Energy security

Energy security refers to a nation’s ability to access an adequate energy supply at an affordable price, which plays a pivotal role in economic resilience, both for corporations relying on stable input prices for their business models, as well as residents seeking an economy offering essentials such as electricity at reasonable costs.

Governments can increase energy security by diversifying their sources of energy – renewables in particular – while decreasing dependency on imported fossil fuels. Diversifying may help smooth out shocks to one source of energy by using another; and decrease geopolitical risks that lead to disruptions of global energy markets.

Energy efficiency also provides energy security by decreasing overall fossil fuel demand such as oil and gas, helping countries meet their energy transition goals faster through import reduction and import substitution strategies. Therefore, governments must create conditions to expedite this process so their efforts result in a secure and sustainable energy system.