WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 125
PREVIOUS
ARTICLE
Wars are impacting energy systems
Sovereignty is becoming a priority
•
Physical and cyberattacks on vital energy systems are
becoming more and more frequent.
•
•
Energy and utilities players are reinforcing physical and
cyber protections.
Concentration of energy technologies and resources in
China: China now leads all low-carbon technologies markets,
thanks to a very large domestic market combined with low
labor costs and protectionist policies.
•
Governments and regulators are acting to put requirements
for protections in place. For example, the European Union
Network and Information Security 2 (NIS2) policy requires
increased levels of cybersecurity across sectors.
•
Energy markets principles to encourage inward investment
must be reinvented; they must also encourage flexibility to
balance renewables.
•
Protectionist measures are being developed in the USA
and Europe.
NEXT
ARTICLE
HOME
Geopolitical impacts will maintain
uncertainty in energy markets
•
Costs of borrowing are increasing for energy players, where
costs for large clean tech assets (renewables, nuclear,
hydrogen, grids, batteries) represent about 80%+ CAPEX,
20%- OPEX.
•
Commodities and equipment prices are becoming more
volatile and are generally increasing.
•
Investment payback uncertainties are slowing down
investment decisions (FIDs) and project development,
leading to slightly higher energy costs to consumers and a
slower path to decarbonization.
WEMO 2024
The economics of energy are
becoming more volatile
125
11
