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WEF’s global Energy Transition index

Topics Covered: Infrastructure- energy.

WEF’s global Energy Transition index

What to study?

For Prelims: Index- how are countries ranked, India’s performance and performance of other countries.

For Mains: Key findings, challenges and ways to address them.

Context: World Economic Forum has released its global Energy Transition index.

 What is ETI?

The Energy Transition Index (ETI) is a fact-based ranking intended to enable policy-makers and businesses to plot the course for a successful energy transition.

  • The benchmarking of energy systems is carried out annually across countries. Part of the World Economic Forum’s Fostering Effective Energy Transition initiative, it builds on its predecessor, the Energy Architecture Performance Index. The ETI does not only benchmark countries on their current energy system performance, but also provides a forward‑looking lens as it measures their readiness for the energy transition.

Performance of India:

  • India has moved up two places to rank 74th.
  • It has shown improvements on all key parameters of economic growth, energy security and environmental sustainability.
  • Gains have come from a government-mandated renewable energy expansion programme, now extended to 275 GW by 2027.
  • India has also made significant strides in energy efficiency through bulk procurement of LED bulbs, smart meters, and programs for labelling of appliances.
  • India is one of the few countries in the world to have made consistent year-on-year progress since 2015.
  • India’s improvements have come across all three dimensions of the energy triangle — economic development and growth, energy access and security, and environmental sustainability.

Performance of other countries:

  • Sweden has topped the Energy Transition Index (ETI) for the third consecutive year and is followed by Switzerland and Finland in the top three.
  • The US ranks outside the top 25 per cent for the first time, primarily due to the uncertain regulatory outlook for energy transition.
  • The results for 2020 show that 75 per cent of countries have improved their environmental sustainability. This progress is a result of multifaceted, incremental approaches, including pricing carbon, retiring coal plants ahead of schedule and redesigning electricity markets to integrate renewable energy sources.

COVID-19 has unleashed cascading effects in real time:

  • The erosion of almost a third of global energy demand
  • Unprecedented oil price volatilities and subsequent geopolitical implications
  • Delayed or stalled investments and projects
  • Uncertainties over the employment prospects of millions of energy‑sector workers

What does an effective energy transition look like?

Effective energy transition is timely, inclusive, sustainable, affordable and secure. It provides solutions to global energy-related challenges, while creating value for business and society, without compromising the balance of the energy triangle.

Energy_transition_index

InstaThink:

Prelims Link:

  1. WEF- structure, objectives and reports.
  2. ETI- top performers and worst performers.
  3. India’s present vs previous rankings.
  4. India’s per capita energy consumption.
  5. Energy production in India- sources.
  6. Renewable vs nor renewable energy sources in India.

Sources: WEF.