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The Global Energy Architecture Performance Index Report 2014

The Index assesses regions and 124 countries according to economic growth, environmental sustainability and energy security.

Overview

The Global Energy Architecture Performance Index Report 2014 assesses regions and 124 countries according to economic growth, environmental sustainability and energy security performance, analysing the complex trade-offs and dependencies that affect country efforts.

Fundamental transitions across global energy systems are underway, characterized by unprecedented complexity – technology advances and discoveries have opened the doors to a range of energy sources and are changing the way energy is consumed. Markets are increasingly affected by shifts in global demand and supply patterns; all the while energy decisions are being underlined by the urgency of addressing the climate debate. As demand for energy is surging worldwide, the requirement to adopt new approaches and strategies to fundamentally change the energy architecture is a top global priority. The importance of securing a sustainable future is clear.

The EAPI employs a set of indicators to assess and rank the energy architectures of 124 countries. The indicators highlight the performance of each country across the key dimensions of the energy triangle, measuring the extent to which a country’s energy architecture adds or detracts from the economy; the environmental impact of energy supply and consumption; and how secure, accessible and diversified the energy supply is.

Read the report.​​

Background

The EAPI tool was developed in collaboration with a group of energy experts from across the value chain. The Expert Panel has provided input and guidance into the methodology of the index. The tool presented in this report builds on the first edition of the index, published in the Global Energy Architecture Performance Report 2013. Following the publication of the first edition, relevant feedback and areas for improvement were identified and the methodology updated to reflect them.

Key Findings

Norway tops the Index rankings, followed by France and Sweden. The top ten performing countries include Costa Rica, Colombia and New Zealand. 41% of energy supply in the top ten countries comes from renewable and alternative energy sources, compared to a global average of 28%.

Although these countries share the highest performances globally, the top 10 shows that there is no single transition pathway. Each country’s performance is shaped by its specific natural resource endowment, boundary constraints and political decisions.

Analysis

European Union and Nordic countries top the rankings, underscoring the ability of service sector economies to prioritize investment in the development of low-carbon economies and address climate change through renewables and energy efficiency. The drive for sustainability has meant some trade-offs in energy affordability – underpinning the policy debate in Europe as utilities and consumers struggle with pricing and an uncertain policy landscape.

Performance across North America shows contrasting circumstances, from the import and fossil fuel dependence of the Caribbean nations, to the resource wealth of Canada, the United States and Mexico. Costa Rica shows remarkable results. As one of only two upper middle-income countries to rank within the top 10, government strategy driving the transformation of its energy system aims to make Costa Rica the world's first carbon-neutral country, with 99% of electricity output from renewable energy sources.

The Report finds that many developing countries still struggle to supply citizens with basic energy needs, providing electricity to less than 50% of their total population. It also highlights the over-dependence of many energy systems, with 32% of countries dependent on imports to meet more than half of their energy needs.

Authors

The World Economic Forum released the Global Energy Architecture Performance Index Report 2014 prepared in collaboration with Accenture.

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The Global Energy Architecture Performance Index Report 2013

The World Economic Forum in collaboration with Accenture and a panel of experts has released a new report called “The Global Energy Architecture Performance Index (EAPI) Report 2013”. The EAPI benchmarks and ranks 105 countries globally on how their energy system delivers against the imperatives of the energy triangle: promoting economic growth and development, while being environmentally sustainable and providing energy security and access.

Read the full Global Energy Architecture Performance Index Report 2013. [PDF, 11.95 MB]

Key Findings
Findings reveal that high GDP per capita countries are more likely to be able to score well against one or more objectives of the energy triangle and are best managing the transition to a new energy architecture. Norway ranks 1st place on the Index, where a strong energy policy has coupled with multiple energy resources to deliver cheap, plentiful and relatively clean power, and generated large national revenues.

But high-income and rapidly growing countries still have work to do around environmental sustainability, where they generally scored less well. This is due to both a rapidly increasing demand for energy and the global economic slowdown, which has prompted some nations to reconsider renewables obligations and CO2 targets and caution around deployment of new low carbon energy projects with large up-front capital costs.

Developing or highly resource-endowed countries are among the lower scorers as countries face core challenges around energy access, efficiency and sustainability, and continue to struggle to supply citizens with basic energy needs - estimates show that 1.3 billion people worldwide are still without access to electricity at all. The report accompanying the EAPI also considers how some big issues around fossil-fuel subsidy, water use for energy production and effective management of resource wealth need addressing globally.

Recommendations
In a changing global energy landscape, countries are seeking ways to manage the transition to new energy systems that better deliver on these core goals. The EAPI offers a tool for decision makers to monitor the performance of their energy system and a basis for assessing areas to improve.

Canada’s Energy Future

While economically developed and resource-rich, Canada faces increasing pressure to improve the environmental sustainability of its energy system, as detailed in a new report from the World Economic Forum and Accenture.

The Global Energy Architecture Performance Index Report 2014 assesses regions and 124 countries according to economic growth, environmental sustainability and energy security performance, analyzing the complex trade-offs and dependencies that affect country efforts.

Background
The EAPI employs a set of indicators to assess and rank the energy architectures of 124 countries. The indicators highlight the performance of each country across the key dimensions of the energy triangle, measuring the extent to which a country’s energy architecture adds or detracts from the economy; the environmental impact of energy supply and consumption; and how secure, accessible and diversified the energy supply is.

Key Findings
Canada ranks highly, second only to Norway, in terms of energy security given its vast array of resources but receives its lowest scores in environmental sustainability.

Canada also scores in the top quartile for the carbon intensity of its power generation.

Analysis
Oil sands currently account for 98 percent of Canada’s estimated 168.7 billion barrels of reserves. The nation’s oil output is expected to nearly triple to 4.3 million barrels per day by 2035.

The vast economic opportunities created by Canada’s oil sands operations also bring real challenges impacting air quality, water and land.

Various industry and government-led initiatives are identifying new ways to drive environmental performance in Canada through regulation, natural resource management and technology.

Authors
The World Economic Forum released the Global Energy Architecture Performance Index Report 2014 prepared in collaboration with Accenture.

Industry & topics highlighted

Energy Business Process Outsourcing Strategy