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Energy losses in the generation and distribution of electricity alone represent close to 25 percent of global energy demand today. Some of this is unavoidable. However, there is a huge difference in the efficiency of older and new technologies. Conversion efficiency rises to 55 percent or more when advanced combined cycle gas turbine technology is used. Globally, replacing the least efficient power plants could cut 2020 demand by 12 QBTU, or 9 percent of total opportunity. In Russia, the entire gas-fired capacity could be replaced with a payback in two years, assuming global market price for natural gas. In the United States and Europe, gas-fired plants older than 15 years could be replaced with an IRR of 10 percent. The same is true for coal-fired plants: replacing 40 percent of existing capacity in China and close to 80 percent in Russia would meet the 10 percent hurdle rate. | ||