3 ways energy policies can support new technologies: Atlantic Council


New technologies can help energy providers meet the world’s increasing energy demand without compromising emission reduction goals, says Mahmoud Abouelnaga, in his article New Energy Technologies Will Amplify, Not Obviate, the Need for Policy Frameworks, published on the Atlantic Council’s blog, EnergySource. However, these new technologies will need complementary energy policies to succeed on a broader scale.

Mahmoud Abouelnaga lists three ways energy policies can help new technologies succeed.

  1. Developing economies must advance the shift to renewables as an energy source. Developing economies in Asia are driving much of the electricity growth by 2040. Therefore, electricity decarbonisation will play a larger role in lowering greenhouse gas emissions. It is important for the region to make the conscious decision to turn to renewable energy. While renewable energy is now competing on cost alone, many countries will still rely on existing fossil fuel sources for energy unless mandated by policy.
  2. More off-grid solutions and mini-grids are needed. As renewables become a more consistent source of energy, grid extension is no longer the only option for electrification. As technology rapidly develops, off-grid solutions and mini-grids will become a suitable alternative for many countries that do not have the financial capacity to build new infrastructure to expand the public grid.
  3. Regulators need to factor in the zero marginal cost of renewable energy. As technologies improve, renewable energy such as solar and wind are generated with no fuel cost. Policies must therefore be put in place to reform regulatory structures which focus only on the marginal cost of electricity generation. The overall cost of energy supply should be the focus, including the cost of electricity transport and distribution as well as the costs to ensure security of supply.

For more insight into the impact of energy policies, read the full article, New Energy Technologies Will Amplify, Not Obviate, the Need for Policy Frameworks.

Register now for SIEW 2019 to join the Atlantic Council at the SIEW Energy Insights session, “Shifting Gears: The Future of Transportation and Peak Oil Demand” on 30 October 2019. We look forward to seeing you from 29 October to 1 November 2019!


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