World Energy Council Content

23rd World Energy Congress ‘Embracing New Frontiers’ Held under the auspices of the Presidency of the Republic of Turkey

Key Highlights

Istanbul, Turkey, 9 – 13 October 2016 © World Energy Council 2016 | www.worldenergy.org | @WECouncil Table of Contents

1. World Energy Congress – a truly global event 2. The 23rd World Energy Congress in pictures 3. World Energy Council Statement 4. Key Statistics 5. 23 Key Takeaways of the 23rd World Energy Congress 6. Exhibition 7. Exclusive Roundtables 8. Future Energy Leaders’ Programme 9. Future Events

Congress© World Energy photos Council can 2016 be |foundwww.worldenergy.org on the Council’s| @WECouncil Flickr account and Videos of sessions on YouTube 4 “Some people say that since the price slump we should completely redirect energy to cleaner sources. I believe there are no grounds for such far-reaching conclusions…So-called smart grids have helped to speed up the process [of increasing energy access] but at the same time oil and gas consumption is speeding up. India and China’s consumption continue to increase.” - Vladimir Putin, President of the Russian Federation

“We need to be competitive in a very different way than in the past. We need to be open about new ways to do business…. In previous cycles, as an industry, we have let costs drift up when prices are high, then cut back when prices fall. From now on, the challenge is to build—and sustain—businesses that are good through all cycles.” - Bob Dudley, Group Chief Executive, BP

“The first driver of change is always technology, followed by customer desire, governments and regulators come after. Decisions must be localised and brought as close as possible to customers.” - Johannes Teyssen, Chairman and CEO, E.ON

Congress© World Energy photos Council can 2016 be |foundwww.worldenergy.org on the Council’s| @WECouncil Flickr account and Videos of sessions on YouTube 5 Embracing the new frontiers for energy Statement issued by the World Energy Council on 9 October 2016 ahead of the 23rd World Energy Congress

The world is undergoing a Grand Transition driven by a combination of factors including the fast-paced development of new technologies, an unstoppable digital revolution, global environmental challenges and changing growth and demographic patterns. Over the coming years this energy transformation has the potential to change the way in which we produce and consume energy. This will impact operating models and the economic foundation of both nation states and businesses, leading to a rebalancing across sectors and regions with knock-on effects on the wider global economy. The next decade will begin to define the winners and losers of the energy transformation, making it crucial to understand the new realities for the energy sector. 1. From Peak Oil to Peak Demand The new reality: The peak oil debate belongs to the past: the reality is that per capita demand for energy will peak before 2030. Energy intensity reductions supported by primary energy substitution effects are set to increase at a faster rate than the demand increase from a growing global middle class. This therefore shifts the discussion from peak oil to peak demand with anticipated growth limited to only a 20% increase over the next 45 years. This will have significant implications for energy companies in terms of their ability to achieve their growth expectations, which will need to be factored into investment strategies.

2. Spending the Carbon Budget The new reality: We haven’t done enough to decarbonise our economies: the world will have to accelerate the decarbonisation of the global GDP to a rate of 6%/yr in order to remain within the carbon budget associated with 2oC global warming. This will take considerable effort since with current trends we could reach and surpass the carbon budget between 2045 and 2055, even with optimistic assumptions on energy intensity reductions. The Nationally Determined Contributions (NDCs) agreed at COP21 provide about 1/3rd of the required ambition level. Rapid and successful transitioning of global transport to low carbon solutions presents the biggest obstacle or opportunity in achieving climate goals. Current market signals alone are not enough to improve critical areas such as energy efficiency, improved electrical storage, penetration of clean transport and much needed adoption of Carbon Capture, Utilisation and Storage (CCUS). Clear, focused and unambiguous policies and institutional frameworks are required to reinforce a wider deployment of solutions that accelerate the transition and drive consumer choice towards the most carbon and cost effective solutions.

3. From Stranded Assets to Stranded Resources The new reality: Changes in the way we produce energy define a risk for existing assets to end up stranded. But looking ahead we can see a growing number of primary resources, particularly in coal, possibly in oil, remaining unused. While fossil fuels will continue to have a significant role in the energy mix, contributing between half and two third of our energy needs in 2060, coal could potentially only represent 5% in the overall mix. Oil will still be needed for transportation providing over 60% of energy needs but overall oil demand will flatten out. The golden age of gas will continue, with expected output growth between 25% and 70% by 2060. With stagnating growth potential in the oil sector and with coal likely to be of little importance by 2060, there will be a shift in the discussion from stranded assets (predominantly enterprise owned) to stranded resources in oil & coal (predominantly state owned). This has the potential to cause significant stress to the current global economic and geopolitical equilibrium and will need to be part of a broadened carbon and climate dialogue.

© World Energy Council 2016 | www.worldenergy.org | @WECouncil 6 Embracing the new frontiers for energy Statement issued by the World Energy Council on 9 October 2016 ahead of the 23rd World Energy Congress

4. Shifting System Resilience The new reality: We have seen a fourfold increase in extreme weather events over the past 30 years, increasing pressure on use of water in energy production and increasing levels of cyber threat that are all contributing to a new reality for the energy sector. With increasing systems integration, resilience is no longer just about building systems stronger and returning single assets to full operation after a disruptive event. When interdependent systems are blacked out, by extreme weather or cyber-attack, the system as a whole is at risk of being deadlocked. Black-starting capability, decentralised decision autonomy and local empowerment have become key concepts of a new “soft resilience” approach as opposed to the traditional “hard resilience” practice of simply building systems stronger. Operating in this new landscape requires different tools and new approaches to manage risk. 5. A Path of Innovation The new reality: We are beyond the tipping point of a technology revolution in the energy sector. Energy markets are further increasing in complexity, accelerated by fragmented energy policy, fast moving technological innovation, and shifting consumer expectations. New realities are increasingly characterised by growing zero marginal cost supply, low entry barriers, greater focus on decentralisation and local empowerment, digitalisation and commoditisation of technology, more flexible and rapid pay back solutions, increasingly active investors and servicing of emancipated consumers. Solar and wind power will continue their rapid growth with the electrification of energy use an unstoppable trend. As a percentage of total final production, electricity could reach penetration levels by 2060 as high as 30%, with up to 98% coming from non CO2 emitting technologies, a 3-fold increase over the current share with 40% coming from solar and wind technologies alone, representing a 10-fold increase over current share. Current market designs and business models are unable to cope with these new realities and will require entirely new skills-sets, business models and financing solutions. Meanwhile, we will still depend on up to 45% of our generated electricity being provided from fossil fuels supplemented by CCUS. To truly realise the potential, we need more focused Research, Development and Demonstration (RD&D). Coordinated innovation initiatives will be critical to the credibility of the decarbonisation agenda. 6. Changing Global Governance The new reality: The centre of gravity in energy has moved outside OECD countries: China, India and Africa define tomorrow’s agenda for energy and must take their due place in global energy governance. The world is witnessing a trend to more inclusive global energy governance with more global governance tools available than even five years ago: The United Nations have agreed a sustainable development goal on energy (SDG7), the Conference of the Parties (COP) process has achieved a deal in Paris, and organisations such as the IEA have been reaching out to new key energy players, including China. The G20 has energy security on the agenda and the Clean Energy Ministerial is including countries beyond the G20. Meanwhile, many of the substantive agendas remain a work in progress: minimising international tariff and non-tariff trade barriers for clean energy goods & services to enable clean energy deployment; introducing carbon pricing mechanisms to ensure adequate investment signals; reinforcing regional infrastructure integration and market harmonisation measures to ensure effective resources sharing. Focus will be required in this area, along with improved capability to respond sympathetically to increasing public activism, if we are to enable the energy transformation. © World Energy Council 2016 | www.worldenergy.org | @WECouncil 7 Embracing the new frontiers for energy Statement issued by the World Energy Council on 9 October 2016 ahead of the 23rd World Energy Congress

7. Entrepreneurship Driving Access for all The new reality: Progress has been made, but we still have 1.1 billion people without access to energy. The recognition of energy as the 7th development goal by the United Nations has provided additional focus on high impact opportunities as well as the rapid deployment of best technology solutions. The recent rise of innovative and disruptive business models for rural off-grid power solutions is providing a formidable opportunity to places with greatest need in Sub-Saharan Africa or South Asia. The roll-out of these solutions will define key entry points into tomorrow’s markets and are a great contribution to keep equity gaps from increasing. Empowered trade and climate policy will be important for technology transfer to ensure the mistakes of the past are not repeated. Robust policy and institutional frameworks are urgently needed to de-risk and support entrepreneurial approaches and enable them to access large scale investors.

A CALL TO ACTION The Grand Transition is unstoppable and requires a global response and careful management, building on the principles of the Energy Trilemma. A successful energy transformation calls for worldwide political and economic collaboration at an unprecedented scale. Leaders and society need to embrace these new realities and strive for continued innovation while maintaining stable investment frameworks. There will be intense pressure on the three dimensions of the Energy Trilemma as individual countries aspire to improve energy security, expand energy equity and reduce carbon emissions. One-sided focus on selective priorities creates additional tensions and undermines broad political support and the stability needed to encourage investments. Novel approaches will be needed to keep the three dimensions of the Energy Trilemma balanced. Only with positive leadership can we manage the Grand Transition and avoid a low growth, inward looking scenario resulting in a stagnating energy sector.

Governments, business leaders, investors, and society will have to rethink the energy contract and find new ways to avoid deadlocks, allowing for timely decisions and delivery of integrated, effective and efficient infrastructure. Innovative urban planning solutions, adequate resilience response, as well as enabling policies and trade frameworks will all be required. Solutions will not solely come from within energy but energy has a historic opportunity to provide leadership to power the broader industrial revolution.

Adapting to these new realities will require massive effort and our ability to respond will define both winners and losers.

5,500 delegates from 151 countries 4 Heads of State and 56 government ministers from 48 countries 266 speakers from 78 countries 50 sessions over 4 days 5 Community Roundtables, including the CEO, Trilemma Ministerial and Africa Energy Leaders’ Roundtables 75 Future Energy Leaders’ Programme participants from 56 countries 34 sponsors and 1,916 exhibitors 42 media partners and over 1,208 media representatives 134 papers selected & presented / 15 award winners

1. The discussion of peak oil has moved to a 12. Closing the infrastructure funding gap is an discussion of peak demand African energy priority 2. Climate change has become an overarching issue 13. China is charting its course to a low carbon future and acts as a major driver of the energy transition 14. Regional integration is key to balancing the 3. We are beyond the tipping point of a global energy Trilemma, but regional dynamics are very energy transition. It’s time for energy actors ‘to different innovate or die’ 15. Russia and OPEC signal convergence to 4. Global governance must be more inclusive to all cooperate and join common efforts to limit oil stakeholders and new entrants production 5. Off-grid solutions are essential to Africa's energy 16. Commodity prices will continue to be highly future volatile, in shorter cycles 6. Energy efficiency is an area where reality is still 17. Untapped resources in Central Asia continue to falling short of expectations promise both great rewards and challenges 7. The World Energy Trilemma is helping the global 18. Digitalisation drives consumer centred business energy sector to shift priorities towards more models balanced energy mix and more inclusive access 19. Expected demand peaks for coal and oil refocus 8. The rise in solar and wind energy will continue at the discussion from “Stranded Assets” to an unprecedented rate “Stranded Resources” 9. Energy storage solutions are a critical innovation 20. ‘Soft Resilience’ is needed over a hard resilience at the heart of the energy transition approach 10. Natural gas and LNG continue to expand their 21. Resilience of energy systems face new risks as role in the energy mix cyber threat is now a major issue for companies 11. The European electricity market requires a reboot 22. Global demand for nuclear power is expected to to adapt to new energy realities more than double by 2040 23. Ambition remains high for the next generation of biofuels

“We’re going through a time during which supply has outstripped demand. Technology has continued to unlock new sources of supply—notably shale oil and gas in the US. At the same time, global demand “Our own estimates at OPEC are projecting additional growth has slowed from the extraordinary pace of the demand of 17m barrels, taking it to 120m barrels per past 20 years.” day by 2030. We don’t’ see it plateauing—we see - Bob Dudley, Group Chief Executive, BP demand continuing to grow and see a continued underestimate of growth in the developing world.” - Mohammad Barkindo, Secretary General, OPEC “Historically people have talked about peak oil but now disruptive trends are leading energy experts to consider the implications of Peak Demand.” - Ged Davis, Executive Chair, World Energy Scenarios, World Energy Council.

“It’s a huge and inspiring challenge. Climate change changes “The growth of decarbonisation efforts will bring jobs everything and much more than climate, because it is the and improve the quality of life for everyone.” very first time we must meet a global challenge.” - Tufan Erginbilgic, Chief Executive for - Isabelle Kocher, Chief Executive Officer, ENGIE Downstream, BP

“The key to the successful transformation lies in a “I don’t know any energy transition that can be done in a combination of ambition and pragmatism and balancing of decade. It’s also a matter of cooperation… No country climate change, economic and energy priorities. I am on its own can solve this and drive the world in the right confident that our generation will succeed as did our direction.” predecessors, providing the future generation with a more - Doris Leuthard, Federal Councillor, Head of robust, responsible and reliable global energy system” the Federal Department of Environment, Transport, - Khalid Al Falih, Minister of Energy, Industry and Energy and Communications, Switzerland Mineral Resources, Saudi Arabia

“We need to be competitive in a very different way than in “A transformative approach to energy is critical to the past. We need to be open about new ways to do success. Achieving our energy goals, including business…. In previous cycles, as an industry, we have let universal access, energy efficiency and renewable costs drift up when prices are high, then cut back when energy will open a new world of opportunity and prices fall. From now on, the challenge is to build—and investment.” sustain—businesses that are good through all cycles.” - Ban Ki-moon, Secretary General, United - Bob Dudley, Group Chief Executive, BP Nations

“In the UAE we believe one of the pillars of society is clean energy. There is a role for us as government to enable this “From the political side, the system requires constant shift from being purely dependent on fossil fuels to allowing adjustments. Companies, on their part, must be ready to competition from newer forms of energy. We must all make be flexible and change their business models a commitment to it. You need to look at 2050 and think: accordingly.” what is your plan? What energy mix are you aspiring to? - Frank Mastiaux, Chief Executive Officer, We’re trying in the UAE to manage that shift.” EnBW - Suhail Mohamed Al Mazrouei, Minister of Energy, United Arab Emirates

“Countries can share international policies for energy “We have to narrow our focus on how to create efficiency and clean energy development. China wants to sustainable energy accessibility for the world. have an effective global governance framework. We support Diversification will involve new technologies. Financing improving energy governance, energy evaluation and energy the private sector and technology are the key factors.” - efficiency.” - Richard L. Morningstar, Founding Director - Han Wenke, Director General, Energy Research and Chairman, Atlantic Council Institute - NDRC, China

“The challenge of the world today is that governance is “What we are trying to do stabilises the oil price today. If overwhelmed. We have geopolitical crises around Eurasia, oil prices are high, there will be no economic growth. Oil with rising tensions. We have transformative technologies, prices should be reasonable. We need countries and bringing enormous benefits. But we lag behind due to international institutions to cooperate on that.” political governance. We seem to have a decline in - Han Wenke, Director General, Energy democracy. On overreaching issues, balancing security Research Institute - NDRC, China with equity and sustainability is real challenge.” - Sean Cleary, Founder and Executive Vice Chair, Future World Foundation

“It is important that development partners and policy “For renewable energy to succeed, government has to play a makers do not stand in the way of innovation. Kenya is central place to drive innovation and projects… We are fairly light on regulation, which is why a lot of innovation creating incentives, because it is essential to drive the has taken place. The private sector does much better than sector.” government in identifying possible commercial solutions… - Samuel Undenge, Minister of Energy and Power Don’t tax too soon, allow the industry to grow and mature. Development, Zimbabwe Once regulators and policymakers understand that technology and industry do not always develop in a linear fashion, there will be a fusion of demographics, “Technology is moving very rapidly and today we see technologies and finance.” that off-grid solar is often cheaper than connecting - Mugo Kibati, Chairman, M-KOPA Solar consumers to the grid. The number of people for whom it is cheaper to connect off-grid is increasing all the “If we were having a conversation on off-grid power five time… Governments are bad at innovation. When years ago, we would be talking about it as a transitional things become more clear then we can apply thing, now we see that it can actually make a long-term, regulations.” significant contribution.” - Simon Bransfield-Garth, CEO, Azuri - Christina Ulardic, Head of Market Development Technologies Africa, Swiss Re Corporate Solutions

“We are not making enough use of the resources for energy efficiency. This is an issue where more progress definitely has to be shown…For the IEA, energy efficiency is the first fuel.” - Fatih Birol, Executive Director, IEA “Energy efficiency must be tackled with an international approach, not simply with a few applications here and there.” - Pierre El Khoury, General Director and President “Energy efficiency is one of the main issues that we are of the Board, Lebanese Center for Energy concerned with in Mexico.” Flores also explained that Conservation (LCEC) the country’s recent energy reform included integration of clean energy resources, energy efficiency policies and the elimination of subsidies. - Aldo Flores Quiroga, Deputy Secretary of Energy for Hydrocarbons, Mexico.

“The World Energy Congress is one of the most pre-eminent “Energy access and climate change have never been so platforms for action. I commend the World Energy Council high on the agenda as now, following the COP 21 Paris for helping shape a sustainability narrative through the Agreement, the UN Sustainable Energy Goals, and the Energy Trilemma concept” attention accorded these issues by the G20. This shift in - Ban Ki-moon, Secretary General, United Nations energy priorities is bringing greater diversity to the global energy mix, helping to underpin security of supply while increasing sustainability” “The Trilemma index is important for the shift to - Joan MacNaughton, Executive Chair, World sustainable energy. In China, we need a sustainable Energy Trilemma, World Energy Council and balanced methodology, which can be found in the trilemma.” “For policy makers, the Index rankings help structure - Kang Yanbing, Director, Energy Sustainability dialogues on the complex trade-offs in developing and Center, Energy Research Institute – NDRC, implementing energy policy and regulations that will China support secure, affordable and environmentally sustainable energy.” - Francois Austin, Global Energy Practice Leader, Oliver Wyman

“Renewable energy is the only viable option in the power “Renewables are mainstream today and continue to be sector to achieve decarbonisation. In the last few years, we innovative… the industry continues to reinvent itself.” have seen the phenomenal contribution of non-hydro - Jérôme Pécresse, President & CEO, GE renewables, mainly wind and solar” Renewables - Abid Malik, Managing Director Turkey, ACWA power

“We built 25,000 windmills and 26 million solar panels in Germany “Solar and wind power will continue their rapid growth. The between 2000 and today. The key to this is ownership.” Baake integration of these intermittent energy carriers into the citing a shift in the country’s energy landscape with a rate of up to supply system can be seen as just one of these structural 40% ownership in the renewable generation by private citizens challenges.” and farmers. - Hans-Wilhelm Schiffer, Executive Chair, World - Rainer Baake, State Secretary, Federal Ministry for Energy Resources, World Energy Council Economic Affairs and Energy, Germany

“Storage and transportation are priorities. The cost of storing “There is tremendous opportunity for storage in energy is too high, so it is important to design adequate renewables. When cost of storage batteries become policies and mechanisms to implement ESS.” cheaper then these technologies will become widely - Taehee Woo, Vice Minister of Energy and Trade, used.” Korea (Rep. of) - Georges Antoun, Chief Commercial Officer, First Solar “Having renewable energy for reasonable costs has required three components in UAE experience – an economy of scale, “We need more innovation with electric storage for long term commitment from the Government and interconnectivity renewables. Storage prices have come down but we need with neighbouring countries. The next technological progress we to see more focus” need is in solar energy storage to make this technology even - Patrick Graichen, Executive Director, Agora more viable.” Energiewende - Suhail Mohamed Al Mazrouei, Minister of Energy, United Arab Emirates

“In BP we are already around 50% natural gas now and “Gas is a driver of energy transition in Europe. We are heading towards 60% by the end of the decade as new gas still in a good situation for security of supply in Europe. projects come on stream… This is an important shift. This is It’s better than ever.” the age of big gas.” - Klaus Schäfer, Chief Executive Officer, Uniper - Bob Dudley, Group Chief Executive, BP

“The only way to sustain economic growth is through the “In Asia there will be new energy hubs. There will be more combination of gas and renewables… It would be a mistake to customers in the gas market and this will bring a dynamism think of gas as a fuel of the past.” to the market. These changes will make natural gas and - Alexander Medvedev, Deputy Chairman of the LNG more competitive and safe.” Management Board, Gazprom - Shigeru Muraki, Executive Advisor, Tokyo Gas

“It’s not even a question of cost anymore. It’s a question of system integration. We have to create a new market design. Digitalisation will be extremely important as will be integration into the European single market.” - Rainer Baake, State Secretary, Federal Ministry for “There needs to be a clear vision of where the market is Economic Affairs and Energy, Germany going. We need to think about what type of capacity we want. We need capacity and flexibility. When you get high levels of renewables on a large scale and an integrated European system, the potential for faults is “It’s difficult to get results at the regional or European level, higher. It needs to be a very flexible system.” and that is because of national aspects. Every European - Fintan Slye, Chief Executive, EirGrid member state thinks of energy as a matter of national security. That’s a reality.” - Dalius Misiūnas, Chairman of the Board and Chief Executive Officer, Lietuvos Energija

“It cannot be business as usual. We have to build the “In Africa we have all the energy resources we need. We can infrastructure gap quickly in power generation, use coal, gas and renewables. What we need now is transportation and distribution.” investment. To make that happen we need policies, - Simon D’ujanga, State Secretary for Energy, regulations, transparency and of course political stability” Uganda - Elham Mahmood Ahmed Ibrahim, Commissioner, Energy and Infrastructure, African Union “Countries need to take ownership and provide credible leadership and political commitment to address these “It is obvious that with dwindling resources, African states issues. You need to have a long-term plan for reforming cannot close the infrastructure investment gap.” Shehuri your power sector and put your money where your mouth continued that with the continent’s population explosion from is as much as possible.” more than 900 million in 2006 to over 1.2 billion in 2016, “There - Mansur Muhtar, Vice President, Islamic is an immediate need to make energy accessible to all, to Development Bank create employment, empower people and allow investors to get “In sub-Saharan Africa the market has failed to solve the back their returns.” problem. You need a global solution.” - Mustapha Baba Shehuri, Minister of State for Power, - Suleiman Jasir Al Herbish, Director-General, Works and Housing, Nigeria OFID

“China has become the worlds’ biggest energy consumer, “There are a series of developments that are opening accounting for 33% of world oil consumption. It’s carbon the landscape of infrastructure finance and China is at emissions now account for one-quarter of the world total. the centre of this change.” While coal remains the main component of China’s energy - Leslie Maasdorp, CFO, New Development mix, the country is leading the world in low carbon Bank (NDB), China energies—solar, hydro and wind —with more than 40% of global investment in renewables coming out of China alone”. - Kang Yanbing, Director, Energy Sustainability Center, Energy Research Institute – NDRC, China

“We need to act quickly on further integration and build new “Asia is facing very different challenges compared to regional infrastructure. This is not an option but an [North] America and Europe. There, they are facing a obligation…Electricity is absolutely crucial to react to natural grand energy transition. For us we have the challenge of disasters. We need to connect countries together to energy access and energy transition at the same time. eliminate all barriers to be able to deploy appropriate So for us the challenge is much bigger. Regional power answers to these types of situations. Integration is a big interconnection will be one of the ways we can expand opportunity.” energy access and for a low-carbon transition… The - Esteban Albornoz Vintimilla, Minister of Electricity number one barrier to low-carbon cooperation is finding and Renewable Energy, Ecuador financial and economic logic for regional cooperation. Unless both parties are on board nothing will happen.” “It’s very well to build out the picture of integration and - Yongping Zhai, Technical Advisor (Energy), regional cooperation but we also need the financing to get Asian Development Bank there. Building the energy infrastructure all has to be done at the same time as transitioning and improving energy “What is important is interconnection. Interconnecting access.” our countries will bridge the gap for electrification” - Christine Kung-wai Loh, Undersecretary for - Simon D’ujanga, State Secretary for Energy, Environment, Hong Kong SAR Uganda

“In the current economic backdrop, freezing or cutting oil “Freezing of [oil] production is the best way to rebalance production is the only way to sustainably retain it… Russia the markets so we can all decrease the price volatility. It stands prepared to respond and it expects at the next OPEC will help bring investment into the industry and it will meeting in November for an agreement to be reached.” influence the social and economic development of - Vladimir Putin, President of the Russian Federation different countries. That’s why we’re prepared to join this freeze process.” - Alexander Novak, Minister of Energy, Russian “OPEC’s mission is clear. We’ve always said that supply and Federation demand is made up of two factors: market forces and reasonable coordinated action. We continue to believe in an “This is not a question of the economies of oil producers, important role for OPEC in coordinating discussions with other it’s a question of the economy of the world…The world producers, just as central bankers meet to agree on easing economy is waiting for a decision to be taken by the money supply.” world’s oil producers.” - Khalid Al Falih, Minister of Energy, Industry and Mineral - Eulogio Del Pino, Minister of Petroleum, Resources, Saudi Arabia Venezuela

“The stress on everybody’s balance sheets has been huge “If the market weakness continues we think $1 trillion of and we’re just not investing enough…If we don’t invest, investment will be delayed this decade. I’m concerned production will decline by around 5% per year, which is that if this happens I feel global oil supply will fall below huge. There is huge oil-price volatility and not enough demand. If it does it will have a major impact on prices.” investment…The right strategy in the commodities business - Amin Nasser, President & CEO, Saudi Aramco is to invest when prices are low.” - Patrick Pouyanné, Chairman and Chief Executive Officer, Total

“This industry is capital intensive and access to credit is a “The real key to winning is to get into fundamentally big challenge. To have three consecutive years of advantageous resources. As long as you are in the low-cost contraction in investment is a threat to the security of barrels, you can survive in every price scenario.” supply as well as consumption.” - Maarten Wetselaar, Integrated Gas and New Energies - Mohammad Barkindo, Secretary General, Director, Royal Dutch Shell OPEC

“Going forward, the liberalisation of electricity and gas markets must be our ultimate goal.” - Guler Sabanci, Chairman, Sabanci Holding “The Tanap project is a huge investment but it’s successful and we are cooperating with the Turkish government on this… We are also working directly with the EU on $10bn worth of projects, carrying gas to “The Trans Anatolian Natural Gas Pipeline (Tanap) project with Europe and Turkey.” Azerbaijan will form the backbone of the South gas corridor. - Rovnag Ibrahim Abdullayev, President, Turkey is in a good position from a geographic point of view in SOCAR terms of offering the resources of the Caspian region and the Middle East to be transferred through Turkey. It has been working hard to turn these opportunities into projects.” - Binali Yıldırım, Prime Minister, Turkey

“Energy is the industry that has the biggest potential “Digitalisation is important in driving efficiency. Efficiency will for digitalization. Digitalization in energy will create real come from connecting the resources, be it fossil or renewable outcomes for consumers by reducing losses in both resources, the existing assets and the customers and bringing transmission and distribution. It will eventually enable them all together. This is what the world of digitalisation is really users to become producers. I believe it will the single starting to open up. The area we talk about less is how can we biggest enabler in the energy sector’s transformation better integrate all these technologies, grids and towards 2060.” interconnections of people to master the challenges ahead?” - Steve Bolze, President & CEO, GE Power - Willi Meixner, CEO Power and Gas, Siemens

“Hong Kong is setting a carbonless power market “There’s no other way than phasing out coal. It is very target. We are trying to decrease coal’s effect on the clear it needs two-thirds less coal use by 2030 power market from 50% to 25% by 2022. If we compared to 2010 in order to get to the EU’s carbon achieve our energy-saving target in 2020, we will emissions reduction targets. And that means about need fewer coal power plants.” half of the coal plants in Europe will be shut down in - Christine Kung-wai Loh, Undersecretary the next 15 years.” for the Environment, Hong Kong SAR - Patrick Graichen, Executive Director, Agora Energiewende

Black-starting capability, decentralised decision autonomy and local empowerment have become key concepts of a “In Latin America, 54% of energy is generated by hydro- new “soft resilience” approach as opposed to the traditional power. Energy is strongly linked to water for the region, “hard resilience” practice of simply building systems and we have all seen the impact of extreme weather stronger. Operating in this new landscape requires different during el-Niño. Regional integration will help our tools and new approaches to manage risk. countries to mitigate the risks in the region… Latin - Congress Messages from the World Energy America leans on bilateral agreements but we need Council more collaboration and greater integration of systems in “75% of supply in Brazil is based in hydro-power plants; 95% of the region. All of the major efforts in the last decade the time generators will provide more than the assured level of focused on access to energy, but the next step is to energy. Power plants are located in different locations, each with have more reliable systems and regionally integrated different rain patterns, to diversify the risk. It is important to generation systems”. reduce the risk of power plant. Brazil is interconnected with - Claudia Cronenbold, Bolivian Chamber of Uruguay and Argentina, and in a few years South America will be Hydrocarbons and Energy completely interconnected…. We have to optimize not only the energy system but entire systems to be sustainable.” - Jose da Costa Carvalho Neto, former Chief Executive Officer, Eletrobras

“There are two types of companies: ones that have been hacked and ones that don’t know they’ve been hacked… I’ve seen increasing pressure on companies such as utilities to prove cyber security” Everyone is rushing to adopt technologies but standards - O. H. Dean Oskvig, Vice Chair for North America, need to be used and best practices need to be World Energy Council; President & CEO- retired, B&V implemented. It’s important to make sure you have the Energy; Black & Veatch Corporation expertise in-house and not farm it out to someone else. You need to understand it.” - Michael Bell, President, CEO and Member of the Board of Directors, Silver Spring Network “The more data points you have the more able you are to accurately predict that certain systems have certain vulnerabilities.” - Andrew George, Chairman, Energy Practice, Marsh

“The goal in Turkey is for nuclear to provide 10% of our total power generation by 2023, and a third nuclear plant project is on our agenda.” “It can be expected to see a huge success of nuclear energy in - Binali Yıldırım, Prime Minister, Turkey the very near future. It is possible to repeat the success of the previous century in the nuclear energy field.” - Kirill Komarov, First Deputy CEO, Rosatom

We need to gain public support for the future development of nuclear energy, especially in construction, operating and regulation issues. Countries could take advantage of proven “New construction is also at a 25-year high, with 65 designs which lead the way in terms of safety and efficiency to rectors under construction with a capacity of 64GW.” expand the peaceful use of nuclear energy. - Agneta Rising, Director General, World Nuclear - Jeff Benjamin, Senior Vice President, New Plants & Association Major Projects, Westinghouse Electric Company

“Over the past few years [in Nigeria] we have succeeded in convincing the government that biofuels production is needed. Our oil won’t last more than 40 years and our gas won’t last more than 60 years… From now there is going to “The key success is the sustainability issue… Our be a more aggressive uptake of biofuels.” [Jatropha] technology is a revolutionary breakthrough - Abubakar Sani Sambo, Advisor to the President of providing an earth to energy integrated solution made it a Nigeria sustainable energy supply. That is the key success factor.” - Zurina Amnan, Chief Executive Officer, Bionas Everything starts with the climate change issue…Biofuels and biomass energy as a part of renewable industry will survive and will perform a great role in the energy mix.” - Remigijus Lapinskas, President, World Bioenergy Association

The exclusive invitation-only roundtables are organised by the World Energy Council for the global energy leaders’ community to facilitate on-going high-level dialogue on critical issues affecting our energy future. The agenda is built around the issues that keep global energy leaders most awake at night, as identified with the World Energy Council’s Issues Monitor.

Over 70 of the Council’s Patron and Global Partner CEOs and The Trilemma Ministerial Roundtable on 12th October gathered select guests met at the exclusive CEO Roundtable on 11th 60 energy Ministers and Patron CEOs to a high-level dialogue on October. Under the roundtable’s theme ‘A climate of innovation’, ‘Balancing the energy policy trilemma at a time of transition’. the energy leaders addressed topics of ‘Embracing new frontiers: Sessions addressed the most pressing challenges facing energy Critical pathways to the grand transition’ and ‘Innovative business policy makers today, exploring the balancing of needs for models: Is big no longer ‘beautiful’?’ innovation and stable investment frameworks, and ensuring trilemma benefits through regional collaboration and integration.

The Africa Energy Leaders’ Roundtable welcomed 50 African CEOs and Ministers, alongside the CEOs of the Council’s Patron and Global Partner community on Thursday 13th October to a dialogue on ‘Disruptive business models - Energising Africa’. The roundtable explored the opportunities, challenges and enabling policies for developing off-grid solutions in Africa.

The Global Electricity Initiative (GEI) is the international The Global Gas Roundtable hosted some 30 global gas leaders community of electricity industry leaders who convene to assess of the Global Gas Centre on Monday 10th October to an critical findings from the Council’s flagship studies and their exclusive community dialogue on ‘The role of gas in the grand implications for the industry. Scenarios, resilience, renewable transition’. energy integration, regional integration and new business models As a high-level platform to shape the natural gas agenda, the are among hot issues for the sector. Global Gas Centre was established at the beginning of 2015 The Global Electricity Roundtable on Wednesday 12th October with the support of its founding members: ENGIE, OMV, facilitated dialogue among 35 GEI CEO community members Swissgas and the World Energy Council, which also acts as host under the theme ‘Utility 2.0 – New business models and resilience to the organisation. frontiers’.

The Council’s Future Energy Leaders (FEL) form a community of 100 The Future Energy Leaders’ Vision exceptional young professionals who share a commitment to shaping Three key ingredients to embrace the ‘New Frontiers’ of the global energy future. energy:

In parallel to the 23rd World Energy Congress, the Future Energy Taking the Leadership Leaders hosted their own FEL Congress. The integrated four-day Ability of both private and public sectors in taking programme explored various themes from the Future of Hydrocarbons, leadership will determine opportunities. Post COP 21, Smart Innovations and Developing Energy Talents, with 17 world experts including Dr Ibrahim, Commissioner for Energy and Infrastructure at the African Union and Jason Drew, Chief Executive of Adoption to new Business Models AgriProtein. It provided a platform for participants to exchange ideas Business as usual is no longer an option. As energy and network with the FEL Board and participate in one of seven FEL markets become more complex, policies more taskforces including: Climate change: The world of energy after Paris fragmented, and customer behaviours evolve, Agreement; Digitalisation: Impact of digitalisation on the energy innovations will be required to force existing players to industry. examine the way they operate.

During the week they had a chance to discuss and influence CEOs, Human Capital Energy Ministers and Policy Makers and will offer solutions for current Skills and diversity of gender, age, ethnicity, religion, issues concerning the energy landscape. It was also an opportune nationality and sexual orientation are critical to ensure setting to engage with the leaders of tomorrow, as well as highlight the the organisation’s ability to innovate and generate value of the Council’s Future Energy Leaders’ programme to young higher returns. professionals within the energy sector.

Looking ahead, we welcome you at the next series of exclusive global events across the world in 2017

• 21 February : Indaba Energy Leaders’ Dialogue, Johannesburg, South Africa • 16 – 19 May : Asia Regional Meeting, Kuala Lumpur, Malaysia • June (date tbc): World Energy Leaders’ Dialogue, Buenos Aires, Argentina • 11 – 13 September : World Energy Leaders’ Summit, Mexico • 16 – 19 October : Executive Assembly & World Energy Leaders’ Summit, Lisbon, Portugal

The 24th World Energy Congress will take place in Abu Dhabi, UAE, from 8 – 12 September 2019

The World Energy Council network hosts many regional and national gatherings and details can again be found at our website www.worldenergy.org/events/future

Our regular World Energy Strategic studies provide a 360 degrees view of the energy sector. The Council monitors the issues shaping the global energy agenda every year while offering an understanding of what energy resources are available, how national energy and climate policies use them and what do energy scenarios hold in the long term future. • World Energy Trilemma 2016: Defining measures to accelerate the energy transition • 2016 Energy Trilemma Index: Benchmarking the sustainability of national energy systems • World Energy Scenarios 2016 – The Grand Transition • World Energy Issues Monitor 2016 • World Energy Resources 2016

Our World Energy Perspectives reports and studies are based on the expert insights from our network of leaders and practitioners and provide a bottom up assessment of key issues and technologies impacting the energy sector. • The road to resilience: Financing resilient energy infrastructure • The road to resilience: Managing cyber risks • The road to resilience: Managing the risks of the energy-water-food nexus • Unconventional gas, a global phenomenon • Energy Efficiency: A straight path towards energy sustainability • Variable renewable energy sources integration in electricity systems 2016 – How to get it right • Non-tariff measures: Next steps for catalysing the low-carbon economy

For more information on all of our studies and reports, please visit our website at www.worldenergy.org/publications

The World Energy Council is the principal impartial network of energy leaders and practitioners promoting an affordable, stable and environmentally sensitive energy system for the greatest benefit of all. Since its foundation in 1923, the Council has evolved into one of the world’s most influential energy organisations.

Today, the Council is the UN-accredited global energy body, representing the entire energy spectrum, with more than 3,000 member organisations located in over 90 countries and drawn from governments, private and state corporations, academia, NGOs and energy-related stakeholders. We inform global, regional and national energy strategies by hosting high-level events – including the world’s largest all-energy event, the triennial World Energy Congress – publishing authoritative studies, and work through our extensive member network to facilitate the world’s energy policy dialogue.

Through our work, we aim to increase dialogue between the private and public sectors and improve the quality of information available to decision makers.

For more information, please visit our website at www.worldenergy.org