Survey Says Global Energy Worries Would Speed Up Transitions

Published on: 09 May 2022
by KnowESG

According to a World Energy Council survey, international energy volatility has led many in the industry to expect faster energy transitions with investment in a diverse energy mix, a desire for governments to be more involved in regulations, and a belief that local infrastructure is critical to resilience and reliability.

Nearly half of the respondents said energy markets would take at least a year to normalise, and 40% do not believe they will return to normal.

The council polled almost 700 international energy sector leaders for its April World Energy Pulse. More than 80% of them believe the European energy crisis has had a direct or indirect impact on their nations' energy supply chains, and 86% believe governments should help reduce energy costs.

According to the poll, respondents consider energy diversification crucial to addressing these problems. Most of the attention was on renewable energy, but oil and gas are becoming more interesting as future energy investments, which is the opposite of what has been happening in recent years.

As a result, more than half of the respondents believe that energy efficiency is the best investment strategy for managing demand in the face of rising energy prices. Integration of smart systems came next. Another focus is energy storage and infrastructure, with the strengthening and extension of the grid being a top goal. Another pressing issue is expanding the clean hydrogen supply chain.

Energy shortages have impacted many parts of the world, particularly Europe, where leaders have attempted to speed up dependable changes, and China, where shutdowns have raised concerns about supply chain challenges.

In 2021, energy costs grew the highest of any commodity utilised across businesses, according to the World Energy Council, and industry leaders are still dealing with the effects of COVID-19 and the current situation in Ukraine.

Most people surveyed wanted increased government participation in energy price and security stabilisation; however, only 21% believe governments have addressed these concerns while planning towards net-zero targets. On a global scale, energy security is the most pressing issue, with a quarter of respondents ranking it as their top priority.

Despite worldwide supply issues, respondents of the study believe that energy distribution and transitions will be managed more by national governments than international cooperation.

More than 35% of respondents believe that energy resilience will become more localised and that local communities will play the most important role in energy leadership alternatives. People see microgrids as an important way to get reliable and flexible electricity to smaller areas.

Many respondents believe that more incentives and subsidies are needed to encourage more localised energy transitions. They also say that the electricity market needs to be redesigned and that renewable energy needs to be separated from the gas.

Source: Environment + Energy Leader