Security of Clean Energy Transitions
Executive Summary
The global energy sector is undergoing a significant transformation as countries pursue clean energy transitions at varying depths and speeds. The concept of energy security is becoming broader and more dynamic than in the past.
Ensuring uninterrupted and reliable fuel supplies and critical energy-related commodities at affordable prices remains a fundamental policy goal. However, traditional energy security risks persist, while new considerations arise as clean energy transitions progress. As countries aim to reach net-zero emissions by mid-century, energy security will become increasingly important.
In 2021, the IEA's Net Zero by 2050 roadmap highlighted the path to achieving net-zero emissions. Key energy security concerns include:
- Probabilities of Interruptions and Price Volatility: Oil and gas supplies are concentrated in a few low-cost producers with low carbon footprints.
- Shift to Critical Minerals: The need shifts from securing fuel availability to ensuring the supply of critical minerals.
- Electricity Security: Rising electrification places a more central role on electricity security.
Energy Efficiency is crucial for secure clean energy transitions. Significant scaling up of efficient technologies and practices is needed, as energy savings and behavioral changes have lagged behind expectations.
Clean energy transitions to 2030 will rely heavily on variable renewables, particularly wind and solar photovoltaic (PV) power generation. Over the last decade, dramatic cost reductions have enabled record levels of expansion. In 2020, solar PV capacity increased by 135 gigawatts (GW), and wind by 114 GW, despite the dampening effects of the COVID-19 pandemic.
To achieve near-term emissions reductions, priorities include:
- Energy Efficiency
- Solar and Wind Deployment
Recommendations for Security of Clean Energy Transitions
- Prioritize Energy Efficiency: Scale up efforts to enhance and expand efficient technologies and practices.
- Secure Integration of Wind and Solar: Integrate higher shares of variable renewables into power systems.
- Diversify Low-Carbon Generation Technologies: Ensure a diverse portfolio of low-carbon generation technologies.
- Cost-Effective Use of Existing Infrastructure: Leverage existing energy infrastructure cost-effectively.
- Modernize Oil Security Systems: Adapt oil security systems to new realities.
- Prepare for New and Emerging Risks: Address new and emerging risks to energy security, including cyberattacks and extreme weather events.
- Promote Inclusive Transitions: Foster people-centered, inclusive transitions to ensure success.
These principles aim to support effective international collaboration and inform decisions among G20 countries.
