Ingrid Weiss

                                                                                                                          4/14/05

                                                                                                             GEO 206 Final Paper

 

                     International Energy Use; A Four Country Case Study

 

Abstract:

 

            The purpose of this paper is to look at the differences between four countries in their energy use and their intended energy use, aka their energy policies.  The countries highlighted in this paper are; The United States, China, Greece and Tanzania.   The more one understands why countries are choosing the energy sources that they are choosing the more one can influence these choices.  The biggest energy producers and consumers, the Untied States and China, were the ones who were divorced the least from fossil fuels and who were least willing to consider alternative methods of energy.  Greece is a member of the European Union which has created long term renewable energy goals for its’ members.  Tanzania  has a very poor rural population and so does not have an energy grid in place, which makes it more feasable to implement small renewable energy projects.

 

Introduction:

 

            The United States, Greece, China, and Tanzania represent a very tiny sample of the countries in the world.  However they give an interesting perspective on how different countries are handling the surge in demand for energy.  All of the countries have different natural resources, different types of populations (urban/rural), different economies and different governments.  They are all struggling to create an energy plan for the future that will be economically and environmentally practical while still meeting all their energy needs.  Greece and Tanzania both have created plans that include a signigficant amount of renewable energy.  The USA is looking to create more nuclear power and become more energy efficient.  China is seeking to exploit its own natural resources efficiently.

 

Methods:

 

            I wanted to choose a small enough sample of countries so that I could go into a fair amount of detail and the portrayal of the country would be more then statistics.   Yet I wanted a diverse enough sample of countries of give a spectrum of different approaches to energy use, resources and policy.  I decided to look at four countries; the United States, Greece, China, and Tanzania.

            I choose the USA because it is where I live.  Not only is it where I live, but it is one of the wealthiest and most influential countries in the world.  Its’ policies have the ability to effect the entire world because it is such a large energy producer and consumer.    I choose China because it has the largest population of any country in the world.  It has a population of about of 1.28 billion. Its’ population is still growing rapidly.  By 2030, the International Energy Agency predicts China will account for one-fifth of the world's total annual energy demand.  I choose to research Greece because I thought I should look at a country that was part of the European Union.  I picked Greece from all the rest of the countries in the EU because I knew from previous research that Greece’s policies were very solar power friendly which I personally find interesting.  I choose to research Tanzania because it is technically a Least Developed Country(LDC).  I am missing a country from South or Central America, but since this is not a long paper, I had to choose between a LDC and a country from that area and I decided that an LDC would provide a more meaningful contrast.

 

 

Results and Discussion:

 

 

 

USA

 

            It is very important to study the United States’ current energy uses and policies as well as its future plans simply because the United States uses so much energy already.  It has the highest energy consumption of any country in the world.

 

Figure 1:

 

Rank

Country

Electricity - consumption
(kWh)

Date of Information

1

World

13,940,000,000,000

2001 est.

2

United States

3,602,000,000,000

2001

3

European Union

2,635,000,000,000

2001

4

China

1,312,000,000,000

2001

                        (http://www.cia.gov/cia/publications/factbook/rankorder/2042rank.html)

 

In this contemporary world of consumerism, all of the countries in the world have a rapidly increasing demand for energy.  This demand for energy exceeds the supply of energy and to all accounts the gap will only grow larger in the future. The USA is an extremely large energy consumer because the standard of living is very high.  It is not surprising that the United States spends over 500 billion dollars annually on energy. “Estimates indicate that over the next twenty years, U.S. oil consumption will increase by 33 percent, natural gas consumption by well over 50 percent, and demand for electricity will rise by 45 percent,”(National Energy Policy x).    According to the National Energy Policy, (Report of the National Energy Policy Development Group May 2001) the gap between the energy supply and the energy demand is over 20 quadrillion Btus.   

The US is largely dependent on fossil fuels to supply its energy needs.  This is problematic because it means that the US is not self sufficient.  The country cannot supply enough coal, oil, or gas to meet its’ own needs so we must import from foreign sources.  This makes the country more vulnerable and affects the country’s foreign policy.  Not only are fossil fuels a bad fuel source because of their scarcity in the United States, but because they are not a renewable energy source, eventually they will run out.  Another problem with dependence on fossil fuels, is that they are bad for the environment.  The US is the largest single emitter of carbon dioxide from the burning of fossil fuels.  The US did not sign the Kyoto Treaty, which regulates emissions.

 

Figure 2:  Share of Total Primary Energy Supply* in 2002

IEA Energy Statistics Statistics on the Web: http://www.iea.org/statist/index.htm

 

Nuclear 9.2%

Hydro 0.9%

Comb. renew. & waste

3.0%

Geothermal/solar/wind

0.5%

Coal 23.7%

Oil 39.3%

Gas 23.5%

 

The US plans to increase and diversify energy sources.  The government is hoping to utilize more domestic oil, gas, and coal, hydropower and nuclear power, greater use of non-hydro renewable source.  This is a huge task considering the enormous amount of energy we use and the huge dependence we have on foreign oil.

 

Figure 2: US Oil and Natural Gas Use 2001

 

Oil Production

8.054 million bbl/day

Oil Consumption

19.65 million bbl/day

Oil Exports

NA

Oil Imports

NA

Oil proved reserves

22.45 billion bbl

 

 

 

            When the average United States citizen speaks of fossil fuel they are thinking of oil and gas that we use for our cars.  However the percentage distribution of fuel sources for our electricity shows that that is not our only worry.  The United States is also greatly dependent on the fossil fuel coal for electricity.  While it is not developed, many say that the United States has the enough coal resources so that they would not have to import.  This does not solve the environmental problems that coal presents.

 

 

 

Figure 3:  Fuel Sources for Electricity in US 2000




           Fuel Sources for Electricity Generation in 2000

Electricity is a secondary source of energy, generated through the consumption of primary sources. Coal and nuclear energy account for nearly 75 percent of U.S. electricity generation.

______

Source: U.S. Department of Energy, Energy Information Administration

 

Unlike many countries, the US has the resources to create a plan to deal with this energy crisis.  To solve this problem the US has outlined 5 specific national goals.  They are: to modernize conservation, modernize energy infrastructure, increase energy supplies, accelerate the protection and improvement of the environment, and to increase nation’s energy security.  The current administration is particularly interested in drilling for oil in the Artic National Wildlife Refuge in Alaska and building new nuclear power plants.

           


 

 

Greece

 

            Unlike the United States, Greece does not have a large impact on world energy consumption.  Greece’s total energy consumption is only .3% of the world’s total energy consumption (1.38 Btu in 2002). (http://www.eia.doe.gov/emeu/cabs/greece.html)  However, like the United States Greece is experiencing a rapid growth in consumption.  If Greek consumption continues with its current patterns it could triple over the next ten years.  Also, similarly to the United States, Greece is facing the problems of extensive use of foreign fossil fuels to meet its high demand for energy.

           

Figure 4:  Share of Total Primary Energy Supply* in 2002

IEA Energy Statistics Statistics on the Web: http://www.iea.org/statist/index.htm

 

Coal 31.2%

Oil 57.5%

Gas 6.3%

Hydro 0.8%

Comb. renew. & waste

3.6%

Geothermal/solar/wind

0.6%

 

 

Figure 4:  A more detailed ENERGY OVERVIEW

Fuel Share of Energy Consumption (2002E): Oil (62.2%), Coal (28.5%), Natural Gas
Proven Oil Reserves (1/1/04E): 6 million barrels
Oil Production (2003E): 6,400 barrels per day (bbl/d), of which 2,830 bbl/d was crude oil
Oil Consumption (2003E): 429,000 bbl/d
Net Oil Imports (2003E): 422,600 bbl/d
Major Crude Oil Import Sources: Persian Gulf OPEC, Russia, Libya, Egypt
Natural Gas Reserves (1/1/04E): 35 billion cubic feet (Bcf)
Natural Gas Production (2002E): 1.0 Bcf
Natural Gas Consumption (2002E): 77 Bcf
Coal Reserves (2002E): 3,168 million short tons (all lignite)
Coal Production (2002E): 75.0 million short tons (Mmst)
Coal Consumption (2002E): 76.4 Mmst
**GDP based on CIA World Factbook estimates based on purchasing power parity (PPP) exchange rates
.

 

  In 2002, all of Greece’s heat was produced by Lignite.   Lignite ("brown coal"), is the only significant fossil fuel source in Greece. Greece's lignite reserves total 3,168 million short tons (Mmst). Over 60% of Greece's electricity is generated through the combustion of domestic lignite, an industry that produces 74,957 thousand short tons a year (2002).  Burning coal creates a lot of air pollution.

One of the more recent changes in Greece’s energy policy is the signing of the Kyoto Protocal.  Greece's greenhouse gas (GHG) emission target for the first commitment period(2008-1012) is set at 25% above 1990.  In 2000, Greece's energy-related carbon dioxide emissions, were 24% over the 1990 level.    In 2002 Greece’s carbon dioxide emissions were 104.39 million metric tons which is about .4% of the world’s emissions. Greece is attempting to meet the guidelines set for it in the Kyoto Protocol by placing greater emphasis on the efficiency of energy end-use, which means creating appliances that use less energy to create the same result. The Greek government is trying to achieve this end by promoting third party financing of energy efficiency projects.  They are hoping to begin projects like improving public transport, through the introduction of natural-gas powered buses. Greece is also part of the European Automotive program, which requires signatories to mandate at least a 30% increase in the fuel economy of all new vehicles by 2010.
           
The European Union has been pushing renewable energy in a way that is very productive. European Union guidelines state that member states must increase their percentage of renewables in electricity production to reach 12% by 2005.   Greece has decided to raise the bar for itself.  This new mandate by the Greek Regulatory Authority of Energy (RAE), is targeting an increase in the production of renewable energy resources from the current 5.9 percent to upwards of 20 percent of total energy production in Greece by the year 2010.  That is a huge expectation. In outlining it's guidelines for deregulation, RAE has mandated that some 14,000 MW of a total of 19,000 MW of new production capacity must be produced using renewable energy.  In support of this new energy policy, the Greek Ministry of Development plans to spend over $5 billion on its 2001-2006 master energy development program.   As would be expected, as a result of this mandate, renewable electricity generation projects are on the rise in Greece. The government created a Centre for Renewable Energy Sources (CRES), housed under the Development Ministry, which was created to promote renewable energy.  The CRES estimates that 15% of the country's electricity needs can be produced by wind farms.  Wind farms are already located on a number of Greek islands (Crete, Evia, Andros, Samos, etc.).
           
The EU is also pushing Greece to use more photovoltaic energy technology.   Photovoltaic (PV) technology in Greece has tripled in the last three years.   The EU indicated in a report entitled "Photovoltaics 2010" that the nation has enough potential to meet one-third of its energy requirements using PV. A 50-MW parabolic trough-type solar power plant, the first grid-connected large scale solar system, was recently constructed in Crete.   In late 2003, construction began on the first Greek PV manufacturing plant to have an initial production of 5 MW. Greece has approved licenses for more than 1,800 MW of renewable installed capacity.  However, many of the planned projects have stalled because local residents are concerned about the large amounts of land required for the plants.

Greece is a very favorable location for solar power as it has more then 300 hundred sunny days a year.  Greece has the second-largest number of solar-collectors in Europe (after Germany). Twenty percent of households use solar water heaters(about 800,000 houses).  Greece leads Europe in the production and export of solar heaters. The Greek market was estimated at $95 million in 2000 and is dominated by domestic producers.  In August 2004, ECO//SUN installed the largest rooftop solar-energy unit in Athens. It was placed on top of  a German school in the Greek capital, the 33-kilowatt unit is predicted to prevent the city from emitting over 24 tons of carbon dioxide each year.

 Another program aimed at advancing the prospects of renewable energy in Greece is the European Commission's recently prepared, 'Community Strategy and Action Plan’.  It which aims to double the production of renewable energy by member states by the year 2010. The Commissions "Campaign for Renewable Energy," is
targeting the installation of 15 million square meters of solar collectors
within the European Union by the year 2004 and more than 50 million square
meters by the year 2010. Of this total, the EU Commission envisions roughly 5
million square meters of solar collectors will be installed in Greece.

Part of what Greece is counting on to successfully implement  its new renewable energy programs is funding from both the private and public sector.  The Greek Public Power Corporation (PPC), has announced a program for the development of renewable energy sources as part of the electricity utility's 10-year Development Plan.  PPC’s investments in new renewable energy installations are expected to increase the total amount of energy produced by renewable energy sources in Greece by 85%. Third Community Support Framework and private sector funds will finance many of these renewable energy investments in the PPC program.

 

China:

 

China is the third greatest energy producer in the world.  It contributes about 9.5% of the world's annual total energy production.  China is also the second greatest energy consumer (behind the United States), accounting for nearly 10% of the world's total annual energy consumption. China's energy demand has been greatly increasing. Annual electricity consumption in China is projected to reach nearly 2 trillion kWh by 2010 and nearly 3 trillion kWh by 2020. It is expected to grow at about 5.5% per year through the year 2020.  Unlike the United States and Greece, China has also experienced huge growth in its electricity generation, more than doubling its annual generation during the 1990s.

Although similar to the United States in terms of the amount of energy it uses, China does not have the resources in place in the government that the US does.   The Energy Bureau is only one of over 20 sub departments under the State Development and Reform Commission. The National Statistical Bureau has only three people to handle energy data. In comparison, the United States has employs 14,000 in the Department of Energy, of which about 2,000 staff map out policy and 600 collect and analyze data.

China is facing the same problems of rapidly increasing demand and the increasing impracticality of fossil fuels as the US, but it has a lot less financial resources to deal with it.  However, it also has less of a history as it has experienced this growth more recently then the US.  China has less of an energy infrastructure in place.  To cope with the nation’s energy demands, China has outlined goals to boost the use of natural gas and renewable energy resources, balance the use of coal with steps to clean up the environment and prioritize conservation measures.  It also wants to create strategic oil reserves as its dependence on imported oil grows. (http://msnbc.msn.com/id/6405467) 

 

Figure 5: People's Republic of China

Share of Total Primary Energy Supply* in 2002

IEA Energy Statistics Statistics on the Web: http://www.iea.org/statist/index.htm

* Share of TPES excludes electricity trade.

Coal 57.6%

Oil 19.6%

Gas 2.6%

Nuclear 0.5%

Hydro 2.0%

Comb. renew. & waste 17.7%

 

National goals in the energy sector are codified in China's Five-Year Plans. In its 10th Five-Year Plan, covering the period from 2001 to 2005, China plans to dramatically increase the share of hydropower and natural gas in its energy resources. This will necessitate construction of pipelines and terminals, as well as many more hydroelectric facilities. And much more is needed: China's 10th Five Year Plan (amended) has set an electricity generation target of 1,945 billion kilowatt-hours (kWh) by 2005, which requires an average annual growth rate of more than 5%.

            Also unlike the United States and Greece, China has more of an option to use fossil fuels.   China's proven oil reserves were estimated at 24 billion barrels (sixth greatest in the world) as of January 2002.   China is presently the world's greatest coal producer and accounts for nearly 28% of the world's total annual coal production. China is also the world's greatest coal consumer, accounting for more than 26% of the world's total annual coal consumption.   Domestically, coal currently accounts for around two-thirds of China's total energy use.  Coal fuels 70-80% of power generation, 75% of energy used in industry, and 80% of household energy.  The demand for coal is expected to increase by 20 million short tons annually over the next five years and China plans to increase coal production by about 17% within five years.

The environmental pollution caused by the burning of the coal has placed seven Chinese cities in the World Health Organization's (WHO) 1998 list of the top ten most polluted cities in the world.  About 30% of China's territory is affected by acid rain. China is currently responsible for slightly more than one-eighth of the world's total fossil fuel-based carbon emissions, which means that it is ranked second in the world behind the United States. China has ratified the 1997 Kyoto Protocol as one of the Non-Annex I Parties.  That means that China does not have to meet the emission goals set for it.  This is a serious issue for China because fossil fuel-related emissions of carbon dioxide (CO2) in China have increased by more than one-third from 1990 levels.

China has tremendous hydroelectric resources, the largest in the world. Some people estimate that the total hydroelectric potential  could be as much as 300,000 Mwe. Slightly under 20% of China's electricity is now generated from hydroelectric sources. As of January 2001, China's estimated installed hydroelectric capacity totaled about 79,000 MWe, and Chinese government estimates forecast this figure to climb to 100,000 MWe by 2005. The 10th Five Year Plan calls for a 48% rise in hydropower production by 2005.

           

 

Tanzania:

 

            The US is number one on the list of energy consumers.  In contrast, Tanzania is 118th on the World Fact Book’s list of energy consumers.   It consumed about 2.75 billion kWh in the year 2001.  The crisis in Tanzania is the same as every country, but the way it manifests itself is different and much more immediate then in more developed countries.  Tanzania is meeting its’ energy crisis with biomass energy.  It is using wood as a fuel source.  Only 6% of the population is served by the grid.  Tanzania's energy requirements are derived mainly from wood-fuel which account for up to 90% of its total energy supply with 3% from hydro-electricity, and about 7% from oil-derived products.   

 

Figure 6: United Republic of Tanzania

Share of Total Primary Energy Supply* in 2002

Coal 0.4%

Oil 7.3%

Hydro 1.6%

Comb. renew. & waste: 90.7%

 

 

            Not only are Tanzanians using wood as a primary food source, but it is a staple in other aspects of their life as well. Trees provide around 75 per cent of building materials, 100 per cent of indigenous medicinal and supplementary food products, and 95 per cent of Tanzania's energy.   Thus Tanzanians are rapidly deforesting the country. The United Nations Conference on Trade and Development (UNCTAD) reports that forest cover has declined from 48 per cent in 1980 to 46 per cent in 1989 and 37 per cent in 1994. According to a public statement by Philemon Luhajo, the permanent secretary in the Ministry of Natural Resources and Tourism, about between 30,000 and 50,000 hectares of forest are lost annually.

            Deforestation is a serious problem that effects entire enviromental systems. According to the report, rivers run dry for part of the year primarily because of deforestation rather than climate change. Totally substituting charcoal with liquefied petroleum gas would confer an annual environmental benefit on Tanzania worth something between US$12 million and US$160 million. (It is important to remember that it is very hard to quanitfy the environmental benifet in terms of money.) “If deforestation trends continue, water catchment areas will be reduced by 50 per cent in Tanzania, leading to a quadrupling of the cost of water by the year 2020, says a recent independent study.”- Zephaniah Musendo (http://www.transparency.org/pressreleases_archive/1998/1998.06.12.tanzania-iptl.html)

Tanzania’s National Energy Policy Objectives are to exploit and use the country’s abundant indigenous resources, like coal hydroelectricity, and natural gas.  Currently the commercial energy in Tanzania is supplied by coal, natural gas and hydropower but so little of the population has access to commercial energy that wood fuel still accounts for majority of energy consumption.  About 80 percent of the population lives in very rural areas.  The Tanzanian government wants to, as every government has said so far, to reduce their dependence on imported petroleum products.  They want to use their wood fuel in a sustainable and ecologically sound manner.  They want to develop indigenous manpower capacity in the development of the energy sector.  Tanzania is endowed with diverse energy sources including biomass, natural gas, hydropower, coal, geothermal, solar and wind power, much of which is untapped. Government policies are directed at petroleum product substitution by exploiting indigenous resources.

Because of the lack of an energy grid in place, Tanzania is also finding it practical to concentrate on small renewable energy projects.  One of the projects being promoted is biogas production for cooking, improved technologies (cook stoves and kilns).  They are looking for ways to introduce solar thermal applications for water heating and cooking.   The problem for Tanzania is that unlike Greece there is no money to fund these projects.  Tanzania is in the process of implementing a National Solar Programme under the World Solar Programme (WSP). (The WSP is an open-ended attempt through broad partnerships and cooperation of Governments and NGO organizations to promote the wider use of renewable energy resources.) Government has declared two of its five project proposals submitted to UNESCO as being of high national priority. These are: village level solar electrification and small islands solar electrification.

 

 

Conclusion:

 

            In conclusion, all of the countries are facing an energy crisis.  They are all using fuels that are damaging to the environment and will be eventually gone.  All the countries are aware that this is a problem.  The steps that they are willing to take to solve this problem are not all that different because they have the same goals.  They all want to lose their dependence on foreign fossil fuels.  The methods that they choose to accomplish this goal are different.   It is interesting that Greece in conjunction with the European Union is the most actively pursuing renewable energy.   It shows that organizations like the European Union are effective in regulating energy. Tanzania is also interested in renewable.  This is important because it shows that there is an opportunity to develop renewable technology in countries that do not have the existing energy infrastructure that the US does.  It is interesting that the two largest energy consumers and producers of this paper are less willing to use renewables.

 

 

 

 

 

 

 

 

 

                                     

 

 

 

 

 Bibliography

 

 

 

US Department of Energy; Energy Sources (http://www.energy.gov/engine/content.do?BT_CODE=ENERGYSOURCES)

NewsfromAfrica July 2003 http://www.newsfromafrica.org/newsfromafrica/articles/art_866.html

The World Factbook http://www.cia.gov/cia/publications/factbook/geos/us.html

US Department of Energy http://www.fe.doe.gov/international/EastAsia_and_Oceania/chinover.html 

EIA Country Analysis Briefs October 2004 http://www.eia.doe.gov/emeu/cabs/greece.html

Industry Canada http://strategis.ic.gc.ca/epic/internet/inimr-ri.nsf/en/gr-79576e.html

 

http://www.areed.org/country/tanzania/tanzania.pdf

 

 Transparency International (http://www.transparency.org/pressreleases_archive/1998/1998.06.12.tanzania-iptl.html)

 

MSNBC News(http://msnbc.msn.com/id/6405467) 

 

IEA Energy Statistics Statistics on the Web: http://www.iea.org/statist/index.htm

The World Fact book http://www.cia.gov/cia/publications/factbook/rankorder/2042rank.html