The three dimensions of the Energy Trilemma
ENERGY SECURITY
Effective management of primary energy supply from domestic and external sources, reliability of energy infrastructure, and ability of energy providers to meet current and future demand.
ENERGY EQUITY
Accessibility and affordability of energy supply across the population.
ENVIRONMENTAL SUSTAINABILITY
Encompasses the achievement of supply- and demand-side energy efficiencies and development of energy supply from renewable and other low-carbon sources.
The three dimensions of the Energy Trilemma
WORLD ENERGY TRILEMMA INDEX 2018: REGIONAL OVERVIEWS
NORTH AMERICA: STRONG PERFORMANCE IN FACING NEW ENERGY TRANSITION CHALLENGES
With a rich endowment of fossil, renewable and nuclear resources, the region is characterised by sustained reliability and reasonable energy prices. However, the region faces two main challenges: securing energy supply and ensuring grid reliability whilst addressing challenges connected to transitioning to cleaner sources of energy. The US has energy abundance with new unconventional sources, and renewed a push towards cleaner energy policy at the sub-national level. Canada remains committed to the Paris agreement, addressing reliability and sustainability challenges. Mexico’s incoming government is yet to announce a position on energy and climate change. The region will need to improve the resilience of aging infrastructure especially in the context of demand, extreme weather, and new cyber risks.
EUROPE: COOPERATION IN POLICY MAKING NEEDED TO MAINTAIN STRONG TRILEMMA PERFORMANCE
The European region is characterized by a strong performance on energy sustainability and affordability, while longer-term challenges remain in energy security. The harmonisation of market design will realize the potential of regional integration for successfully navigating the energy transition. The continued development of a common European energy market is impacted by divergence in national regulations that need coordination to avoid mixed signals for market players, for example, to secure suitable investments to integrate electricity markets. Ensuring energy security while digitizing, decarbonizing and decentralising the energy system will require stronger cooperation in regional and sub-regional policymaking.
LATIN AMERICA AND CARIBBEAN (LAC): ENABLING REGIONAL INTEGRATION AND USE OF RENEWABLES
The region has a number of initiatives to increase the diversification of energy sources, increase energy security, and improve energy access and affordability. Policy innovations have allowed development of a regional grid and improved use of renewables. Renewables continue to be an action priority issue to improve energy security, but the region’s existing hydro infrastructure and further potential is challenged by shifting hydrological cycles and extreme weather. A focus on wind and solar is allowing some countries to balance reliance on hydropower and fossil fuels, and also improve rural energy access in a region challenged by wealth inequalities. Further grid integration and energy diversification will support improved trilemma performance.
ASIA: APPLYING MULTIPLE APPROACHES TO MEET RISING ENERGY DEMANDS
A large and diverse region for energy resources and physical, and economic contexts, Asia faces common challenges of rising energy demands, expanding energy access and meeting climate commitments. Countries are exploring a range of options to improve energy trilemma performance including diversification of the energy mix through renewables and energy storage, energy efficiency and a focus on e-vehicles. Renewable energy has nearly doubled in the region in five years with China and India leading the pace. Yet projected reliance on fossil fuels and imports of fossil fuels remains high, impacting energy security and the area continues to explore options for the regional grid and pipeline networks.
MIDDLE EAST, GULF STATES, AND NORTH AFRICA: PRESSURES TO IMPROVE ENERGY SECURITY
Many countries perform strongly in energy access and affordability dimensions but face significant challenges with respect to energy security and environmental sustainability of systems. Countries are challenged by high energy intensity and GHG emissions and a high penetration of conventional energy resources. Combined with increasing water scarcity, if the growing demands for electricity, water, and cooling, are not addressed, Energy Security and Environmental Sustainability dimensions could be threatened even further. Going forward, renewable and nuclear energy programs are expected to be deployed, specifically in the United Arab Emirates, diversifying energy sources, reducing GHG emissions, and improving system resilience.
SUB SAHARAN AFRICA: BOLD ACTIONS AND POLICIES NEEDED TO IMPROVE ENERGY PERFORMANCE
With 46 countries and a population of nearly one billion, the region continues to be greatly challenged in all three aspects of the energy trilemma due to large infrastructure gaps. The existing stock of power infrastructure is also suffering from inefficiencies and insufficient quality of supply to support growing energy demand. To unlock the region’s resource potential and meet future energy demand, the region must take bold and more collaborative actions to attract investment by improving energy policies and the regulatory framework, building institutional capacity and improving its on-grid and off-grid energy supply. Developing more cross-border infrastructure can improve regional resources exchange.
Download full report:
https://www.worldenergy.org/publications/entry/world-energy-trilemma-index-2018