The loss of water resources on the planet and its impact have been emerging as a critical energy issue, adding more complexity in developing the new energy structure of a country, a global energy expert said.
“The global energy industry, which once simply cared about ups and downs of oil prices, has become more complicated today as there are so many more issues that are part of the fundamental uncertainty underlying the sector. In addition to the continued fluctuation of oil prices, we are seeing de-linking of oil and gas prices, huge dynamism in the price of renewables, huge uncertainty in the CO2 price,” World Energy Council Secretary General Christoph Frei said in a recent interview with The Korea Herald.
More recently, huge uncertainty in the interdependent systems of water, energy and food resources has made the global energy sector more complex.
“These three sectors are inter-connected. For example, you can’t produce energy without water. Nor can you produce water without energy. Biofuels tap into the same water resources as food production, and so on,” said the former World Economic Forum director, who was responsible for the energy security issue.
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Christoph Frei |
The inter-dependency among the sectors, affected by worsening water shortage in the world due in part to the rising population and climate change, is evolving into a global energy issue, the energy expert stressed.
“With the increasing scarcity of water, there is pressure for energy to be de-linked from the food and water side. For instance, energy infrastructure builders have to think of how to minimize water usage when they build and operate a power plant (for their sustainable growth),” he said.
The issue will be a key item on the agenda in the upcoming World Energy Congress, which will be held in Daegu from October 13-17.
The WEC, hosted by the London-based World Energy Council, a U.N.-accredited global energy body, is the biggest international energy-related event where more than 5,000 delegates, including government officials, industry CEOs and energy experts, gather to debate energy-related issues.
“The upcoming WEC in Korea is timely and special, given that it is held at a time of a tipping point for the global energy transformation,” he said.
“At this juncture, we see many elements in the energy scene are at a critical stage of development or decision-making. For example, we are seeing the de-linkage of oil and gas prices, we are at a crucial point in negotiations regarding the CO2 price and, linked to that, the use or non-use of carbon capture and storage. Also, we are facing the need to re-design institutions for nuclear safety, as well as the integration of China, one of the world’s largest energy consumers, into global energy institutions.”
During the event, the WEC will release results of key energy studies for participants, including a 2013 energy sustainability index for more than 90 countries, which will help participating nations, such as Korea, develop their own stable, affordable and environmentally sound energy framework amid rising uncertainties in the global energy scene.
By Seo Jee-yeon (
jyseo@heraldcorp.com)
