The issueThe world’s energy systems are going through unprecedented transition driven by new technological opportunities, policy shifts and change in energy consumption. Change is driven by factors inside and outside of the energy system itself. It has therefore become unusually difficult for governments and companies to anticipate what the energy future holds and to know what actions are required today to thrive in the years ahead. Governments face new challenges and opportunities to ensure energy systems deliver on the triple goals of energy access & security, contribution to economic growth and sustainability. Not surprisingly many governments are undertaking energy reforms as a result. Such reforms must take in to account strengths and weaknesses of national energy systems, specific objectives of improvement and possible trade-offs between them as well as transition costs and benefits. To be successful, reforms also need to cater for possible changes in the regional and global energy landscape. Companies play a vital role in energy system transition and making energy reforms successful through investments and through operation of energy systems. Given more rapid change and higher level of uncertainty on the energy future including potentially game-changing developments - which contrast with traditionally long life-time of energy infrastructure - companies are increasingly challenged to prepare and invest for the future.
How this project will contributeThe Fostering Effective Energy Transition project is part of the World Economic Forum System Initiative on Shaping the Future of Energy. The “Energy Transition Index” builds upon the previous series of “Global Energy Architecture Performance Index” by adding a forward looking element of country readiness for energy transition. The index benchmarks 114 countries on the current level of their energy system performance, and the readiness of their macro environment for transition to a secure, sustainable, affordable and inclusive future energy system. The fact-based framework and rankings are intended to enable policy makers and businesses to identify the destination for energy transition, identify imperatives, and align policy and market enablers accordingly. The next index will be published in March 2019.