UN-accredited global energy organisation World Energy Council has released its latest report ‘The World Energy Trilemma 2016: Defining measures to accelerate the energy transition’ ahead of its 2016 Congress to be held in Istanbul in October.
On Wednesday, the organisation presented the report, written in collaboration with global consultancy Oliver Wyman, a subsidiary of Marsh & McLennan, to ministers and government representatives during the seventh Clean Energy Ministerial (CEM7), in San Francisco, US.
The analysis highlights that the energy sector is at a transition point, facing a number of growing challenges, which calls for innovative policies and technologies that would be key to addressing these challenges.
Joan McNaughton, chairman of the World Energy Trilemma study group, commented: “The Paris Agreement has raised the bar on what countries must do to have a sustainable energy policy – one which delivers not just on energy security, access and affordability; but is also capable of delivering the Paris commitments.
“Having a high GDP or great natural resources can help, but good policy with a clear sense of strategic direction, implemented well, is what really drives good Trilemma performance.”
Expansion of infrastructure – not enough
Christoph Frei, secretary general of the World Energy Council, said: “Solely expanding infrastructure is not enough. Countries must look to a range of innovative mechanisms that enable access for people to utilise the benefits of modern energy for income-generating activities.
“Pay-as-you-go business models and mobile banking solutions to promote the take-up of renewable powered energy services are examples of such mechanisms.”
Francois Austin, global head of energy practice at Oliver Wyman, commented: “To ensure policy and regulation keeps up to date with changing business models and evolving consumer, industry and government expectations, policymakers should stimulate broader industry engagement including the energy sector, new entrants to the energy industry and with businesses that are transforming their energy consumption profile.”
World Energy Council report – key findings
- Transforming energy supply: Policymakers and decision makers must set clear energy targets and provide clarity to the market.
- Advancing energy access: Countries are reforming regulatory frameworks to decrease the cost of doing business and increase private investments in modern infrastructure expansion.
- Addressing affordability: While subsidies can be vital for low-income consumers in the short-term, long term subsidies can erode the profitability of utilities.
- Energy efficiency: Cost savings alone are insufficient to stimulate the adoption of energy efficiencies standards. Performance ratings, incentives and labelling programmes also encourage consumer energy efficiencies.
- Decarbonisation: Dynamic and flexible renewable energy investment policies are the key to responding to evolving market dynamics and technological developments.
Access the World Energy Trilemma 2016: Defining measures to accelerate the energy transition report here.