Energy trilemma evolving to reflect new ambitions and threats
(Image credit: WEC0
The World Energy Council’s World Energy Trilemma 2024 report reveals changing ambitions and new challenges facing global energy systems.
The annual review, now in its 15th edition, points to profound changes in global energy systems having been triggered by the demand-driven energy shock in response to the war in Ukraine and the need to evolve energy leadership to accelerate the global energy transitions in all regions.
In particular the three dimensions of the energy ‘trilemma’ – a concept conceived by the World Energy Council (WEC) to reflect progress in the energy transitions and encompassing energy security, equity and sustainability – are evolving to reflect the new ambitions in managing energy for people and planet and the new threat of poly-crises.
Energy security now encompasses the reliability of renewables, availability and accessibility or critical minerals, and resilience in the face of physical and cyber threats.
Energy equity has deepened to include new demands for justice, fairer access to and equitable distribution of clean energy benefits, and energy transitions’ impact on vulnerable communities.
Environmental sustainability has broadened to a holistic concern for planetary health, embracing circular economy principles, the interconnectedness of water, food, and energy systems and the better alignment of decarbonisation efforts with the planet’s ecological limits.
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Dr Angela Wilkinson, WEC Secretary General and CEO, says this latest edition of the trilemma report “demonstrates that how we got ‘here’ won’t get us to ‘there’ when it comes to managing orderly, inclusive and just global energy transitions.
“The world’s first consumer-led energy shock, the materiality of the renewable energy revolution and the continued rise in structural inequalities are red flags to business-as-usual. We manage what we measure. The future of energy is going to be much more demanding, literally!”
Regional patterns
Broken down by region the trilemma report states that North America is addressing its energy trilemma by focusing on infrastructure resilience, community-driven energy equity and environmental sustainability, with the transition towards clean energy propelled by policies such as the Inflation Reduction Act.
Europe on the other hand is currently reassessing its energy strategy with a new focus on security in relation to affordability and sustainability. Its challenge lies in balancing renewable integration, grid variability and technological independence amidst geopolitical and energy sovereignty concerns.
Within Asia, the energy transition is marked by robust demand driven by economic growth amidst climate threats and challenges to infrastructure resilience. Its path is a multifaceted quest for resilience, clean energy and sustainable growth, supported by regional cooperation and private investment.
In Latin America and the Caribbean, the energy future is complex, balancing security, equity and sustainability amidst climate and political shifts. The journey is marked by efforts to balance economic disparities, preserve biodiversity and foster public-private partnerships amidst global energy shifts and the critical need for structural changes.
Similarly, Africa is confronting a critical phase in its energy development, characterised by rising demand, security challenges and a transition towards cleaner energy. The continent faces a delicate balancing challenge between advancing energy equity, particularly in rural areas, and navigating environmental sustainability amidst increasing renewable investments and oil explorations.
Top countries
A goal of the trilemma review is to track progress on a country basis monitor and the top-ranking countries are in the Nordics – Denmark, Sweden and Finland.
Others are Switzerland, Canada and Austria.
Nordic countries stand out for their consistent performance across all indices, highlighting their comprehensive approaches to energy sustainability and strong policy frameworks, with their high scores also reflecting their dedication to addressing broader socioeconomic and environmental challenges, the report says.
These countries also are observed to emerge among the frontrunners in other rankings such as that for the Sustainable Development Goals or the World Economic Forum’s Energy Transition Index.
Energy trilemma index
As a reflection of the evolving times the WEC also has committed to evolving the trilemma index in order to ensure its ongoing usability as a policy assessment tool to support the energy transitions.
This includes extending its use and enabling real-time application through data, new metrics and expanded practical use of the tool beyond countries to regions and cities as a means of energy transition performance management and pathfinding.
In 2020 the WEC started exploring the concept of ‘dynamic resilience’ as a concept of energy security as an integrated approach to risk management that includes adapting to climate change, dealing with physical and digital threats to infrastructure, diversifying energy supply and coordinating energy systems across barriers.
This has assumed even greater urgency now, given recent geopolitical crises, a pandemic and severe disruptions in the global energy system, the report concludes.
Originally published on enlit.world
