Global Chamber Dhaka Research Desk
nergy transition’ is the term used to describe the ongoing process of moving away from fossil fuels and toward low-carbon energy sources. The industrial revolution was propelled forward by the energy transition from wood and other biomass to coal, then to oil, and, most recently, natural gas. Energy security on the other hand is defined as the constant and inexpensive availability of energy sources. Long-term energy security is primarily concerned with making timely investments to meet energy needs as they arise in line with the state of the economy and the environment.
The energy transition achieves the ideal balance of energy affordability, security, and sustainability. Early indications of the transition’s implications for equity and justice point to the necessity for strong and well-targeted policies to safeguard vulnerable populations and companies from the effect of possible future high energy prices. It is crucial to understand that the energy transition, which can aid in diversifying energy supply with low-carbon energy sources, can be a source of energy security as concerns about energy security in many countries increase. The world needs to ensure energy security to assist other agencies in preparing for and responding to energy emergencies, as well as mitigating the consequences of an emergency. The estimated annual global energy consumption is 580 million terajoules. In 2019, global energy production totalled 617 EJ, a 2% increase over 2018. This increase was primarily driven by coal +2% and +4% natural gas though some renewables increased significantly more in relative terms. Production of hydroelectricity has remained stable at 15 EJ. According to the 2016 International Energy Efficiency Scorecard, Germany continues to lead the world in energy.
In the near term, countries can diversify their import partners’ energy supplies, and in the long term, they can change their energy balance. Energy security offers a chance to accelerate the transition by accelerating investments in clean energy and altering consumer energy consumption patterns. However, it is too early to predict if the globe will reach a turning point in the transformation, which depends on the combined efforts of businesses, governments, and consumers.
