9 m/s. Half of the Russian territory of Siberia is located to the north of 66°N, especially the areas along the Arctic Ocean with the most abundant wind energy resources where annual mean wind speeds reach over 8 m/s and the capacity coefficient of wind power exceeds 40%. Wind energy resources in Alaska are mainly distributed at lower sea levels in the west as well as the Bering Strait and the areas along the Arctic Ocean. The annual mean wind speed in more than half of Canada is higher than 7 m/s, and it is up to 10 m/s or above in some north-eastern parts of the country.
1.4.1.2. Development Status
Currently, the development and utilization of wind power is on a relatively small scale though the Arctic is rich in wind energy resources. As one of the Arctic Rim nations, Russia holds great potential in wind energy; however, wind power development is relatively slow. At the end of 2013, the installed gross capacity of wind power in Russia amounted to 105 MW, consisting mainly of small wind turbines of approximately 30k W. The largest wind power plant in Russia is Kulikovo Wind power plant located in Kaliningrad, with an installed capacity of 20 MW through decades of expansion. Grid-connected wind power plants have been built in Russia, including 2200 kW Qiujinli wind power plant in the Republic of Bashkortostan, 1000 kW Kalmyk wind power plant, and 200 kW Malaboza wind power plant in the Republic of Chuvashia. In addition, 2500 kW Anadyr wind power plant in Chukotka Autonomous Okrug, 1500 kW Polar wind power plant in the Republic of Komi, 1200 kW San Nicolas wind power plant in Kamchatka of the Bering Strait, and 300 kW wind power plant in Rostov have been developed but not connected to the grid yet. These projects were built mainly at the end of 1990s or the beginning of the twenty-first century.
With the exception of Russia, large-scale development of wind power has been realized in many other Arctic Rim nations, such as Denmark, Sweden, Canada, and the United States. However, as the built wind power projects are mainly located to the south of the Arctic Circle, the Arctic region with untapped wind energy resources will be the focal point of future wind power development. Table 1.20 shows the installed capacity of wind power in selected Arctic Rim nations from 2000 to 2013.
Table 1.20
Installed Wind Power Capacity of Selected Arctic Rim Nations from 2000 to 2013
| Countries | 2000 (10 MW) | 2005 (10 MW) | 2010 (10 MW) | 2013 (10 MW) |
| Denmark | 249 | 313 | 380 | 477 |
| Sweden | 30 | 53 | 216 | 447 |
| Canada | 20 | 68 | 401 | 780 |
| USA | 428 | 915 | 4030 | 6109 |
Source: See Ref. [108].
1.4.2. Energy Development in “The Equatorial Region”
1.4.2.1. Overview of Resources
Areas near the Equator are located at low latitudes and directly exposed to solar radiation. Arid, semiarid, or desertous, with little scattering, some of these regions are extremely rich in solar energy resources, making them key areas for large-scale development and utilization of solar energy in the future. There are bountiful wind and hydropower resources in areas near the Equator, examples being the Congo River in Africa and the Amazon River in South America where there are abundant water resources.
Global solar energy resources are mainly distributed in North Africa, East Africa, the Middle East, Australia, and other regions where the development potential accounts for more than 30% of the world total. North Africa and East Africa have an annual irradiation intensity of solar energy of mostly 2000–2800 kWh/m2 where solar energy resources are concentrated in Algeria, Morocco, Libya, and Sudan. The comparative intensity in the Middle East is 2200–2400 kWh/m2, where solar energy resources are concentrated in Iran, Saudi Arabia, the UAE, and other countries. In Australia, the irradiation intensity is 2000 kWh/m2 for Class I and II resource areas. Apart from areas near the Equator, regions rich in solar energy resources also include southern Europe, with an annual irradiation intensity of 1600–2100 kWh/m2; American south-west, with an annual irradiation intensity of 2100–2500 kWh/m2; the west coast of South America, with an annual irradiation intensity of 2000–2500 kWh/m2. With improvements in conversion efficiency, the potential of solar power development will be greater. See Fig. 1.24 for the distribution of solar energy resources in the equatorial region.
Figure 1.24 Schematic Diagram of the Distribution of Solar Energy Resources in Equatorial Region Source: Australian Government Department of Industry and Science and others, Australian Energy Resource Assessment.
1.4.2.2. Development Status
While Europe and the United States are undoubtedly the world center of solar power development, countries and regions near the equatorial region have paid more attention in recent years to the development and utilization of solar power generation resources with the selection of different technological pathways and development models in line with local daylight resources and development conditions. Some photothermal power stations have been built in Morocco, Tunisia, and Algeria in North Africa as well as Saudi Arabia, the United Arab Emirates, and other countries in the Middle East, with an installed capacity of 50–100 MW for individual projects. Photovoltaic power generation is mainly adopted by Australia in Oceania, Italy, Spain, and Portugal in Europe and the United States in North America, with the development of some photothermal power stations as well. Brazil, Chile, and Peru in South America have pursued solar power generation on a small scale. Table 1.21 shows the development of solar energy resources in the equatorial region as at the end of 2013.
Table 1.21
Development of Solar Energy Resources in the Equatorial Region toward the end of 2013
| Regions | Countries | PV Power Generation (MW) | Photothermal Power Generation (MW) | Typical Solar Power Generation Projects |
| North Africa | Morocco | 15 | 20 | 160 MW Ouarzazate slot-type photothermal power station phase I (under construction) |
| Tunisia | 7 | – | – | |
| Algeria | 7 | 20 | – | |
| Middle East | Saudi Arabia | 19 | – | – |
| UAE | 33 | 100 | “Solar I” 100 MW photothermal power station | |
| Oceania | Australia | 3300 | 10 | 20 MW tower-type photothermal power station (under planning) |
| South Europe | Italy | 17930 | – | – |
| Spain | 5340 | 2206 | Gemasolar photothermal power station | |
| Portugal | 280 | – | Serpa PV power station | |
| North America | USA | 13518 | 1073 | Ivanpah photothermal power station |
| South America | Brazil | 20 | – | – |
| Chile | 180 | – | – | |
| Peru | 100 | – | 44 MW Arequipa PV Power Station |
In general, the “Arctic and equatorial regions” are rich in clean energy with great development potential. In the future, with the full development of renewable energy sources in the major countries on each continent and the growing maturity of technology for large-scale clean energy development and long-distance power transmission, the “Arctic and equatorial region” will become important strategic base for global resources development and provide continued energy security for the world’s economic and social development. Centralized development of wind power in the Arctic region to deliver power southward to load centers in East Asia, North America, and Europe will form a “north-to-south power transmission” system. Large-scale development of solar energy resources in the equatorial region integrated with local water and wind energy resources can not only meet local power requirements, but also provide a supply of cleaner energy for Europe, Asia, North America, and the southern parts of South America.
1.5. Electric Power Development
Electric power is a clean and efficient form of secondary energy. The invention and utilization of electrical power marked a revolution in the global energy industry, ushering in the “Age of Electrification.” From its beginnings in the 1880s, the global electric power industry has gone through more than a century of growth. Since the 1970s, the global power industry has undergone profound changes in terms of power generation, capacity expansion, as well as power source and grid technologies. The industry has gradually entered into a new era characterized by coordinated development of large energy bases with distributed power sources, large power grids and micro grids.
1.5.1. Power Source Development
The world’s installed power capacity and electricity generation has continued to grow rapidly. Since the 1990s, with the fast-growing global economy and continued technology breakthroughs, the world’s installed power capacity and electricity generation has witnessed enormous growth. From 1990 to 2013, global installed power capacity increased from 2760 GW to 5730 GW, representing an average annual growth of 3.2%, while annual electricity generation grew to 22,500 TWh from 11,770 TWh, representing an average annual growth rate of 3.1%. See Table 1.22 for the world’s installed power capacity and electricity generation from 1990 to 2013.
Table 1.22
World’s Installed Power Capacity and Electricity Generation in 1990–2013
| Items | 1990 | 1995 | 2000 | 2005 | 2010 | 2013 |
| Installed capacity (100 GW) | 27.6 | 30.6 | 34.4 | 42.1 | 50.9 | 57.3 |
| Electricity generation (1000 TWh) | 11.8 | 13.1 | 15.5 | 18.4 | 21.4 | 22.5 |
Source: Ref. [66]; China New Energy Chamber of Commerce, Global Energy Development Report in 2014.
The power supply structure remains dominated by fossil energy generation, including coal and gas, with a growing trend toward clean energy. As at the end of 2013, global installed capacity reached 5730 GW, with fossil fuel-based power capacity accounting for 66.1% of the global total. In recent years, the installed generating capacity of clean energy has increased rapidly. As at the end of 2013, the installed gross capacity of nuclear, water, wind, solar and other green energy resources were estimated at approximately 1940 GW or 33.9% of the global total. Table 1.22 shows the change in the structure of installed power capacity from 1990 to 2013 (Fig. 1.25).
Figure 1.25 Change in the Structure of Installed Power Capacity During 1990–2013
The world’s installed power capacity is mainly distributed in Asia, North America, Europe, and other regions. In 2013, the installed power capacity in Asia, North America, and Europe accounted for 42.5, 24.5, and 24.3%, respectively, of the global total. From the level in 1990, Asia’s capacity as a percentage of the global total was up 17.2 percentage points, compared to a decrease of 12.1 percentage points for North America and a decrease of 4.1 percentage points for Europe. By energy type, the world’s installed coal power capacity is mainly distributed in Asia and North America with rich coal resources, together accounting for 73% of the global total. Installed hydropower capacity is mainly distributed in Asia and Europe, together accounting for 62% of the global total. Installed nuclear power capacity is mainly distributed in Europe and North America, together accounting for 75% of the global total. Installed capacity of gas-fired generation is mainly distributed in Europe and North America, together representing about 80% of the global total. Installed wind power capacity is mainly distributed in Asia and Europe, which together account for 75% of the global total. Installed solar power capacity is mainly distributed in Asia, which accounts for 60% of the global total. Fig. 1.26 shows the changing share of installed power capacity by continent from 1990 to 2013.
Figure 1.26 Change in the Share of Installed Power Capacity by Continent During 1990–2013
In the recent years, Asia has maintained a leadership position among all continents in terms of annual average growth of installed power capacity, while growth in Europe and North America has slowed down. See Fig. 1.27. Now the world’s largest power producer, China’s installed power capacity reached 1258 GW with annual electricity generation of 5370 TWh as at the end of 2013.
Figure 1.27 World’s Installed Power Capacity by Continent During 1990–2013
Power development varies significantly from country to country on each continent, reflecting different levels of economic capacity and power consumption. In terms of installed power capacity and electricity generation, the top three countries, in descending order, are China, Japan, and Russia in Asia; Germany, France, and Italy in Europe; the United States, Canada, and Mexico in North America; Brazil, Argentina, and Venezuela in South America; South Africa, Egypt, and Algeria in Africa; and Australia, New Zealand, and Papua New Guinea in Oceania. Table 1.23 shows the installed power capacity and annual electricity generation of the major countries on each continent as at the end of 2013.
Table 1.23
Installed Power Capacity and Annual Electricity Generation of Major Countries on Each Continent in 2013
| Continents | Nations | Installed Capacities (MW) | Annual Electricity Generation (TWh) |
| Asia | China | 1,257,680 | 5372.1 |
| Japan | 295,230 | 1052.3 | |
| Russia | 243,100 | 1049.9 | |
| Germany | 184,620 | 596.4 | |
| Europe | France | 128,060 | 550.8 |
| Italy | 124,230 | 276.0 | |
| North America | USA | 1,067,900 | 4274.5 |
| Canada | 134,200 | 652.0 | |
| Mexico | 62,140 | 298.2 | |
| Brazil | 117,130 | 552.5 | |
| South America | Argentina | 33,810 | 134.8 |
| Venezuela | 25,710 | 122.1 | |
| South Africa | 44,170 | 255.1 | |
| Africa | Egypt | 30,050 | 164.4 |
| Algeria | 11,550 | 51.2 | |
| Australia | 63,220 | 247.0 | |
| Oceania | New Zealand | 9,490 | 42.5 |
| Papua New Guinea | 690 | 3.5 |
Power source technology has been developing rapidly around the world, with fast expansion of single unit capacity. In recent years, the technological level of thermal power equipment has improved continually around the world, along with the promotion and application of ultra-supercritical thermal power generating units with high parameters and large capacity. Currently, the maximum single unit capacity of thermal power in the world is 1300 MW. There have been significant breakthroughs in hydropower technology with respect to operational control techniques, closure and cofferdam techniques, design, and manufacture techniques of water-turbine generator sets, etc. At present, the maximum single unit capacity of hydropower generation is 1000 MW. Nuclear power is moving into the fourth generation of technological development marked by improved economics and safety with production of less waste and larger unit capacity. The world’s largest nuclear power plant is in Kariwa, Kashiwazaki, Japan, with seven boiling-water reactor sets and total capacity of approximately 8210 MW. Commercialized development of PV power generation technology has been realized, with improved production efficiency of polycrystalline silicon and amorphous silicon cells and continued breakthroughs in PV system accumulators. Wind power equipment technologies are moving in the direction of larger single unit capacity and variable pitch rather than fixed pitch, as well as direct drive, combination drive, etc. On January 28, 2014, the first 8 MW offshore wind turbine generator in the world was put into operation, with mass production scheduled for 2015. On October 29, 2014, installation was completed of an onshore permanent magnetic direct-drive fan, with a maximum single unit capacity of 5 MW, as part of China’s National Wind/Photovoltaic/Energy Storage and Transmission Demonstration Project.
1.5.2. Development of Power Grids
After decades of growth between the late nineteenth century and the mid twentieth century, the electricity industry has seen the emergence of power grids dominated by alternating current (AC) generation and transmission and distribution technology, with a voltage class below 220 kV and grid capacity focused on urban grids, standalone grids and small grids. Since the mid twentieth century, the capacity of power grids has been increasing continuously. Many transnational interconnected mega grids have been developed, like those seen in North America, Europe, and the Russia–Baltic Sea region, with 330 kV-plus DC–AC transmission systems. As at the end of 2013, transmission lines above 220 kV measured a total length of 2.5 million km, with transforming capacity totaling around 12,000 GVA.
With growing capacity, the voltage levels of power grids in the world have also been increasing. Studies on UHV electricity transmission have been conducted since the 1960s and stepping into the twenty-first century, China has spared no efforts in promoting UHV DC–AC transmission technologies and projects in order to secure the optimal allocation of energy resources across vast areas. China has now completed and commissioned three 1000 kV UHV AC transmission and transformation projects, namely: Southeast Shanxi-Nanyang-Jinmen, Huainan–North Zhejiang-Shanghai, and North Zhejiang–Fuzhou. Six ±800 kV UHV DC transmission projects have also been completed to supply power to Xiangjiaba–Shanghai, Jinping–South Jiangsu, South Hami–Zhengzhou, Xiluodu–Jinhua, Chuxiong–Zengcheng, and Puer–Jiangmen.
It has become a global trend to step up the construction of transnational interconnected power grids, expand coverage of power grids, and achieve optimal allocation of energy resources over more expansive areas. With the establishment of transnational power grids and the interconnection among mega grids, the level of electric power exchange among countries has expanded dramatically. In 2013, electricity exports and exports reached 441.7 and 444.4 TWh, respectively, among countries of the Organization for Economic Cooperation and Development, or OECD. Between 2000 and 2013, OECD countries saw a rising trend in imports and exports, up 26.7 and 27.7%, respectively. An overview of power grid development in each continent has been described further.
1.5.2.1. Asia’s Power Grids
Asia’s power grids include regionally interconnected grids in China, the Russia–Baltic Sea region and the Gulf region as well as national power grids in Japan, South Korea, India, and south-east Asian countries. No integrated continent-wide power grid has been built in Asia yet. Asia’s power grids cover a population of 4 billion in 48 countries and regions, with a total installed capacity of 2,400 GW and a total electricity consumption of 10,000 TWh. The power grids have a maximum voltage of 1000 kV, including approximately 1.5 million km of transmission lines with a voltage above 220 kV. Among these power grids, the interconnected grid in the Russia–Baltic Sea has an installed capacity of 300 GW, covering an area of 22.54 km2 and providing power to 280 million people. The Gulf region’s interconnected power grid features an installed capacity of 94.81 GW, covering 2.67 million km2 of area and providing power to 41.98 million people.
Compared to other Asian countries, the power grids in China, Japan, and Russia are relatively large, with installed capacities of 1258, 295, and 243 GW, respectively, and maximum demand loads of 830, 156,and 130 GW, respectively. The highest operating AC voltage classes are 1,000, 500, and 765 kV, respectively, with 540,000, 40,000, and 130,000 km of transmission lines at or above 220 kV, respectively.
In recent years, China has continued to quicken the pace of power grid development, resulting in vastly improved capability to optimize resource allocation. After the completion and commissioning of Tibet’s ±400 kV DC interconnected power grid in December 2011, China has achieved nationwide interconnections covering all its territories other than Taiwan. In April 2012, the back-to-back ±500 kV DC interconnected power grid between China and Russia was put into commercial operation, marking China’s largest transmission and transformation project, in terms of voltage and capacity, for import of electricity. China also delivers power to Vietnam through three 220 and four 110 kV lines, and to northern Laos through a 115 kV line. Ranking first in the world in terms of installed capacity, length of transmission lines and voltage levels, China boasted 543,000 km of transmission lines at 220 kV or above and transformer capacity of 2720 GVA as at the end of 2013. Table 1.24 shows the length of China’s transmission lines at 220 kV or above in 1995–2013.
Table 1.24
Length of China’s transmission lines at 220 kV or above from 1995 to 2013
| Years | UHV | 750 kV | ±660 kV | 500 kV | 330 kV | 220 kV | Total (km) |
| 1995 | – | – | – | 13,052 | 5,609 | 96,913 | 115,574 |
| 2000 | – | – | – | 26,837 | 8,669 | 128,114 | 163,620 |
| 2005 | – | 141 | – | 62,866 | 13,059 | 177,617 | 253,683 |
| 2010 | 3,972 | 6,685 | 1,400 | 135,180 | 20,338 | 277,988 | 445,563 |
| 2011 | 3,973 | 10,005 | 1,400 | 140,263 | 22,267 | 295,978 | 473,886 |
| 2012 | 6,105 | 10,088 | 1,400 | 146,250 | 22,701 | 318,217 | 504,761 |
| 2013 | 8,840 | 12,666 | 1,400 | 156,818 | 24,065 | 339,075 | 542,864 |
Source: the China Electricity Council, Compilation of Electric Power Industry Data (2013).
Japan has also realized nationwide power interconnections for all its territories except Okinawa. The Japanese power grid is comprised of 50 and 60 Hz system. The 50 Hz system has been adopted for the three power grids in Hokkaido, Northeast Japan, and Tokyo, with the grids of Tokyo and Northeast Japan linked up through a 500 kV transmission line, and the grids of Northeast Japan and Hokkaido linked up through a ±250 kV undersea DC transmission line. The 60 Hz system has been adopted for Chubu, Hokuriku, Kansai, Chugoku, Shikoku, and Kyushu, with interconnections achieved through a 500 kV transmission line. These two different systems are connected back to back by three DC lines in Sakuma (300 MW), East Shimizu (100 MW), and Shin Shinano (600 MW).
The Russian power grid consists of seven transregional grids – East Power Grid, Siberia Power Grid, Ural Power Grid, Middle Volga River Power Grid, South Power Grid, Middle Power Grid, and West Power Grid, covering 79 Oblasts of Russia. Six of these regional grids, except for the East Power Grid, which operates independently, interconnect and synchronize with each other.
1.5.2.2. Europe’s Power Grids
The European power grid is the most extensively interconnected continental power grid, including five synchronous grids in continental Europe, Northern Europe, the Baltic Sea, the United Kingdom, and Ireland, together with two independent power grids in Iceland and Cyprus. Power grid operators in these countries and regions have come together to form a European alliance of transmission network operators. As at the end of 2013, the alliance was comprised of 34 member countries, with a combined installed capacity of 1,007 GW, electricity generation of 3,350 TWh, 300,000 km of transmission lines at 220 kV or above, a total area of 4.5 million km2, and a customer base of 700 million people.
Compared to other European countries, the power grids in Germany, France, and Italy are relatively large, with installed capacities of 184.62, 128.06, and 124.23 GW, respectively, and maximum demand loads of 83.1, 92.9, and 54 GW, respectively. The power grids of Germany, France, and Italy feature highest voltage levels of 380, 400, and 400 kV, respectively, while transmission lines at or above 220 kV measure 35,000, 48,000, and 22,000 km, respectively. With the progress of grid interconnection in Europe, the level of electricity exchange between different countries has increased dramatically. Table 1.25 shows the length of AC power grids of major European countries in 2013.
Table 1.25
Length of Transmission Lines of AC Power Grids of Major European Nations in 2013
| Countries/Regions | 220/285 kV | 330 kV | 380/400 kV | 750 kV | Total (km) |
| France | 26,640 | – | 21,752 | – | 48,392 |
| Germany | 35,147 | 35,147 | |||
| Italy | 11,149 | – | 10,746 | – | 21,895 |
| UK | 6,264 | – | 11,829 | – | 18,093 |
| Europe | 141,359 | 9,141 | 151,272 | 471 | 302,243 |
Source: Based on statistics of the electric power industries of different countries; Ref. [97].
1.5.2.3. North America’s Power Grids
North America’s power grids include the national power grids of the United States, Canada, and Mexico, together with Central America’s interconnected power grid. The North American interconnected grid is comprised of four synchronous power grids in eastern North America, western North America, the United States state of Texas and the Canadian province of Quebec, covering all United States territories, most parts of Canada, and the Baja California region of Mexico. The eastern North American power grid is the largest of the four synchronous grids, covering extensive areas from central Canada eastward to the Atlantic coast (except Quebec), southward to Florida, and westward to the Rocky Mountains (except Texas). It provides power to the eastern and central states of the United States and five Canadian provinces. Second only to the grid of eastern North America by capacity, the western North American power grid covers broad areas from West Canada to the Baja California peninsula, stretching eastward across the Rocky Mountains to the Eastern Plains. The western North American power grid provides power to 14 states of the United States, two Canadian provinces, and parts of one Mexican state.
At the end of 2013, the interconnected power grid of North America featured a total installed capacity of approximately 1200 GW, with the highest voltage class at 765 kV. The grid is supported by 760,000 km of transmission lines at 100 kV or above, covering an area of 11.39 million km2 and providing electric power to some 500 million people. Table 1.26 shows the length of transmission lines at 100 kV or above of North America’s interconnected power grid in 2008–2011.
Table 1.26
Length of Transmission Lines at 100 kV or Above of North America’s Interconnected Power Grid from 2008 to 2011
| Countries/Regions | 2008 (km) | 2009 (km) | 2010 (km) | 2011 (km) |
| USA | 587,378 | 599,095 | 622,590 | 627,502 |
| Canada | 126,591 | 127,041 | 128,157 | 130,834 |
| Mexico (Baja California) | 2,113 | 2,256 | 2,293 | 2,346 |
| Total | 716,082 | 728,393 | 753,039 | 760,682 |
Based on the statistics of North American Electric Reliability Corporation (NERC).
Central America’s interconnected power grid boasts an installed capacity of 11.48 GW, covering an area of 500,000 km2 and providing electric power to 39 million people. The grid consists of six national power grids in Panama, Costa Rica, Honduras, El Salvador, Guatemala, and Nicaragua.
Compared to other North American countries, the power grids in the United States, Canada, and Mexico are relatively large, with installed capacities of 1068, 134, and 62 GW, respectively, and maximum demand loads of 782, 92, and 50 GW, respectively. For the United States, Canadian, and Mexican grids, the highest voltage classes are 765, 735, and 400 kV, respectively, with 630,000, 130,000, and 50,000 km of transmission lines at or above 100 kV, respectively. There is a high level of electricity exchange between the United States and Canada, while the electricity exchange with Mexico is relatively small. The United States is a net importer of electric power, while Canada and Mexico are net exporters. In 2013, the power imports and exports of the United States totaled 74.9 TWh.
1.5.2.4. South America’s Power Grids
No interconnected power grid on a continental level has yet been developed in South America. There are two major transnational interconnected grids in the north and south of South America, covering 14 countries, with a combined installed capacity of 240 GW and electricity consumption totaling 1000 TWh. The two grids provide power to about 400 million people and cover vast areas measuring 15.5 million km2. The highest voltage of the South American power grids is 750 kV, with the length of transmission lines at 220 kV or above estimated at approximately 250,000 km.
Compared to other nations in South America, Brazil, and Argentina maintain relatively large power grids, with installed capacities of 117.13 and 33.81 GW, respectively, and the highest voltages at 750 and 500 kV, respectively, based on 2013 figures. The transmission lines at 220 kV or above in Brazil and Argentina measured 100,000 and 10,000 km, respectively. Table 1.27 shows the length of transmission lines at 220 kV or above in the two countries in 2013.
Table 1.27
Length of Transmission Lines at 220 kV or Above in Brazil and Argentina in 2013
| Countries | 220/230 kV | 345 kV | 440 kV | 500 kV | 600 kV | 750 kV | Total (km) |
| Brazil | 45,709 | 10,062 | 6,681 | 35,003 | 3,224 | 2,683 | 103,362 |
| Argentina | 11,113 | 1,116 | 0 | 1,884 | 0 | 0 | 14,113 |
Source: See Ref. [109].
1.5.2.5. Africa’s Power Grids
Africa’s power grids cover more than 50 countries and regions, with a total installed capacity of 150 GW and electricity consumption of 700 TWh. The grids provide electric power to approximately 1 billion people. Connections between the national grids of African countries are relatively weak, with efforts focused mainly on self-balancing of supply and demand. Other than the one in southern Africa, no regionally interconnected grids are present.
The southern African interconnected power grid covers nine countries, namely – Botswana, Mozambique, South Africa, Lesotho, Namibia, Congo, Swaziland, Zambia, and Zimbabwe. At the end of 2013, the total installed capacity of the southern African interconnected grids stood at 57.18 GW, covering an area of 6.96 million km2 and supplying power to a population of 176 million people, with a maximum load of 53.83 GW, an electricity shortfall of 7.71 GW, the highest voltage level of 765 kV, and 30,000 km of transmission lines at 220 kV or more.
South Africa and Egypt have relatively large power grids, with installed capacities of 44.17 and 30.05 GW, the highest voltages at 765 and 500 kV and transmission lines at 220 kV or above measuring 30,000 and 20,000 km, respectively. Table 1.28 shows the length of transmission lines at 220 kv or above in the two countries in 2013.
Table 1.28
Length of Transmission Lines at 220 kV or Above in South Africa and Egypt in 2013
| Countries | 220 kV | 275 kV | 400 kV | 500 kV | ±533 kV | 765 kV | Total (km) |
| South Africa | 1,217 | 7,360 | 16,899 | – | 1,035 | 1,667 | 28,178 |
| Egypt | 17,001 | – | 33 | 2,863 | – | – | 19,897 |
Source: Japan Electric Power Information Center, 2013 Statistics of Overseas Electric Industries.
1.5.2.6. Oceania’s Power Grids
The Oceanian power grids cover 14 countries and provide 30 million people with electricity, with a total installed capacity of 75 GW and electricity consumption totaling 300 billion kWh. Like Australia, Oceanian countries such as New Zealand and Papua New Guinea are island states where the independent operation of grids allows little room for grid interconnections. The highest voltage level of the Oceanian power grids is 500 kV, with an estimated 30,000 km of transmission lines at 220 kV or above.
Australia and New Zealand have relatively large power grids, with installed capacities of 63220 and 9490 MW, respectively and the highest voltage level at 500 kV. Transmission lines at 220 kV or above in Australia and New Zealand are estimated at 30,000 and 20,000 km, respectively. Divided by administrative region, Australia has nine regional power grids in Victoria, New South Wales, Queensland, South Australia, Australian Capital Territory, Snow Mountains, Tasmania, Northern Territory, and Western Australia. See Table 1.29 for the length of transmission lines at 220 kV or above in Australia from 1995 to 2011.
Table 1.29
Length of Transmission Lines at 220 kV or Above in Australia during 1995–2011
| Years | 500 kV | 330 kV | 275 kV | 220 kV |
Total (km) |
| 1995 | 2,574 | 6,261 | 7,304 | 7,100 | 23,239 |
| 2000 | 1,611 | 6,853 | 8,547 | 7,133 | 24,144 |
| 2005 | 2,574 | 7,700 | 9,368 | 7,245 | 26,887 |
| 2010 | 2,588 | 8,028 | 11,137 | 7,228 | 28,981 |
| 2011 | 2,588 | 8,028 | 11,137 | 7,229 | 28,982 |
Source: Japan Electric Power Information Center, 2013 Statistics of Overseas Electric Industries.
1.5.3. Electricity Consumption
Global electricity consumption has continued to go up rapidly at a rate faster than energy consumption. Between 1980 and 2013, the world’s annual electricity consumption rose from 7300 TWh to 22,100 TWh. Since the twenty first century, global electricity consumption has seen even faster growth, as evidenced by an average annual increase of 3.4%, 1.2 percentage points higher than average annual growth of energy consumption. Fig. 1.28 shows global electricity consumption during 1980–2013.
Figure 1.28 Global Electricity Consumption During 1980–2013
Emerging economies in Asia and Central and South America have witnessed far more significant growth of electric power consumption compared to the developed regions. In 2013, the levels of electricity consumption in Asia, Central, and South America, and Africa were 9820, 1050, and 710 TWh, respectively, up 5.8, 2.4, and 2.3 times, respectively, from 1980. During the same period, North America and Europe experienced growth of electricity power consumption by 87 and 148%, respectively, far lower compared to growth in the emerging and developing economies. Fig. 1.29 shows the change in the share of each continent’s electricity consumption in the world total during 1980–2013.
Figure 1.29 Change in the Share of Each Continent’s Electricity Consumption in World Total 1980–2013
Annual electricity consumption per capita serves as an important measure of a country’s electric power development. Generally speaking, electricity consumption grows faster when the industrialization process develops quickly and goes down rapidly when industrialization is completed or near completion. The same can be said about annual electricity consumption per capita. Between the 1950s and the early 1970s, during the fastest growth of the United States economy in history, a threefold increase in annual electricity consumption per capita was recorded from 1990 kWh in 1950 to 7870 kWh in 1973. However, as the oil crisis and the economic meltdown took their toll, the United States went into a period of stagflation, with slower growth in annual electricity consumption per capita. The Japanese economy also grew strongly from the mid-1950s to the late-1960s, triggering a surge of electricity demand and significant growth in electricity consumption per capita. However, the two oil crises in the 1970s left the Japanese economy badly battered, driving down both economic growth and electricity demand growth. The United Kingdom saw rising electricity consumption per capita between World War II and the mid-1970s, driven by faster economic growth. In the 1970s and 1980s when the economy slowed, per capita electricity consumption growth went down as well. After reaching 6115 kWh in 2000, the United Kingdom’s electricity consumption per capita has dropped slightly in recent years. After industrialization has run its course, a developed country typically registers annual electricity consumption per capita of 4500–5000 kWh. Fig. 1.30 shows changes in annual electricity consumption per capita of major countries during 1960–2013.
In 2013, the world’s annual electricity consumption per capita reached 3084 kWh, up 42.3% from 1990. By continent, Asia recorded annual electricity consumption per capita of 2,355 kWh, with Bahrain, South Korea, and the United Arab Emirates among the top three consumers each exceeding 10,000 kWh. Europe’s annual electricity consumption per capita was 6543 kWh, with Iceland, Norway, and Finland ranking among the top three, each consuming over 15,000 kWh. In North America, annual electricity consumption per capita amounted to 10,226 kWh, with Canada and the United States accounting for 16,000 and 13,000 kWh, respectively. South America’s annual electricity consumption per capita was 2242 kWh, with Chile, Venezuela, and Argentina among the top three recording annual electricity consumption per capita of 3000–3800 kWh. Africa’s annual electricity consumption per capita was 663 kWh, with Gibraltar, South Africa, and Botswana among the top three. In Oceania, annual electricity consumption per capita reached 9,500 kWh, with Australia accounting for 10,000 kWh. Fig. 1.30 shows the top three countries/regions of each continent by annual electricity consumption per capita (Table 1.30).
Table 1.30
Top Three Countries/Regions of each Continent by Annual Electricity Consumption Per Capita in 2013
| Region | Country/Region | Annual Electricity Consumption Per Capita (kWh) |
| Asia | Bahrain | 17,601 |
| South Korea | 10,382 | |
| UAE | 10,175 | |
| Iceland | 54,414 | |
| Europe | Norway | 23,215 |
| Finland | 15,392 | |
| Canada | 15,765 | |
| North America | USA | 12,871 |
| Mexico | 2,099 | |
| Chili | 3,807 | |
| South America | Venezuela | 3,401 |
| Argentina | 3,027 | |
| Gibraltar | 5,344 | |
| Africa | South Africa | 4,410 |
| Botswana | 1,568 | |
| Australia | 10,010 | |
| Oceania | New Zealand | 8,794 |
| Papua New Guinea | 500 |
Source: IEA, Energy Balances of OECO Countries 2014; IEA, 2014 Key World Energy Statistics.
With the economic restructuring now underway, the composition of the world’s electricity consumption is also changing. Reflecting the falling share of the industrial sector, especially energy-intensive industries, in total electricity consumption, industrial use of power, currently accounting for 30% of total consumption, in developed countries like the United States, Japan, and the United Kingdom, is declining continuously, in contrast with the increasing share of commercial service and residential use in total consumption. In developed countries, the composition of electricity consumption shows balanced proportions of the industrial, commercial services, and residential sectors in total consumption, compared to the relatively low shares of transportation and agriculture. Table 1.31 shows the composition of electricity consumption of the world’s major countries in 2012.
Table 1.31
Percentage Composition of Electricity Consumption of World’s Major Countries in 2012
| Countries | Industries (%) | Transport (%) | Agriculture (%) | Commercial Services (%) | Residential Sectors (%) | Others (%) |
| China | 73.7 | 1.8 | 2.3 | 3.1 | 12.1 | 7.0 |
| USA | 24.9 | 0.2 | 0.0 | 34.2 | 37.1 | 3.6 |
| Japan | 34.3 | 1.9 | 0.1 | 33.4 | 30.0 | 0.4 |
| Russia | 57.1 | 9.5 | 1.7 | 18.7 | 13.0 | 0.0 |
| Germany | 44.2 | 3.1 | 1.7 | 26.1 | 25.0 | 0.0 |
| Canada | 38.9 | 0.8 | 1.9 | 28.9 | 29.6 | 0.0 |
| France | 30.8 | 2.7 | 0.8 | 30.8 | 34.4 | 0.6 |
| United Kingdom | 33.6 | 1.2 | 1.2 | 28.9 | 35.2 | 0.0 |
| Italy | 44.7 | 3.4 | 1.8 | 27.6 | 22.4 | 0.0 |
| South Korea | 51.7 | 0.5 | 2.2 | 32.2 | 13.4 | 0.0 |
Source: Ref. [69]; IEA, Energy Statistics of Non-OECD Countries 2014.
2. Challenges to Global Energy Development
Fossil fuels have long supported the development of industrial civilization. But in view of the problems created by fossil energy that threaten human existence, such as environmental pollution and climate change, it is time to change energy production and consumption based on fossil fuels. A case in point is the rapid growth of the world’s clean energies like wind and solar power, despite the major challenges still confronting technology innovation, equipment R&D, engineering application, system safety, and economics.
2.1. Challenges to Energy Supply
2.1.1. Total Volume Growth
Total energy consumption worldwide will continue to show a rising trend for a relatively long period. Fuelled by global economic growth, world energy consumption rose 2.4 times, from 5.38 billion tons of standard coal in 1965 to 18.19 billion tons of standard coal in 2013.14 Energy consumption is expected to remain high, as it is difficult to reverse the long-established pattern of intensive energy consumption in developed countries. Due to the continued shift of the heavy chemical industry from developed nations into developing countries,15 developing nations are seeing a trend of rapid growth in energy consumption. From 1990 to 2013, China’s annual energy consumption registered average growth of 6%, accounting for 47.4% of the world’s total new energy consumption growth. In particular, since 2000, China has recorded new energy consumption growth of 180 million tons of standard coal annually, equivalent to the total annual consumption in Spain.
The world’s energy consumption will maintain a growing trend in the future. The International Energy Agency (IEA) has forecasted that 60% or more of the world’s primary energy consumption growth will come from developing countries between 2000 and 2030, and the share of developing countries in the world’s total energy demand will rise from 30% in 2000 to 43% in 2030, a trend that will continue up to 2050, when average annual growth of more than 1% is still expected. Meeting such huge demands will pose challenges to all aspects of energy development, allocation, and application. Table 1.32 shows the forecasted average annual growth in energy consumption of the world and major regions during 2012–2040.
Table 1.32
Forecast average annual growth in energy consumption of the world and major regions from 2012 to 2040
| Country/Region | Average Annual Growth 2012–2040 (%) |
| World | 1.5 |
| OECD Countries | 0.4 |
| Non-OECD Countries | 2.0 |
| China | 3.3 |
Source: Ref. [70].
2.1.2. Resource Constraints
Resource constraints can be perceived from a whole as well as structural perspective. On the whole, as reserves of fossil fuels are limited and nonrenewable, large-scale exploration will definitely fasten the depletion of these resources. Oil reserves easily explorable are now diminishing rapidly and concentrated in a very few countries. Coal reserves easily minable can sustain just several decades of exploration. In the foreseeable future, resource constraints will become a major bottleneck inhibiting the sustainable supply of energy. How to resolve this stressful energy resource situation will become an issue with socioeconomic development implications that mankind must be prepared to deal with. The most fundamental solution is to reduce overdependence on fossil fuels and to step up the exploration of renewable clean energies.
Structurally, the world’s energy resources and consumption are inversely distributed, with energy development being increasingly concentrated in a very few countries and regions. Some resource-scarce countries are depending more on energy imports, resulting in a fragile supply chain and prominent security issues. In China, for instance, the level of dependence on oil imports has exceeded 60%, compared to over 30% on gas imports. This resource endowment structure has made the supply of resources more challenging and added to the costs of supply. The situation calls for the development of a platform for optimal resource allocation over larger areas to break the bottleneck in the allocation of energy resources.
2.1.3. The Costs of Supply
The costs of energy supply are an important economic factor that affects energy development. Currently, the supply costs of fossil fuels and clean energies show an opposite trend.
The exploration cost of fossil energies continues to rise gradually. As the exploration of coal, oil, and natural gas continues to gain momentum, the marginal development costs of fossil energy will grow gradually, leading directly to higher supply costs of energy resources. According to IEA statistics, the average marginal costs of the world’s oil development rose from US$ 30/barrel in 2003 to US$ 80/barrel in 2011. With the growing exploration of oil and gas, and the higher level of resource utilization, the future focus of oil and gas exploration will shift gradually into the deep sea and polar regions where geological and geographical conditions are highly complex, leading to continuously higher exploration costs. The costs of coal have also continued to rise, reflecting increasing difficulty in exploration. Additionally, in view of the scarcity of fossil resources and their impact on the environment, some countries and regions have already begun or are planning to impose taxes on natural resources, carbon, and pollution, which will drive the prices of fossil energy resources even higher.
The exploration costs of clean energies go down gradually but still at a high level. With the rapid growth of clean energy technology, the costs of clean energy development have been declining. From 2009 to 2013, the price of photovoltaic systems around the world dropped 60%, with the average electricity cost going down from 35 US cents/kWh to 23 US cents/kWh. The price of wind turbines in the global market fell 10%, with the costs of onshore wind power down from 13 US cents/kWh to 10 US cents/kWh, and offshore wind power from 28 US cents/kWh to 20 US cents/kWh. Due to limited overall capacity, the average costs per kWh of solar thermal power saw a limited drop and, at close to 30 US cents/kWh, were much higher than the average costs of photovoltaic power and wind power. Fig. 1.31 shows the changes in the costs of wind and solar power from 2009 to 2013. On the whole, the average costs per kWh of renewable power, such as wind and solar energy, are still higher than the average costs, at 6–10 US cents/kWh, of thermal power. The economics of clean energies need to be further enhanced to make them more competitive in the market, so as to truly realize large-scale substitution of clean energies for fossil fuels. The opposite price trends of fossil fuels and clean energies also determine the future direction of clean energies and contribute to their great development potential.
Figure 1.31 Changes of Costs of Wind Power and Solar Power, 2009–2013
2.2. Challenges to the Energy Environment
2.2.1. Global Warming
Burning of fossil fuels is the main source of global greenhouse gas emissions.16 The world’s carbon dioxide from the burning of fossil energy accounts for 56.6% of global greenhouse gas emissions generated by human activity.17 In the past 160 years, extensive use of fossil fuels have raised the concentration of carbon dioxide in the atmosphere from about 280 ppm to around 400 ppm (Fig. 1.32).18 Energy production will remain the decisive factor that affects greenhouse gas emissions now and in the distant future. According to the fifth assessment report of the UN’s Intergovernmental Panel on Climate Change, global warming is happening due to mankind’s extensive use of fossil fuels. Between 1880 and 2012, the global temperature went up by 0.85°C.
Figure 1.32 Atmospheric Concentrations of CO2 During 1850–2010 Source: http://www.globalcarbonproject.org/activities/AcceleratingAtmosphericCO2.htm.
Greenhouse gas emissions produce greenhouse effect and pose the subsequent four major threats to human survival and development. Land area is shrinking. Global warming leads to the melting of glaciers, permafrosts, as well as rising sea levels. NASA research shows that the melting of Greenland ice and snow will add seven meters to sea level rise such that coastal cities like New York, Shanghai, and London will be swamped by floods. If the Antarctic Ice Sheet melted, sea level would rise by 57 m and some low-lying countries such as Britain, France, and the Netherlands would simply disappear under water. The impact would be disastrous:
• A large number of species will become extinct. According to the fourth assessment report of the UN Intergovernmental Panel on Climate Change (IPCC), if the global temperature whould rise by 1.5–2.5°C, 20–30% of all species would face extinction. If the temperature should rise by more than 3.5°C, 40–70% of all species would face extinction. If the current mode of fossil energy consumption should go unchecked, the average global temperature would rise by 3–6°C by the year 2100.
• Global warming will pose a threat to food supplies. According to China Meteorological Administration research findings, if the current mode of energy development should continue, global warming would cause China’s farming production to go down by 5–10% by 2030 and food supplies will decline by 20–30% 50 years from now. By then, food shortage would pose the greatest threat to humanity.19
• Global warming will threaten human health. Global warming will lead to more frequent extreme weather conditions like floods, droughts, heat waves, and typhoons, which will cause the mortality and disability rates of certain diseases. Hence the incidence of infectious diseases might go up, thus posing a serious threat to human health. According to the fourth assessment report of the UN IPCC, if the average global temperature should increase by 2°C, the proportion of world population at risk of malaria could rise to 60% from the current 45%, and five million to eight million new cases would ensue each year. Global climate change will further threaten human health with its damaging effect on ecosystems like forests, farmlands, and natural wetlands.
2.2.2. Damage to the Ecological Environment
The combustion of fossil fuels produces large quantities of soot and other pollutants, resulting in frequent smogs that seriously undermine human health. Since the Industrial Revolution, compound air pollution, characterized by fine particles of nitrogen oxides, hydrocarbons, and secondary pollutants, has occurred in most developed countries and some developing countries, resulting in lower atmospheric visibility, more hazy days and growing threats to human health. In 1930, the Maas River Valley fog event in Belgium left thousands of people with respiratory diseases, with a death toll that was 10 times higher compared to the deaths from natural causes in the same period. In 1952, the worst smog disaster in history broke out in London, causing over 4000 deaths. Due to the heavy burning of fossil fuels such as coal in recent years, China has also been hit by regional smoggy weather, characterized by extensive affected areas, long duration, high pollution levels, and rapid build-up of pollutant concentrations. In 2013, most areas stretching from the central and southern parts of North China to the northern parts of the southern Yangtze River Basin experienced 50–100 days of foggy and smoggy weather, with some areas affected for more than 100 days, as shown in Fig. 1.33. As indicated by the figures, the smog-inducing air pollution lasted 17 days, causing 74 cities to suffer 677 days of pollution, including 477 days of heavy pollution and 200 days of serious pollution. Such air pollution has become the most deep-seated threat to public health.
Figure 1.33 2013 Distribution of Smoggy Days in China Source: Environment Bulletin of China 2013, Ministry of Environmental Protection of the People’s Republic of China.
Fossil fuel combustion produces large quantities of pollutants such as sulfur dioxide, leading to environmental pollution such as acid rain that seriously affects humans and production activities. Currently, global emissions of sulfur dioxide into the atmosphere are estimated at about 120 million tons every year, 80% of which are caused by fossil fuel combustion. In 2013, China’s territories affected by acid rain exceeded 1 million km2, concentrating along the Chang Jiang River and areas south of the middle and lower reaches of the river, covering most areas of Jiangxi, Fujian, Hunan, Chongqing, as well as the Chang Jiang River delta, the Pearl River delta, and south-eastern Sichuan province. Severe acid rain affects an area of about 60,000 km2, hitting 44.4% of all cities as shown in Fig. 1.34. Mercury emissions from coal combustion have also caught growing attention in recent years, with 45% of global anthropogenic mercury emissions coming from coal combustion.
Figure 1.34 Distribution of Average Annual pH Isoline of Rainfall in China in 2013 Source: 2013 Environment Bulletin of China, Ministry of Environmental Protection of the People’s Republic of China.
Large quantities of fossil fuels cause severe pollution to water, soil, and air, in all the areas of the mining, transportation, and utilization processes. Coal mining brings about ground subsidence, renders land barren, damages vegetation, and seriously undermines the ecological system of the mining areas. Mining operations also lead to lower underground water levels, exposing this body of water to large quantities of pollutants that cause damage to water resources. The area of ground subsidence caused by coal mining in China has reached 7000 km2, while approximately 2.2 billion m3 of underground water gets polluted every year. Coal production accounts for about 25% of China’s total waste/polluted water effluents every year.20
Storage and transport of coal can also affect the environment. Coal gangue piles not only take up land space, but also cause severe pollution to rivers and underground waters if the poisonous and harmful substances and salts contained in the coal gangue go into the soil and water. The spontaneous combustion of coal will release a large quantity of harmful gas, causing air pollution. The transportation of coal will also bring serious dust pollution to the areas along the railway. Within a 100 m radius of the railway used by coal trains, flying coal dust will cause total suspended particle concentrations to rise significantly. And within a distance of 50 m on both sides of the railway, exceedance of transient concentration limits may occur.
In addition, the exploration and utilization of oil and gas will produce pollutants like wastewater, waste gas, and oily sludge, with a negative effect on water, air and soil. The penetration of corroded pipelines can also seriously contaminate soil and underground water sources, causing not only soil salinization and poisoning that lead to soil degradation and destruction, but also harm to human health eventually as a result of the toxic substances entering the food chain through crops or underground waters. The United States has to face possible environmental problems such as damage to the ecosystem, pollution of underground waters, and methane emissions brought about by the recent shale gas revolution.
2.3. Challenges to Energy Allocation
2.3.1. Allocation of Fossil Energy
Global allocation of fossil energy is characterized by large volumes, multiple steps, and long transmission distance. The existing modes of sea, rail, or highway transportation, usually entail a long chain of operations with low efficiency and require the integration of multimodal transport to complete the entire energy–transport process. As a result, this complex transport system is easily subjected to external influences. Particularly in international transport, external factors, geopolitical, and otherwise, will have a significant impact on energy security and prices.
Take oil transportation as an example, global oil trade is currently highly dependent on offshore oil transport corridors such as the Malacca Strait and the Hormuz Strait, which are exposed to high potential risks. In the event of political unrest or war in one of the countries concerned, the lifeline of offshore oil transportation will probably be interrupted, thereby threatening the world’s oil supply and transport chain. To ensure the safety of offshore oil transport, the countries concerned have been compelled to launch military escorts, incurring massive military spending. With the steady growth of global natural gas trade, the secure allocation of global natural gas has become increasingly prominent, as the delivery of piped gas is strongly influenced by geopolitical factors.
In recent years, international geopolitical conflicts have been on the rise and increasingly centered on oil and gas resource–rich countries in the Middle East and North Africa. The intensifying local conflicts pose a serious challenge to the security of oil imports for the world’ s major energy consumers, including China and Japan. Since the 1970s, the Middle East and North Africa have been facing multiple problems of population, employment, religion, and race. Since 2010, countries in the Middle East and North Africa have seen more political upheavals or even armed conflicts. The complicated geopolitical situation determines that global oil and gas energy supplies are highly vulnerable.
2.3.2. Allocation of Clean Energies
As global energy development is increasingly focused on clean energies, the importance of electricity as an energy resource for long-distance, large-area allocations has come into the spotlight. However, the current level of power allocation capacity is obviously insufficient. To cope with the challenges of global energy supply and the energy environment, clean energy development is the way forward as the world’s energy structure is trending toward being clean-energy oriented from being fossil-fuel based. This is being accompanied by a gradual shift in the world’s energy demand from fossil energy to clean energy. As hydro, wind, solar, and other clean energies need to be converted into electricity before they can be effectively used, the important role of electric power in the future allocation of global energy is ensured. Currently, the allocation capacity of the world’s electric power is limited and can hardly satisfy the future development of clean energy. Compared with fossil energy, the current level of global electricity trade is minimal, representing approximately 80 million tons of standard coal or less than 2% of fossil energy trade.
The current coverage of power allocation is limited and cannot meet the need for worldwide allocation of clean energy. Judging by the global distribution of clean energy resources, high-quality wind and solar energy resources are concentrated in the polar and equatorial regions and the major clean energy bases on each continent and are hundreds to thousands of kilometers away from load centers. The economic transmission distance of existing EHV power grids ranges from 500 km to 1000 km, which cannot meet the need for large-area development and allocation in the future.
To meet the requirement for large-scale development of clean energy, there is a pressing need to establish an efficient global platform for electric power allocation. With the large-scale development of clean energy, an energy allocation structure focused on electric power is in the making. To meet the need for large-scale and long-distance allocation of clean energy, a global platform oriented toward clean energy must be established with the focus on electricity, higher voltage levels, bigger transmission capacity and longer transmission distances. This being the case, ways to improve the capacity of global electric power allocation to meet the power demands of various regions in the world, will become the crux and focus of future energy development.
2.4. Challenges to Energy Efficiency
Currently, the efficiency of exploration, allocation, and application of either fossil fuels or clean energies is still relatively low, with significant scope for improvement.
2.4.1. Exploration
The exploration and utilization rates of energy resources are low. Currently, the average recovery rate of global oil reserves is only 34%, compared with 65–70% for coal, 80–90% for natural gas from constant volume depletion gas fields, and 65–80% for natural gas from gas condensate fields. Problems with the exploration and utilization of coal, oil, and other mineral resources, are rife in some developing countries. Examples are scattered mining of large deposits, disorderly and indiscriminate mining, and selective mining of rich deposits rather than infertile deposits. According to statistics, the average recovery rates of China’s coal and oil deposits stand at only 35 and 28%, respectively, far below the world’s average.
Energy conversion efficiency is also low. At present, China’s average thermal coal consumption is about 330 g of standard coal/kWh. Germany has a relatively higher efficiency at an average of 290 g of standard coal/kWh. In comparison, some countries have a thermal coal consumption of as much as 370 g of standard coal/kWh, indicating much room for improvement. Constrained by exploration and application technologies, the exploration and utilization of wind and solar energy is inefficient. Studies have shown that the integrated efficiency of wind power is around 38%, and the generating efficiency of photovoltaic power ranges from 12% to 18%, again indicating major room for improvement.
2.4.2. Allocation
The allocation of fossil energy involves a multitude of processes resulting in low efficiency. Not just used directly for terminal consumption to a certain extent, significant quantities of fossil fuels, including coal, natural gas, and even fuel oil, are also used to generate electricity. Power generated from fossil fuels usually goes through a series of processes before arriving at a power plant, which results in huge energy losses. In China, energy development is excessively dependent on coal, while electric power development aims to achieve local balance, a situation that leads to strained transport capacity, high costs of thermal power generation, and soaring coal prices. Compared especially with rail transport, it consumes 10 times the energy to carry each tonne of coal per kilometer by highway, which also contributes to traffic jams, and even higher consumption of gasoline. Fig. 1.35 shows the processes involved in coal transport and power transmission.
Figure 1.35 Diagram of Coal Transport and Power Transmission
The key to solving the problems of complicated thermal coal transport processes and heavy loss of energy is to shift the mode of energy development away from being focused on achieving local balance toward a one-stop allocation solution by replacing coal transport with electricity transmission, especially through UHV grids with the advantages of high capacity, long distance, high efficiency, low loss and space economy. In terms of transmission capacity and distance, a 1000 kV UHV AC transmission line is four to five times and three times, respectively, as much compared with a 500 kV AC transmission line, while the loss of energy per unit is only one-quarter to one-third the level sustained by a 500 kV AC line. A ±800 kV UHV DC transmission line has a transmission capacity of 10 GW and a transmission distance of up to 2500 km, 3 and 2.5 times, respectively, as much as a ±500 kV DC transmission line, with the loss of energy per unit at only 73% of a ±500 kV DC transmission line. Table 1.33 shows the correlation between voltage levels, transmission capacity and transmission distance. Compared with coal transport, UHV transmission presents a one-stop power solution by making it possible to deliver, at one go, large quantity of hydro, nuclear, wind, and solar power to load centers. However, the technology edge of UHV grids has yet to be fully leveraged, given the limited scale of UHV application in a world still dominated by extra-high power grids.
Table 1.33
Correlation between Voltage Levels, Transmission Capacity, and Transmission Distance
| Items | Voltage (kV) | Transmission Capacity (10,000 kW) | Transmission Distance (km) |
| AC | 10 | 0.02–0.2 | 6–20 |
| 35 | 0.2–1 | 20–50 | |
| 110 | 1–5 | 50–150 | |
| 220 | 10–30 | 100–300 | |
| 330 | 20–80 | 200–600 | |
| 500 | 100–150 | 150–850 | |
| 750 | 200–250 | Over 500 | |
| 1000 | 200–600 | 1000–2000 | |
| DC | ±500 | 300 | 1000 |
| ±800 | 800 | 2500 | |
| ±1100 | 1200 | 5000 |
2.4.3. Utilization
Energy utilization is inefficient. On the whole, energy utilization in developed countries is generally more efficient than in developing countries. Energy consumption per unit of GDP among OECD countries is only 25% of the non-OECD countries.21 In 2012, China’s energy consumption per unit of GDP was 2.7 times higher than the global average. Fig. 1.36 shows the energy consumption per unit of GDP of the world’s major countries in 2012. The overall efficiency of China’s energy processing and conversion was 72.4%, which was 10–20% lower than the world average, while the average energy consumption per unit of each product of China’s major energy-intensive industries was 10–15% higher than the international advanced level. The energy consumption of heating per unit of floor area in some developing countries is two to three times higher than the level in developed countries with similar climate conditions.
Electric power accounts for a small share of terminal energy consumption. Electricity has a higher efficiency of terminal consumption than other forms of energy. In China, studies have shown that every one percentage point increase in the share of electricity in terminal energy consumption will translate into a 3.7 percentage point decrease in energy intensity.22 Energy saving at the end-user segment of power consumption has an amplifying effect: every 1% increase in the relative efficiency of terminal consumption will contribute to a relative efficiency 4–5% higher than the energy production sector. A greater share of electricity in end-use energy consumption can help raise economic output and improve overall energy efficiency at the community level. In 2012, electricity accounted for just 18.1% of global terminal energy consumption. The level of electrification urgently needs to be further increased to realize improved energy conservation and efficiency.
On the whole, global energy development is facing serious challenges in terms of resources, environment, allocation, and efficiency, especially in view of the environmental problems like air pollution, climate change, and resource depletion resulting from large-scale exploration and utilization of fossil fuels. Other practical issues remain daunting, including high costs, low efficiency, and difficulties in energy allocation over long distances. To meet these challenges, intensive efforts are required to promote an energy revolution so as to drive the global development of energy resources that are safe, efficient, clean, and sustainable.
Summary
1. Global energy development has undergone a shift from firewood to other fossil fuels like coal, oil, and natural gas, providing a driving force to the first and second industrial revolutions. The faster growth of clean energy we see today is set to lift the postindustrial revolution and human civilization to a new height.
2. Coal, oil, and natural gas are the world’s most important primary energies. However, the overdependence on fossil fuels is unsustainable and has created pressing problems such as resource depletion, higher costs, environmental pollution, and climate change.
3. In a world rich in renewable energy resources, including hydro, solar, and wind power, clean energy is the strategic direction of future energy development. Given the current limited capacity of clean energy development and less favorable economics, technology innovation must be pursued to resolve the existing constraints on clean energy development, in terms of energy conversion, resource allocation, and efficient utilization.
4. The Arctic and equatorial regions are rich in clean energy resources, making them important strategic bases of clean energy development around the world. We need to rely on UHV transmission technology to achieve safe, economical, and efficient exploration and utilization of energy.
5. In the face of global problems such as energy supply, environmental concerns, energy allocation, and energy efficiency, efforts are required to quicken the pace of energy revolution to drive the intensive development of clean energy, and pave way for sustainable energy that is safe, clean, and efficient.
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