April 2012: A World Economic Forum (WEF) report finds that the energy systems of 124 countries are currently not ready for the transition to a sustainable and secure energy architecture required to harness economic growth.

The report, produced in partnership with the Accenture consulting group, estimates that US$38 trillion of global investment in energy supply infrastructure is required by 2035 to keep up with an estimated 40% rise in energy consumption over the same time span that will come mostly from non-OECD countries.

To assess each country’s performance and progress, WEF created an Energy Architecture Performance Index (EAPI) which is annexed to the report. The EAPI consists of three sub-indices that explore economic, environmental and security objectives, enabling policy-makers to understand the broader consequences of their decisions and the trade-offs they imply.

To better assess common challenges and constraints faced by the countries under study, the WEF grouped countries into four archetypes, those aiming to: rationalize and reorganize mature energy systems; capitalize on significant hydrocarbon resources; grow their energy supply to support economic expansion; and access basic energy services at affordable prices.

The WEF study recommends five steps for government, industry and civil society to take in order to enable an effective transition and meet the challenge of realizing the needed new energy architecture. First: of particular relevance to OECD countries, they need to understand the trade-offs being made in driving change, to reduce economic impacts of ramping down legacy energy infrastructure. Second: social, domestic and regional physical and other boundary constraints must be taken into account when planning new architectures. Third: ensure appropriate benchmarking and monitoring to ensure progress transparency for policy and investment decisions. Fourth: take lessons from the successes and failures of archetype countries to improve understanding of the costs and benefits of various transition strategies. And lastly: ensure enabling environments are mutually supportive by basing them on the four pillars of policy initiatives, technology and infrastructure, market structures and human capacity. [WEF Press Release] [Publication: New Energy Architecture: Enabling an Effective Transition]