Global Energy Architecture Performance Index Report 2015

Industry AgendaGlobal Energy Architecture Performance Index Report 2015 December 2014Prepared in collaboration with Accenture 2Global Energy Architecture Performance Index Report 2015 World Economic Forum91-93 route de la CapiteCH-1223 Cologny/GenevaSwitzerlandTel.: +41 (0)22 869 1212Fax: +41 (0)22 786 2744Email: contact@weforum.orgwww.weforum.orgWorld Economic Forum® © 2014 – All rights reserved.No part of this publication may be reproduced orTransmitted in any form or by any means, includingPhotocopying and recording, or by any informationStorage and retrieval system.REF 261114 3Global Energy Architecture Performance Index Report 2015 Contents4 Executive summary5 Acknowledgements6 The year in energy7 The Energy Architecture Performance Index 20157 Methodology8 Table of rankings 9 Key findings10 Top performers11 Major economies13 Energy reform in major emerging economies: new models for sustained growth13 Building long-term resilience17 Enacting sound policies in solid institutions19 Case study I - The mixed success of India’s Electricity Act20 Case study II - Resource management in Brazil’s oil and gas sector21 Signalling market readiness22 Case study III - Attracting investment into Colombia’s oil and gas sector23 Case study IV - Power sector reform in Nigeria24 Mastering public engagement25 Case study V - China’s air pollution policies26 Case study VI - Subsidy reform in Indonesia27 Architecting competitive energy systems28 Conclusions29 Weights, measures and abbreviations30 Endnotes 4Global Energy Architecture Performance Index Report 2015 A turbulent year for the energy sector, 2014 has been marked by geopolitical crises, stagnating global economic growth, and slow progress in lowering greenhouse gas emissions. Oil prices have displayed significant volatility and declined to levels last seen in 2010. Uncertainty exists in some producing regions, as tensions between the Russian Federation and Ukraine simmer, and the Islamic State of Iraq and Syria (ISIS)1 unleashes turmoil in the Middle East.Policy-makers and businesses are coming to terms with these new dynamics as they seek to adapt energy systems to meet the needs of today and tomorrow, and significant energy reforms are under way in many countries in response to these new imperatives and opportunities. Economic growth and development, sustainability and energy security, and access remain the key pillars of any energy system, and decision-makers require credible information to make complex decisions across these three dimensions.The Energy Architecture Performance Index (EAPI), developed by the World Economic Forum in collaboration with Accenture, aims to provide an additional set of data to help leaders benchmark the current performance of national energy systems, and inform decision-making in the context of the changes under way in the global energy landscape. Launched in 2013, the 2015 index has evolved to include the latest available energy data from 125 countries. Like any index, the EAPI cannot fully mirror the complexity of energy systems or of managing energy transition. It can, however, provide a better basis for comparison across nations and highlight strengths as well as areas of improvements to target.Executive SummaryEAPI 2015 highlightsSwitzerland topped the EAPI this year, scoring highly across all three dimensions of the energy triangle (economic growth and development, environmental sustainability and energy access and security). Most of the top 10 performers on the list are European and/or advanced economies, but the data reveals there is no common path to the top; resource endowment, geographic circumstances, boundary constraints and political decisions all play a role in performance. The findings from analysing the latest data from the EAPI give reason to pause for reflection on the direction the global energy system is taking:– Despite substantial policy efforts worldwide, progress with improving the energy intensity of economies is lagging, especially in emerging and developing economies – the cluster as a whole achieves a score of 0.39 compared to 0.61 for advanced economies.– Transition to a less carbon-intensive energy system is happening, but slowly – over one-third of countries on the EAPI have a percentage of non-carbon sources in total primary energy supply lower than 10%.– Import dependence is growing across many energy systems (although this is being addressed through increased supply diversity, with an average score of 0.69 for this indicator across all countries on the EAPI).– Energy access remains a challenge for a significant number of less advanced economies.The pace of change within the energy system is challenging policy-makers and regulators to keep up and deploy regulation that facilitates the management of their energy sectors. With decisions underpinned by the scores of interconnections between every aspect of the energy system, this is no easy feat.Energy refo