Power generation

- Go to what is at stake in coal, dams and nuclear energy sectors-

The world's primary energy demand for electricity generation is growing rapidly. According to the International Energy Agency (IEA), future energy demand is projected to increase by 45% in the period 2006-2030. A large part of this growth is expected to come from the power sector. In order to meet these projected demands, annual investment in the power sector will need to rise to US$ 520 billion in the period 2007-2030.

In a severely carbon constrained world, it is impossible to meet this energy demand through conventional, fossil-fuel based sources. There is growing political and social pressure to meet future energy demands predominantly through sustainable energy sources such as wind and solar power. Such a rapid shift requires massive investments in renewable power generation capacity. A recent United Nations Environment Programme (UNEP) report estimates yearly investment needs in sustainable energy up of US$ 500 billion in 2020. Companies within the electricity market therefore face a huge challenge; securing the supply of reliable and affordable energy while organising a rapid transformation to a environmentally sustainable energy supply system.

Energy production based on conventional sources has a number of negative social and environmental impacts:

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Coal

Coal is the cheapest fossil fuel available in many markets, abundantly available throughout the world. It is also the most polluting energy resource and the dominant source of carbon dioxide (CO₂) emissions. In addition, the entire production process, from coal mining to combustion, severely disrupts ecosystems and contaminates water supplies by emitting other greenhouse gases like nitrogen oxide and methane, and toxic chemicals like mercury and arsenic. There is a staggering price attached to the use of coal, paid for by the environment, people's health and by communities adjacent to coal mines.

Lately, the coal industry has made efforts to rebrand itself as producers of ‘clean coal', citing the development of improved coal power plants and the use of Carbon Capture and Storage (CCS) techniques. CCS is an unproven approach to mitigating the global warming effects of fossil fuel-based electricity generation by capturing CO2 at its source and storing it underground in (presumably) stable geological formations or underwater. Even with the best currently available technologies, CCS would consume a huge amount of extra energy and would increase the fuel needs of a coal-fired power plant by 25-40%. In addition, investment in CCS does nothing to further the development of truly renewable and sustainable energy technologies or energy efficiency that are needed for "real" sustainability.

Dams

Large dams and associated infrastructure are among the most controversial and potentially destructive of all internationally-financed projects. According to the World Commission on Dams (WCD) large dams have displaced between 40 and 80 million people worldwide. Millions more have been ousted by the construction of canals, powerhouses and other associated infrastructure. Many of these people have not been satisfactorily resettled, nor have they received adequate compensation, and those who have been resettled have rarely had their livelihoods restored.

Furthermore, hydroelectric dams and high-voltage transmission lines are often located in ecologically sensitive areas, Dams have fragmented and stilled 60% of the world's rivers, leading to profound and often irreversible impacts on riverine and adjoining terrestrial environments.

Meanwhile, the economic benefits of large dams have often been elusive. Large dams tend to under-perform their targets for power generation, and lengthy construction delays and large cost overruns are routine.

Nuclear energy

Nuclear energy is often presented as a clean source of electricity, as the CO₂ emissions from this process are lower than from fossil fuels combustion. However, contamination and nuclear waste resulting from nuclear power generation carries serious health and environmental hazards. Moreover, uranium fuel is produced through mining and processing techniques which are highly polluting and energy consuming. In addition, because the supply of uranium is limited (estimated resources would feed current level of consumption for about 100 years, nuclear energy is not considered a sustainable investment.

Nuclear energy use also raises major safety concerns. Nuclear power plants contain various forms of radioactive pollution that could significantly impact a large amount of countries and communities (for many years) in case of an accident. There are additional concerns that nuclear power plants might present attractive targets for terrorists. In addition, both nuclear energy technologies and materials used for electricity generation could be diverted to nuclear weapons. The Treaty on the Non-Proliferation of Nuclear Weapons gives every country the right to employ nuclear technology for peaceful activities. Nonetheless, risks are high that this technology could be used for military purposes, especially in less stable countries.