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France : INVESTMENTS of more than $48 trillion needed to meet the world's energy needs

July 5, 2014



Investments of more than $48 trillion (28 trillion) will be needed to meet the world s energy needs by 2035.

The International Energy Agency (IEA) said the current global annual investment of $1.6 trillion (932 billion) needed to rise over the decades towards $2 trillion (1.2 trillion) otherwise there risk of shortfalls.

$23 trillion (13.4 trillion) is needed for fossil fuel extraction, transport and refining and $10 trillion (5.8 trillion) is required for power generation, including renewables, $6 trillion (3.5 trillion) and nuclear, $1 trillion (583 billion). A $8 trillion (4.7 trillion) is required for energy efficiency, around transport and buildings; and $7 trillion (4.1 trillion) for transmission and distribution.

The IEA warns for complex choices to balance energy security, competitiveness and environmental goals, while mobilising private investors and capital.

The investment maintains the reliability of Europe s electricity system, around thermal generation, which is to materialise with the current design of power markets.

The wholesale price for electricity is too low by more than 20%, to incentivise the investment in new thermal plants. If this persists, the reliability of European electricity supply will be put at risk.

The reliability and sustainability of the energy depends on investment. But this won t materialise unless there are policy frameworks as well as stable access to sources of finance.


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Source: TendersInfo (India)


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