Global Energy: Today and Tomorrow

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Director of Programmes

World Energy Council

When discussing energy, it is important to keep in mind that energy is perhaps the most global industry.
Developments in the energy sector of a country or a region on one side of the globe can directly
influence events and developments in countries on the other side of the globe. Moreover, the lead-times
for these developments can be extremely short, a matter of hours or even minutes, as for example is
the case of oil prices. The main energy resources: oil, coal and natural gas are traded on the world
market, and the most serious consequences of energy production and use, such as GHG emissions,
also concern the whole world.

The world’s energy resources, in particular coal, remain abundant and sufficient to meet the growing
demand for energy services. This however does not mean that energy will be cheap. The geographical
distribution of the main energy resources around the world presents an unbalanced picture: the main
energy demand centres and the main energy resources are located in different parts of the world.
Fossil fuels clearly dominate the fuel mix, but hydro and nuclear also play an important role, and
this is hardly going to change in the coming decades.

On the consumption side, the global picture is even more unbalanced. Nearly 1.6 billion people
(or more than a quarter of the world population) do not have access to modern energy services.
Most of these people live in developing countries. It is obvious that future growth in energy demand
will mainly come from developing countries. Today, developing countries account for approximately
35% of global energy consumption, and by 2030, this figure will surpass 50%. Meeting the projected
demand for energy services requires huge capital investments. The International Energy Agency
estimates this requirement to be about 16 trillion US dollars until 2030. Investment decisions and
technology choices will be made mainly on costs considerations, but given the increasing importance
of environmental implications, it is becoming imperative to base investment decisions on a wider range
of factors. Energy systems have long lead times, and do not change overnight. Decisions made today
will form our lives for decades, and it is important that these decisions are based on facts and a proper
economic assessment of available options, not on believes, wishful thinking or politics.

Profile

Elena V. Nekhaev is Director of Programs at the World Energy Council’s (WEC) Secretariat in London
where she is responsible for Technical and Regional Programs as well as the triennial World Energy
Congress-related activities. Ms. Nekhaev holds a BA in Economics from the Tampere University in
Finland and an MBA from the London City University Business School.  Prior to joining WEC in 1995,
Elena V. Nekhaev spent more than ten years with ABB working on various projects in different countries,
mainly in the power generation business area.