1、1WORLD ENERGY TRILEMMA 2024EVOLVING WITH RESILIENCE AND JUSTICEWORLD ENERGY TRILEMMA 2024:2WORLD ENERGY TRILEMMA 2024The World Energy Council is the worlds oldest independent and impartial community of energy leaders and practitioners.Through our Humanising Energy vision,we involve more people and c

2、ommunities in accelerating clean and just energy transitions in all world regions.Formed in 1923,the Council has convened diverse interests from across the full energy ecosystem for a century,and today has over 3,000 member organisations and a presence in nearly 100 countries.Our global network draw

3、s from governments,private and state corporations,academia and civil society,as well as current and future energy leaders.We effectively collaborate on impact programmes and inform local,regional and global energy agendas in support of our enduring mission:to promote the sustainable use and supply o

4、f energy for the benefit of all people.Further details at www.worldenergy.org and on LinkedIn and X(formerly known as Twitter).Published by the World Energy Council 2024Copyright 2024 World Energy Council.All rights reserved.All or part of this publication may be used or reproduced as long as the fo

5、llowing citation is included on each copy or transmission:“Used by permission of the World Energy Council.”World Energy Council Registered in England and Wales No.4184478 VAT Reg.No.GB 123 3802 48 Registered Office Temple Chambers 3-7 Temple Avenue,London,EC4Y 0DAThe World Energy Councils definition

6、 of energy trilemma is based on three core dimensions:Energy Security,Energy Equity,and Environmental Sustainability of Energy Systems.Balancing these three goals constitutes a Trilemma and balanced systems enable prosperity and competitiveness of individual countries.The World Energy Trilemma Index

7、 has been prepared annually since 2010 by the World Energy Council.It presents a comparative ranking of 126 countries energy systems.It provides an assessment of a countrys energy system performance,reflecting balance and robustness in the three Trilemma dimensions.Access the complete Index results,

8、national Trilemma profiles and the interactive Trilemma Index tool to find out more about countries Trilemma performance and what it takes to build a sustainable energy system can be found at https:/trilemma.worldenergy.orgWORLD ENERGY COUNCILWORLD ENERGY TRILEMMA INDEX 2024ABOUT3WORLD ENERGY TRILEM

9、MA 202473USING THE TRILEMMA76WORLD ENERGY TRILEMMA INDEX80ANNEXES89ACKNOWLEDGEMENTSTABLE OF CONTENTS10EXECUTIVE SUMMARY04FOREWORD26REGIONAL TRILEMMA PROFILESAFRICA ASIA EUROPE LATIN AMERICA AND THE CARIBBEAN MIDDLE EAST AND GULF STATESNORTH AMERICA 13ENERGY SECURITY17ENERGY EQUITY 22ENVIRONMENTAL SU

10、STAINABILITY4WORLD ENERGY TRILEMMA 2024FOREWORDFor 100 years the World Energy Council has operated as an open and visionary,diverse and distributed energy leadership community.It is now developing into a deeply local and globally connected peer-to-peer platform,with thousands of organisations as mem

11、bers.We share and shoulder a huge responsibility.Our enduring mission to“promote the sustainable supply and use of energy for the greatest benefit of all people”is best delivered by sharing stewardship for energy transitions throughout the world;using our convening power for the common good;connecti

12、ng the dots to close the gaps;and collaborative change-maker capabilities that enable changes in energy systems for the benefit of all.Nearly twenty years ago,our community created the World Energy Trilemma Framework in response to new demands for energy and sustainable development.The framework pro

13、vides a practical,systems-based approach to guiding and tracking performance in managing the connected challenges of energy security,social equity,and environmental sustainability.Our understanding of the connected challenges of energy transitions and sustainable development continues to evolve with

14、 global environmental sciences and complexity thinking,and,importantly,through an exchange of practical,grounded experiences in managing increasingly diverse energy systems.Here,diversity is used in the broadest sensediverse societies,geographies,and technologies.While the Trilemma Framework and app

15、roach have been continuously improved through use over the years,recent crises have led members to ask for a more fundamental evolution of all three dimensions,including a digital upgrade and an extension of the framework itself.Multiple energy transition pathways are emerging in all regions of the

16、world,but none are on track to avoid an overshoot of planetary boundaries or to provide clean,affordable,and reliable energy access to billions more people.We know there are big gaps in supply-side infrastructure and investment.And we know we need to do more to decarbonise energy demand and secure w

17、ider productive access and wiser uses of energy.Our advice in reading this years report is to look beyond the Global Index and the comparative ranking.Instead,lets discuss the importance of this flexible toolkit in addressing urgent and practical challenges of accelerating decarbonisation with justi

18、ce and resilience.Societies everywhere are facing the rapids of global energy transitions and the fog of a more crowded,fragmented,and polarised global energy leadership landscape.Energy transition is not a straightforward swap of old for new technologies;it is a socially messy and transformational

19、change process.A successfully managed global energy transition is unprecedented and cannot be completed all in one go nor by any single region,country,company or city,working alone.There is There is no one-size-fits-all net-zero pathway.Situations,starting points,and outlooks differ.Energy transitio

20、ns impact and are impacted by wider changes in man-made systems,such as industry,food,transport,and cities,and in the Earths natural life support systems,such as climate,weather,oceans,and biodiversity.While 2024 is expected to see solar and wind power exceed hydroelectric and nuclear in the global

21、energy mix for the first time,not every energy use can be electrified by 2050,and trilemma trade-offs and synergies will continue to emerge and evolve as renewable electrification of the global energy mix increases.WORLD ENERGY TRILEMMA REPORT 2024 FOREWORD4WORLD ENERGY TRILEMMA 20245WORLD ENERGY TR

22、ILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 FOREWORDWe also know that what got us to here wont get us all to there!The world has the technical know-how to get to net zero.What it lacks is the social know howthe how tos and with whoms of making faster,fairer,and more far-reaching energy transitions

23、 happen in all regions.Guiding orderly,inclusive,and just global energy transition pathfinding is not easy but it is possible with the World Energy Trilemma approach.Making faster,fairer,and more far-reaching energy transitions happen is essential.But these transitions are best achieved through 100s

24、 and 1000s of smaller steps and by involving billions more people and diverse communities in understanding their roles and choices.Many and new ways of aligning diverse needs and interests are essential and emerging.An evolving and flexible World Energy Trilemma Framework is the best way to catalyse

25、,connect,and scale new change-maker ecosystems,comprising countries,global value networks and supply chains,companies,cities,and regions.Energy is too important to be a story of us versus them.It is the story of humanity that we can and must create together.The World Energy Council does not exist to

26、 predict or control the future of energy but to co-create a better energy future for people and planet.Please join us in retooling the Trilemma Framework and redesigning energy for 10 billion better lives and a healthy planet.Angela Wilkinson Secretary General&CEO World Energy Council5WORLD ENERGY T

27、RILEMMA 20246WORLD ENERGY TRILEMMA 2024EXECUTIVE SUMMARYEnergy transitions entail profound whole-system changes that transcend the confines of traditional energy frameworks,moving beyond fuel substitution,electrification,decarbonisation of the global system and other technological advancements.Given

28、 the intricate interconnectedness of energy with other vital systems,such as industry,agriculture,and urban infrastructure,the transformative impacts of energy transitions extend well beyond the energy sector.Catalysing fairer,faster,and more far-reaching energy transitions requires that more people

29、 and diverse communities understand how the choices they make today help shape the energy systems of tomorrow.As energy transitions unfold within the broader context of systemic shifts across a spectrum of interdependent systems,they signify a fundamental reorientation of our relationship with energ

30、y.This reorientation necessitates significant changes in organisational structures and operations of the energy system.Now in its 15th edition,The World Energy Councils World Energy Trilemma Report 2024 places significant emphasis on signals from interviews with experts in the community.These expert

31、s have used the Trilemma Framework to discuss the implications of post-pandemic recovery and the war against Ukraine within specific regions across the world,with special emphasis on the management of trade-offs among the World Energy Trilemma dimensions of energy security,equity,and sustainability.

32、These regional reports identify both challenges and opportunities as well as the effects of recent crises on energy systems throughout the world and the strategic responses to these crises.While the overall Index scores continue to show European countries among the top performers,the interviews high

33、light the challenges faced and responses sought to the first consumer-led demand-driven energy shock following the invasion of Ukraine.The bombing of the Nord Stream pipelines,alongside growing geopolitical tensions,starkly exposed Europes vulnerability due to its heavy reliance on Russian gas,promp

34、ting a critical reassessment of energy sources and triggering the demand-driven energy shock.Apart from Hungary,which resisted fully cutting ties with Russia,a majority of European nations decided not to import Russian gas.Other countries stepped up to export more gas or reroute deliveries of LNG to

35、 make up for the shortfall,managing to ease the stress on energy security.But while the security dimension of the energy Trilemma was addressed in the short term,there were significant repercussions on energy equity,due to soaring energy prices,as well as on environmental sustainability,due to an in

36、creased use of traditional energy sources,including coal.These impacts on equity and sustainability were experienced in regions across the world,much beyond Europe.While Europe was able to manage the short-term,demand-driven energy shock following the cutting off of Russian supplies,the long-term co

37、nsequences,coupled with its green only policies,pose a number of risks,including loss of competitiveness,rising input costs,and loss of technological advantage,potentially leading to deindustrialization.WORLD ENERGY TRILEMMA REPORT 2024 EXECUTIVE SUMMARYNOW IN ITS 15TH YEAR,THE WORLD ENERGY TRILEMMA

38、 FRAMEWORK IS RECOGNISED AS A VALUABLE TOOL TO NAVIGATE AND ACCELERATE ENERGY TRANSITIONS AROUND THE WORLDA NEW KIND OF DEMAND-DRIVEN ENERGY SHOCK North America is addressing its energy trilemma by focusing on infrastructure resilience,community-driven energy equity,and environmental sustainability.

39、The transition towards clean energy is propelled by policies like the Inflation Reduction Act,although challenges such as investment in transmission infrastructure and market vulnerabilities persist.The continents energy future hinges on balancing affordability,reliability,and sustainability,emphasi

40、sing the importance of innovative policies and technologies,consumer engagement,and efforts to strengthen the grid against climate-induced disruptions.NORTH AMERICANORTH AMERICAEUROPEEUROPELATIN AMERICA&THE CARIBBEAN(LAC)LATIN AMERICA&THE CARIBBEANPOWERING THE FUTURE:NORTH AMERICAS TRILEMMA MANAGEME

41、NT PLAN UNVEILED ASIAASIAMIDDLE EAST AND GULF STATES(MEGS)MIDDLE EAST AND GULF STATES AFRICAAFRICA7Source:World Energy CouncilEurope is currently reassessing its energy strategy with a new focus on security in relation to affordability and sustainability.In contrast to a continuing reliance on gas,t

42、he rapid move towards diversification,particularly in renewables,reveals the tensions between immediate energy needs and long-term environmental goals.Price surges have prompted significant state intervention and electricity market reforms to protect consumers.Europes challenge lies in balancing ren

43、ewable integration,grid variability,and technological independence amidst geopolitical and energy sovereignty concerns,while steering towards resilient,self-reliant,and equitable energy systems.NAVIGATING UNCERTAINTY TO MAINTAIN AFFORDABILITY AND TO ENSURE THE RESILIENCE OF ENERGY SYSTEMS IN RESPONS

44、E TO GEOPOLITICAL SHOCKS Latin America and the Caribbean face complex energy futures,balancing security,equity,and sustainability amidst climate and political shifts.Subsidies play a crucial role in maintaining affordability,yet disparities and the cost of decarbonization continue to pose significan

45、t challenges.The regions reliance on hydro energy underscores the urgency for diverse and sustainable energy sources in the face of rising climate threats.The journey towards a resilient and sustainable energy future is marked by efforts to balance economic disparities,preserve biodiversity,and fost

46、er public-private partnerships amidst global energy shifts and the critical need for structural changes.FINDING A SOCIO-POLITICALLY APPROPRIATE PATH TOWARDS A RESILIENT AND SUSTAINABLE ENERGY FUTUREAsias energy transition is marked by robust demand driven by economic growth amidst climate threats an

47、d challenges to infrastructure resilience.Striving for energy independence,the region is exploring renewables while grappling with coal dependency.Efforts towards universal electricity access continue in a context of subsidies and other market complexities.Sustainability ambitions are visible in com

48、mitments to renewable expansion and electric vehicle adoption,yet balancing economic growth with clean energy transitions poses financing challenges.Asias path is a multifaceted quest for resilience,clean energy,and sustainable growth,supported by regional cooperation and private investment.ENSURING

49、 CONTINUITY OF ECONOMIC GROWTH WHILE MANAGING A SUSTAINABLE AND FAR-REACHING TRANSITION The Middle East and Gulf States are at a crossroads,transitioning from traditional oil and gas dominance,critical to maintaining global energy security,to renewable and nuclear energy amidst geopolitical shifts.A

50、lready scoring high on energy equity,the region is investing in diverse energy sources and global initiatives to ensure continued access.Ambitious renewable targets and strategic investments mark a move towards sustainability,yet balancing economic diversification with challenges like governance and

51、 climate change is increasingly important.The regions journey towards balancing its energy trilemma involves navigating complexities to achieve sustainability and security goals amidst regional tensions.PLACING ENERGY TRANSITION AT THE CENTRE OF AMBITIOUS ECONOMIC DIVERSIFICATION PLANS Africa is con

52、fronting a critical phase in its energy development,characterised by rising demand,security challenges,and a transition towards cleaner energy.Despite infrastructure and investment limitations,efforts towards renewable energy adoption and regional integration are gaining momentum.The continent faces

53、 a delicate balancing challenge between advancing energy equity,particularly in rural areas,and navigating environmental sustainability amidst increasing renewable investments and oil explorations.Africas energy landscape is further complicated by geopolitical dynamics,highlighting the importance of

54、 upskilling,private sector financing,and institutional leadership for a sustainable future.SECURING RISING DEMAND DESPITE CONTINUOUS CHALLENGES8WORLD ENERGY TRILEMMA 2024Top-performing countries in the World Energy Trilemma Index consistently emerge as leaders across Sustainable Development Goals(SD

55、G)rankings and the World Economic Forums(WEF)Energy Transition Index.This underscores their robust performances in energy sustainability,alignment with sustainable development goals,and readiness for energy transition.Nordic countries stand out for their consistent performance across all indices,hig

56、hlighting their comprehensive approaches to energy sustainability and strong policy frameworks.The high scores of the Nordic countries also reflect their dedication to addressing broader socio-economic and environmental challenges.Figure 1:Comparing country ranks on the World Energy Trilemma Index,S

57、ustainable Development Goals,WEF Energy Transition IndexCOUNTRYDenmarkSwedenFinlandSwitzerlandCanadaAustriaFranceGermanyEstoniaUnited KingdomNorway32110133Both the World Energy Trilemma Index and the World Economic Forums Energy Transition Index evaluate the strength

58、 of an enabling environment for energy transitions.While specific indicators may differ,both indices aim to assess a countrys ability to design and implement effective policy frameworks to support an orderly,just,and inclusive transition.European countries predominantly feature in the top ranks of b

59、oth the World Energy Council Trilemma Index and the World Economic Forums assessment of transition readiness.The Councils World Energy Trilemma Index includes Singapore and New Zealand among the top performers as well.Figure 2:Comparing the World Energy Trilemma Index and the WEFs Energy Transition

60、IndexSingaporeNew ZealandIrelandHong KongWORLD ENERGY TRILEMMA INDEX:TOP PERFORMERS ON COUNTRY CONTEXTWORLD ECONOMIC FORUM:TRANSITION READINESSLuxembourgNorwayFinlandSwedenDenmarkSwitzerlandGermanyAustriaFranceNetherlands WORLD ENERGY TRILEMMA REPORT 2024 EXECUTIVE SUMMARY9WORLD ENERGY TRILEMMA 2024

61、“Given todays combined challenges of climate change,securing reliable supplies of energy,and providing that energy to businesses and households in a just and fair way,there has never been another time when the World Energy Trilemma framework has been more useful in helping countries devise balanced

62、and effective energy policies.”Philip LoweAs people navigate through the complex and interdependent structures and operations of diverse energy systems,the World Energy Trilemma Framework serves as a navigation tool,with the World Energy Trilemma Index as the metric of progress.While the Trilemma it

63、selfenergy security,equity,and sustainabilityhelps to guide energy leaders in the management of competing demands,the Trilemma Index tracks and measures integrated energy system performance in 120 countries.In addition to reporting the Trilemma Index results,The World Energy Trilemma Report 2024 inc

64、ludes an overview of the evolving energy system context and what new developments in that context might be significant for each of the Trilemma dimensions.Regional chapters offer highlights describing the diverse ways of managing the Trilemma in response to recent multiple crises.This year the repor

65、t also captures selected uses of the Trilemma through case studies of how it is driving transformative initiatives in Barranquilla,Colombia,the Baltics,New Zealand,and India.THE WORLD ENERGY TRILEMMA FRAMEWORK WORLD ENERGY TRILEMMA REPORT 2024 EXECUTIVE SUMMARYFigure 3:World Energy Trilemma Image fr

66、om BBC Humanising Energy10WORLD ENERGY TRILEMMA 2024“Humanising Energy”is the World Energy Councils visionary action-orientated leadership agenda for making energy transitions happen across the world.Energy transitions away from fossil fuels involve complex coordination challenges.Governments,corpor

67、ations,and civil society must manage an evolving energy Trilemma of security,affordability and environmental sustainability throughout the process of innovating change and with increasing attention to resilience and justice.With the rise of unprecedented events and increasing uncertainty,moving huma

68、nity beyond net zero and into a safe operating space requires human creativity and collaboration.The Council believes the best way to do this is by humanising energyinvolving more people and diverse communities in understanding their roles and choices and remaining realistically hopeful about making

69、 progress by enabling 100s and 1000s of smaller steps along multiple,diverse pathways.This agenda emphasises the need for societal transformations beyond decarbonization.Simply reducing carbon emissions will not address the complexities of global energy challenges.HUMANISING ENERGYImage from the Wor

70、ld Energy Councils Humanising Energy Series featuring Climeworks(Finland)produced by BBC StoryWorks.WORLD ENERGY TRILEMMA REPORT 2024 EXECUTIVE SUMMARY11WORLD ENERGY TRILEMMA 2024“With humanity under Code Red-multiple planetary boundaries exceeded and the growing chance of surpassing the 1.5-degree

71、target set under the Paris agreement,all before the end of this decade-the World Energy Trilemma and World Energy Scenarios are more relevant than ever.These critical tools along with the Councils unique energy community allow us to address not only the why and what of this energy transition,but als

72、o the how to and with whom.”Rafael Cayuela ValenciaMany countries,organisations,and institutions use the World Energy Council Trilemma Framework to inform their energy policies,strategies,and investment decisions.To reflect evolving trends,priorities,and emerging challenges,the Council and its world

73、 energy community of leaders and practitioners are committed not only to helping generate regular updates of the Trilemma Index but also to helping refine the Index itself to ensure its ongoing usability as a policy assessment and policy pathfinding tool that supports energy transitions in different

74、 contexts.In 2020 the World Energy Council explored a new concept of energy security “dynamic resilience.”Dynamic resilience is an integrated approach to risk management that includes adapting to climate change,dealing with physical and digital threats to infrastructure,diversifying energy supply,an

75、d coordinating energy systems across barriers.It has assumed even greater urgency now,given recent geopolitical crises,a pandemic,and severe disruptions in the global energy system.REDESIGNING AND EVOLVING THE WORLD ENERGY COUNCIL TRILEMMA INDEX WORLD ENERGY TRILEMMA REPORT 2024 EXECUTIVE SUMMARYFig

76、ure 4:Dynamic Resilience FrameworkCapabilities in situational awarenessDYNAMIC RESILIENCEFRAMEWORKAgility and speedof responseAdaptive capacityand flexibilityRegenerative andpreventive capacityBaseline reserve:instruments,policies,collaborative networks12WORLD ENERGY TRILEMMA 2024ENERGY SECURITYENER

77、GY EQUITY ENVIRONMENTAL SUSTAINABILITYJUMP TOImage from the World Energy Councils Humanising Energy Series featuring Fluence,Keeping the lights on produced by BBC StoryWorks.13WORLD ENERGY TRILEMMA 2024Figure 5:Top improvers in 2023 against their 2000 scoreFigure 6:Primary Energy Supply illustrates

78、differing regional energy contexts for SecurityENERGY SECURITYWhen the World Energy Trilemma framework was first devised some 15 years ago,energy security was focused on concerns about supply-side shocks,access to scarce resources,strategic reserves,energy efficiency,and exposure to commodity prices

79、.The concept of energy security now extends to a variety of new challenges,including the prospect of demand-driven energy shocks,exemplified by Europes decision to move away from Russian gas imports in response to Russias invasion of Ukraine.The new world of disruption-as-usual includes extreme weat

80、her events and issues beyond traditional oil and gas dependencies,such as data and technologies,critical minerals and metals,and new kinds of asymmetric threats to both physical and digital infrastructures.13WORLD ENERGY TRILEMMA 2024Source:World Energy Council,IEA WORLD ENERGY TRILEMMA REPORT 2024

81、DIMENSIONS CHAPTER ENERGY SECURITY14WORLD ENERGY TRILEMMA 2024The Russia-Ukraine war,which began in February 2022,OPEC+production cuts,and other global incidents have rigorously tested energy security strategies across the globe.In response,countries in Latin America,Africa,and Asia have ramped up t

82、heir domestic oil,gas,and coal production to mitigate geopolitical and market pressures.However,this approach,while enhancing supply security in the short-term,diverges from the global momentum towards environmental sustainability and the shift to cleaner energy forms.Following the Ukraine invasion,

83、European nations,heavily reliant on Russian oil and gas,responded by using less gas,securing extra supply at higher prices,temporarily increasing coal-fueled power generation,introducing binding EU-wide targets to fill gas storage,and bringing online record amounts of renewable energy,as well as int

84、roducing obligatory energy-saving measures.While the spike in energy prices led to a cost-of-living crisis in many parts of Europe and other parts of the world,Europes interconnected electricity markets ensured secure electricity supplies.A combination of demand-side measures,along with actions to q

85、uickly secure liquefied natural gas(LNG)supplies,resulted in Europe securing 95%gas storage by Q4 2022.The need for long-term resilience in energy systems,which must adapt to cyber threats and other risks,highlights the importance of comprehensive security measures beyond mere physical infrastructur

86、e protection.Cooperation,information exchange,and solidarity among nations,especially among Baltic and Nordic countries,are necessary to enhance energy security in response to potential cyberattacks and other digital risks.EFFECTS OF WARThe understanding about what constitutes energy security is und

87、ergoing a profound change.Simple ideas of adequate supply are giving way to a focus on resilience.Amidst the challenges posed by extreme weather events,the diversification of energy supplies,and emerging threats to both physical and digital infrastructure,the adaptation of energy systems to withstan

88、d disruptions and the capacity for demand-side management are both crucial to energy security.In addition,to avoid the catastrophic global overshoot of 1.5-degree Celsius,attention is being focused on carbon removal,climate repair,and innovative strategies for building adaptive infrastructure.Japan,

89、for example,has responded to devastating typhoons by revising electricity grid standards.Latin America is turning attention to the vulnerability of its hydroelectric power to erratic rainfall and droughts.Concerted efforts to future-proof energy infrastructure against climate-induced disruptions ref

90、lect a broader understanding that resilience is not just about responding to immediate threats but also about anticipating and mitigating future challenges,ensuring that energy systems can sustainably support societal needs in an era marked by climate uncertainty.PIVOT TO DYNAMIC ENERGY RESILIENCETh

91、e Ukraine war has intensified the focus on gas storage,while the surge in renewable energy adoption necessitates expanded storage capacity to synchronize generation with demand,both in the short term and for seasonal shifts.This intricate balancing act requires grid investment and digitilisation as

92、well as new measurements and indicators of system stability.The integration of diverse energy sources,which requires large-scale,adaptable,and integrated energy storage,underscores the significance of policies promoting advanced grid infrastructure and smart technologies to safeguard system stabilit

93、y.Electricity market reforms,while seen primarily as responses to the need for energy equity,are also introducing time-based tariffs to support the balancing act for grid reliability.NEW NEEDS FOR ENERGY SYSTEM RELIABILITY WORLD ENERGY TRILEMMA REPORT 2024 DIMENSIONS CHAPTER ENERGY SECURITY15WORLD E

94、NERGY TRILEMMA 2024Figure 7:Changes between 2000 and 2021 in the diversity of electricity generation of the security top performersSource:World Energy Council,IEAMany new energy technologies,including renewables,energy storage,and electric vehicles,require critical minerals that are highly concentra

95、ted in only a few countries.While Western powers own the access to the technologies(IP,manufacturing facilities,expertise),the global south,especially Africa,owns the access to critical minerals,and China controls a significant portion of the rare earth elements market and processing capacities.A mo

96、re diversified control might mitigate against geopolitical risks in the context of US-China competition risks already seen as a consequence of the global pandemic and the Ukraine crisis,with the trade sanctions that followed.In the future,such crises,as well as trade disputes or social and environme

97、ntal issues within producing countries,could pose challenges to energy security,and potentially to energy transitions.SUPPLY CHAIN VULNERABILITIESEnergy demand management is recognized as an essential component of energy security,reflecting a shift towards more active consumer participation in energ

98、y markets,particularly through dynamic pricing and flexibility contributions.During the first winter of the Ukraine war,citizens and businesses in Europe decreased energy demand,demonstrating collective resilience in the face of energy challenges and signaling that demand management can be part of s

99、ecurity measures.Many factors are likely to transform regional demand profilesfor example,the rise of digital technologies and associated cooling demands,fuel-switching in hard-to-abate sectors like steel production,more prosumers,and ambitious national hydrogen strategies in in high-income,resource

100、-rich countries such as the UAE and the Kingdom of Saudi Arabia.Consumers with photovoltaic systems(PVs),solar energy capabilities,electric vehicles,or heat pumps should be able to contribute actively to future energy markets,which should enable dynamic pricing as well as the opportunity to sell exc

101、ess energy back to the grid.ENERGY DEMAND MANAGEMENT:A KEY TO SECURITY WORLD ENERGY TRILEMMA REPORT 2024 DIMENSIONS CHAPTER ENERGY SECURITY16WORLD ENERGY TRILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 DIMENSIONS CHAPTER ENERGY SECURITYA rethinking of energy security is underway as the world energy

102、system transitions away from a dominant dependency on fossil fuels to a more diversified energy mix and increasingly diverse and more decentralized new power systems.The rise of renewables in the energy mix demands new levels of interconnection and flexibility to meet the challenges related to wind

103、and solar variability.Strategic planning is needed,as well as investment in digital grid infrastructure with the computational power to manage variabilities in both supply and demand.By effectively sharing regional assets,countries can benefit from each others generation capacities to improve reliab

104、ility and resilience.Rwanda,for example,is attempting to increase regional interconnectivity.And under the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project(LTMS-PIP),Singapore is importing up to 100MW of hydropower from Lao PDR through Thailand and Malaysia electrical grids.By contrast,

105、many resource-rich countries often exhibit low diversity in their electricity generation mix,primarily relying on hydrocarbons.This reliance is evident in the Gulf Cooperation Council(GCC)countries,where hydrocarbons have historically dominated the energy landscape.However,countries like the UAE are

106、 actively reducing their fossil fuel dependency by incorporating nuclear and solar capacities,resulting in a significant decrease from 97%to 89%reliance on hydrocarbons.Similarly,Saudi Arabia has set ambitious targets,aiming for 50%renewable energy by 2030.These developments suggest a potential peak

107、 in the role of fossil fuels in electricity generation,especially as low-cost producers typically transition last.However,its important to note that such trends can be influenced by volatile global conditions,which may challenge or even reverse progress.Energy security is strongly connected to both

108、energy equity and environmental sustainability in the context of the social license to operate In Africa,transitioning from the coal sector has led to an upskilling of the work force.In Latin America,some communities have objected to transmission lines as well as oil and gas exploration and extracti

109、on.In Europe,while there is more support for climate-change action,a NIMBY response Not in my backyard!often creates barriers to implementation.Denmarks approach to wind energy development is often cited as a successful model for navigating social license challenges.The policy framework encourages c

110、ommunity-owned wind turbines by providing financial incentives for local ownership.This has resulted in high levels of public support for wind energy,as communities directly benefit from the projects through job creation,local investment,and reduced energy costs.These examples emphasize that targets

111、 for renewable energy capacity or emissions reductions will not,by themselves,guarantee progress on the sustainability dimension of the trilemma.There is,after all,a human dimension within which the World Energy Trilemma operates.THE IMPORTANCE OF A DIVERSIFIED ENERGY SUPPLYPEAK FOSSIL FUELS IN ELEC

112、TRICITY GENERATION?ENERGY SECURITY AND THE SOCIAL LICENSE TO OPERATE“Beyond past perceptions of clean energy as a panacea for energy security and environmental challenges,there is now a widespread recognition that the issues of energy security,affordability,and environmental sustainability are endur

113、ing,complex,and interconnected regardless of the global energy composition.Tools like the World Energy Trilemma Framework equip us to navigate these competing priorities with foresight and balance.”Landon Derentz17WORLD ENERGY TRILEMMA 2024ENERGY EQUITYFigure 8:Top improvers in 2023 against their 20

114、00 score17When the World Energy Trilemma framework was first devised some 15 years ago,energy equity spanned a variety of issues beyond access to affordable energy services,including measures related to education,health and safety,and equality.These measures were later reduced to a focus on the acce

115、ssibility and affordability of energy supply across the population.Even with this narrower focus,equity goes beyond ensuring access to affordable energy;it demands a nuanced consideration of the interplay between cost,price,and value,and the financial and societal impacts of changes in any of these

116、dimensionsas well as the increased short-term costs of the shift to renewable energy.The energy price shocks of the post-COVID era and the war in Ukraine have brought energy affordability to the forefront of public consciousness.In response,governments worldwide,particularly those with the financial

117、 capacity,have implemented emergency subsidy reforms and similar measures to shield individuals,businesses,and other consumers from the worst repercussions of these energy price spikes with spillover effects through inflation across all aspects of human life.A focus on the Levelized Cost of Electric

118、ity(LCOE)of energy technologies has shifted to a consideration of the overall system costs.At the same time,the price to consumers is often affected by inadequately structured markets or relies on subsidies that obscure price signals that reflect scarcity or supply problems.Along with the expansion

119、of metrics,there is also a broadening of what equitable energy means,from access and affordability to the essential role energy plays in driving economic opportunities and overall benefits.Effectively managing the total costs of energy transition to society involves considering the need for connecti

120、ng cost,price,and value.This additional complexity underscores the importance of addressing financial aspects and societal impacts in the pursuit of global energy equity.SUBSIDIES:RESPONDING TO RISING ENERGY COSTSMANAGING THE COSTS OF ENERGY TRANSITIONSSource:World Energy Council,IEA WORLD ENERGY TR

121、ILEMMA REPORT 2024 DIMENSIONS CHAPTER ENERGY EQUITY18WORLD ENERGY TRILEMMA 2024The narrative around equitable transitions differs depending on whether its being told by the developing or developed world.The equitable transition for the developing world continues to include low-carbon fuels such as g

122、as,while the developed world stresses,for example,green hydrogen.The current Ukraine crisis has reinforced the role of natural gas as a reliable transition fuel for Europe.The picture for natural gas is very different in the US,where security at cheap prices seems very likely in the medium-term.Afri

123、ca continues developing oil and gas resources guilt free to meet their growing demand equitably while pursuing the pathway for low-carbon fossil fuels through industry efficiency,openness to exploring carbon capture and underground storage(CCUS),and the development of forestry plantations as effecti

124、ve sinks for carbon dioxide emissions.But the use of fossil fuel revenues to fund the transition,as seen within the Gulf states,has led to backlash,despite demonstrable projects for CCUS and low-carbon production strategies being on track.Whether gas is included or not in the list of transitional fu

125、els begs the question of who pays for energy transitions?Some attention was called to this issue through the pledges towards climate finance that were made at COP28 in the UAE.“In the United States,electricity consumption for video gaming is greater than that of the entire Nigerian economy,a nation

126、with a population thats expected to surpass that of the U.S.within 20 years.Stark energy inequality like this creates untenable disparities in both current economic opportunities and future job creation.The World Energy Trilemma approach allows us to balance competing priorities of security and sust

127、ainability.”Todd MossThe cost of capital(interest rate for loans and return on investment for investors)is critical for the viability of any energy project,but especially for renewable generation,which has lower capacity factors and financial returns despite the downward trend of technology investme

128、nt costs.Geopolitical crises,the regional political environment,and the often unclear regulatory contexts increase uncertainty about total project costs and discourage investment.An often-overlooked driver of affordable clean energy solutions is the positive impact of transparency in contractual agr

129、eements.In Germany or Texas,for example,if one were to embark on establishing a wind farm,the market dynamics,including the pricing and contractual terms,are transparent and accessible to the public.This openness not only ensures fair competition but also enables regulators,market actors,and the gen

130、eral public to scrutinize the details of power purchase agreements,including taxes,pricing structures,and other vital project parameters.However,this transparency is not universal,especially in emerging markets.A significant issue that has not received ample attention is the lack of openness in many

131、 markets regarding the terms and conditions of power purchase agreements.In some cases,the very existence of these contracts is shrouded in secrecy.This lack of transparency in contract details carries profound implications.Drawing lessons from other sectors,particularly the oil and gas industry,whe

132、re the Extractive Industries Transparency Initiative has successfully fostered transparency norms,it becomes evident that transparency is not just an ethical requirement but also a practical necessity.Similarly,sovereign debt is now subjected to disclosure requirements,in recognition of the publics

133、right to know and the potential impacts on national finances.Therefore,in the realm of clean energy,advocating for contract disclosure norms becomes a crucial element in fostering good governance,ensuring competitive procurement,and ultimately driving down costs.WHO PAYS FOR ENERGY TRANSITIONS?CONST

134、RUCTING SUCCESSFUL ENERGY MARKETSTHE COST OF CAPITAL AND THE ROLE OF TRANSPARENCY WORLD ENERGY TRILEMMA REPORT 2024 DIMENSIONS CHAPTER ENERGY EQUITY19WORLD ENERGY TRILEMMA 2024Transmission is not just a security issue but creates a bottleneck for equitable energy transitions.New transmission infrast

135、ructure needed to connect the sources of generation to consumption centres remains under-financed.The US Inflation Reduction Act(IRA),for example,does not include transmissiona barrier to fulfilling the goals of the legislation.Regional collaborations,like those in Asia and Latin America,can be a so

136、lution for covering the cost of transmission,providing energy security as well.Africa,too,is experimenting with collaborative approaches for both gas grids and electricity grids,building African gas pipelines across several countries and creating a continental electricity market.Because the need for

137、 energy security provides impetus for action,the key actors are governmentsbut innovative financing mechanisms to cover the cost are yet to emerge.Amidst these challenges,upskilling and workforce development are key components of just transitions,underscoring the broader implications beyond energy s

138、ystems to encompass economic and social dimensions.The cost of transitions also includes the cost of technology and knowledge transfer,which is enabled through the upskilling required for deployment and maintenance.For example,the new nuclear power plant in the UAE was designed with a strong focus o

139、n the upskilling of the local workforce through a strategic collaboration with South Korea and the creation of nuclear training programs across universities.In Africa,too,there is a growing emphasis on upskilling and building capabilities,particularly through decentralized,local-based approaches.Thi

140、s strategy involves leveraging local institutions as pivotal actors in creating markets for new technologies and skills,tailored to the specific needs and contexts of different regions.The rise of technology corridors for green hydrogen is also increasing the need for upskilling,particularly for the

141、 new jobs created by projects like the Namibian Green Hydrogen project.However,this upskilling and absorption of human resources is impacted by the cost of the phase-outs of fossil fuels,and who pays for this cost remains unsettled.At its core,the productive use of energy transcends mere consumption

142、.It embodies the application of energy to propel economic activities that increase income,improve living standards,and foster local development.This approach to energy equity goes beyond the traditional metrics of profitability to consider the socio-economic fabric it weaves within communities.Altho

143、ugh SDG 7 aims to ensure access to affordable,reliable,sustainable,and modern energy for all by 2030,it refrains from specifying a particular threshold for energy access.The importance of reliable and affordable energy as an enabler of economic prosperity is widely acknowledged,but needs to be captu

144、red in measuring progress on energy ENERGY TRANSMISSIONA CHALLENGE FOR EQUITYUPSKILLING AND EQUITYPRODUCTIVE ENERGY USE A compelling correlation exists between improvements observed in the Councils Trilemma Energy Equity dimension and advancements in the Human Development Index(HDI).For example,top

145、ten improvers since 2020,including Ethiopia,Mozambique,Cambodia,and Niger,are the same in both the Trilemma Index and the HDI.This correlation underscores the interconnectedness of energy policies,environmental sustainability,and socio-economic development and emphasizes the effectiveness of impleme

146、nting comprehensive strategies to achieve balanced progress across all fronts.Figure 9:Progression in HDI and Energy Equity Scores(2000-2022)Human Developments Index(HDI)NigerEthiopiaMozambiqueZambiaNepalBangladeshCambodiaMyanmar00.30.40.50.655Energy Equity WORLD ENERGY TRILEMMA REPORT 20

147、24 DIMENSIONS CHAPTER ENERGY EQUITY20WORLD ENERGY TRILEMMA 2024A MODERN ENERGY MINIMUM:BUILDING A SOCIO-ECONOMIC BRIDGEThe Energy for Growth Hub has introduced the idea of a Modern Energy Minimum(MEM)to argue that substantial economic development requires energy access that surpasses domestic bounda

148、ries to include the energy necessary to energize the broader economy,enabling productive employment and propelling economic advancement.1 The numerical benchmark of 1,000 kilowatt hours per person per year represents a transformative threshold associated with tangible improvements in living standard

149、s.Currently,the minimum threshold of 50 kilowatt hours per person per year,often linked with extreme poverty,correlates with incomes of less than$1 a day.In contrast,reaching 1,000 kilowatt hours elevates individuals to an income bracket between six and seven dollars per day,positioning them within

150、the global lower-middle class.In response to the Ukraine crisis,electricity markets in Europe are undergoing significant reforms aimed at making electricity prices less dependent on volatile fossil fuel prices,accelerating the deployment of renewable energies,and improving consumer protection.A prov

151、isional agreement reached by the European Council and the European Parliament proposes reforms to the EUs electricity market design.These reforms include measures to shield consumers from price spikes,enhance the integration of renewable energies into the electricity market,and improve market transp

152、arency and monitoring .One of the key aspects of the reforms is enabling national governments to provide direct financial support for power purchase agreements(PPAs)for renewable generation,thus making renewable projects more financially viable.Governments could act as customers for electricity gene

153、rated from renewable sources,promoting the deployment of clean energy.Additionally,the reforms aim to stabilize electricity prices by introducing contracts for difference with fixed price ceilings and floors,minimizing price fluctuations inherent in renewable power generation .Moreover,the agreement

154、 includes provisions for declaring an energy crisis,allowing for measures to reduce electricity prices for vulnerable and disadvantaged customers .Energy systems are increasingly seeing introduction of net billing,time-of-use tariffs,and measures for integrating distributed energy resources,enhancin

155、g time and space granularity,and fostering new business opportunities essential for a renewable-based power system.transitions.Around 700 million people,particularly in Sub-Saharan Africa,still lack access to basic energy.Continued progress on SDG 7 remains imperative,with top improving countries su

156、ch as Kenya,Benin and Ethiopia offering practical examples.The existing indicators,which focus mainly on household electricity,report that access to electricity averages 50-100 kWh per person per year.While addressing basic needs,this perspective falls short of capturing the dynamism required for co

157、mprehensive economic growth.The top ten countries in energy equity rankings are characterized by low energy costs for consumers,often in the form of implicit subsidies.This dynamic explains the dominance of Gulf Cooperation Council(GCC)nations in this dimension,with Qatar,Kuwait,the UAE,Oman,and Bah

158、rain leading the equity top 10.These countries are typically small,affluent nations boasting high GDPs,robust interconnections,and low energy prices facilitated by subsidies or abundant,easily extractable energy resources.Its noteworthy that price subsidies,whether explicit or implicit,can impede en

159、ergy supply diversification,impacting scores in other dimensions of the Index.Among the top 10 greatest improvers,seven are African states.Since 2000,these countries have shared a common focus on implementing policies to increase access to energy and make it more affordable for consumers.Kenya and B

160、angladesh have seen substantial improvements in access to electricity,largely due to the effective implementation of government policy.REDESIGNING EUROPEAN ENERGY PRICESENERGY EQUITY SUCCESSES WORLD ENERGY TRILEMMA REPORT 2024 DIMENSIONS CHAPTER ENERGY EQUITY21WORLD ENERGY TRILEMMA 2024 WORLD ENERGY

161、 TRILEMMA REPORT 2024 DIMENSIONS CHAPTER ENERGY EQUITYKENYAS ELECTRIFICATION STRATEGYKenyas 2018 National Electrification Strategy and subsequent government policies have resulted in increases in electrification,with access rates reaching 76.5%in 2021.In response to the recent rise in global energy

162、prices,Kenya implemented subsidies and tax cuts for cooking gas,as well as fuel subsidy schemes.In 2022,the government enforced reduction and regulation of electricity tariffs by providing financial assistance to the national utility Kenya Power and Lighting Company(KPLC),to be passed on to househol

163、d consumers.Figure 10:Percentage changes of key drivers in the past 5 years illustrating improvements in energy equitySource:UN,World Bank,IEA,World Energy CouncilBangladesh has shown a remarkable increase in both access to electricity and an increase in modern energy access,a success which is attri

164、buted to business models tuned to deploy off-grid systems.Although only a modest improvement was made in affordability,the substantial rise in GDP per capita suggests a robust economic growth that increases the ability and willingness to pay for energy services.Cambodia,despite a comparatively lower

165、 access rate,has nevertheless achieved a massive improvement in modern energy access,indicating a profound enhancement in the quality and reliability of its energy supply.However,the country experienced a decrease in energy affordability,even though accompanied by a modest increase in GDP per capita

166、.This suggests that the cost of the modernization of energy infrastructure is being passed on to the consumers.Ethiopia has seen decent progress in both general energy access and modern energy access.The country has also experienced a sizable improvement in affordability as well as in GDP per capita

167、,which indicates that the cost of energy in relation to income has considerably decreased.Kenya has experienced growth in both general energy access and modern energy access.The stagnation in energy affordability suggests that energy costs may be challenging for citizens,despite an increase in GDP p

168、er capita.Recently,Kenya increased energy subsidies to protect consumers from the overall impacts of inflation rising from geopolitical crisis.22WORLD ENERGY TRILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 DIMENSIONS CHAPTER ENVIRONMENTAL SUSTAINABILITYENVIRONMENTAL SUSTAINABILITYFigure 11:Top impro

169、vers in 2023 against their 2000 scoreFigure 12:Diversity of Generation Regional TimelineWORLD ENERGY TRILEMMA 2024Source:World Energy Council,IEAWhen the World Energy Trilemma framework was first introduced,environmental sustainability focused on how nations,responded to rising greenhouse gas emissi

170、ons,evaluated the efficacy of emission reduction measures and managed other environmental concerns like air and water quality and biodiversity preservation.This focus has now widened considerably to encompass the global shift away from fossil fuels like oil,natural gas,and coal,towards renewable sou

171、rces such as wind,solar,and lithium-ion batteries,and the existence of non-negotiable thresholds planetary boundaries.This widened focus requires a more holistic view of environmental impacts,including those associated with mining and mineral extraction.Key concepts such as circularity,which involve

172、s creating systems where resources are continually used,reused,and recycled,and carbon circularity,which specifically focuses on mitigating carbon emissions within these circular systems,are gaining prominence.Moreover,discussions now extend to include topics such as biofuels,biodiversity,the interc

173、onnectedness of water,food,and energy systems(known as the water-food-energy nexus),and the importance of securing a social license to operate.23WORLD ENERGY TRILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 DIMENSIONS CHAPTER ENVIRONMENTAL SUSTAINABILITYIn the Councils tracking of countries environme

174、ntal sustainability,the top ten ranked countries demonstrate robust policy efforts to decarbonize and diversify energy systems away from fossil fuels,with Switzerland,Sweden,and Norway leading the way.These nations have prioritized energy efficiency and demand management measures,implemented diversi

175、fied low-carbon energy systems,and effectively utilized policy instruments to significantly reduce greenhouse gas(GHG)emissions.The recent stocktake at COP28 underscores a sobering reality:despite progress,the world is not on track to achieve the Paris Agreement goals.To keep the 1.5-degree Celsius

176、goal within reach and to reach net-zero emissions by 2050,greenhouse gas emissions must be reduced 43%by 2030,renewable energy must be tripled,and energy efficiency must be doubled.Taking equity into account in transitioning away from fossil fuels also calls for addressing financial shortfalls and s

177、upporting developing countries in their energy transitions and climate plans.2To ensure sustainable development and long-term prosperity,humanity must respect nine critical planetary boundaries that safeguard the stability and resilience of the Earth system.Alarmingly,six of these nine boundaries ar

178、e currently being breached,with mounting pressure observed against almost all boundaries:ENVIRONMENTAL SUSTAINABILITY:INGREDIENTS OF SUCCESSBEYOND NET-ZERO:ENSURING A SAFE OPERATING SPACE FOR HUMANITYSource:Azote for Stockholm Resilience Centre,based on analysis in Richardson et al.,2023Figure 13:Th

179、e 2023 Update to the Planetary Boundary1.Climate changecrossed 2.Ocean acidificationcrossed 3.Chemical pollutionunknown 4.Nitrogen and phosphorus loadingcrossed 5.Freshwater withdrawalsapproaching 6.Land conversioncrossed 7.Biodiversity losscrossed 8.Air pollutioncrossed 9.Ozone layer depletionimpro

180、vingPositive environmental performance is integral to effectively managed energy transitions.While the Councils environmental sustainability pillar,focused on energy sector performance,is a subset of the Yale Environmental Performance Index,similar positive trends can be observed across key countrie

181、s striving to enhance the environmental performance of the energy sector and beyond.In the World Energy Trilemma Index,countries such as China,Luxembourg,and the United Arab Emirates have notably improved their energy sustainability performance over the past decade,reflecting advancements also seen

182、in the Yale Index.This progress underscores their high level of commitment and effective actions toward achieving greater sustainability.RESILIENCE IN CONSISTENCYSUSTAINABILITYFor practical reasons,this discussion is often simplified to focus narrowly on decarbonisation and achieving net-zero carbon

183、 emissions.At the same time,the politicization of sustainable development has led to a perceived division between green(includes only renewables,such as hydro,solar,and wind)and clean(includes fossil fuels with CCS and nuclear).The clean category can be blurred by corporate greenwashing,where compan

184、ies may exaggerate or misrepresent their environmental efforts for public relations purposes.24WORLD ENERGY TRILEMMA 2024By aligning efforts toward energy transitions with respect for planetary boundaries,humanity can not only address climate change but also mitigate other environmental challenges s

185、uch as biodiversity loss,pollution,and ecosystem degradation.This integrated approach ensures that actions taken to transition to a low-carbon economy are in harmony with broader sustainability objectives.Moving towards sustainable solutions in energy requires potential unintended consequences to be

186、 taken into consideration.For example,green hydrogen might be a sustainable replacement for fossil fuels in heavy industry.But since it is produced from splitting water into hydrogen and oxygen(using renewable electricity),it also might affect local water supplies.WORLD ENERGY TRILEMMA REPORT 2024 D

187、IMENSIONS CHAPTER ENVIRONMENTAL SUSTAINABILITYIn 2024,around half the worlds population in countries representing a third of the worlds economy will elect their leaders.The prevalence of upcoming elections across the globe has contributed to increased levels of societal polarisation.Election outcome

188、s can reshape energy and climate agendas,potentially altering the trajectory of key initiatives like the EUs Green Deal or the US Inflation Reduction Act.Insufficiently clarified policies promoting sustainability can also elicit a backlash,as was the case with the yellow vest protests in France,spar

189、ked by fuel taxes.Climate action extends beyond technological innovation,ultimately depending on political determination and community consensus.THE IMPORTANCE OF POLITICS AND POLICIES SOVEREIGN WEALTH FUNDS:INVESTING IN THE FUTURENorways Government Pension Fund Global,commonly known as Norways oil

190、fund due to its origin from oil and gas revenues,stands as one of the worlds largest sovereign wealth funds(SWFs).It invests in a wide array of international stocks,bonds,and real estate,exerting considerable influence on global investment trends.Guided by ethical guidelines,the fund eschews investm

191、ents in entities linked to human rights abuses,severe environmental harm,and tobacco production,among others,reflecting a strong alignment with societal values.This approach allows Norway to address the Social License to Operate(SLO)challenges inherent in utilizing fossil fuel revenues,showcasing a

192、steadfast commitment to sustainability and social responsibility.The role of SWFs in supporting the energy transition is complex and often scrutinized by climate activists;yet their capacity to aid this shift is substantial.In 2022,investments in renewable energy by State-Owned Investments(SOIs),inc

193、luding SWFs,hit$18.7 billion globally.Notably,funds from the Gulf Cooperation Council(GCC)contributed to 29%of this investment,marking a significant move towards diversifying domestic economies and supporting the net-zero ambitions outlined in the Paris Agreement.To have a positive impact on the fig

194、ht against climate change,SWFs must handle the intricacies of traditional investment models while navigating within the broader socio-economic and political contexts.Transparency,the use of stringent Environmental,Social,and Governance(ESG)criteria,and a willingness to divest from fossil fuels where

195、 possible are essential for SWFs to contribute to global climate action efforts.“The World Energy Trilemma Framework provides a legitimacy to climate policymaking that rises above labels of any particular political leaning,providing a new equilibrium where climate policies are not only acknowledged

196、as legitimate but recognized as essential.”Maria van der HoevenThe expansion of renewable energy technologies,such as solar panels,wind turbines,and batteries,presents a critical pathway toward reducing greenhouse gas emissions and mitigating climate change.THE NEED FOR CIRCULAR SOLUTIONS25WORLD ENE

197、RGY TRILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 DIMENSIONS CHAPTER ENVIRONMENTAL SUSTAINABILITYCIRCULAR CARBON ECONOMY FRAMEWORKCarbon circularity frameworks,like the Circular Carbon Economy(CCE)Framework,serve as a navigation tool for identifying the potential circularity within industrial proc

198、esses including the oil and gas sector.The CCE framework helps identify economic opportunities by assigning a monetary value to CO2 emissions when kept in the loop through various processes such as carbon capture and utilization(CCU),carbon capture and storage(CCS),and carbon recycling.Amid current

199、global challenges,including geopolitical tensions,energy security issues,and concerns about energy equity,this shift in approach responds to the reality that completely phasing out fossil fuels in the short term is extremely challenging,especially in sectors and regions heavily reliant on them for e

200、conomic stability.Addressing regulatory gaps and developing innovative financial incentives are crucial for the widespread adoption of CCUS,which is expensive.Assigning an economic value to CO2 within the circular carbon economy framework incentivizes innovation to lower the cost of CCUS technologie

201、s.One example of such innovation is enhanced oil recovery(EOR),where compressed CO2 is injected under high pressure into flooded oil reservoirs as a substitute for the natural gas which would otherwise be used to enhance oil recovery.This use of CO2 also results in its being stored underground.Other

202、 examples of reusing captured carbon include converting CO2 into durable carbon,including building materials and polymers.The advancement and increased adoption of Environmental,Social,and Governance(ESG)criteria have introduced a new layer of governance for international capital flows and corporate

203、 conduct.This shift towards greater transparency and accountability in environmental sustainability efforts has led to increased scrutiny of corporate impact on the environment.As corporations position themselves as crucial players in driving energy transitions,their leaders,consumers,and regulators

204、 must ensure that business practices align with the principles of energy security,equity,and environmental sustainability.CORPORATE TRANSPARENCY IN ENERGY TRANSITIONS“Energy is one piece of the big picture that policymakers are focused on.Leaders are simultaneously balancing political stability and

205、security of the country,alongside economic growth and international geopolitics.Energy plays a role within each of these areas,and the World Energy Trilemma Framework provides a path to balance the competing priorities of energy security,sustainability and equity within the broader economy.”Zhai Yon

206、gpingREFERENCES1 Energy for Growth Hub.(n.d.).The Modern Energy Minimum.Energy for Growth Hub.https:/energyfor-growth.org/project/the-modern-energy-minimum/2 UNFCC.(2023).Outcome of the first global stocktake.https:/unfccc.int/sites/default/files/resource/cma2023_L17_adv.pdfHowever,in spite of their

207、 operational benefits,these technologies potentially create negative environmental impacts as well.The extraction of minerals and metals required for their production can lead to significant environmental degradation,including habitat destruction,soil erosion,water pollution,and increased greenhouse

208、 gas emissions.Mining activities associated with obtaining necessary critical minerals for battery production can,for example,disrupt ecosystems,contribute to deforestation,and generate substantial amounts of waste.In response to these concerns,there is a growing recognition that circular economy pr

209、inciples need to be applied to mining activities associated with the production of renewables.Systems can be designed to promote the reuse,recycling,and repurposing of materials to minimize the extraction of virgin resources and reduce waste generation.For example,end-of-life renewable energy techno

210、logies can be dismantled,and their components recycled or refurbished for use in new installations,thereby extending their lifespan and reducing the demand for new raw materials26WORLD ENERGY TRILEMMA 2024JUMP TOImage from the World Energy Councils Humanising Energy Series featuring Infineon(Germany

211、)produced by BBC StoryWorks.LATIN AMERICA&THE CARIBBEANASIAEUROPEAFRICAMIDDLE EAST AND GULF STATESNORTH AMERICA27WORLD ENERGY TRILEMMA 2024AFRICAHIGHLIGHTSChallenges include reliance on fossil-based energy,limited access to modern energy services,inadequate infrastructure,conflicting geopolitical in

212、terests,and economic and governance barriers.ENERGY SECURITYUnequal access and reliability,but regional integration enables economies of scale,growing market competition,more affordable electricity prices,and more reliable energy services as well as macroeconomic benefits.ENERGY EQUITYRising investm

213、ent in renewable energy;development of hydrogen corridors and hydropower present economic growth prospects;collaboration opportunities between Africa and international partners,with shared benefits including job creation and technology transfer.ENVIRONMENTAL SUSTAINABILITYTRILEMMA INDEX 2024 REGIONA

214、L CHAPTER LATIN AMERICA AND THE CARIBBEANBuilding An Inclusive Energy Transition”-taken from an article made for EEP Africa and the Nordic Development Fund(Getty Image)Tension between increasing security and access and meeting sustainability targets;growing commitment to energy diplomacy and regiona

215、l cooperation to address challenges collectively.MANAGING THE WORLD ENERGY TRILEMMA28WORLD ENERGY TRILEMMA 2024Figure 14:World Energy Trilemma Index Regional Balance-AfricaSource:World Energy CouncilSource:World Energy CouncilFigure 15:World Energy Trilemma Index Regional Results-AfricaAfrica stands

216、 at a critical juncture between two divergent energy models:the conventional,extractive model of the past and an emergent twin transition to clean energy and digitisation.In navigating a complex landscape involving access and equity,investment,sovereignty,institutional capacities,social development,

217、and workforce building,Africa is also confronting the prevailing divergence between centralised and distributed energy generation.The pursuit of export-driven revenues often takes precedence over the need for universal access,leaving significant segments of the population without modern energy suppl

218、ies.The rise of new technologies and initiatives to enhance regional energy trade and ensure supply security shapes both institutional priorities and investment landscapes.WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER AFRICA29WORLD ENERGY TRILEMMA 2024ENERGY SECURITYAfricas population is rapidl

219、y growing,and increased urbanisation is driving up energy consumption,leading to an expected rise in demand of 30%between 2020 and 2030.1 Meeting rising demand while ensuring affordability and sustainability is a critical aspect of Africas energy security.Gas is abundantly available in a number of A

220、frican countries and is increasingly viewed as a reliable and flexible energy source that can complement intermittent renewable energy technologies,providing stability to electricity grids,and meeting the rising energy demand.The acceleration of investments in LNG as a response to the Ukraine crisis

221、 is creating opportunities for new gas exploration in Mozambique,particularly in the Rovuma Basin,which has attracted substantial international interest and investment in recent years.Companies like TotalEnergies and ExxonMobil have made significant investments in liquefied natural gas(LNG)projects,

222、aiming to capitalize on Mozambiques potential as a major LNG exporter.While geopolitical shocks may occur,the long-term outlook for gas remains strong across Africa as countries seek to diversify their energy mix and transition towards cleaner fuels.Energy security in Africa is exacerbated by inadeq

223、uate infrastructure,limited investment,and dependence on traditional biomass fuels.However,in recent years,there has been notable progress in addressing these challenges.Governments across Africa are increasingly priotitising energy security as a strategic imperative,implementing policies to diversi

224、fy energy sources,improve infrastructure,and attract investment in the energy sector,and the rise of renewable energy technologies has presented important opportunities to enhance energy independence.Additionally,regional cooperation and integration efforts,such as cross-border electricity trade and

225、 infrastructure projects,are advancing energy security objectives,facilitating access,and promoting regional stability.The continent has two priorities in relation to grid development:access and,where access is already provided,digitisation to encourage reliable supply.The migration from the old sys

226、tems to the new systems to improve security of supply and reliability targets immediate challenges like load balancing and service quality.For instance,Rwandas implementation of smart meters and energy management software targets specific issues such as electricity theft while enhancing customer ser

227、vice with digital solutions like online billing and payments.Similarly,the Nigerian Electricity Regulatory Commission(NERC)introduced a regulatory framework for smart grid technologies that has enabled electricity distribution companies to significantly reduce power outages and improve customer sati

228、sfaction.THE OUTLOOK FOR GASSECURITY AND COOPERATIONGRID DEVELOPMENT FOR SECURE SUPPLY WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER AFRICATHE WORLD ENERGY TRILEMMAImage from the World Energy Councils Humanising Energy Series featuring Rockefeller Foundation(Nigeria)produced by BBC StoryWorks.3

229、0WORLD ENERGY TRILEMMA 2024The regional integration of energy systems in Africa holds significant potential for improving access to electricity and reducing prices for consumers across the continent.Regional integration initiatives can facilitate the sharing of energy resources,optimise infrastructu

230、re investments,and enhance energy security by linking electricity grids and increasing collaboration among neighboring countries.Countries can tap into a diverse mix of energy sources,including renewable energy,hydropower,and natural gas,thereby reducing reliance on costly imported fuels and mitigat

231、ing supply disruptions.Additionally,regional integration promotes economies of scale in electricity generation and transmission,leading to cost efficiencies that can be passed on to consumers through lower electricity tariffs.Such integration also enables surplus power exports and promotes market co

232、mpetition,driving down prices for consumers.Africas diversified energy strategy combines grid expansions with off-grid solutions,thus leveraging both centralised and decentralised energy solutions.Grid expansions focus on extending electricity infrastructure to urban and peri-urban areas,capitalisin

233、g on economies of scale and existing grid networks to provide reliable electricity access to densely populated regions.In parallel,off-grid solutions,including off-grid solar systems,mini-grids,and standalone power systems,cater to the needs of remote and rural communities that are not connected to

234、the main grid,offering affordable,scalable,and sustainable energy access tailored to local contexts.IMPROVEMENT THROUGH REGIONAL INTEGRATION A DIVERSIFIED STRATEGY FOR UNIVERSAL ACCESS WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER AFRICAINFORMATION AND COORDINATION:LEVERS OF ENERGY EQUITYIn Nov

235、ember 2023,the Economic Community of West African States(ECOWAS)inaugurated the Information and Coordination Centre(ICC)for the regional electricity market in Benin.This initiative,orchestrated by the West African Power Pool(WAPP),marks the fulfillment of the commitment to make electric energy readi

236、ly available for the West African region.ENERGY EQUITYEnergy equity has consistently improved in the last twenty years,marked by increased access through grid extension projects and off-grid solutions.Policy and regulatory reforms have sought to stimulate investment and promote renewable energy deve

237、lopment,while innovative financing mechanisms like pay-as-you-go models have helped overcome affordability barriers.Even so,a substantial portion of the continents population lacks reliable and affordable access to modern energy services,with strong discrepancies between urban and rural areas.In rur

238、al areas,communities often rely on traditional biomass for cooking and heating,exposing them to health hazards and perpetuating energy poverty.Taking the case of electricity supply,it should be noted that using IEA and Our-World-in-Data information,that while the World Electricity Access is about 90

239、%that of sub-Saharan African nations was about 53.5%.Bridging the energy access gap requires concerted efforts in infrastructure development,especially decentralised solutions such as off-grid and mini-grid systems.The number of people connected to mini-grids has more than doubled between 2010 and 2

240、019,growing from 5 to 11 million people.In the equity dimension of the World Energy Trilemma Index,Africa has improved consistently,and now has 7 of the top 10 performers.THE WORLD ENERGY TRILEMMA31WORLD ENERGY TRILEMMA 2024The energy transition challenge in Africa is not a resource or a funding cha

241、llenge,it is a development bottleneck.Botswana,South Africa,Nigeria,and the DRC have made commitments to restrict methane emissions and phase out coal.Moreover,Africas energy-producing countries are challenged to deliver more returns sustainably,which exposes them to the increased risk of stranded a

242、ssets with significant untapped resources.In 2022,for example,85%of total export revenues in Nigeria were petroleum exports.In addition,the Carbon Border Adjustment Mechanism(CBAM)and Inflation Reduction Act(IRA)are reshaping international trade,and will impact oil and gas exports.Hydroelectric gene

243、ration is rising as many countries seek to transition to cleaner and more sustainable energy sources.Central Africa holds the largest share(40%),followed by East Africa(28%),but 90%of Africas hydropower potential is still unexploited.African countries have ambitious decarbonisation plans,and upgradi

244、ng hydropower infrastructure with state-of-the-art technology to improve flexibility services sits at the center of their priorities.Hydropower can play a vital role in accommodating the intermittent nature of wind and solar energy production,and these capabilities are further strengthened through m

245、odernisation initiatives.In addition,nuclear is gaining traction as a low-carbon alternative,with Egypt,Nigeria,Ghana and Morocco already engaged with the IAEA to assess their readiness to embark on nuclear programs.Algeria,Tunisia,Uganda,and Zambia are also studying the possibility of nuclear power

246、.2 While only South Africa has an operational nuclear power plant,Ghana has nuclear reactors for research purposes and has included nuclear in its nationally determined contributions(NDCs),with the first power plant scheduled to begin construction in 2025.Nigeria also has a nuclear research reactor,

247、a tandem accelerator and a gamma irradiation facility which were the basis for developing its nuclear power program.The rising interest in nuclear on the continent is encouraging reliable grid development to connect the nuclear power stations.Energy resources and the abundance of rare earth minerals

248、 present a major economic opportunity for Africa.In addition,hydrogen and related derivatives are at the core of strategic development discussions between Africa and Europe.The development of technology corridors,such as the SoutH2 Corridor project between North Africa and South Europe,constitutes a

249、 developing backbone for supply security and the interconnected critical infrastructure needed for massive renewable energy capacity deployment.Both Morocco and South Africa are building the regulatory frameworks and strategic international partnerships to secure funding and technical expertise for

250、the development of green hydrogen.Building hydrogen corridors between Africa and Europe requires economic integration,policy harmonisation,digitalisation,and geopolitical collaboration.These corridors represent an opportunity for mutual economic growth and innovation,with potential benefits includin

251、g job creation,technology transfer,and diplomatic ties.By fostering a holistic understanding of hydrogen trade,these corridors can serve as catalysts for sustainable development,energy security,and the transition to a low-carbon economy.STRANDED ASSETS?THE RISE OF HYDRO AND NUCLEARTHE RISE OF HYDROG

252、EN WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER AFRICATHE WORLD ENERGY TRILEMMAENVIRONMENTAL SUSTAINABILITYHistorically,the continent has grappled with environmental degradation exacerbated by rapid population growth and unsustainable development practices.In addition,deforestation remains a d

253、river of carbon.But the growing recognition of the need to address the challenges has led to significant progress in recent years,supported by increasing investments in renewable energies and international partnerships and the promotion of sustainable management practices and conservation efforts.32

254、WORLD ENERGY TRILEMMA 2024NAMIBIAS GREEN HYDROGEN INITIATIVEAt COP27 in Sharm El-Sheikh,Namibias Green Hydrogen Council launched a green hydrogen strategy supporting the countrys commitment to the Paris Agreement on climate change,with the goal of reducing emissions to net zero by 2050.Earlier,throu

255、gh the public intermediary Green Hydrogen Namibia and with support from the Namibia Investment Promotion and Development Board,the Namibian government had issued a request for proposals for renewable energy and green hydrogen project developers.The government then entered into an agreement with Hyph

256、en Hydrogen Energy for a$9.4 billion project that will give rights to the project to Hyphen for 40 years.The project,based in the Tsau Khaeb National Park,will ultimately produce around 300,000 tons of green hydrogen per year.Starting production in 2026,the project is expected to create 15,000 direc

257、t jobs during the first four years of construction and eventually,3,000 permanent jobs.WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER AFRICAMANAGING THE WORLD ENERGY TRILEMMA:CHALLENGES AND OPPORTUNITIESThe surge in hydrogen development,particularly green hydrogen,signals a commitment to environ

258、mental sustainability.On the other hand,the escalation of new oil explorations underscores Africas continued reliance on conventional energy resources,emphasising the economic significance of oil production for many African countries.These competing trends highlight the delicate balance between imme

259、diate energy security needs and environmental sustainability and underscores the complex decision-making process to navigate the energy trilemma.In many African countries,the absence of robust industrialisation and localised value chains has led to a reliance on international aid for crucial investm

260、ents.The discourse on energy access must,therefore,pivot toward the ambitious goal of generating sufficient energy to propel industrial development and foster the growth of secondary and tertiary sectors.By prioritising these broader social needs,the conversation evolves beyond immediate connectivit

261、y issues to wider social concerns.In the evolving African energy landscape,there is a growing emphasis on upskilling and building capabilities,particularly through more decentralised,local-based approaches.Local institutions become pivotal actors in creating markets for new technologies and skills t

262、hat are tailored to the specific needs and contexts of different regions.Social approval is particularly important in relation to the phase-out of coal.With World Bank support,South Africa decommissioned the Komati coal-fired plant but supported THE PARADOX OF OIL AND HYDROGENENERGY TRANSITION AS A

263、CORE SOCIAL ISSUEUPSKILLING OPPORTUNITIESSOUTH AFRICA:ADVANCING ENERGY SECURITY AND A LOW-CARBON ECONOMYThe Government of South Africa is working with the World Bank to bolster long-term energy security and facilitate the transition to a low-carbon economy through a$1 billion Development Policy Loan

264、(DPL).This financial support represents a significant and strategic response to South Africas persistent energy challenges.The loan will support the restructuring of Eskom,including unbundling and redirecting resources to maintenance and upgrades,and incentivizing private investment in renewable ene

265、rgy,while also fortifying carbon pricing mechanisms.33WORLD ENERGY TRILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER AFRICAworkers through a comprehensive transition plan created with inputs from staff and unions.Affected workers will be transferred to other Eskom facilities and train

266、ed in renewable energy.The positive signals emerging from Africas energy transition,including supportive policies,growing demand,cost reductions in renewable energy,and access to financing,are driving increased private sector financing and investment.In South Africa,changes in the Energy Regulatory

267、Authority(ERA)have increased accessibility to renewable energy.In August 2021,the capacity threshold requirement was raised from 1MW to 100MW,resulting in a notable surge in renewable projects related to commercial and industrial(C&I)sectors.And easing licensing and registration requirements has con

268、tributed significantly towards making renewable energy more accessible to businesses and energy-intensive industries,such as mining,as well as a more feasible and strategic investment.POSITIVE SIGNALS AND PRIVATE SECTOR FINANCING Africa has demonstrated a growing commitment to regional cooperation a

269、nd energy diplomacy.The Southern African Power Pool(SAPP),for example,provides a platform for multiple countries to collaboratively manage and share their electricity resources,promoting efficient utilisation and addressing energy challenges collectively.Through improved access to electricity,such i

270、nitiatives enhance energy security and foster economic development.Energy diplomacy underscores a shift towards mutually beneficial relationships,where African countries engage in dialogue and negotiation to optimise energy resources and strengthen regional ties.Despite this progress,challenges of s

271、cale remain,necessitating coordinated efforts at regional and continental levels to achieve widespread and inclusive energy development.The African Union Commission and the African Unions Development Agency(AUDA-NEPAD)are spearheading efforts to create institutional cohesion through the Continental

272、Master Plan(CMP)for electricity generation and transmission.AUDA-NEPAD has also initiated collaboration among the five African Regional Power Pools and has already reached several major milestones in its goal towards a single electricity market.The African Petroleum Producers Organisation(APPO)and A

273、freximbank have established a development financial institution to address the imminent funding challenge that the African oil and gas industry faces in the light of the call to end fossil fuel investments.INSTITUTIONAL LEADERSHIPChinese investments in Africa continue to surpass those from Western c

274、ountries.Since 2013,China has provided substantial loans to African countries under its Belt and Road Initiative,giving China unprecedented access to Africas mineral wealth.In the Democratic Republic of Congo,for example,more than 80%of copper mines are Chinese owned.However,between 2015 and 2022,Ch

275、inese loans declined by 56%.The African Development Bank,the Africa Finance Corporation,the EU,and the US plan to invest more than$1billion to launch a strategic corridor connecting mineral-rich countries,including the DRC and Zambia,to the Atlantic Ocean via Angola to compete with Chinas access to

276、key minerals.This Lobito Corridor project will provide western markets with minerals needed for the EV industry and other important components of the energy transition.Although the primary purpose of this endeavor is to counter Chinas lead in access to rare minerals,the mining and processing activit

277、ies will contribute to Africas economic development.GEOPOLITICAL COMPETITIONREFERENCES1 IEA.(2022).Africa Energy Outlook 2022.IEA,Paris.https:/www.iea.org/reports/africa-energy-outlook-20222 Gil,L.(2018).Is Africa Ready for Nuclear Energy?International Atomic Energy Agency,Vienna.https:/www.iaea.org

278、/newscenter/news/is-africa-ready-for-nuclear-energy 34WORLD ENERGY TRILEMMA 2024ASIAHIGHLIGHTSDriving for energy independence;aging infrastructure challenges;the climate change threat to energy security,leading to increased cooling demand and requiring the future-proofing of infrastructure;global ge

279、opoliticsthe impetus for regional cooperation.ENERGY SECURITYUniversal electricity access within reach for many countries;energy subsidies,the basis of equity in the region;interconnected energy markets and local demand management responses.ENERGY EQUITYGlobal climate governancekeeping the long-term

280、 vision in focus;accelerating the deployment of EVs;the rise of hydrogen.ENVIRONMENTAL SUSTAINABILITYImage from the World Energy Councils Humanising Energy Series featuring Ohmium(India)produced by BBC StoryWorks.Encouraging financing;coal investment and disinvestment.MANAGING THE WORLD ENERGY TRILE

281、MMA35WORLD ENERGY TRILEMMA 2024Figure 16:World Energy Trilemma Index Regional Balance-AsiaSource:World Energy CouncilSource:World Energy CouncilFigure 17:World Energy Trilemma Index Regional Results-AsiaAsias economic ascent over the last decade has been powered by a surge in energy demand,presentin

282、g both formidable challenges and unique opportunities.With the largest number of megacities in the world,urbanisation,industrialisation and demographic changes continue to drive up energy demand.Urban population growth has increased pressures on city infrastructure where,in many cases,the absence of

283、 flexible policy frameworks hinders private investment.Improved connectivity and the rise of the middle class are also increasing energy demand.To meet its burgeoning energy needs,Asia continues to rely on coal.At the same time,it is shifting towards renewables,trying for least cost as well as the c

284、o-benefits of economic diversification while also attempting to fill the gaps in infrastructure.The risks of conflict loom large over the region,with a pattern of interdependencies centered on China and deep dependence on the international economic system and financial markets in particular.With inc

285、reasing climate change risks,climate change adaptation is already on the energy agenda in Asia.Even so,the current pace of the energy transition is slow.Affordability and security dominate,with sustainability regarded as a byproduct of the choices made in addressing the first two,and the overall bal

286、ancing act of the trilemma is subject to upcoming elections.WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER ASIA36WORLD ENERGY TRILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER ASIAENERGY SECURITYLike most regions throughout the world,Asia experienced a profound surge in gas prices

287、 as a result of the Russia-Ukraine war,exacerbating affordability concerns.The security challenges of the region have also been heightened by the security-driven responses of Europe,which have impacted the global LNG market,key to the energy security of Asia.While renewables are rising on the agenda

288、 and are seen as part of the long-term vision for security,the ageing infrastructure is overburdened by catastrophic climate events,and rising temperature is leading to rising demand.Energy diversification is on the agenda for long-term energy independence but remains secondary to economic growth,wh

289、ich requires an exponential rise in energy supply,leading to local coal and gas resources remaining the top choice.The fear of energy shortages has driven a desire for energy independence,slowing down decarbonisation in Asia.In the short term,Bangladesh,Malaysia and Indonesia have increased fossil f

290、uel extraction for LNG and coal-based power generation.At the same time the aspiration for long-term energy independence continues to drive renewable energy generation support.For example,the Philippines has streamlined the permitting process for all new power generation,transmission,and distributio

291、n projects through an online platform for a paperless application and processing system.However,new power generation facilities will be stymied by gaps in transmission infrastructure.While China and Indias power grids enable continued renewable energy deployment,Indonesia and Malaysia lack infrastru

292、cture.Central Asias energy security challenges are intrinsically linked to its aging infrastructure,heavy reliance on hydrocarbons,and geographical constraints,complicating the regions transition to renewable energy.Despite possessing significant deposits of natural resources,the legacy of Soviet-er

293、a infrastructure and the regions landlocked geography pose unique challenges to developing and integrating renewable energy sources.Countries like Kazakhstan,with its substantial hydrocarbon reserves,face the dual challenge of overcoming dependence on fossil fuels and modernising outdated energy sys

294、tems that contribute to high greenhouse gas emissions.Efforts towards energy transition through investments in renewable energy projects and regulatory reforms are evident across the region and in line with commitments to the Paris Agreement.However,the transition is hampered by the need for substan

295、tial upgrades to the existing energy infrastructure to accommodate new renewable energy sources.International financial institutions play a critical role in overcoming these challenges to support the transition.Rapid urbanisation,economic growth,and rising living standards have resulted in a signifi

296、cant increase in Asias energy cooling demand.As temperatures continue to climb due to climate change,air conditioning and refrigeration systems to maintain comfortable and safe indoor environments are becoming more crucial.Extreme weather and climate change impacts on infrastructure are increasingly

297、 posing threats to the regions energy security.In Japan,for example,although the power grid systems were installed in full compliance with the national technical standard,a couple of strong typhoons in 2019 consecutively hit the same area,devastating local high-and medium-voltage power grid systems.

298、The following year,Japans Ministry of Economy,Trade,and Industry revised the standard to make the grid facilities more resilient against higher wind velocities.The WMOs State of Climate Report 2022 has highlighted the rising climate change threats in Asia.While impacts on energy security are now on

299、the agenda,infrastructure roll-out remains the priority,as well as the need for adapting infrastructure standards and specifications in the region.DRIVING FOR ENERGY INDEPENDENCEAGING INFRASTRUCTURE CHALLENGESTHE CLIMATE CHANGE THREAT TO ENERGY SECURITY:INCREASED COOLING DEMAND AND THE FUTURE-PROOFI

300、NG OF INFRASTRUCTURE THE WORLD ENERGY TRILEMMA37WORLD ENERGY TRILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER ASIAGovernment-led regional initiatives,such as the Asia Pacific Energy Cooperation and ASEAN+3,play a pivotal role in addressing energy security challenges.To enhance reliab

301、ility,there is a push for regional and cross-border grids,exemplified by projects like the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project.While China is aggressively pursuing dominance in the manufacturing sector and in supply chains for future energy technologies,including critical m

302、inerals,through initiatives like the Belt and Road Initiative(BRI),Japan and South Korea are adopting a collaborative stance,aligning with the United States to offer an alternative to Chinas regional dominance.Both countries are investing in technological innovation and nuclear energy to reduce LNG

303、import dependency and to foster economic ties with emerging economies through investment in regional projects.Other nations around the South China Sea are also concentrating on energy security and economic growth,seeking to lessen their dependence on China by turning to renewable energy and aligning

304、 more closely with the United States.At the same time,they are attempting to secure safe passage in the South China Sea,develop oil and gas resources,and attract foreign investment.These moves reflect broader strategies to navigate the complex interplay of energy demands,geopolitical ambitions,and t

305、he pursuit of sustainable growth in a region that is critical to the global energy market and international relations.GLOBAL GEOPOLITICSTHE IMPETUS FOR REGIONAL COOPERATIONENERGY EQUITYThe region continues to grapple with the priorities of energy access and affordability despite the strides made by

306、many,including Bangladesh,Indonesia,India,and Philippines.Domestic political turmoil prevents redirection of subsidies from fossil fuels.However,in some parts of the region,rising prices are encouraging progress in demand side management.THE WORLD ENERGY TRILEMMADespite more than 350 million people

307、in Asia and the Pacific facing limited electricity access,with 150 million completely without,there is notable progress towards Sustainable Development Goal 7,which advocates for clean and accessible energy.Countries like the Lao PDR,the Philippines,Thailand,and Viet Nam have made significant stride

308、s towards universal electrification,alongside UNIVERSAL ELECTRICITY ACCESS WITHIN REACH FOR MANY COUNTRIES Image from the World Energy Councils Humanising Energy Series featuring CLP Holdings(Hong Kong)produced by BBC StoryWorks.38WORLD ENERGY TRILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL

309、 CHAPTER ASIASouth Asian nations such as Bangladesh and Sri Lanka.The World Banks tracking indicates a substantial increase in the proportion of the population with basic electricity access.This measurement is coming to be seen as capturing the true impact of energy on economic growth,rising between

310、 2000 and 2020 from 60%to 96%in Central and South Asia and from 92%to 98%in East and Southeast Asia.In spite of this notable progress toward achieving SDG7 in Asia and the Pacific,the COVID-19 pandemic and the Russian invasion of Ukraine have posed significant challenges,with energy prices soaring t

311、o record highs.Increased costs for energy,food,fertiliser,and transport have exacerbated extreme poverty and impeded progress toward universal and affordable energy access,especially in remote and impoverished areas.While market liberalization may enhance energy efficiency,it does not guarantee chea

312、per prices.In countries like Indonesia,Malaysia,and Singapore,removing power subsidies is politically difficult,as is evident in,for example,the delay in the planned liberalization of gas prices in Malaysia.Following Europes exodus from Russian natural gas,prices in the Asian LNG market surged,leadi

313、ng to operational challenges for power companies in importing nations.Demand-side management initiatives,such as Singapores residential demand response program(to be launched by mid-2024)1 and Japanese power utilities reward point system for reducing power consumption during peak hours,aim to involv

314、e residents in addressing challenges of balancing electricity demand and supply,while at the same time making electricity management simpler and more rewarding.In the Philippines,the Energy Efficiency and Conservation Act is designed to manage demand as a way of deferring the need to add energy capa

315、city and related infrastructures,thus contributing to long-term affordability.ENERGY SUBSIDIES,THE BASIS OF EQUITY IN THE REGIONINTERCONNECTED ENERGY MARKETS AND LOCAL DEMAND MANAGEMENT RESPONSESAt COP28,China announced its plan to release both 2030 and 2035 national climate targets in 2025.2 Neithe

316、r China nor India signed the Global Renewables and Energy Efficiency pledge.However,China committed to a bilateral deal with the US in the run-up to COP,which featured accelerating renewable energy deployment and including methane in their next climate action plans.But because this bilateral agreeme

317、nt was crafted by key climate envoys,John Kerry and Xie Zhenhua,the political appointees who succeed them are crucial for determining the continuity,focus,and ambition of this pivotal climate cooperation between the worlds two largest carbon emitters.At COP28,Singapore signed a pledge to triple rene

318、wable energy capacity by 2030 and reiterated its commitment to achieve net zero by 2050.Indonesia reasserted its commitment to achieve net zero by 2060 or sooner,despite nearly 60%of power generation currently coming from coal.The cost for Indonesias coal phase-out and renewables phase-in is estimat

319、ed at$1.2 trillion through 2050.3 At COP28,the Coal Transition Accelerator,to transition away from coal,was launched by France,the European Commission,a number of organisations,and partner countries in Asia,Africa,North America,and Europe.GLOBAL CLIMATE GOVERNANCE:KEEPING THE LONG-TERM VISION IN FOC

320、USTHE WORLD ENERGY TRILEMMAENVIRONMENTAL SUSTAINABILITY39WORLD ENERGY TRILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER ASIASingapore plans to phase out sales of internal combustion engine vehicles by 2030,reflecting a general move throughout the region for the electrification of priv

321、ate vehicles and public transport systems.Both Singapore and Hong Kong provide subsidies to encourage the adoption of electric vehicles.China provides subsidies for manufacturers and producers of New Energy Vehicles.Indonesia is leveraging its vast nickel reserves,crucial for battery production,to a

322、ttract foreign investment as well as offering incentives for investment in EV production and adoption.Thailand has been working on promoting EV adoption through investment incentives,tax breaks,and infrastructure development,aiming to become a regional EV manufacturing hub.High gas prices have incre

323、ased hydrogens importance.The Philippines,India,and Japan are developing hydrogen strategies with usage targets for 2030 and 2050,and the Philippines is exploring hydrogen partnerships for cleaner energy in hard-to-abate industries like chemicals and steel,which are critical to the infrastructure de

324、velopment needed for emerging economies in the region.Australia aims to leverage its abundant resources and proximity to the Asian market to become a hydrogen-exporting country.Japan and Australia have created a partnership to establish a cross-border hydrogen supply chain under the Australian Clean

325、 Hydrogen Trade Program(ACHTP).The worlds first demonstration project for the production and transportation of liquefied hydrogen,the Hydrogen Energy Supply Chain(HESC)Project,is supported by both governments and completed its demonstration phase in 2022.The exploration of hydrogen as a clean energy

326、 source also offers promising opportunities for Central Asia to leverage its renewable energy potential and contribute to global energy security.ACCELERATING THE DEPLOYMENT OF ELECTRIC VEHICLES(EVS)THE RISE OF HYDROGEN Image from the World Energy Councils Humanising Energy Series featuring ACEN(Phil

327、ippines)produced by BBC StoryWorks.MANAGING THE WORLD ENERGY TRILEMMA:CHALLENGES AND OPPORTUNITIESManaging the World Energy Trilemma in Asia requires paying attention to the human context assuring political and social stability through economic growth.Over the past decade,from 2012 to 2022,Asias rem

328、arkable economic development has been closely tied to its unprecedented growth in energy consumption.In 2012,Asias average per capita energy consumption was roughly half the global average,signaling a region at an earlier stage of industrial development compared to more developed economies.But by 20

329、22,the average had risen to 85%a leap that is a story not just of numbers,but of millions lifted out of poverty,of cities expanding,and of industries booming.40WORLD ENERGY TRILEMMA 2024 WORLD ENERGY TRILEMMA REPORT 2024 REGIONAL CHAPTER ASIACHINA:RENEWABLE ENERGY AND ECONOMIC GROWTHINDIA:RENEWABLE

330、ENERGY AND ECONOMIC GROWTH THROUGH PRODUCTION INCENTIVESEconomic development is key to maintaining social order in China.In this context,the energy transition is seen as an opportunity to develop the industries needed for the necessary infrastructure build-up.In 2022 alone,exports of electric vehicl

331、es rose by 131.8 percent,photovoltaic(PV)products by 67.8 percent,and lithium-ion batteries by 86.7 percent.4 Chinese dominance of solar and wind technology manufacturing continues with over 1000 GW of solar module manufacturing capacity projected to be in place by the end of 2024,while projected gl

332、obal demand for solar PV capacity(based on announced policies)will only be 500 GW by 2030.5 China also leads the global market for critical minerals.While there are risks associated with Chinese investments in the mines of Congo,Chile,and Indonesia,Chinas capacity for processing the minerals into pr

333、oducts gives it a distinct advantage.Air pollution is another major challenge,especially because it is a visible aspect of energy policy.While permits for new coal production have been approved,coal is intended primarily to support the reliability of the grid and to maintain the reserve margin.Chinas mandatory cap and trade system currently includes coal-fired power plants and will soon expand to