Energy trilemma index

Nov. 23, 2015
The World Energy Council earlier this month released its annual ranking of countries around the world with the best and worst energy and climate policies.

The World Energy Council earlier this month released its annual ranking of countries around the world with the best and worst energy and climate policies. The so-called Energy Trilemma Index, now in its fifth edition, ranks the countries' energy systems, giving each a score based on how they balance the three dimensions of the energy trilemma: energy security, energy equity, and environmental sustainability.

The best score of an "A" is given for a very high performance. Countries with good results are awarded with a "B" score. High performers receive the score "AAA" while countries that do not yet perform well receive a "DDD" score.

This year's index showed that only two countries out of the 130 listed-Switzerland and Sweden-received a triple-A trilemma score. Norway, the UK, and Austria-in respective positions 3rd, 4th, and 5th-rounded out the top 5 countries on this year's index. The next-highest spots, 6th through 10th, were held respectively by Denmark, Canada, France, Finland, and New Zealand.

This year's index also showed that the number of countries on WEC's negative watch list increased to six in 2015 from four last year due to energy security issues. The two countries added to the negative watch list-which in 2014 included German, Italy, Japan, and the UK-are South Africa, "due to its electricity crisis," and the US, "where lack of investment in ageing infrastructure and exposure to extreme weather events pose threats to the country's currently strong energy security performance in the Trilemma Index," the report said.

Joan MacNaughton, executive chair of the World Energy Trilemma study, said, "Our research underlines how priorities vary from country to country-though energy security is key for all."

The report, says MacNaughton, highlights a real issue for the 21st Conference of the Parties (COP21) due to start later this month in Paris, namely translating the Intended National Determined Contributions from international objectives into national level actions for energy. "The investment required is huge, and driving it to the right places will require a balanced approach if countries are to meet the three goals of the trilemma," MacNaughton said.

To support the United Nations Framework Convention on Climate Change process, the report is being sent to all parties attending COP21 and will form the basis of post-2015 ministerial dialogue, which will take place at the World Energy Congress to be held in October 2016 in Istanbul.

MacNaughton added, "For countries to move up in the rankings and remain ahead of the pack, they must adopt prudent, forward-looking energy policies to meet decarbonization goals and maintain competitiveness. This report provides a map for the long road from Paris to help policymakers and businesses chart a sustainable course."

This year's index

This year's index shows that the best-performing nations tend to be developed countries with higher shares of energy coming from low-carbon or zero-carbon energy sources supported by well-established energy efficiency programs.

The top 5 countries ranked highest for energy security-"the effective management of primary energy supply from domestic and external sources, the reliability of energy infrastructure, and the ability of participating energy companies to meet current and future demand"-were Canada (1st), Denmark (2nd), the US (3rd), the UK (4th), and Ecuador (5th).

The highest ranking countries based on energy equity-"the accessibility and affordability of energy supply across the population"-were the US (1st), Canada (2nd), Luxembourg (3rd), Qatar (4th), and Switzerland (5th).

Countries topping the rankings for environmental sustainability-"the achievement of supply and demand-side energy efficiencies and the development of energy supply from renewable and other low-carbon sources"-were Switzerland (1st), Costa Rica (2nd), Colombia (3rd), Uruguay (4th), and Albania (5th).

MacNaughton said, "The $48-53 trillion needed for investment in global energy infrastructure is increasingly contingent on a clear climate framework and a global target for emissions. It is clear that the energy industry has embraced the sustainability agenda and is working to help curb greenhouse gas emissions."

The World Energy Trilemma report and the Energy Trilemma Index (along with country profiles) are available for downloading at www.worldenergy.org/data/trilemma-index/.