Does energy security depend on fast-tracking renewables and accelerating home-grown production or furthering fossil fuel usage for economic growth?
And, if both approaches are needed, how should governments and companies handle budget allocation?
This big question is being examined from all sides by 60 representatives from governments around the world, plus CEOs from 50 leading companies, who have descended on London for a two-day Future of Energy Security conference.
With the UK playing host, Ed Miliband, UK Secretary of State for Energy and Net Zero, framed the challenge on UK national radio today ahead of the event.
He said the world is entering a new era, and it is clearer than ever that there can be no national security without energy security.
“Fossil fuels will not solve the UK’s energy prices,” he said. “The big picture is … [to break] the link with gas prices that we don’t control. We only get [this shift] by moving to clean power. Unless we get off this rollercoaster of fossil fuels we won’t sort this out.”
Source: IEA
In the conference room in Lancaster House, one leading figure after another stood up to share their insights.
Tommy Joyce, Acting Assistant Secretary of Energy for the US, which is fast-tracking fossil fuel development, said energy security was about “addition not subtraction”.
“Energy abundance results in prosperity and peace abroad,” he said. “But we need to protect ourselves from malign actors.”
Sara Aagesen Munoz, Spain’s Deputy Prime Minister and Minister for the Ecological Transition, said sustainability, affordability and competitiveness were not a trilemma but presented opportunities.
“We need cooperation at European and global level, and innovation,” she said. “Planning means certainty for investors and certainty for civil society.”
Martin Pibworth, Chief Executive designate at utility SSE, said the three things that would help energy security were the mass roll-out of renewables, grid build-out momentum and flexibility.
“The technology is there, and the risk appetite – so it becomes a policy and market challenge,” he said. “We have to see the passing of time as a risk factor – the faster we go, the faster we get there.”
Anders Opedal, CEO of energy major Equinor, said the cost of capital in the supply chain is going up.
“We see an increasing polarisation of energy policies and different technologies,” he said. “I would like to see broad political compromises around technologies in the energy system.
“And my second point is pragmatism. For every dollar we invest in oil and gas, we invest $2 in renewables and CCS. So we need a balanced energy transition.”
Shirley Ayorkor Botchwey, a Ghana diplomat who is Commonwealth Secretary-General, said, “We should never lose sight of the fact that energy security is about people – it’s about education, industry, healthcare, and job creation.”
Fatih Birol, Executive Director of the International Energy Agency, which is co-hosting the event with the UK government, said, “The world is entering a new age of electricity, driven by clean energy technologies and digital innovation. This brings new opportunities but also new vulnerabilities. Diversification of supply – whether it’s oil, gas or critical minerals – remains a golden rule of energy security. We must be prepared to act quickly and collectively.”
Discussions will span a wide range of topics, including resilience of electricity systems in the face of rising demand; growing digitalisation and extreme weather; the role of clean energy technologies in diversifying energy supply and reducing vulnerabilities; and ensuring secure and sustainable supply chains for critical minerals.
The importance of oil and gas security and emergency response capabilities will also be discussed, along with strategies for enhancing investment, efficiency, and resilience across energy systems, and boosting cooperation and coordination across borders, sectors and institutions.
In afternoon keynote speeches, UK Prime Minister Keir Starmer said, “Europe must never be in a position for Russia to blackmail us again on energy security … we are doing more with the EU to make the most of our shared energy system.”
He called on nations to work closer on clean energy, building on the Global Clean Power Alliance launched at the G20 last year.
Ursula von der Leyen, President, European Commission, said its work with the UK is centred around the North Sea, describing it as a powerhouse for future energy.
“It has it all – offshore wind, hydrogen, carbon capture and storage. What is important is not just the resources but the regulatory certainty,” she said. “The investors are ready to start but they need the predictability, so let’s deliver.”
She said renewables now account for 47% of its energy mix and last year installed 78GW of new renewable capacity, enough to power London 16 times over.
“In two weeks, our energy commissioner will present a road map to phase out all imports of Russian fossil fuels,” she said.
