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.
The Global Energy Architecture
Performance Index Report 2016 ranks 126 countries on their ability to deliver
secure, affordable and sustainable energy.
Key Findings from the EAPI 2016 Architecture Report Series
The EAPI 2016 reveals strengths and weakness across regions as major
economies struggle to take the lead
- Analysis of this year’s top performers demonstrate that there are no clear-cut ‘winners’ or perfect energy architectures. The strong scores of the top performers reveal balance across the energy triangle, but room for improvement is still significant.
- High-performing countries are not confined to a single region. The EAPI points to the strengths of countries beyond the usual suspects, with for example Albania (17th) and Paraguay (21st) boasting fully decarbonized electricity generation.
- Low oil prices are forcing or accelerating subsidy reforms to restore fiscal balance in countries reliant on oil revenues.
- The world’s largest economies still struggle to achieve balanced high performance in their energy systems. With the exception of France (4th), none of the 12 largest countries by GDP made it into the top 10 performers.
Diversification to new energy sources is creating new risks and
opportunities that will require market changes and government mechanisms to
ensure security of supply and access
- Expansion of primary energy sources is demonstrated by year-over-year improvements in EAPI scores for diversification of energy supplies in many countries. Denmark, for example, has improved supply diversity by 15%.
- The trend is driven in part by expansion of renewable energy sources. Globally, renewable electric power capacity has skyrocketed this past decade to account for approximately 6% of generation.
- Progress on distributed renewable energy is opening up new avenues for providing access to electricity for people so far deprived thereof.
Digital disruption will bring new complexities to energy security as
well as new benefits
- Big data can mitigate traditional risks by pinpointing areas of risk and vulnerability, and digital technologies are enabling the decentralization and management of energy architectures.
- The convergence of digital and physical infrastructures also creating new forms of insight and control that can enhance energy security
- New capabilities are required to manage a more complex, interconnected energy system, requiring new investment in capabilities for risk protection.
A new distribution of power and energy trade flows will create
challenges and opportunities
- The emergence of giant economies in Asia, accounting for 35% of fuel trades in 2014, and unconventional oil production in North America, which has added over 8 million barrels per day to the market, have led to a re-balancing of supply, demand and power across the world.
- More actors are becoming relevant – non-state organizations, individual citizens, corporations and new coalitions – which could strengthen or threaten international security arrangements.
- Governments shall be receptive to new opportunities and risks to energy security resulting from developments in the energy sector.
- Companies play a critical role because investors, owners and operators of energy infrastructure will be essential to reaping the benefits of new technologies.
- New approaches to governance for physical and technological estates will be required, creating a need for increased collaboration between operators, policy makers and national and international entities
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