World Economic Forum (WEF) has released the energy transition index 2018

WEF energy transition index

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World Economic Forum (WEF) has released the energy transition index as part of the report titled Fostering Effective Energy Transition. The index ranks 114 countries on how well they are able to balance energy security and access with environmental sustainability and affordability.

Global performance:

• The overall list was topped by Sweden, followed by Norway at the 2nd position and Switzerland at the 3rd rank.
• Other countries on the top 10 include Finland (4th), Denmark (5th), the Netherlands (6th), the UK (7th), Austria (8th), France (9th) and Iceland (10th).
• Among its emerging market peers Brazil stood at the 38th place, Russia at 70th and China at 76th place.

Performance of India:

• India has been ranked at 78th, lower than its emerging market peers like Brazil and China.
• In the Index, India ranks in the third performance quartile and third readiness quartile, making it an emerging country that is approaching the leapfrog category.
• Concerns: Energy needs in the country are primarily met by fossil fuels with implications for environmental sustainability and increasing energy import costs. Furthermore, a considerable share of India’s population still lacks access to electricity and clean cooking fuel.
• Challenges: The Indian renewable energy landscape shows promise, with subsequent renewable energy auctions clearing at prices lower than those in long-term thermal power purchase contracts. However, this has also cast uncertainty on the economic viability of thermal power plants, which account for 58% of India’s primary energy supply.

Way ahead:

Worldwide progress towards environmental sustainability has stalled, while energy prices have risen in real terms in more than half of the countries surveyed despite an overall fall in fuel prices.

India has taken “bold measures” to improve energy access, energy efficiency, and to improve the deployment of renewable sources of energy. However, energy transition in the country will require “large investments, and an enabling environment and robust regulatory frameworks to support the transition”. “India is at the crossroads in its energy transition journey.

Sources: the hindu.