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Energy Architecture in Transition
The first definition of “transition” in Webster’s Dictionary is “passage from one state, stage, subject or place to another.” So it’s not difficult to apply this term to the current situation in the world energy order.
One of the key drivers of this transformation is certainly climate change, a global energy challenge that doesn’t just affect the environment, but also has social, economic and political dimensions. The target of limiting global warming to below 2°C by the year 2100 set out in the new Paris Agreement marks this transitional agenda, which must focus on lowering energy intensity, increasing efficiency and, above all, lowering carbon intensity by moving towards the decarbonization of the energy mix through the gradual incorporation of clean energy sources.
The structural changes that must be made by advanced and emerging economies and the energy industry to ensure these targets are met call for well-prepared roadmaps for this transition, as well as sensible energy and industry policies accompanied by coherent regulatory frameworks.
All this will also have an obvious impact on energy prices, new investment needs and other sectors such as land and rail transport and the field of energy efficiency. It will also generate new opportunities arising from the effective decarbonization of the economy, renewable energy, new storage technologies and smart grids. For example, in the European renewable energy industry, economies of localization and scale and the impact of the regulatory framework on costs make it advisable to take a geopolitical approach and maintain a geographic separation between the site of production and the site of consumption. In this context, it is necessary to promote and discuss the advantages of creating an intra-European and extra-European logistics and institutional structure within the framework of the planned Energy Union.
Other high-impact issues in the context of this transition include the drop in global energy prices, particularly due to falling oil prices, and the future role of hydrocarbons. Ongoing discussion is clearly needed about the system used to determine the prices of the world’s energy supply. Oil will remain indispensable as an energy vector for road, air and maritime transport of goods and people for a long time to come. However, natural gas is being called upon to play an increasingly important role in the transition process towards a decarbonized matrix, given that it is a more hydrogenated vector and therefore generates fewer emission units.
The 14th Energy Industry Meeting, which features the slogan Energy Architecture in Transition and is organized in partnership with Deloitte, seeks to reflect on how best to tackle the transformation of the energy system. To achieve this, relevant figures from the business world, experts and academics, along with energy policy makers and regulators at the Spanish, European and global level, will provide a coherent, well-ordered analysis of the topics that are shaping the global energy transition.
IESE Industry Meetings
Date and Venue
February 9, 2017
Camino del Cerro del Águila, 3
The conference languages are English and Spanish. Simultaneous translation will be provided into both languages.