The recent World Economic Forum (WEF) report identified the Organisation for Economic Co-operation and Development’s struggles to accumulate US$7.6 trillion, necessary to achieve power policy goals by 2040, CNBC Africa reported.
The report themed ‘The Future of Electricity’ reveals that decreased revenue generated by utilities has affected the chances of the power sector under the OECD to raise the much needed investment.
These funds are necessary to achieve a clean, carbon free sector which is both reliable and sustainable, core goals embedded in The Future of Electricity report.
In addition, the report offers policy makers, regulators and corporates recommendations to generate interest for commercial investment.
‘It is part of a broader Future of Electricity initiative, which was launched at the WEF Annual Meeting 2014, and aims to provide countries, companies and societies with a platform for dialogue and learning amid the transition to a lower-carbon electricity system’, Roberto Bocca, Head of the Energy Industries at the World Economic Forum said.
‘Since 2000, OECD countries have invested more than three trillion US dollars in new renewables, conventional power plants and distribution structure, but about 20 per cent more investment a year is still required over the next 15 years’, he continued.
Bocca added that the ‘collaboration across stakeholders will be critical to achieving this goal and providing the holistic perspective needed to successfully make the low-carbon transition’.
‘We are entering a period of unprecedented investment to meet our energy policy goals, but decreasing returns and increasing risk are raising questions over future investment’, Julian Critchlow, a partner at Bain & Company who were involved in compiling the report said.
‘OECD countries will need to take immediate action to ensure continued investment across the energy value chain’, he added.
(Pic Credits: plus.google)