pwc - apec's path to green growth

© 2012 PwC. All rights reserved. PwC refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firms professional judgment or bind another member firm or PwCIL in any way.

What PwC is asking CEOs about green growth in the 2012 APEC CEO Survey

Are inadequate or unreliable power or energy supplies posing a barrier to growth in the next 3–5 years?

Is your company using environmentally friendly technologies to increase operational efficiencies?

Would an oil price spike exceeding $150 impact your company?

Is your company planning to generate your own energy sources, such as solar, geothermal?

Is your company adopting water conservation technologies?

Is your company building rising water costs into your growth strategy plan?

Are energy bottlenecks impacting the growth and operation of your company in APEC economies?

How do water and energy security rank on your list of top priorities for what APEC needs to work on?

Do you think policies such as a carbon tax are needed?

2012 APEC CEO Summit issues spotlight: APEC’s path to green growth

Cypark is looking into converting as many as 18 other landfills in Malaysia into power-producing parks.

Eventually, the plant is expected to be the largest solar farm in Southeast Asia, with an annual 19GWh (Gigawatt hours) from over 50,000 solar panels and 17GWh from biogas.

Malaysia’s landfill turned solar/biogas power plant

A former 26-hectare (0.26 sq kilometers) landfill in Pajam, Malaysia has been converted into the country’s largest grid-connected solar farm. The landfill’s methane gas fires two gas engines to generate electricity which feeds into the power grid through a 21-year renewable energy power purchase agreement with Malaysian utility Tenaga Nasional Berhad. As the country’s biggest grid-connected solar plant, it currently has 8 megawatts in capacity.

Source: Greenprospectsasia.com, “Cypark Integrated Energy Park in Malaysia starts suppling solar power to grid from March 28th,” 27 March 2012


APEC’s Khabarovsk statement on environment

2012 APEC focuses:

“…[The] environmental protection and the conservation and sustainable use of natural resources, ecosystems and biodiversity are essential foundations for achieving sustainable economic and social results for the APEC region.”—Issued on July 18, 2012 at the 2012 APEC Meeting of Ministers Responsible for the Environment

Conservation of biological

diversity

Sustainable use of natural resources

Sustainable water management & trans-boundary

watercourses

Address air pollution & climate change

Support for green growth

Source: APEC press release, 18 July 2012


Asia Pacific renewable energy M&A plays solid M&A renewables deals

Deal value | # of deals

Targets in Asia Pacific

Bidders based in Asia Pacific

2010 2011$4,017|78 $4,612|58

2010 2011$4,776|81 $9,415|75

Asia Pacific renewables deals by country, 2011In US$ millions

$1,716Phillippines

$982China

$683Australia

$579Japan

$176Taiwan

$58Malaysia

$42New Zealand

$17Korea

$357India

$3Thailand

Source: PwC, “2012 outlook and 2011 review,” Renewables Deals, 2012


In US$ millions

$123

$98 $97

$123$126

Following the money to clean energy

New financial investment in clean energy in APECIn US$ billions

Top 3 in APEC clean energy investment, 2010 vs. 2011

2007 2008 2009 2010 2011

United States

China

Japan

$33.7$48.0

$45.0 $45.5

$7.0 $8.6

In US$ billions

Sources: Bloomberg New Energy Finance (figures include asset finance, public markets and venture capital/private equity investments); Pew Charitable Trusts, “Who’s Winning the Clean Energy Race?” 2012


Russia, US to drive global natural gas

In billion cubic meters

Natural gas production in selected APEC economies

Years: 2008, 2015, 2020, 2025, 2030, 2035

United StatesRussia China Canada Australia Indonesia

Source: International Energy Agency, “Are We Entering a Golden Age of Gas?” World Energy Outlook Special Report, 2011

8812035842

20307792035

7092030

3032035264

20301922035

1892030 155

2035147

2030 1192035

1092030


The great shale play—a boom for natural gas

US taking the lead… In 2012, shale-derived natural gas makes up nearly 30% of all US natural gas production. By 2035, this is forecast to grow to 49% of all production.

…but Asia Pacific fast behind By 2020, China could produce up to 112 billion cubic meters of shale gas, or 45% of total natural gas production—up from 12% in 2010.

By 2015, Asia expected to be world’s largest natural gas market

Papua New Guinea

Russia

Australia

Canada

Unites States

Indonesia

Malaysia

49% 45%

Sources: Eurasia Group, PwC, Eurasia Group Global Trends Quarterly, Third Quarter 2012; IEA, Golden Rules for a Golden Age of Gas, 2012


The smart meter race

By 2015, China will have over 4× more smart meters than the US

United States

362011

652015

China

362011

286 millions of smart meters installed2015

In millions of smart meters

Sources: Institute for Electric Efficiency, Utility-Scale Smart Meter Deployments, Plans & Proposals, May 2012; Zpryme, China: State Grid Corporation of China Profile, 28 March 2012


APEC and the smart grid

Global distribution automation market is forecast to grow from $5.7 billion in 2012 to $33.9 billion in 2020

% of global market Asia Pacific North America

2012

$5.7 bln

25%

44%

2020

$33.9 bln

37%

28%

Source: Zpryme, The Optimized Grid, July 2012


China, US lead APEC clean energy in capacity

Renewable energy capacity in 2011

World

China

United States

Japan

Wind, biomass, solar, geothermal and other= 1 gigawatt

Source: REN21, Renewables Global Status Report, 2012


APEC’s green growth aspirations

Cut energy intensity levelsAPEC economies set a goal for achieving a 45% reduction in APEC-wide energy intensity by 2035

Limit tariffs on green goodsAPEC economies announced plans to reduce applied tariff rates on environmental goods to 5% or less by 2015

The global market for environmental goods totalled $782.4 billion in 2008, according to the US Commerce Department, with the U.S. market at $299.5 billion in 2009.

Key 2011 APEC energy-related deliverables

During 2012, the member economies plan to specify the list of environmental goods that will be affected. US officials have identified solar panels, wind turbines, air filters as examples of preferred items.—In a statement made in November 2011 at the APEC Ministerial Meeting in Honolulu, Hawaii.

Identified preferred green goods

Solar panels Air filtersWind turbines

Sources: APEC; “US hopeful on APEC green goods compact, despite China dispute,” Reuters, 21 July 2012; International Centre for Trade and Sustainable Development, Bridges Weekly Trade News Digest, 6 June 2012


mtoe=million tonnes of oil equivalent

Fast-growing Asia drives global energy consumption

World energy demand is forecast to expand 36% through 2035

Non-OECD Asia alone will account for 57% of the world’s growth in primary energy consumption from 2011 to 2035

China will consume 79% more energy from 2011 to 2035—25% of the world’s energy consumption in 2035, up from 20% in 2011

An estimated $1.5 trillion investment in electricity generation per year through 2035 is needed to meet current demand

57%

79%

2008 2035

12,271 mtoe

16,765 mtoe

Oil 33%

Coal 27%

Gas 21%

Biomass 10%

Nuclear 6%

Other 1%Hydro 2%

Oil 27%

Gas 25%

Coal 22%

Biomass 12%

Nuclear 7%

Other 4%

Hydro 3%

Sources: International Energy Agency, World Energy Outlook 2010, 2011; US Energy Information Administration, International Energy Outlook, 2011


2012 APEC CEO Summit: PwC issues spotlight

APEC’s path to green growthLeading up to this year’s Asia-Pacific Economic Cooperation CEO Summit in Vladivostok, Russia on September 7–8, PwC is sharing a series of infographics highlighting key Summit issues. This series also provides a sneak preview to some questions PwC is putting to business leaders in PwC’s 2012 APEC CEO Survey which will be released at the Summit.

pwc - apec's path to green growth

Business

apec energy

apec ceo survey

apec green goods compact

apec us hopeful

us lead apec clean energy

international energy

key summit issues

international energy