Continued uncertainty and volatility – geopolitical, economic and social – will continue to impact energy systems around the world, and influence the decisions governments face in architecting the future energy system. The EAPI can support decision-makers by providing a framework and factual basis for the evaluation of energy challenges.
This year’s EAPI demonstrates that there is no well-trodden path to an energy system that performs well across all three sides of the energy triangle. All economies must confront, to a greater or lesser extent, similar challenges. All countries – regardless of their stage of development – need to understand the influence of each side of the energy triangle in their unique context, and formulate policies accordingly. But emerging economies face some of the most pressing challenges in building an energy system that is more affordable, sustainable and secure.
The global economic slowdown is reshaping the environment in which the transition is taking place, heightening the need for energy reform to secure economic growth and better prepare for the future. Business as usual is not an option to secure the transition to a high-performing energy system. Choosing inaction today is likely to result in deeper challenges in the future.
Successful energy reform is as much about implementation as it is about effective design – strong governance, market effectiveness and public engagement are fundamental. Governments architecting the future energy transition along these principles will reap the rewards in the long term.