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Electricity and gas

The global population is expected to increase by nearly 90 million a year during the next 30 years, with most of the growth taking place in developing countries, but how will these people be provided with the minimum services in energy they require for basic health and survival? The average annual world energy consumption per capita in the developing world was 0.71 tons of oil equivalent (toe) in 1999. This meant that a yearly increase of almost 65 million toe was required just to meet the needs of the growing population in the developing countries where developed energy infrastructure often lacked. This would also add to the stress already placed on the environment. It is believed that various forms of restructuring under way in many countries, including privatization, may have both positive and negative effects on the natural environment. The use of new technologies in waste treatment, for example, or clean production of electricity by private enterprises may curtail further environmental damage. However, economic pressure may also prevent companies from investing in renewable, energy efficient programmes and the companies seeking short-term profitability might resort to more pollution-generating techniques.

In the OECD countries the total supply of all forms of energy amounted to 5,395 Mtoe (million tonnes of oil equivalent) in 2003, which was an increase of 14.6 % since 1993 (OECD, 2005: OECD in fugures). Among the EU-15 countries it was 1,526 Mtoe in 2003, an increase of 13.6 % over 1993. In G-7 countries it recorded 4,090 Mtoe, an 11.9% increase since 1993. The supply in the United States alone in 2003 amounted to 2,281 Mtoe, a 12.8% increase over 10 years. The increase in energy supply over 10 years was considerably larger in the countries which had developed economically rather rapidly in recent decades than in the others. For example, Republic of Korea, Spain, Ireland and Portugal showed increases of 64.3%, 45.5%, 43% 36.6% respectively, while France, Japan and the United Kingdom recorded increases of 12.8%, 11.6% and 5% respectively. Germany recorded only a 2.1% increase since 1993, which was perhaps a reflection of economic downturn the country experienced since the integration with the former East Germany.

electricity workerAgeing inefficient infrastructure, increased demand for energy and environmental and safety concerns are changing the type of energy production. These changes will affect the workers employed in the energy sector. Commitments by governments to reduce greenhouse gas emissions will reduce the dependence on energy sources such as coal and oil impacting negatively on employment in these areas. In developing national energy policies which reduce emissions and meet demand through cleaner sources, governments need to ensure that the energy supply is not jeopardized by a shortage of properly trained workers. This requires the re-skilling of workers in areas that will be marginalized and developing training for new labour market entrants.

Recent electricity blackouts in several countries have raised concerns over the deregulation and privatization of energy. The lack of investment in infrastructure in some areas has weakened power transmission systems creating a crisis when they fail. In addition, some argue that opening the sector up to competition has reduced employment to levels that are not adequate to keep proper maintenance schedules.

The security of energy supplies requires broader diversification in order to decrease the impact of power supply interruptions. Power grids, nuclear plans and gas pipelines are all considered susceptible to hazardous accidents and can be targets for terrorist attacks. Explosions, radiation leaks, and other disasters could prove to be catastrophic to communities and economies. Diversifying supply can limit the impact if such an event should occur.

Natural gas is the fuel of choice for most new generation projects since plants are cheaper and quick to build, and demand fewer workers to operate them. But supplies of natural gas are not readily available in many areas requiring the need for extensive pipelines and transport systems. Regions such as the European Union are heavily dependent on imports, with five of the top ten importing countries located there. This makes these countries susceptible to price hikes, supply shortages and security issues.

Technologies utilized for generating renewable energy are considered as effective means of expanding the energy supply base without a costly investment or highly skilled experts for operation. They not only help reinforce local industry capacities but also contribute to employment generation. They make it possible for creating small-scale energy installations which can easily be run by local communities in both developed and developing countries. Such decentralization of energy supply could contribute to the growth of small and medium-scale industries and businesses in rural areas where inhabitants are often dependent on subsistence-level income. Such operations could form the basis of income for rural communities, if managed properly. Other benefits from the decentralization of energy generation include the revitalization of rural areas, which would lead to improvements in the quality of life, education and health of the inhabitants, resulting in the curtailment of migration to urban areas. Such technologies can also be used for improved agriculture, such as water pumping for irrigation, crop drying and better marketing of crops through improved communication systems. .

Photo © ILO/Deloche P.

Updated by VHM. Approved ST/ET. Last update: 11 August 2006.