[May 31, 2016] |
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2016 World Energy Trilemma Report
The energy sector is at a transition point and faces a number of growing
challenges. Innovative policies and technologies are the key to
addressing these challenges according to a new report by the World
Energy Council.
The report was presented to ministers and government representatives as
they met at the seventh Clean Energy (News - Alert) Ministerial (CEM7), San Francisco,
USA on 1 June.
The World Energy Trilemma 2016: 'Defining measures to accelerate the
energy transition' (https://www.worldenergy.org/publications/2016/world-energy-trilemma-2016-defining-measures-to-accelerate-the-energy-transition/)
published by the World Energy Council, in partnership with global
consultancy Oliver Wyman (News - Alert), a subsidiary of Marsh & McLennan Companies,
has identified five focus areas to drive progress on the Energy Trilemma
of sustainability, security and energy access, and meet the goals of
2020 and beyond. This report will provide the foundations for many
discussions at the 2016 World Energy Congress in Istanbul in October.
Joan McNaughton, Chair of the World Energy Trilemma study group, said:
"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.
"More substantive dialouge with business leaders and the investment
community will help policymakes to produce policies which are robust in
a world of fast changing dynamics of energy supply and demand and an
accelerating pace of technological and business change. The sooner
countries start on the transition, the cheaper it will be."
The report highlights five key findings emerging from innovative
policies, interviews with policymakers and private sector energy leaders
and an analysis of five years of the Energy Trillema Index:
?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 t responding to evolving market dynamics and
technological developments
Speaking ahead of the CEM7 meeting, 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.
"Investment and policies intended to change demand and supply at
national level will either take time to deliver visible progress or
likely will be disruptive. Countries must act now to progress on the
trilemma with secure, equitable and environmentally sustainable energy
to support a thriving energy sector, a competitive economy and a healthy
society. In San Francisco, a great focus will be on innovation to
achieve these objectives. We will take into account any outcomes and
lessons learned at our World Energy Congress later in the year."
Many of the sessions at the 2016 World Energy Congress in October will
revolve around how business and government can innovate in order to
balance the Trilemma. For example, two sessions 'Innovative Business
Models: the New Frontier' and 'Enabling the Energy Transition:
Benchmarking 150 countries', will look at how innovations in energy
technology such as e-storage or changes in business priorities can help
balance the Trilemma and deliver a shift to a low-carbon economy. The
focus of day 3 will be on policy with around 100 ministers and up to
10,000 delegates discussing policy action to drive the energy transition.
Francois Austin, Global Head of Energy Practice, Oliver Wyman,
commented: "Many emerging and developing economies continue to struggle
to expand their energy infrastructure to support advanced energy
security, reliability and access. To increase private sector investments
in infrastructure expansion and modernisation, countries should, and
are, beginning to reform regulatory frameworks to decrease the cost of
doing business and increase competitiveness in the electricity market.
"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."
For the full report see: https://www.worldenergy.org/publications/2016/world-energy-trilemma-2016-defining-measures-to-accelerate-the-energy-transition/
Ends
Christoph Frei, Secretary General, World Energy Council; Joan
MacNaughton, Executive Chair, World Energy Trilemma study Group and Alex
Wittenberg, Executive Director, Marsh & McLennan Companies' Global Risk
Center, are all available for interview at CEM7.
Notes to Editors
World Energy Council
The World Energy Council is the principal impartial network of energy
leaders and practitioners promoting an affordable, stable and
environmentally sensitive energy system for the greatest benefit of all.
Formed in 1923, the Council is the UN-accredited
global energy body, representing the entire energy spectrum, with over
3,000 member organisations in over 90 countries, drawn from governments,
private and state corporations, academia, NGOs and energy stakeholders.
We inform global, regional and national energy strategies by hosting
high-level events including the World Energy Congress and publishing
authoritative studies, and work through our extensive member network to
facilitate the world's energy policy dialogue.
World Energy Congress
The triennial World Energy Congress has gained recognition since the
first event in 1923 as the premier global forum for leaders and thinkers
to debate solutions to energy issues. In addition to the discussions,
the event provides an opportunity for executives to display their
technologies and explore business opportunities. For more information
about the World Energy Congress 2016 and to register, visit: http://wec2016istanbul.org.tr/
Follow the Congress at @WECongress for regular updates.
Oliver Wyman
With offices in 50+ cities across 26 countries, Oliver Wyman is a global
leader in management consulting that combines deep industry knowledge
with specialized expertise in strategy, operations, risk management, and
organization transformation. Oliver Wyman is a wholly owned subsidiary
of Marsh & McLennan Companies [NYSE: MMC]. Follow Oliver Wyman on
Twitter (News - Alert) @OliverWyman
World Trilemma Index
The Energy Trilemma Index, produced in partnership with global
management consultancy Oliver Wyman, along with the Global Risk Centre
of its parent Marsh & McLennan Companies, is a comparative ranking of
130 countries, benchmarking the sustainability of energy systems and
awarding countries with a balance score, highlighting how well countries
manage the trade-offs between the three trilemma goals.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20160531005981/en/
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