• World Economic Forum’s new report, Fostering Effective Energy Transition 2022, says energy transition must address the challenges to environmental sustainability, energy security and energy justice and affordability
• The pace of energy transition needs to be supercharged, as demonstrated by recent spike in fuels prices, challenges to energy security, and the slow progress on climate action
• Shaping a balanced and effective energy transition is possible but requires new collaboration at supply and demand levels
• Read the full report here
• Watch the launch webinar of report here

Geneva, Switzerland, 11 May 2022 – A special report on the state of the global energy transition, released today by the World Economic Forum indicates that urgent action is required by both private and public sectors to ensure a resilient transition as the world faces the most severe energy crisis since the 1970s.  According to the report, Fostering Effective Energy Transition 2022, the urgency for countries to accelerate a holistic energy transition is reinforced by high fuel prices, commodities’ shortages, insufficient headway on achieving the climate goals and slow progress on energy justice and access.

Building on 10 years of the Energy Transition Index, an annual country benchmarking report, this special edition report, launched in collaboration with Accenture, details key recommendations for governments, companies, consumers and other stakeholders on how to progress the energy transition.

Prioritizing a resilient energy transition and diversification of the energy mix is crucial in responding to energy market volatility. To accelerate the transition to cleaner energy supply and demand, the report notes that more countries need to make binding climate commitments, create long-term visions for domestic and regional energy systems, attract private sector investors for decarbonization projects and help consumers and the workforce adjust.

“Countries are at risk of future events compounding the disruption of their energy supply chain at a time when the window to prevent the worst consequences of climate change is closing fast,” said Roberto Bocca, Head of Energy, Materials and Infrastructure, World Economic Forum. “While there are difficult decisions to be taken to align the imperatives of energy security, sustainability and affordability in the short term, now is the time to double down on action.”

The report also reveals the structural barriers to balancing energy affordability, security and availability with sustainability. This is due to compounded shocks to the energy system from a post-pandemic surge in energy demand, fuel supply bottlenecks, inflationary pressures and reconfigured energy supply chains as a result of the war in Ukraine.

To navigate this challenging situation, countries must pursue diversification on two fronts – not only in the domestic energy mix in the long term but also in considering their fuels and energy suppliers in the shorter term. Most countries rely on just a handful of trade partners to meet their energy requirements and have a deficient diversification of energy sources, providing limited flexibility to deal with disruptions. The report notes that of 34 countries with advanced economies, 11 rely on only three trade partners for over 70% of their fuel imports.

“The current energy crisis reveals just how important energy is to people and the economy,” said Espen Mehlum, Head of Energy, Materials and Infrastructure Programme for Benchmarking, World Economic Forum. “It is now critical to tackle the structural risks that have become evident while also increasing momentum on climate action. Success will largely hinge on policy and investments. Prioritizing energy efficiency and ramping up investment in clean energy infrastructure, renewables, clean hydrogen and new nuclear capacity can strengthen energy system resilience and will be a win-win for reducing emissions.”

Muqsit Ashraf, a Senior Managing Director and Global Energy Business Lead, Accenture, said: “Governments need to invest in decarbonizing their energy systems while securing affordable energy supply and companies should look to adopt low-carbon technologies and energy-efficient processes. A key area of focus should be value chain and industrial decarbonization initiatives, which hold great promise for emissions reductions, particularly when they involve collaboration across multiple stakeholders, including customers, suppliers and regulators, on initiatives like circular supply networks and CO₂ handling infrastructure.”

There’s also a need to protect consumers and ensure affordable access to energy.

“While navigating this challenging energy and materials landscape, companies have to help protect against rising costs of living for consumers, including in transportation, utilities and electricity,” said Kathleen O’Reilly, Global Lead, Accenture Strategy. “Vulnerable populations in particular, who most feel the impact of volatile energy prices and their impact on other basic goods and services, must be a strategic focus in a transition to sustainability that is equitable in value and scalable in impact. A key facet of this involves defining financial mechanisms to help vulnerable consumers cope with economic shocks, while not reducing incentives for companies to focus on energy efficiency and adoption of sustainability services”.

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The World Economic Forum is an international institution committed to improving the state of the world through public-private cooperation in the spirit of global citizenship. It engages with business, political, academic and other leaders of society to shape global, regional and industry agendas.

Incorporated as a not-for-profit foundation in 1971 and headquartered in Geneva, Switzerland, the Forum is independent, impartial and not tied to any interests. It cooperates closely with all leading international organizations (www.weforum.org).

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• 74% of Myanmar’s population lack access to electricity. Energy has been identified as a pressing challenge for the country’s economic growth
• Report says Myanmar could emerge as the next South-East Asian frontier and paves the way for further reforms to underpin the country’s development
• First ever comprehensive report on Myanmar’s energy sector launched at World Economic Forum on East Asia in Nay Pyi Taw

Nay Pyi Taw, Myanmar, 6 June 2013 – Released today, the New Energy Architecture: Myanmar Report is the first to analyse the challenges currently facing Myanmar’s energy sector and provides insights to support the country’s important energy reforms. It predicts that by renewing its energy policy, Myanmar could emerge as the next South-East Asian frontier.

Myanmar’s abundant gas resources and strategic position between some of the most dynamic Asian economies means it is crucial to regional energy security. As Myanmar reintegrates into the global economy, it will need more energy to power its own development. It therefore must develop new national energy strategies and policy frameworks that will enable sustainable economic growth, energy security and access to energy.

“Myanmar is embarking on a new phase of development and the energy sector will be very important. This comprehensive and informative study will support the economic and social development of Myanmar,” said the Myanmar Minister of Energy, U Than Htay.

The Report identifies energy as one of the most pressing economic challenges facing Myanmar today. 74% of Myanmar’s population lack access to electricity. 70% of Myanmar’s population live in rural areas, where electrification rates average only 16%. Per capita electricity consumption is among the lowest in Asia. Without electricity and a reliable energy system, Myanmar’s economic progress will stall. Addressing this will require new sources of domestic energy, an expanded and modernized electricity grid, and innovative solutions for rural energy access.

Foreign investors can bring technology and capital at the scale needed. New reforms have helped attract foreign investment in Myanmar’s energy sector, with opportunities for greater foreign ownership of joint ventures and more attractive terms of market entry.

“Myanmar has a historic opportunity to carve out its own niche in the global economy. Recasting its energy architecture will be pivotal to this transformation and to its economy’s sustainable development,” said Roberto Bocca, Senior Director, Head of Energy Industries, World Economic Forum

Providing 17 specific recommendations, the Report highlights the need for transparent governance and effective institutions in Myanmar as a sound basis for developing the country’s energy system. In addition, creating a clear environmental regulatory framework will not only underpin sustainability and social acceptance of large-scale energy projects, but will also increase transparency for investors.

“To meet the country’s rapidly growing electricity demand, expand rural energy access, and ensure environmental sustainability, Myanmar urgently needs to attract investments by improving regulatory frameworks, promoting public-private partnerships, and undertaking crucial sector reform,” said Stephen Groff, Asian Development Bank Vice-President.

To improve efficiency and the competitiveness of the domestic energy market, the Report calls for the gradual removal of energy subsidies in favour of targeted support for the poorest. It concludes that to achieve an effective transformation, Myanmar needs an integrated energy plan to guide investments and sequence reforms.

“The development of an integrated new energy plan and system offers Myanmar a significant opportunity to design a path to sustainable and secure economic growth, bolstered by its energy industry,” said Arthur Hanna, Senior Managing Director, Accenture’s Energy industry group.

About the Report: The New Energy Architecture: Myanmar Report was created in partnership with the Ministry of Energy of Myanmar. It was produced in collaboration with Accenture and the Asian Development Bank. The report includes insights by contributors from industry, government, non-governmental organizations and academia.

Sky Net is the Host Broadcaster of the World Economic Forum on East Asia 2013.

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•  analyses how the world consumes energy over the past 100 years through post-2030
• Growing energy demand in emerging markets is the biggest challenge for the energy sector
• In the last decade, demand for coal grew 10 times more than renewables, twice more than for oil and three times more than for gas
• Wind, solar and other non-hydro renewable resources provide only 1.6% of total world energy

Houston, USA, 5 March 2013 – The biggest energy challenge facing the world today is meeting the rapidly growing energy needs of emerging market nations, including the 1.3 billion people that have little or no access to modern energy, according to the World Economic Forum’s Energy Vision 2013 – Energy Transitions: Past and Future report launched today at the IHS CERAWeek Conference.

In response to this challenge, policy-makers are looking towards low-carbon and renewable sources of energy. However, 87% of total world primary energy demand is met by oil, coal and natural gas; more than 92% with nuclear energy. Wind, solar, geothermal and other non-hydro renewable resources provide just 1.6% of total world energy.

Today, there is a renewed and much more intense focus on what kind of energy transition might be ahead and what the timing might be. Trade, globalization, energy storage and transmission, as well as policies and pricing of carbon, will be among main factors influencing the changing mix. The shifts in balance within the mix will have direct consequences for all society.

“The general assumption is that we will gravitate towards a world dominated by renewables,” said Roberto Bocca, Senior Director, Head of Energy Industries, World Economic Forum. “Surprisingly though, this transition will be different than in the past where the energy mix moved from one fuel to another, like from wood to coal. What we’ll see in the future instead will be a transition from some energy sources to many energy sources, for example, from a diverse energy mix to a set of diversified energy mixes.”

The report, written in collaboration with IHS Cambridge Energy Research Associates (IHS CERA), aims to provide a framework for understanding the potential for changes in the energy mix and how an energy transition could unfold. Without attempting to predict a specific future, it analyses factors that may drive changes in the energy mix in the coming decades. Although energy efficiency and other demand-side issues are critical to future energy systems, the report focuses on the supply side of the equation and how society will meet its ever-growing energy needs.

“Transitions in the energy industry unfold over decades, owing to the large scale of the industry and the size and longevity of the infrastructure involved,” said Daniel Yergin, IHS Vice Chairman and the Forum’s Oil and Gas Community Leader 2012. “However, shifts in the energy mix will have direct consequences for all participants in the world’s energy industry – incumbents, new entrants and innovators, governments and, of course, for all society.”

In the report’s analysis, the following conclusions and observations stand out:

• The beginning of this century has seen a rebirth of renewables. Renewable power has become a significant and highly visible global industry, with revenues totalling US$ 184 billion in 2012. Its growth has been spurred by the combination of research and development, innovation and government policies – mandates, subsidies and incentives – aimed at promoting its market penetration. Parallel policies have promoted biofuels.
• Coal, however, has experienced the fastest growth of any energy source in absolute terms over the same time frame – almost 10 times that of renewables, nearly twice that of natural gas and nearly three times that of oil. Rapid growth in coal demand is the result of high economic growth rates in emerging market countries and the rapidly rising need for power
• Price and value delivered will be key determinants in shaping the energy mix of the future. That price may be set in the competitive marketplace or may result from a price on carbon and/or government incentives and subsidies. New technology will likely have a major impact on the energy mix, but probably not until the 2030s, owing to lead times.
• Perceptions of shortages and scarcity of oil and natural gas, so prevalent a few years ago, have now receded. Technological advances that deliver relatively low-cost oil and gas are likely to extend the competitive position of these fuels for much longer than had been anticipated a few years ago.
• The last half decade has seen an acceleration of government policies aimed at spurring a shift to renewable electricity and the development of the electric car. If the electric car becomes a mass market rather than a niche product, it would erode oil’s dominance of the transportation sector.

The report offers an outlook on the next energy transition. More efficient energy use and changes in how transport is powered will be important elements of that transition. It cautions, however, against a tendency to consider a future world that looks very much like the one we live in today.

Transition from wood to coal to oil and the rise of electric power were accompanied by sweeping technological, sociological and economic changes. More concentrated energy sources enabled the industrial revolution and facilitated mass migration to cities. Electricity allowed the rise of appliances in the home and workplace, automating and simplifying many tasks and increasing productivity, and now enabling the digitization of the world. Understanding the dynamics of energy transitions requires respect for innovation and its unexpected impact, and indeed some imagination about the future.

About the World Economic Forum Energy Industry Partnership
The Energy Industry Partnership programme of the World Economic Forum provides chief executives and senior executives of the world’s leading companies as well as select energy ministers with the opportunity to engage with their peers to define and address critical industry issues throughout the year. Identifying, developing and acting upon these specific industry issues is fundamental to the Forum’s commitment to deliver sustainable social development founded upon economic progress. 

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