From 22-25 April 2024, all eyes were on Rotterdam as international energy stakeholders convened for the 26th World Energy Congress (WEC). Throughout the four days, leaders explored solutions on key topics including: the energy transition, e-Mobility, infrastructure, funding and alternative fuels.
Global ambitions to reduce emissions have thrown into focus large gaps between existing crucial technologies, infrastructure and investment—and the higher levels we’ll need in the immediate future. In addition, rising energy insecurity and escalating climate change impacts mean we need a deeper grasp of diverse energy systems to ensure a safe and secure energy future.
These were some of the discussions and themes covered at WEC. Below we share valuable insights, which shed light on crucial issues shaping the global energy transition landscape.
Navigating the energy transition:
At the forefront of discussions was the critical role of energy policy and incentives in guiding the global energy transition. It's clear that there is no one-size-fits-all approach; each country and region needs to embark on a unique transition journey shaped by factors such as energy demand, indigenous resources, and financial feasibility. While there's a shared commitment to achieving net carbon zero, regional variations exist, highlighting the importance of tailored transition pathways. Despite the potential of renewable energy sources, significant infrastructure investments are required, compounded by challenges stemming from lagging policy frameworks. Successful policies focus on outcomes rather than specific technologies, but will create incentives for solutions such as electric vehicles and future fuels like eFuels, shipping, and aviation fuels. New Zealand stands out with its advantageous energy mix and abundant resources. However, inflexible policy and regulatory settings risk hindering the pace of the energy transition needed to meet net carbon zero targets.
Empowering stakeholders:
Active consumer and community engagement emerge as linchpins for the success of the energy transition. Regions like Europe, demonstrate promising engagement, driven by concerns over energy security and climate change impacts. However, transitioning to 'all-electric' households requires upfront investments, necessitating efforts to raise awareness and desire among consumers. In New Zealand, enhancing consumer engagement is crucial for ensuring an affordable energy transition, with public support needed for both upfront investments and ongoing costs.
Driving innovation and market adaptation:
Innovation plays a pivotal role in unlocking the 'back end' of the energy transition. Investments in technologies like eFuels, carbon capture and storage, offer potential solutions for bridging existing infrastructure gaps. However, challenges such as sourcing renewable electricity and sustainable CO2 pose hurdles. Collaborative efforts across industries and supportive regulatory environments are essential for fostering innovation. New Zealand can draw valuable lessons from global markets and adapt strategies to suit its own unique circumstances. Compared to the Northern Hemisphere, where there are larger energy disparities and greater availability of risk capital and advanced technology, New Zealand can adopt a strategy of a fast-follower. This means seizing opportunities when renewable technologies become more cost-effective. Aligning incentives across the value chain is also crucial for realising consumer benefits, with regulatory design needed to incentivise flexible electricity supply and address grid congestion.
The above insights underscore the imperative for agile policies, active stakeholder engagement, and innovative solutions to navigate the complexities of the global energy transition. As leaders in the energy sector, it's vital to stay informed, adapt to emerging trends, and collaborate for a sustainable energy future.
How we can help
As the leading advisor to the energy sector in New Zealand, our in-depth experience means we know the sector, the challenges, opportunities, and key players. For us, it's not just about providing the 'right' answers to our clients. Our team of industry specialists remains focused on relationships to help our clients navigate the complex energy transition.
Get in touch to discuss how we can help you navigate and drive meaningful impact in New Zealand's energy transition landscape.
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