Energy security requires cooperation despite national differences: IEA

(London, United Kingdom) — International cooperation is key to strengthening energy security, despite countries taking different routes and strategies towards future energy systems, leaders convening in London at the IEA’s summit on the future of energy security said on Thursday.

“Every country has its own pathway” towards energy security, based on economic conditions and natural resources, “we should understand and respect it…However no country small or big is an energy island, we are interconnected” and “lasting solutions to energy security” are tied to cooperation, the IEA’s executive director Fatih Birol said.

He noted that along with traditional energy security risk, such as disruption to supply chains and geopolitical risks, there were new challenges linked to increased electrification of energy systems and the rise of renewables and EVs, namely the availability and security of supply of critical minerals to support the energy transition.

“Energy security shouldn’t be taken for granted” amid recent crisis such as Covid and Russia’s invasion of Ukraine, he said, adding that the world is facing rising “geopolitical fragmentation.”

The two-day summit is being hosted by the UK government.

“There can be no security without energy security” said UK Secretary of State for Energy Security and Net Zero, Ed Miliband.

“Countries need to collaborate” to secure energy at affordable prices he said, adding that the Ukraine conflict highlights the increasing weaponisation of energy, which exposes countries and citizens to vulnerabilities.

“Energy is central to living standards, job creations, and economic growth,” he added.

“Every country faces its own energy security challenges and constraints” and there are “different pathways for different nations” he said.

“Whatever national pathways, we share the fundamental belief that shared challenges required shared solutions.”

Speaking of the future energy mix, he said “oil and gas will continue to play an important role in our energy system, we really value this industry and the jobs it supports.”

At the same time, in the UK “homegrown low-carbon power is our chosen route to energy security,” including solar and wind power generation, Miliband said.

Electrification of energy systems “is unstoppable” and means investment in network infrastructure needs to be ramped up, the CEO of Iberdrola, Ignacio Galán said.

The Spanish firm is among the largest European energy companies by market capitalisation and a key investor in Europe’s energy infrastructure.

He added that energy companies were faced with regulatory uncertainty, which is discouraging investments.

He noted there was a need for a more favourable regulatory environment and taxation regime, adding that the UK and the U.S. were taking steps in the right direction.

(Writing by Beatrice Bedeschi; editing by Sophie Davies)