Governments and industry should cooperate to solve energy trilemma, say experts

Posted on 16 October 2013

With growing energy demand in Asia and coming challenges in the global market, industry and governments need to work together to find solutions to tackle the “energy trilemma” of energy equity, energy security, and environmental sustainability, said panelists at the opening session of the World Energy Congress on Wednesday.

KKD_3153“There is a lot of common ground between industry and government,” said Jon Drzik, CEO of Oliver Wyman, the international management consulting firm. “Solving the energy trilemma requires a sustainable policy that endures over time, requiring a partnership between industry and government.”

Experts suggested how to approach the energy trilemma, and where the main challenges will come from in the coming decades. “Energy efficiency is at the heart of any solution for Europe and for our energy trilemma,” said Maria Van der Hoeven, Executive Director of the International Energy Agency (IEA)

Experts said that integration could help tackle the energy trilemma, bringing about greater energy security and efficiency. “If you want to change your energy mix, you have to be mindful of the consequences of the region,” Van der Hoeven said, offering the example of Germany. “You can’t do things alone.”

Luis Enrique Berrizbeitia, the Executive Vice Presidnet of the Development Bank of Latin America (CAF), similarly suggested an integrated outlook, drawing on the experience of Latin America. “There are plenty of opportunities to satisfy security needs, especially if we advance on the integration front,” he said. “Integration can bring combined resources of region in an efficient manner.”

He pointed out that the region already has a clean energy matrix drawing on hydropower, with the growing participation of wind and solar, and the region is endowed with resources.

Different regions and nations will face unique challenges in the coming years that will all contribute to the global picture. “Energy access, energy security, climate change are all very important objectives. The size of this triangle is shaped in a different way from region to region and country to country,” said Riccardo Puliti, Managing Director for Energy and Natural Resources sectors at the European Bank for Reconstruction and Development.

“To find a solution, there are global targets, but there are also regional and national targets that contribute to this global target,” he said.

 

This news story is based on the Opening session, “Overcoming the energy policy trilemma”, at the 2013 World Energy Congress.