White Paper Global Energy trends 2023 – Crisis, contingencies, and climate change
Crisis, contingencies, and climate change
White Paper Global Energy trends 2023
We’re in the midst of an energy transition that continues to evolve. It is clear that the current energy crisis is impacting us all and is likely to continue for the foreseeable future. This leaves energy sector participants facing a host of overlapping challenges.
Of the objectives of the energy trilemma (sustainability, security of supply and affordability of energy), over the last 12 months, the high and volatile energy prices seen across the globe have meant more attention has been given to security and affordability. While this implies a detour on the path to net zero, the emphasis being placed on the security of energy supplies confirms an under-appreciated benefit of the energy transition—that greater energy security and independence can result from a reduced reliance on imported fossil fuels.
Energy transition will never be a straight path. The trajectory of moving from fossil-fuel dependence toward lower-carbon options is influenced by a variety of factors, including technological advances, economic conditions, ESG priorities and geopolitical developments.
To avoid or mitigate potential future problems around the reliability of power supplies as levels of volatile generation increase thinking on the structure of electricity markets will be required. In addition, investment in renewables, power storage and technologies that increase the potential for demand-side management needs to be mobilised at scale.