Understanding the Future Energy System

Overview

Read “The Future of the Energy System” speech delivered by Arthur Hanna, managing director, Accenture Energy at Sino Foreign Energy Entrepreneurs Roundtable, Nov 4, 2010, Beijing. (PDF, 1.23MB)

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Background

A systematic, interactive forecasting method relying on perspectives from a panel of independent experts was utilized for the study. Experts were chosen on the basis of their knowledge of the topic, and were then asked to answer questionnaires in a number of rounds. More than 130 leaders and academics were surveyed, the majority of whom had a global responsibility within their role.

Key Findings

This study produced seven key findings:

Change is coming quicker than expected.
Climate change will increasingly become the focus of energy policy, driving investment in sustainable energy.
Serious questions remain about the ability of current market structures to support fundamental change in the energy system.
The transition to a low-carbon economy will result in the spread of cap-and-trade schemes; as a result, firms must look to build robust carbon management mechanisms.
Carbon markets must be supported by other forms of fiscal incentive.
Industry and policymakers must look to build open, transparent engagement.
Emerging players will take advantage of the changing policy landscape and will pose a serious threat to existing companies across the value chain.